If you have finally decided to take the plunge and become an investor of crypto, the first thing that would come to your mind is; which cryptocurrency should you buy? Before venturing into it, you need to make a proper assessment of your financial aims and the risks associated with the crypto investment.
While choosing a choice, keeping these two things in mind is indeed necessary. For beginners, the most reliable and trustworthy coins are that of bitcoin and Ethereum. They have been around the corner for quite some time and have shown progressive growth since their introduction to the market.
If you, as a beginner crypto trader, you can visit https://anon-system.live/ for trading, you would be glad to know that even they prefer choosing these two coins as the first ones to opt for investment. Most recently, they have shown quite some high profits and were considered to be highly lucrative.
However, even though these two are the most famous ones, you should really be aware of what you are putting all your hard-earned money into. Just buying cryptos because your friends are doing so is surely not the right way to go!
Being the first one to jump into the pool of the digital currency market, bitcoin is surely the pioneer of cryptocurrency. This is also the reason why it is referred to as digital gold by most investors. The fact that recently, they have shown a tremendous amount of growth is also the reason why it is rightfully called the golden digital currency.
For a lot of investors who have been taking interest in crypto investment, this is something that helps in guarding against inflation in the future. However, others consider it to be a risqué investment that shouldn’t be given the importance that one gives to the tangible form of assets.
Nonetheless, as a first-time investor, you shouldn’t think that buying crypto will offer you predictable returns, just the way buying index funds does. Rather, it is actually holding it for a considerable amount of time that would help you in generating profits. The value can decrease with the same probability as it may increase, owing to the volatility of the market and outspread speculations.
Getting to know about Ethereum
Next to bitcoin comes Ethereum. This digital currency, just like bitcoin, has been in the market for quite some time. In its truest sense, it is actually a software platform. It aids the users and developers to come up with other apps that are based on crypto. However, it’s not that easy. To get permission to develop such software, developers have to pay some amount of fee and get permission from Ethereum itself.
As the number of buyers increases, the chances of more people using the platform and then more developers finding their ways to Ethereum would increase. In simple terms, it is just like a tech company. Once a developer gets associated with it, it lets more people become a part of it.
Which cryptocurrency should you go for?
While making a choice between bitcoin and Ethereum, you are bound to get confused. This is because they both come with potential growth that is marred with speculation. However, at the same time, the risks associated with them are also identical.
The experts motivating investors to opt for Ethereum say that it is technologically more advanced. This is where it becomes a reliable option, compared to a much more established bitcoin. As NFT is also associated with the blockchain of Ethereum, people are adopting it in a much higher volume.
If you are confused and can’t really choose one of them, it’s better to pick both! Expand your portfolio by having some of the bitcoins while adding Ethereum to it as well. As you start to earn from them, you can further add to the number of coins you have for each of them. For a beginner, altcoins can be highly risqué and lead to ruining the entire investment plan. Hence, avoiding them and keeping the faith intact on these two would be the best option to go for.