What is cryptocurrency?
Cryptocurrency is a digital currency that operates through blockchain technology but is not issued by any government or authority. Bitcoin was the first cryptocurrency in 2009, followed by Ethereum in 2015. Since then, the number of cryptocurrencies has grown rapidly to more than 1,300, according to Coinmarketcap.com, an online exchange for buying and selling cryptocurrencies
Cryptocurrency are of different names and Why invest in cryptocurrency? controlled by a few key developers and holders. Digital currency divided Bitcoin and Litecoin, Ethereum and Ripple.
How to invest in cryptocurrency?
Cryptocurrency is generally perceived as a completely new asset class, even though it has been around since 2009, but there has been a recent rise in popularity as of late with a growing number of users joining the crypto scene. In 2015, there were less than 3.7 million cryptocurrency users worldwide; today, there are more than 450 million.
Due to this recent rise, many of the better known virtual currencies are changing their nature,. The most well known of these virtual currencies are Ethereum, Bitcoin, Ripple and Litecoin, and they are becoming more and more popular everyday.
How to choose the best cryptocurrency to invest in 2021?
Right now, cryptocurrencies have the highest value, earning profits for investors who don’t mind to hold on to them for months, even years. It would be better to buy something small, but this isn’t easy. Many investors want to buy big digital currency coins. But there’s a problem with this: There are no exchange platforms that allow investors to purchase an amount of digital currency that matches their size and risk preferences.
Then, some people are concerned about the price of cryptocurrencies. Prices can go up or low without any rational explanation. But investors can always look at the charts. If the price of Bitcoin or any other digital currency is rising, it means that demand and supply are in balance.
Types of cryptocurrencies
The origins of cryptocurrencies are murky at best.
Namecoin is the oldest and most-famous cryptocurrency, but newer cryptocurrencies such as Ethereum and Litecoin have significant commercial use as well. For further reading on these terms and the history of cryptocurrencies, see What Is a Bitcoin and What Does Bitcoin Mean? Cryptocurrency Price Prediction: What Should You Invest In? The chart below illustrates the meteoric rise of Bitcoin from its original 2016 launch price of approximately $100.