For the last few years you might have heard a few whisperings going on about cryptocurrency. At that time nobody really knew too much about this whispered word, just that it was going somewhere. Everyone was waiting for it to arrive, to truly try and understand exactly what it was. A few people even began to roll their eyes at the mere suggestion of cryptocurrency, because it seemed to take forever for that real moment of recognition to come.
That moment has arrived, and cryptocurrencies are now enjoying a serious boom in popularity and interest. Despite that however, there are still countless people out there that have a problem really understanding what a cryptocurrency is, and why they are important. What can you use them for? How do you get them? There are many questions on the table, and in order to make a profit from them, use them, and invest in them, you need to really know what it is you’re getting into.
Once you understand what a cryptocurrency is, you immediately see the perks and benefits, but then the second question comes to the fore, which is the best cryptocurrency to invest in? There are several out there, and you need to be clever with your decision, in order to make the right choice that is going to bring you monetary rewards. If you’re struggling to understand the matter of cryptocurrency, check Crypto Investigating Pro, as an online source to answer all your questions and queries.
To give you a quick overview however, let’s discuss what cryptocurrency is, before we move onto discussing the best cryptocurrency to invest in. As with any business or money orientated market, the world of cryptocurrency is constant changing, shifting, and evolving, so be sure to check back regularly to find out the latest news on trends and new cryptocurrencies arriving on the market.
Our Top Pick For Crypto Investment
Invest in Cryptocurrency NOW!
What is Cryptocurrency?
Basically, as the name would partially suggest, cryptocurrency is money, but it is not money that you can see or physically hold, it is digital money, invisible money. Just because this money cannot be seen by the eye doesn’t mean that it’s not important however, because cryptocurrency is just as vital as regular cash, and is used in a similar way, with a few major differences that set it apart.
You have probably heard of Bitcoin, and even if you don’t know what it is, you will know that it is a monetary matter. Bitcoin is a cryptocurrency. A cryptocurrency is a digital money type, which can be used to buy goods and services over a digital network. More and more companies are making payment by Bitcoin or other cryptocurrencies a possibility now, and that shows you just how important this matter has become. Investment and usage has boomed, and new currencies are popping up all the time. Just like you pay online with a credit or debit card, some companies are allowing cryptocurrency users to ‘spend’ their ‘coins’ online, signing off their coins on the register (more on that later), to transfer the funds.
The most popular cryptocurrency, Bitcoin, was established by Satoshi Nakamoto, who found that money could be used digitally, and logged and monitored by using a complicated mathematical formula. It was also noted that there didn’t need to be any central authority who regulated the money, which gave a number of advantages and kept transaction fees at zero. Whilst the use of such cryptocurrencies took a while to finally come to the fore, they have actually been used quietly in he background for many years.
The Advantages of Cryptocurrency
For cryptocurrency to have grown in popularity at the rate it has, and to be continuing to do so, there must be a plethora of advantages. If there was no real use to such a matter, we would all be sticking with cold, hard cash that we can actually see with our own eyes. Let’s explore a few of the main advantages, to be able to really understand the world of cryptocurrency.
- Cryptocurrency is decentralised – There is no middle man involved in any cryptocurrency transaction, and that means no central authority, e.g. a bank. This means that if a bank collapses, there is no issue with any cryptocurrency, and there is no movement on rates, because rates don’t apply to cryptocurrency. Basically, cryptocurrency is governed by the person who has it, e.g. they choose what to do with, and this gives a lot of flexibility. Each transaction is logged on the public ledger (again, more of that later), but the control is in the person’s hands.
- Easy to set up an account – When you go to a bank and try and open an account, it can be a difficult process. These days it is getting harder and harder to open even a regular current account, without even asking for any credit facilities, such as an overdraft. You need to show a whole host of paperwork and proof of identity, and then you may be sent to approval, so you have to wait to find out whether you can even have an account or not. With cryptocurrency this isn’t the case – anyone can sign up and make an address, e.g. Bitcoin address, and this literally takes a matter of minutes to do. No paperwork, no ID, no having to jump through hoops. Cryptocurrency investment is therefor a good option for anyone who has struggled to obtain a bank account.
- There is no chance of hiding any transaction – We will discuss the matter of the public ledger a little later on, but for now you just need to know that very transaction shows up on a public ledger, so cryptocurrency is a totally transparent service, and therefore fraud is extremely difficult to achieve, if not impossible. Having said that, cryptocurrency is also anonymous, which may sound like a contradiction, but actually keeps the person safe, whilst allowing the transaction to be transparent.
- Cryptocurrency is free – There are no transaction fees involved with cryptocurrency, as the entire service is free of charge. Some banks charge for sending money, paying for items, or making transfers, but cryptocurrency doesn’t assign to that rule. All of this is because cryptocurrency isn’t centralised, and therefore doesn’t have to listen to inflation chat, or news on interest rates.
- It’s very fast – You can send money and pay for items within a minute using cryptocurrency, without having to wait days for the transaction to go through or be processed by the third party – because there is no third party to deal with. This means that you can send cash to someone in another country without having to wait days for it to go through – it literally takes around 30 seconds for it to credit on the register and therefore in the other person’s wallet or equivalent.
From these advantages you can see why cryptocurrency is so popular nowadays, and why there are many different forms of cryptocurrency being developed all the time. Of course, some are more reliable than others, and that is why it is important to know which particular type of digital cash to invest in, when the time comes for you to jump into the cryptocurrency world.
How do You Use Cryptocurrency?
Now you know what cryptocurrency is and the benefits of it, the next question is how you actually use it. We mentioned that more and more businesses and organisations are accepting this digital form of payment for their goods and services, and this is done as an online payment, literally like paying for something with a credit card or debit card. The benefit is that a cryptocurrency transaction is much faster than a regular transaction.
Every cryptocurrency account has a software type attached to it, something which allows it to be used and stored, e.g. wallet. This is where users sign in and manage their transactions, and this is where money can be sent easily from place to place. Once your currency has left you, it is gone, cannot be used again, and is then in the other person’s possession. Rather than entering card details, the person signs off the transaction on the public ledger. The risk of spending the same currency twice is zero, because cryptocurrency is so transparent and is governed by a public ledger attached to each type of cryptocurrency. Let’s explore this now, to hep you understand how cryptocurrency is recorded.
All About the Public Ledger
The public ledger holds information on every single cryptocurrency, who holds it, and prevents it from being owned or spent twice. When someone uses some of their currency, it is ‘signed off’, and this means that the currency has left that person’s possession. The ledger will then show where the currency went and who holds it now. It is impossible to have spent a cryptocurrency and still hold it, or spend it again.
Put simply, the public ledger is like a digital version of your bank statement, only it doesn’t just hold information on your bank comings and goings, it holds it on everyone’s. This is what ensures that a currency cannot be used more than once, because every digital coin is spoken for and signed off on the ledger, and can be checked accordingly.
The Best Cryptocurrency to Invest in
We cannot give you an exhaustive list of all the cryptocurrencies on the scene currently, as there are new ones popping up all the time, such is the fast paced nature of the cryptocurrency world. What we can do however is give you an overview of the most popular and best ones to invest in, with a little information on understanding the background of each one.
Bitcoin & Bitcoin Cash
Of course, Bitcoin is the one that everyone has heard of, even if they don’t totally understand it, and that means that it is the most popular and number one cryptocurrency to invest in. Bitcoin is ever changing and growing, and over the last year or so, it’s prevalence of use has increased by up to eight times. The major perk of using Bitcoin is that this is one of the most widely accepted cryptocurrency, and when we talked about businesses accepting these as payment, Bitcoin is the one which is most widely used and accepted. Of course, Bitcoin is also totally immune to inflation, because a very complex mathematical equation ensures that there are never more than 21 million Bitcoins circulating at any one time.
On the other hand we have a new spin off, called Bitcoin Cash. This innovation is very similar, but it has more potential for growth, because of its block size. At the time of writing, there are around 1 and a half million ‘coins’ circulating, which makes it super valuable for new investors.
If Bitcoin is the most poplar then Ethereum is its fast growing brother or sister. Ethereum is becoming much more prevalent, and it has enjoyed a staggering amount of growth in popularity over the last year. If you are looking to invest in cryptocurrency, then Ethereum could be a better choice than Bitcoin in terms of potential gain; this is because the price of Ethereum cryptocurrency is less than a tiny 1/10 of its more popular family member, making it a cheaper option, with big gains possible in the future, as the currency continues to grow.
Litcoin is another which is growing hugely ever single year, and this is another which works very similar to Bitcoin, in fact it compliments the more popular option very well also. Litecoin is another cheap options for investors, because it isn’t as well known, and that could be a good way into the cryptocurrency world for new investors.
Monero grabbed some huge benefits after the rather questionable AlphaBay was closed down earlier this year. From that Monero exploded, and offers a good option for investors. Monero offers privacy a little differently to Bitcoin, which is what makes it stand apart. The growth has been phenomenal, with a current market value of around $185,000,000.
Our final choice is Ripple, a cryptocurrency that allows users to send transactions literally instantly. Transaction fees are tiny, and there is a fee because Ripple is one of the very few cryptocurrencies which is actually centralised. We mentioned that cryptocurrencies are different because they aren’t governed by a central figure, but Ripple stands somewhere between the two. Several large organisations, such as the Bank of America, now use Ripple, so this is a safe bet for those who are starting out and perhaps not so sure about what to expect in the cryptocurrency world.
How to Choose The Best Cryptocurrency to Invest in
The above five cryptocurrencies are some of the best to invest in at the current time. It’s worth bearing in mind however that the world of digital cash is forever shifting and changing, and that means you should always check up to date trends and news, when the time comes for you to begin investing and using cryptocurrency.
As with any investment, it’s about assessing the level of risk and going for an option that is going to bring you the most gain for your cash. Bitcoin is a safer bet than some other investments in cryptocurrency, but it is also so hugely popular these days, that investors aren’t likely to gain as much back as they would if they went for a lesser known option. Of course, the lesser known option is lesser know for a reason, and that brings the risk. The top five we have mentioned are all huge market leaders, so picking one of these cryptocurrencies it not going to be a huge risk for investors; going outside of this list however should mean plentiful research and checking out before parting with any cash.
Of course, the time to invest really is now, because as cryptocurrency becomes more popular, that also means that more and more people are going to start throwing their cash at them. This also means that more and more businesses are going to use them as a regular form of digital cash, just the same as literal cash and card payments, and then their value is going to fall.
The best advice? Invest now, whilst the going is extremely good!
The Future of Cryptocurrency
With the ever growing level of cryptocurrencies, the chances are that more will arrive on the scene in the coming years. This means that this form of digital payment is certainly not going to show any signs of slowing down for a long time to come, and will probably experience serious boom at some stage soon. With more and more companies accepting cryptocurrency as a serious form of payment, more are sure to catch on very soon, and before you know it, these payment types could be as cash, credit, or debit cards.
For further up to date on the latest developments in the cryptocurrency world, check out Crypto Investing Pro.
Our Top Pick For Crypto Investment
Invest in Cryptocurrency NOW!