Back when we entered the 2020s, Cryptocurrencies, in general, increased in popularity significantly, and Bitcoin’s market value went through the roof from 600 dollars per coin at the end of August 2016 to around 4,700 dollars at the end of August the following year. And towards the beginning of 2021, Bitcoin’s market value reached nearly 60,000 dollars before settling down to 30,000 dollars in the middle of 2021.
Despite Bitcoin being the first major digital currency to hit the market as it debuted back in 2009, there are already many others that are becoming highly popular, even though not quite as large as the original, but making a big impact on the world of digital currencies. However, if you’re now wondering if you have missed out on the explosion of Bitcoin or if you’re too late to join the game, don’t worry, as we’ll go over Bitcoin and the other digital currencies to determine their potential for a strong profit.
The Original Cryptocurrency
The first-ever digital currency that was released to the public was Bitcoin, and it’s considered to be the harbinger of the crypto era and people today would still reference Bitcoin whenever they talk about cryptocurrencies. Its mysterious creator, Satoshi Nakamoto, debuted the technology back in 2009, and it has been on a roller coaster ride ever since; however, the technology broke into popular consciousness in 2017.
But if you’re planning on investing with Bitcoin, you would be wondering if is it too late to profit from Bitcoin? The answer to that would require you to ask a psychic with a crystal ball, as many of the sceptics already considered Bitcoin to be past its peak. However, supporters and believers of the technology think that Bitcoin would still increase in market value significantly over time. Gaining profit with crypto can be easy as you utilise the digital money that you gain from trading on crypto platforms like Bitcoin Pro.
The Silver to Bitcoin’s Gold
Ethereum is considered to be the silver to Bitcoin’s gold as it is the second-largest digital currency to date by market capitalisation. Together with the first-ever digital currency, they make up roughly around 70% of the cryptocurrency market; however, Ethereum is relatively newer compared to Bitcoin as it was released back in 2015. Regardless, Ethereum’s primary goal is not to be as a currency but to allow new creations of financial applications that are backed by smart contracts.
Smart contracts are one of the main reasons why investors are attracted to the technology, in essence, its bits of code that can trigger automatically when certain conditions are met. Despite not having every country determining the status of smart contracts, there are already some big economies that have gotten the technology legal certainty. In a way, the network of Ethereum became significantly important as it relatively bridges the gap between the worlds of crypto and traditional finance.
An Alternative to Bitcoin
One of the most well-known alternatives to Bitcoin is a digital currency called Litecoin, and it is a digital currency whose initial intended use is to be a payment mechanism without the need of a middleman in transactions, similar to how banks work. Litecoin was initially developed back in 2011 by Google’s former developer Charlie Lee, who created the technology that can confirm transactions multiple times faster than Bitcoin, which is once in every 2.5 minutes compared to Bitcoin’s 10-minute timeframe.
However, similar to Bitcoin, the main features of Litecoin are its security and longevity. Additionally, there are only two digital currencies that never fell out of the top 10 in terms of highest-value projects since their launch, and those are Bitcoin and Litecoin. Not to mention that PayPay, one of the biggest online payment systems, announced that it would start supporting digital currencies soon; it only chose the best ones such as Bitcoin, Ethereum, and of course, Litecoin.
What Started Out as A Meme
The next one on the list is Dogecoin, and it started out as a meme when it first launched back in 2013, making a mockery of the rise of digital currencies, especially Bitcoin. However, what started out as a meme became something people sought after in the long run as its market rally pushed Dogecoin’s market value to 50 billion dollars, earning a place among the top 5 most valuable digital currencies. It was only a few months before its rise in the market that one Dogecoin was worth only two-tenths of a cent while having its market cap of less than a quarter of a billion dollars.
Should Cardano Be Considered?
Another digital currency that’s slowly rising in its ranks is Cardano, and investors are now wondering if they should consider the technology to be added to their crypto portfolio. Despite Cardano’s late launch back in 2017, the digital asset eventually outpaced Bitcoin’s potential returns for its investors during the same period, which led to Cardano becoming one of the top 10 most valuable digital currencies in the market that has a market value of around 70 billion dollars.
Furthermore, Cardano is considered to be a third-generation digital currency, learning from previous generation cryptos like Bitcoin and Ethereum to improve its own technology, especially when it comes to security and sustainability. Not to mention; that Cardano has relatively low network fees and around 150 developers working on further improving the already improved technology. But despite how it looks like Cardano could be around for quite some time, not everyone is still sold on what Cardano promises.
Is Crypto Still Considered a Good Investment?
While there are many different digital currencies in the market that have increased in value, it’s still considered to be significantly risky due to how volatile the market is, and it’s still not backed by any government entity. However, some investors think that the lack of a government involving crypto is an advantage. But to determine whether investing in digital currencies is good for you depends on a number of factors such as your age, risk tolerance, financial strategy, and whether you can afford to lose what you have put into digital currencies.
The best crypto to invest in would ultimately depend on your budget and what you’re looking to gain. If you want something that is a bit established, you can choose either Ethereum or Bitcoin as it would make the most sense. But for something that is less volatile compared to others, a stablecoin that’s backed by a real currency can be a coin that’s a good fit in your portfolio.
