Bitcoin did not merely set the benchmark for virtual assets high, but it also introduced a new wave of digital currencies in the financial segment. Platforms like this App provide the utmost phenomenal features for a bitcoin trader like live trading calls and live customer care support. Bitcoin is the reason behind so many cryptocurrencies existing in decentralized finance.
Subsequently, bitcoin, the first ever successful cryptocurrency, was a lite coin and later came on digital currencies like Ethereum, Binance coin, Solana, and many more. Cryptocurrency investment is an evergreen, profitable venture, but the difficulty arises when an investor is about to invest in the right cryptocurrency for his research.
The selection of the wrong crypto coin can lead to a significant loss of your money. Every cryptocurrency today brings unique and different features, but it’s ultimately your call to invest in the one you think is best for your research. Only proper research can let you succeed in investing in cryptocurrencies.
The first reason you need some specific criteria before investing in any crypto coins is that there are several scams out there who are just trying to lure new investors by offering them shady deals and thus taking advantage of their naivety.
Bitcoin is a decentralized virtual peer-to-peer networked cash protocol based on cryptographic proof that allows for instant and secure payments to anyone, anywhere on the planet.
The use of bitcoin can be considered a future payment method. Nevertheless, Bitcoin remains one of the most influential cryptocurrencies in the world due to its high volatility rate and high market capitalization.
Vitalik Buterin created Ethereum as an open source platform that supports smart contracts and contracts that are not controlled by a central authority or involve third parties. Ethereum is a platform on which users can build decentralized applications.
It was launched in 2012 by Chris Larsen, Jed McCaleb, and Arthur Britto as an open-source developer network that allows anyone to create their virtual currencies and transmit them globally over the Internet with zero charges. Ripple has a market capitalization of $40.3 billion.
Charlie Lee created Litecoin as an open source peer-to-peer Internet currency that allows you to quickly send payments anywhere in the world that supports the Internet.
Dash is a cryptocurrency, and it was launched in 2014. Dash is a peer-to-peer network that allows for instant payments between users. In addition, dash allows for quick transactions which are private and anonymous.
(vi) Tether (USDT):
USDT is a cryptocurrency that is built on the Ethereum blockchain. USDT cannot be mined and is always equal to 1 US dollar. USDT can be exchanged for fiat currencies like the US dollar, euro, or Chinese yuan at any time.
(vii) Binance coin (BNB):
Binance coin (BNB) was launched in 2017 by Changpeng Zhao as an ERC-20 token on the Ethereum blockchain. BNB is used to pay for the trading fees on the Binance exchange and has a market capitalization of $1.7 billion.
(viii) Tron (TRX):
Tron was created in 2017 by Justin Sun as a decentralized cryptocurrency for entertainment purposes. Tron allows content creators to publish, store and own their data. Tron has a market capitalization of $3 billion.
Why should you always prefer bitcoin over cryptocurrencies?
There are several reasons why most investors constantly avoid other digital coins and prefer Bitcoin. Bitcoin has the highest market capitalization, excellent media coverage, liquidity, and robust security and serves as a haven asset during financial crises.
Bitcoin is often compared to gold, not just because it has some similar properties but also because it has a limited supply. This fixed supply makes bitcoin a haven asset for buying and holding for the long run. Therefore, it can be stated as one of the reasons why any cryptocurrency enthusiast should always prefer investing in bitcoin first over any other cryptocurrencies.
An excellent place to start is getting more familiar with what cryptocurrencies are, their objectives, and how they work. To get more familiar with cryptocurrency, you can join a cryptocurrency community or forum where you will get access to information about the digital currency that can help you analyze its features and existing issues.
Considering these points listed above, it is clear that several factors help an investor make the right decision regarding investments in cryptocurrencies.