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As with trading in any market, crypto, stocks, property, hell even Pokémon cards or collectables in general, you need to have a little bit of knowledge about what you’re doing before you dive in feet first. You wouldn’t just jump off a boat into the sea without knowing if sharks frequented those waters, would you? Of course not! Today, we’re going to be taking a quick look at what I would consider the top 5 cryptocurrencies (CCs) for trading, of course, you may be asking yourself “Why would I want to start trading cryptocurrency?” of course this is a question you could ask about any trading market, however before we break down a list we’ll get into why you may want to choose cryptocurrency over any of the other options!
One of the many benefits is that when you’re trading in cryptocurrency in particular, it gives you full control over your money without the need to rely on a bank. We all know how dodgy the entire banking system is right? Having that peace of mind is a solid starting platform for me.
Another positive is that, while some of the more well-known cryptocurrencies like Bitcoin may set you back a pretty penny, at the time of writing this 1 whole bitcoin is worth $16,754.80US, there are many cryptocurrencies around that you can get involved with for as little as $75 US, for example, Litecoin is currently $74.91 US for 1 whole Litecoin, so you’re not stuck by specifics like you would be with property for example, you can dip your toe with $100-250 maybe and see how that goes and work your way up to the big boys in the future. Perhaps my favorite thing though is that there is an ever-growing presence on the internet of retailers allowing you to pay with cryptocurrency, for example, you can use some sportsbooks to trade crypto for cash in betting markets, SportsbookReview has a list of betting sites that allow you to use cryptocurrency and their rating.
Anyway without further ado here’s my list, we’ll break the entries down afterwards.
My Top 5 Crypto Currencies;
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Ripple (XRP)
- Monero (XMR)
So here we go, we’ll take a look at these guys and why you may want to invest in them.
You were probably expecting to see this name on the list, maybe not at the top, however, BTC has been around for over 10 years at this point and it’s probably the most well known, even people with no interest in the tech world know what bitcoin is, one of the things that make this such a good CC for trading is that it has a rather large market cap and trading volume. With it being so popular it is a solid place to look if you’re just getting into trading CCs. It’s worth mentioning that only so many BTC can ever actually exist, 21 million to be exact, there are sill BTC being mined every day but to this day around 18.5million BTC are available, plenty to go around then, however they’re expecting the very last BTC to be mined somewhere around the year 2140, so there’s still potential to get into mining it, however, that’s a story for another day!
Another big name, ETH is the second-largest platform after BTC, by market cap which is going to put it up there as one of the top CCs to get into trading, there isn’t an upper limit supply on ETH, however, compared to BTC, so it tends to get a lot of people interested based on that.
ETH has been around since 2015, in 2016 it split into ETH and Ethereum Classic (ETC) so it’s wise to make sure you pay attention to what you’re doing when trading. Some good news though is that there have been many other uses for ETC outside of just trading, developers have been able to make apps that support the use of ETH through smart contracts allowing it to be used for many things like gaming, voting, and for businesses, etc.
It’s worth mentioning too that Ethereum 2.0 is set to launch in December so it’s something to keep your eyes on.
LTC may not be as well known as the other names above it, but it is still considered one of the top 20 biggest CCs by its market cap, it is basically an alternative or an ‘altcoin’ to BTC. It is still growing to this date even though it was created in 2011. It may be a lot cheaper per coin that BTC however LTC has a supply limit of 84 million, which is many more than BTC, this being one of the cheaper CCs makes it a really solid starting point before you get into the big boys.
Ripple is one of the oldest names in the CC game, it was first released in 2012! Because of the fact it was one of the originals that helped revolutionize CCs as a whole, it’s a rather popular currency to trade. While it isn’t really targeted at people like you and me, with its actual CC cost being so low, it’s something that anybody could invest in and keep a little something sat aside, of course your profits aren’t going to go through the roof but in my opinion, this is arguably one you could look into as a beginner since the risk would be minimal, each token at the time of writing this is only $0.2909 US! Like I said, low risk but it gets you into the game, right?
Monero is an altcoin that was launched in 2014, it’s entire focus was on privacy. Because of this, it is actually known as the “one true privacy coin”. This is because it’s not possible to tell where each transaction came from which to some may seem a little fishy. But others absolutely love this, it’s a nice option to have right? Of course with that privacy, you can guarantee it is used widely on the Dark Web, but it is still a solid CC to trade and again, even though it values is still pretty high it’s not as expensive as the big boys so it’s worth dipping into this market before you commit to something more expensive!
So there we have it, that’s what I would consider my top 5 CCs for trading, there’s profit to be had in all these markets if you can play your cards right and do your research before dipping your toes and in this current economic climate due to COVID-19, it’s always nice to have other options for income, right? What are your thoughts on CCs, have you invested in any? Already made your fortune from being an old school BTC investor?