After enjoying a very strong start to 2021, the cryptocurrency industry is seeing a lot of new entrants looking to get involved in the market. Among the first choices that these prospective investors need to make is which coins to invest in. All in all, there are thousands of different cryptocurrencies that you can buy and trade.
The two biggest in terms of both market cap and notoriety are Bitcoin and Ethereum. While they are the biggest, they are not the only ones worth your time and money. Concise research through the niche can show you that there are several other coins with strong teams and technology behind them. They are worth considering, too.
But while ETH and BTC are not the only worthy coins to invest in, they are certainly two of the most popular and well-known. So, it is a good idea to familiarize yourself with these two coins. Read on to learn more.
Ethereum is currently the second-largest cryptocurrency in terms of total market cap. Several advantages and benefits go along with investing in Ethereum. The first advantage is that the Ethereum blockchain has many real-world uses. This ranges from building apps to facilitating smart contracts.
This utility will likely help Ethereum remain relevant and become more popular. The platform is also surrounded by much more activity that can excite potential investors, compared to Bitcoin. For example, a recent partnership with Reddit will help Ethereum become more known amongst mainstream individuals.
Also, the popularity of Ethereum relative to other altcoins is another benefit. You would be hard-pressed to find an exchange that doesn’t offer an eth to btc trading pair, and nearly every place that supports Bitcoin is (or will likely soon begin) supporting Ethereum.
Bitcoin is far and away from the largest and most popular cryptocurrency on the planet. One of the main advantages of investing in Bitcoin is simply because it is popular. When many people think of cryptocurrency in general, their minds will go directly to Bitcoin first.
This popularity will always keep Bitcoin at the forefront of any crypto-related news. Also, this popularity has garnered the highest attention from larger investors looking to get into crypto. This cryptocurrency is also far more accepted and understood than many others.
Another advantage of investing in Bitcoin is that it has a much smaller supply than Ethereum and other assets. There will only ever be 21 million Bitcoin, so you don’t need to worry about a ton more being created or mined out of nowhere and tanking their value.
Of course, before you invest in either, there are some things you should know. First of all, note that while both ETH and BTC are the most popular cryptocurrencies, it doesn’t make them any less volatile. They will still go up and down in price by several percentage points daily, which can sometimes be jarring to investors who are not used to that type of movement.
Also, it is important to know that they are both decentralized. In other words, there is no central authority overseeing them or their investment, like with USD or another type of fiat money.
You will also need to know how to go about buying and storing your crypto. Buying crypto is generally easy, as you can simply join an exchange, fund your account and make your trades. Some exchanges may not even require a sign-up, and some can let you buy crypto with a credit card. Once you have purchased the crypto, you will need a digital wallet to store it.
In conclusion, while there is a variety of different coins that could be a worthy investment, two of the best and most well-known ones are Bitcoin and Ethereum. So, they are a logical place to start for new investors.
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