What is the best cryptocurrency to invest in?
Today, it seems impossible to find a person who’s never heard about cryptocurrencies. The crypto market demonstrates tremendous growth over the last decade being the main attraction for more and more investors. And the reasons for this global hype are no surprise: anonymity, accessibility, and independence from financial institutions make crypto coins a much-coveted acquisition. But what is the best cryptocurrency to invest in?
I’ll give you a spoiler: there is no right answer to this question. Anyone who insists that the “X” cryptocurrency is absolutely the best, probably has a very large personal interest in it. The cryptocurrency market is constantly shifting making it difficult for investors to choose the best investment tool. Today, there are over 2,000 altcoins and this number tends to grow. New coins appear in the market every day but most of them are a passing fad and sooner or later they’ll be traded indecently low.
Let’s compare three coins that possess top places when it comes to what the best cryptocurrencies to invest in are:
- Bitcoin (BTC)
- Ether (ETH)
- Dogecoin (DOGE)
Bitcoin is a true pioneer of the cryptocurrency world so it stands apart from all other projects that have appeared later. It is impossible to avoid this coin as it was the first and it forms the basis for the current crypto market being the most recognizable name on it from 2009. This is the first definitely electronic money that functions only as cryptocurrency.
Today, it leaves all its crypto competitors behind and investors often prefer BTC to all the available alternatives thanks to its popularity. As it is not backed by any fiat, so its value depends only on demand for it. It is considered secure and safe from fraud and hacking attacks. It demonstrates a steady uptrend and there doesn’t seem to be a reason to expect that price will drop down anytime soon. The biggest market cap compared to altcoins is another attraction. Its maximum supply is limited and this fact in combination with ever-rising demand ensures the price increase.
These are the advantages of BTC, but what are its disadvantages? The main disadvantage is that the Bitcoin mining process is extremely energy-consuming and it requires equipment that is not cheap. Another problem is that the more community members participate in mining the less profit every participant gets. Of course, you can always buy BTC nearly on every exchange but don’t forget this is the most expensive crypto, and the idea to mint it for “free” looks very attractive for miners. In fact, mining turns out to be time-consuming, tricky and expensive.
Ether is the BTC’s closest rival. It always occupies the second position in any crypto chart. Launched in 2015, ETH is much younger than not only Bitcoin but also hundreds of other tokens, but its potential is beyond dispute. The key to its success is the Ethereum blockchain itself.
Ethereum platform allows to created decentralized applications (DApps) of all kinds for any developer from any country and it works as a decentralized ledger as well. Many ICOs were launched on Ethereum and this option alone sets Ethereum apart from many of the other cryptocurrency projects. Ethereum fuels this ecosystem gaining value. It can be even more profitable to mine Ether instead of Bitcoin as Ether requires less computing power.
Apart from Bitcoin and Ethereum, only a limited number of cryptocurrencies can enjoy substantial gains. Dogecoin seems to be an outsider compared to BTC and ETH. This coin is not as top-ranked as these tokens though it is not a failure as well. It became a focus of attention thanks to celebrities and billionaires like Elon Musk and Mark Cuban and this gave a boost to this coin.
In fact, DOGE doesn’t seem to have a competitive advantage over BTC or ETH. It seems to be a short-term hype but some risky and experienced investors may try to profit from this cryptocurrency boom.
How to pick a cryptocurrency to invest in?
So what can we advise to those who are in search of a better coin to invest in? Choose the cryptocurrency that suits your purposes the best. Bitcoin is a good choice for long-term investments as the most reliable digital asset. It is also the most predictable which makes it suitable for newcomers. If you are going to benefit from the Ethereum ecosystem, don’t ignore Ether. Dogecoin will be interesting for risk-takers.
The cryptocurrency landscape changes quickly though you can always try to take a chance. Who knows, you may eventually find that you became a billionaire investing in BTC, ETH, or DOGE.