Cryptocurrency is a fascinating, unique, and relatively new alternative currency that provides an alternative investment for investors who are interested in something outside of stocks or bonds. There are many things that make cryptocurrencies different. As noted by the financial experts at SoFi, “Crypto is decentralized, meaning that it is not controlled by a central authority like a bank or government and instead is exchanged person-to-person.” As such, if you want to buy crypto, you have to be prepared for a new type of currency.
Many people are familiar with Bitcoin, but Bitcoin is one of several types of cryptocurrencies on the market today. Indeed, if you are interested in buying crypto, you have a lot of options. Here’s a look at 4 other types of cryptocurrencies you can buy in 2021.
BTC – Bitcoin
BTC, short for Bitcoin, is arguably the most well-known type of cryptocurrency. At the moment, 1 BTC is equal to almost $35,000, an astonishingly high number. The currency is very volatile – indeed, it is arguably one of the most volatile forms of currency on the market today. As such, it is important to realize that purchasing Bitcoin comes with a huge degree of risk.
However, if that risk is something that you can tolerate, the rewards can be massive. Indeed, one year ago, Bitcoin was worth roughly $8,600 – meaning that you could have scored a 400% return on investment if you had purchased today. Bitcoin’s notoriety and popularity mean that quite a few people are looking at this crypto – but it also comes with ample opportunities to purchase and make real money.
LTC – Litecoin
There are many alternative forms of cryptocurrency to invest in. One such example is LTC, which is short for Litecoin. Litecoin has been on the market since 2011, and it was started as another cryptocurrency to purchase for people who weren’t necessarily interested in Bitcoin. For investors interested in cryptocurrencies, but not the same degree of volatility, Litecoin may provide a great alternative. At the moment, one Litecoin will cost you around $142. It has moved significantly in the past year, starting the year at $57 before reaching its current mark. To be clear, the $142 is not its peak value – it was once as high as $178 before dropping to its current price.
The coin also has some advantages over Bitcoin. The block is processed more often, allowing for faster transactions. Furthermore, it’s growth is separate from Bitcoin. This is good, as it provides an alternative investment vehicle for investors who want to purchase some sort of cryptocurrency but are worried about Bitcoin.
ETH – Ethereum
ETH is short for Etherum, another type of cryptocurrency. Like the others, it is sold via the open-source blockchain. This blockchain helps to protect investors from security issues. Etherum is very popular, with the second-highest market capitalization – second only to Bitcoin itself. It has been available for purchase since 2015. It is more expensive than LTC, with 1 Etherum coin costing $1,253. However, one year ago, one coin cost around $160 – the return here, of course, is massive. This currency has shown major volatility in the past year as well. However, if you can stomach this volatility, Etherum might be a good alternative investment.
ADA – Cardano
Cardano has an interesting history – it was built by a group of crypto experts, mathematicians, and engineers as a way to create an alternative to Ethereum. It’s founder specifically broke away from Ethereum. It is a much, much newer form of currency. While this means you can get in on the ground floor, it is important to realize that it’s newness means you may be able to get in on the ground floor. One year ago, 1 coin sold for around $.03 – today, that number has risen to $.33. The low price is a good thing: You can invest in a good amount of Cardano without facing a tremendous level of risk.
Cryptocurrencies are new and risky. However, if you can tolerate that risk, it is very possible for you to make a huge return on investment with a cryptocurrency purchase. Just make sure that you use the right app and take security extremely seriously when making this purchase.