What Crypto You Should Buy and Which Ones You Should Avoid
Many investors like what crypto offers. They can always buy stock or other financial assets, but crypto seems new and exciting. You can make money from it, though you can also lose it, like any additional investment. If you study crypto and imagine huge profits, you probably know to buy some and hold it till the value grows. Many crypto forms exist, though, and you may feel uncertain about which ones you should buy. Let’s look at crypto forms that maintain their value well. We’ll also discuss some options you might avoid in 2023.
How Can You Tell What Crypto to Buy?
Analyzing the total market capitalization of cryptocurrencies helps you learn about them and their growth potential. You might also hear investors abbreviate this term as market cap. Market cap is gauging a particular crypto form’s popularity and size. If you look at a cryptocurrency’s circulating market cap, you should use a simple formula. The cap equals the circulating supply x the current price per unit. That sounds complicated, but you can easily simplify it. If you look at a certain crypto form, it is popular if it has a higher market cap. You might hear that a crypto form’s market cap has just hit $410 billion, for instance. That makes it a powerhouse in this industry.
By contrast, if you hear that a crypto form you’re targeting has a market cap that’s $80 million, that means it’s a much less popular form. Crypto forms with very small market caps are like penny stocks you might buy in the stock market. If you think one will shoot up because of some tip or hunch, you might buy some and hold it, waiting for its eventual ascendency. Then, you’ll sell it and make a huge profit. Now, let’s discuss some crypto forms that you might buy today.
Bitcoin is the crypto coin that most people recognize when they hear it. Some NBA and NFL players like it so much that they ask for their salaries in Bitcoin. It has been on the scene for several years and isn’t very volatile when you put it up against other crypto varieties.
However, just because it isn’t as volatile, that does not mean there’s no volatility. Bitcoin’s value hit a peak several months ago, and they’re not worth as much now.
Still, this crypto form remains valuable, and you can do the most with it. Some online merchants accept it, but they won’t take most other kinds.
Ethereum is another popular crypto form. The market cap right now sits at over $200 billion. That’s a lot, but Bitcoin remains more than double that. Ethereum is a cryptocurrency, but it’s also a blockchain platform. Program developers like it and use it a lot when conducting transactions. If you’re setting up a crypto investment portfolio with some of the biggest industry coins, you’ll likely want some. Between 2016 and 2023, the value increased by more than 14,000%.
Tether might appeal because it’s a stablecoin, which means it has a fiat currency backing it. No fiat currency backing any crypto form means volatility, so you may want this one in your portfolio. It has a market cap of over $68 billion right now.
Investors who want a more stable coin usually like this one. It has both the Euro and US dollar backing it.
Which Ones Should You Avoid in 2023?
Several crypto coins haven’t done well lately. Dogecoin is one of those. Dogecoin is an anomaly. The software engineers Jackson Palmer and Billy Markus created it as a joke, but strangely enough, it caught on. It’s a “meme coin” with a dog’s image on it.
Dogecoin did well for a while, but the market has plummeted recently. Many believe that Elon Musk championing it hurts it more than it helps. Musk has become a laughingstock in some circles through Tesla’s ongoing problems and Twitter’s struggles. Some people feel anything Musk touches seems suspect at the moment, including Dogecoin.
Bitcoin Cash is another option you should probably avoid. It split from Bitcoin to solve perceived shortcomings, like slow transfer speeds and high fees. The market received it well initially, but not so much lately. Bitcoin’s transaction speeds have increased, rendering Bitcoin Cash largely obsolete. When crypto investing, proceed cautiously. Many individuals dip a toe into the market, thinking they’ll emerge as millionaires, but not everyone has that experience.