Forosla.com - The reason why this investment is favored by many people is because it can be done easily and the potential for profit is high. Not only that, the types of cryptocurrencies on the market are also very diverse.
Talking about the types, you also have to know what can be bought in the market today. So, here is the information you need to start investing in cryptocurrencies.
Learn About Cryptocurrencies
Cryptocurrencies are virtual currencies that are traded digitally. This digital currency cannot be counterfeited due to cryptography. Like real currencies, cryptocurrencies can also be traded.
Some countries even allow buying and selling transactions using one type of cryptocurrency. One example is the purchase of NonFungible Tokens (NFT) in the online marketplace.
However, the Indonesian government does not allow buying and selling transactions using this currency. Some parties also prohibit the use of crypto funds in the purchase and sale of goods. However, you can still use cryptocurrency as an investment tool.
No wonder a number of cryptocurrencies have become excellent for investors lately. So, are you interested enough to start investing in cryptocurrencies?
Crypto Investment Benefits
There is a lot of demand for cryptocurrencies because they provide many benefits to investors. Check out the description of the benefits that you can get when investing in cryptocurrencies.
1. Promising High Return
Almost all cryptocurrencies promise very high returns. In 2020, Bitcoin price increased by 354% in a short period of time. This upgrade outperforms all other investment tools altogether. However, this phenomenon will not happen often, huh.
2. Universal and Unconditional
Cryptocurrencies are global because the whole world knows this currency. you can use it more easily. To buy or become an owner, you can use a pseudonym without having to include personal data.
3. Quick and Easy Purchase
For this, cryptocurrencies cannot be compared with other investment assets. You can buy every kind of digital currency in minutes. This is different from buying stocks and mutual funds which is a longer process.
4. Transparency in the Buying and Selling Process
Every cryptocurrency owner can see the transactions made. However, you still don't know who bought your cryptocurrency when you sold it. you will only be given an anonymous number.
5. Safe and Legal Cryptocurrencies
Owning and investing in cryptocurrencies already has legal certainty. Therefore, you are allowed to buy and sell these cryptocurrencies. Some countries can use this currency to buy and sell in e-commerce.
Also Read: Steps to Know What is NFT?
Popular Types of Crypto
Well, for those who want to start investing, learn about the popular types of cryptocurrencies below.
This coin is the most popular in the world. The reason is, Bitcoin is the first cryptocurrency that appeared in 2009. Bitcoin was introduced through an account called Satoshi Nakamoto.
In just 10 years, the number of bitcoins in circulation in the world has reached 18 million. As of 2022, there are already more than 221 million Bitcoin tokens in circulation. Its total value is now around $1.1 trillion.
The second most popular cryptocurrency is Ethereum. This currency is often used to create or buy NFTs. Therefore, it is not surprising that many cryptocurrency investors own large amounts of Ethereum.
However, its market cap does not exceed $500 billion or half of Bitcoin's value. But many opinions say that this cryptocurrency can continue to grow rapidly after Bitcoin.
3. Binance Coin
This cryptocurrency was developed by binance which operates a cryptocurrency exchange business. Binance Coin is also one of the most popular coins among investors.
The market value of this coin is over 96 billion dollars. Binance Coin is often used to pay transaction fees at lower rates. This currency can also be traded with other cryptocurrencies, such as Bitcoin and Ethereum.
You could say this coin is a cryptocurrency dollar or currency that is often used as a reference whose value must be maintained. This makes Tether a popular cryptocurrency like Bitcoin and Ethereum.
Its market value is $73 billion. The value of Tether is also fairly stable, even outperforming other cryptocurrencies. For this reason, many people recommend Tether for crypto newbies.
This cryptocurrency was launched in 2019, but has been the target of many investors recently. Its capital value is $65 billion.
Initially this currency was created for decentralized financial solutions (DeFi). Solana is used for payments, P2P lending services, stablecoins, and more.
This coin also exists to fight the Ethereum blockchain that many people already have. In other words, Polygon is one of the best cryptocurrency options to use as an investment asset.
Cardano was also created by the founders of Ethereum. The difference is, this coin uses a smart contract that makes the identity of the owner known to the maker. Cardano's current capitalization is $42 billion.
This coin existed in 2012 under the name Ripple which eventually changed its name to XRP. XPR Coin offers a payment method for exchanging real currencies. Its capital value is $39 billion.
This cryptocurrency supports a variety of stablecoins based on real currencies, such as dollars and euros. As for the smart contract for the owner. Terra coin has a market cap of 24 billion.