In a world where the stock market is constantly fluctuating and interest rates on savings accounts are barely scraping by, more and more people are turning to cryptocurrencies to make some extra money. Cryptocurrencies offer investors a unique opportunity to earn interest on their investments. While earning interest from something as volatile as cryptocurrency may seem risky, several currencies have proven themselves to be reliable and stable sources of income. This article will explore popular cryptocurrencies that offer investors the opportunity to earn interest on their investments.
1. Bitcoin
Bitcoin is a digital asset and payment system, allowing users to send and receive bitcoins directly from each other without needing a third party. Bitcoin is unique in that there are a finite number of them: 21 million. As of January 2018, over 16 million bitcoins had been mined.
Bitcoin is also unique in that it is decentralized; there is no single entity that controls the bitcoin network. Those who know how to lend crypto and earn interest can do so without going through a bank or other financial institution. For one, decentralized lending platforms connect borrowers and lenders directly. The most popular platform is MakerDAO, which allows users to take out loans in Dai, a stablecoin pegged to the US dollar.
2. Ethereum
Ethereum was founded in 2015 by Vitalik Buterin and has since grown into one of the most popular cryptocurrencies.
The Ethereum network is powered by Ether, a type of cryptocurrency token used to pay for transactions on the web. Ether can be mined or purchased on exchanges and earned by running nodes on the Ethereum network.
There are many reasons why investors should consider investing in Ethereum. Here are just a few:
- Ethereum has been around for longer than many other cryptocurrencies and has a proven track record.
- Ethereum is decentralized, which makes it resistant to government interference and manipulation.
- The Ethereum network is powered by Ether, a stable and valuable cryptocurrency.
- Ethereum offers investors the opportunity to earn interest on their investment through staking and mining.
3. Litecoin
Like Bitcoin, Litecoin is a decentralized currency that can be used to send and receive payments without the need for a third party. Litecoin is stored in digital wallets and can be mined or purchased on exchanges.
Litecoin has a few key differences from Bitcoin, making it appealing to investors:
- Litecoin has a higher total supply than Bitcoin: 84 million compared to 21 million. This makes Litecoin more scarce than Bitcoin and, therefore, more valuable.
- Litecoin transactions are faster than Bitcoin transactions, making it a more efficient currency for day to day use.
- Litecoin fees are lower than Bitcoin fees, making it a cheaper option for those looking to make payments.
Investors should consider investing in Litecoin for many of the same reasons they would invest in Bitcoin. Litecoin is a decentralized currency with a proven track record, fast transaction times, and low fees. In addition, Litecoin has some critical advantages over Bitcoin, making it an appealing investment option.
4. Bitcoin Cash
Like Bitcoin, Bitcoin Cash is a decentralized currency that can be used to send and receive payments without needing a third party. Bitcoin Cash is stored in digital wallets and can be mined or purchased on exchanges.
Bitcoin Cash has a few key differences from Bitcoin that makes it appealing to investors:
- Bitcoin Cash has larger block sizes than Bitcoin, meaning more transactions can be processed per second.
- Bitcoin Cash transaction times are faster than Bitcoin transaction times, making it a more efficient currency for everyday use.
- Bitcoin Cash fees are lower than Bitcoin fees, making it a cheaper option for those looking to make payments.
Investors should consider investing in Bitcoin Cash for many of the same reasons they would invest in Bitcoin. Bitcoin Cash is a decentralized currency with a proven track record, large block sizes, and fast transaction times. In addition, Bitcoin Cash has some key advantages over Bitcoin, making it an appealing investment option. These include larger block sizes and quicker transaction times.
5. Ethereum Classic
Ethereum Classic has a few key differences from Ethereum that makes it appealing to investors:
- Ethereum Classic has a more egalitarian approach to mining, with no special privileges given to large miners.
- Ethereum Classic has a more decentralized governance model, with decisions made by consensus among the community rather than by a small group of developers.
- Ethereum Classic fees are lower than Ethereum fees, making it a cheaper option for those looking to make payments.
Investors should consider investing in Ethereum Classic for many of the same reasons they would invest in Ethereum. Ethereum Classic is a decentralized currency with a proven track record, egalitarian mining, and low fees. In addition, Ethereum Classic has some key advantages over Ethereum that make it an appealing investment option. These include a more decentralized governance model and lower fees.
6. Monero
Monero has a few key differences from Bitcoin, making it appealing to investors:
- Monero transaction times are faster than Bitcoin, making it a more efficient currency for everyday use.
- Monero fees are lower than Bitcoin fees, making it a cheaper option for those looking to make payments.
Investors should consider investing in Monero for many of the same reasons they would invest in Bitcoin. Monero is a decentralized currency with a proven track record, improved anonymity features, and fast transaction times. In addition, Monero has some key advantages over Bitcoin that make it an appealing investment option. These include enhanced anonymity features and lower fees.
The best cryptocurrency investors invest in depends on their individual investment goals. However, all of the cryptocurrencies on this list have proven track records and offer some advantages over traditional investments. For those looking for a safe investment with growth potential, Bitcoin and Ethereum are good options. For those looking for an investment with more upside potential, Monero and Bitcoin Cash are good choices. Finally, for those looking for a more experimental investment, Ethereum Classic is a good option. No matter which cryptocurrency you choose to invest in, be sure to do your research before making any final decisions.
