Cryptocurrency is an area of investment that is both very in-fashion right now and very complex. There are thousands of currencies on offer, a massive pile of new terms and phrases to learn, and plenty of experts around to give all kinds of different opinions on the best ways of doing things.
If you’re just starting in crypto, all this information can be overwhelming, so we’ve put together a small guide to the basic options you’ll have for starting out in crypto investment.
The ‘Safe’ Option
To be clear from the start, like any other investment of any type, no crypto can be called entirely safe. Values rise and fall almost constantly in small ways, and big events can shift prices dramatically. As ExpressVPN’s blog article shows, even the biggest and ‘safest’ name in crypto, Bitcoin, has been through massive ups and downs in the past thanks to entirely unexpected factors.
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With that in mind, things like Bitcoin are still considered to be on the safer end simply because of the recognition and penetration into the general market. It is easily the most widespread currency currently in circulation and can even be used at many retailers as an everyday payment option. Thanks to this solid base, it has shown resilience in recovery even after drops.
Major Alternatives
Outside of Bitcoin, the list of alternative crypto coins tends to fluctuate a bit more as certain coins come into fashion and others fall out of favor. The most commonly recognized ones would most likely be Ethereum or Litecoin, although the latter has seemingly dropped off in terms of popularity. XRP, TRON, Safemoon and Binance Coin are all in the same category, each with some specialty functions on top of general trading and each with a fraction of Bitcoin’s market value.
Beyond these, there are also a group of different coins known as ‘stablecoins’, with Tether being the most well-known. These are seen as less volatile than other coins due to being tied to traditional fiat currency, in Tether’s case, the US dollar.
The Unusual Options
For every big coin, there are hundreds of smaller coins with a lesser or greater presence in the market. Some are started as jokes, such as the now-famous Dogecoin, while some are small-scale niche projects that don’t make a big impact. These are the coins that inherently come with the most risk as they are the least established and often have the least safety features.
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Some, like Dogecoin, do have the potential to become extremely big, but you only need to look at its ‘cousin’ Shiba Inu to see the opposite end of the scale. These coins are prone to dramatic changes in a short period of time and must always be treated with extreme caution.
Regardless of which option you choose to start with, remember that there’s never any guarantee of a profit or even breaking even when it comes to crypto investments. Always do as much research as possible before you invest for best results.
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