Should I Buy Crypto Now?
From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies out there, which can be overwhelming when you are just getting started in the world of cryptocurrency. For example, established tokens discussed today include things like Bitcoin, Ethereum, and Dogecoin, and more power-efficient cryptos. To help give you some perspective, many of best cryptocurrencies are listed by their market cap, which is the total value of all coins in circulation at that time. Such information might very well be taken for granted, this far into the “game,” given how simple it is now to buy ethereum instantly. If you are already invested in top-tier cryptocurrencies offered on platforms such as Coinbase, and you are looking to broaden your portfolio, the coins near the bottom of my list may be good for you.
Bitcoins explosive rise in popularity has led to dozens of other cryptos growing as well. Beyond this, the realm of cryptocurrency has expanded tremendously since bitcoin was launched more than a decade ago, and tomorrow could see the launch of the next big digital token. As it stands though, bitcoin is the easiest crypto to acquire, not only through currency exchange but also via websites that act as a bitcoin faucet and reward crypto for completing certain tasks. But overall, the rise in different kinds of cryptocurrencies has become somewhat of a phenomenon.
That is because Bitcoins relative stability (BTC) has generally led to every cryptocurrency investor buying a bit of Bitcoin. Investing in Bitcoin, therefore, is a bit like investing in stocks, except a little more prone to fluctuations due to daily BTC swings.
Given its volatility, and the potential for a cryptocurrency investments full value to vanish, investors who think they cannot stomach market swings may want to steer clear. As such, while many might look for cryptos to buy now, others may understandably feel this sector might be too volatile to tap. Many investors with a shorter time horizon might be waiting for the next bull run to start, whereas longer-term investors might be looking now for cryptos to buy and hold for good.
Cryptocurrency derivatives are still a tiny market for Coinbase Global, but adding more crypto-asset trading is a possibility – even a probable one in the future. Creating an exchange for derivatives on top-known cryptocurrencies has given bitcoin and Ethereum some added legitimacy, and it provides a way for owners of digital currencies — both individuals and a growing list of businesses accepting cryptocurrency as payment — to hedge against risk arising from changes in the cryptocurrencys price. By allowing different users to execute contracts, Ethereum (ETH) has made an entire array of financial opportunities available to investors.
With the exception of Bitcoin Cash and Ethereum, buying alt coins typically starts by buying Bitcoin or Ethereum from an exchange such as Coinbase, and moving to a different exchange. Or, you could trade from the other crypto to BTC, which is just the same as buying BTC, using utilities such as binance price prediction to ensure your purchase is on the back of an “educated” guess. For instance, Bitcoin is still probably going to remain a store of value for most people, and Ethereum is serving as a de-facto smart-contract blockchain for ERC-20 tokens and Metaverse coins.