The days when you could buy closely any digital nominal and watch it rocket are over. What ‘s the best cryptocurrency to invest in right now ?
It ‘s much easier to answer that question if we focus only on the short term. not every cryptocurrency is sinking like a brick. One type of crypto has actually held up quite well. I ‘m referring, of path, to stablecoins .
Since stablecoins attempt to peg their value to an underlie asset, they tend to be much less fickle than other cryptocurrencies. It ‘s potential for stablecoins to lose their pin ( as in the TerraUSD and Terra debacle ). however, respective of the exceed stablecoins have n’t experienced that horizontal surface of drama.
For case, the price of Tether ( USDT -0.09 % ) has barely budged over the last 12 months. Tether ranks as the biggest stablecoin based on grocery store cap .
besides, the second-largest stablecoin — USD Coin ( USDC 0.04 % ) — has moved by no more than a fraction of $ 0.01 over the past year. Both Tether and USD Coin are pegged to the U.S. dollar .
To make money by investing in stablecoins, though, you ‘ll need to post your coins. The best rates I ‘ve seen recently for staking Tether and USD Coin are about 12 %. That ‘s not a jaw-dropping return, but it ‘s a distribute better than the losses that many cryptocurrencies have delivered this year .
If you prefer to think long-run, there are different factors to consider. The current sell-off could present a great opportunity to buy cryptocurrencies that are probably to thrive over the next ten and beyond .
Bitcoin ( BTC -2.35 % ) presently ranks as the most democratic cryptocurrency. Its market cap of close to $ 400 billion is much larger than any other digital mint. Many would argue that Bitcoin is the most probably crypto winner over the long run.
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however, Ethereum ( ETH 3.00 % ) offers some clear advantages over Bitcoin. Its blockchain is widely used. More than 40 of the biggest cryptocurrencies by market cap are built atop the Ethereum platform .
On the other hand, there ‘s a hanker tilt of smaller digital tokens that are trying to topple Bitcoin and Ethereum. Several of them have faster blockchains, greater capacity, and lower transaction fees .
The best answer
probably the best suffice to which is the best cryptocurrency to buy good now is … it depends. More specifically, it depends on your investing style .
If you ‘re antipathetic to risk, you ‘ll be better off avoiding cryptocurrencies raw. It ‘s possible that we have n’t seen the worst yet. Cryptocurrencies could sink even more and take years to recover. possibly they ‘ll never fully recover. Staking stablecoins could very well be a better alternative to buying other cryptocurrencies. however, there are still some risks involved with this option .
If you ‘re more aggressive but still uncomfortable with seeing your investments dangle over the short condition, bribe and staking a stablecoin is probably more up your bowling alley. My choice in this scenario is USD Coin because of its stability and transparency about underlying reserves.
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But if you do n’t mind irregular losses and remain bullish about the long-run future of cryptocurrency, I think that Ethereum could be your best bet. Yes, some rivals could gain traction over the coming years. however, my view is that Ethereum will maintain its leadership with the forthcoming blend of the Ethereum mainnet with the proof-of-stake Beacon chain and subsequent upgrades .