What’s the Best Cryptocurrency for Beginners
HodlX Guest Blog Submit Your Post
An effective beginner’s crypto investment strategy should have you dip your toes into low risk assets. But with hundreds of tokens listed on exchanges, where should you start?
If you’re new to crypto, Bitcoin and Ethereum will be the first two coins you hear about. As evidenced by its market capitalization and trade volume, Bitcoin has emerged at the center of a growing digital currency market in the past decade, whereas Ethereum is a part of its evolution, introducing smart contract technology and opening up the possibilities of decentralised applications (DApps).
But are they a sound investment?
Bitcoin
Bitcoin (BTC), the original peer-to-peer currency, is arguably the most stable cryptocurrency. In the ten years since its inception, Bitcoin has demonstrated its usage as a store of value, something which innumerable other coins have failed to do. This makes it the most accessible coin for crypto traders, with more exchanges, software implementations, and entrepreneurial effort in support of its model, creating a far more liquid and secure asset.
Ethereum
Unlike Bitcoin, Ethereum is a blockchain platform designed to allow other projects to run what are termed ‘smart contract protocols’, which enable the automatic execution of a given task if certain agreed conditions are met. Ethereum (ETH), led by Vitalik Buterin, has been a powerhouse since its initial launch in 2015, spearheading many developments in the space and leading the way for last year’s ICO boom.
Not convinced? There are currently over 1,000 ERC-20-based cryptocurrencies implemented on the market today – over 60% of all token models – a number which dwarfs competitors Neo and Stellar and demonstrates the resounding impact of the Ethereum concept.
A Word on Altcoins
Although investing in altcoins can prove to be lucrative, a first-time investor can easily be convinced of forthcoming value by misleading market capitalizations and relative inexpensiveness, or might overzealously hedge against potential losses – scenarios which can result in bag-holding once a token’s value unexpectedly drops off.
Nevertheless, altcoins aren’t necessarily bad investments. In fact, many of them represent future technologies that may prove to be just as important as those of Bitcoin and Ethereum. However, their higher risk/reward ratio is enough to make them an unfavorable move for new crypto investors.
Lastly, remember that even secure crypto investments lack the insurance-backed standard of traditional equities – and only invest an amount you are prepared to lose.
Both Bitcoin and Ethereum are technologies poised to change the digital landscape and offer secure investment opportunities for beginners. Don’t just take our word for it: due diligence and critical thinking will always see past the hype and identify the heavyweights.
Kepler Technologies Team
Kepler Technologies is founded with a bold objective: to create customer-centric trading, portfolio management, and business intelligence solutions that mainstream investments into DLT markets and digital assets and drive long-lasting adoption.
There are a few products already released: Lukrum (portfolio management service for blockchain assets) and EOS portfolio (portfolio tracker for EOS tokens holders). Find out more details below.
Websites
info (at) kepler.finance
Disclaimer: The opinions of our guest writers are solely their own and do not reflect the opinions of The Daily Hodl. These opinions expressed are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Check Out the Latest Headlines
