If you are planning to invest in cryptocurrency for the first time, choosing the right digital money is the most vital decision for you.
Bitcoin is the most popular cryptocurrency with the highest market capitalization, but when it comes to investing, there are other cryptos like Ethereum and Dogecoin too. Before moving on to how to buy ethereum on robinhood, you need to think if investing in cryptocurrency would be the right thing for you. There is a lot of profit potential, but there are associated risks too.
After all, you would be investing your hard-earned money, so everything should be worth it. But if you are certain about investing in crypto, let us find out which will be the most appropriate option for you among Bitcoin, Ethereum, and Dogecoin.
Ethereum
It is the second most popular cryptocurrency, and it also holds the second position in terms of market capitalization after Bitcoin. It is a type of blockchain technology, and here the Ether coin is hosted. You can put your money directly into Ether by buying coins.
You would not want to invest directly into the Ethereum blockchain innovation as there are various available choices. You can either purchase Ether or invest money in the organization that utilizes the Ethereum blockchain.
One of the best things about Ethereum is that it has many more applications apart from being the digital currency. It is the blockchain behind non-fungible tokens or NFTs. It is also the establishment for decentralized money. Ethereum can be considered a great part of the entire blockchain space.
Despite not being as mainstream as Bitcoin, one cannot deny that Ethereum has great potential. It does not have a similar history, which makes it riskier than Bitcoin. But as we all know, the higher risk might give higher returns, so you need to consider that as well.
Bitcoin
One of the main elements that make Bitcoin more appealing to investors is its security measures. It is much safer compared to Ethereum and Dogecoin.
However, there are also risks associated with this digital currency. But when we analyze all of that against the risks associated with other cryptocurrencies, it is observed that Bitcoin still has the upper hand.
The value of all other cryptos move in tandem with Bitcoin, and it is traded more than any other cryptos available in the market.
The main aim of Bitcoin was to establish itself as an equal alternative to the traditional fiat currencies that are backed by the respective countries. Like traditional money, this crypto can be described as a store of value and medium of exchange. However, there are many advantages of Bitcoin, like:
- It has user autonomy.
- Here the transactions are done anonymously.
- Peer-to-peer transactions without any third-party interference.
- It does not incur any banking fee.
- It has a very low transaction fee for international payments.
- The payments are mobile.
Dogecoin
Dogecoin has gained a lot of popularity and increased market capitalization this year. One can easily understand its level of performance by the fact that its prices have surged more than 14500% in the last six months.
It does not have a significant competitive advantage like Ethereum or Bitcoin in the crypto industry as a few merchants accept it dues to its limited utility.Â
The primary reason behind the sore in the price of Dogecoin is its web publicity. It has been backed up by business tycoons like Elon Musk, who have promoted Dogecoin on various social media platforms. But then its effects would not last forever, and if the investment cost does not coordinate with its essentials, it will be on the verge of crashing within some time.
Within the last few months, the prices of Dogecoin have dropped around 40%. Nobody can predict if it will go down or rise in the coming months. It means that investing your money in Dogecoin now is riskier than ever. If you are thinking about putting your money here, invest that amount you can bear to lose.
Conclusion
Investing in any cryptocurrency can be a risky affair. Before investing your hard-earned money, you should thoroughly study it and take the help of experts to understand which one is right for you.
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