You’ve surely been hearing about cryptocurrency for a while now, seeing as how it’s been around for over a decade.
The first cryptocurrency – Bitcoin – was released in 2009 and the market kept evolving over the years. There are now countless different cryptocurrencies available and just as many ways to use them. Read on to learn more about why investing in crypto is a good idea and which alternatives to consider.
Why is investing in cryptocurrency a good idea?
When it comes to reasons why one should consider investing in crypto, there are several to take into account.
For starters, if you already have some investments, you are aware of how important diversifying your portfolio is. So, in addition to stocks and bonds, you can also invest in some cryptocurrencies to grow your assets. Moreover, crypto has equity potential, meaning that there is a possibility for a high ROI. While they can be risky and volatile, you can store them long-term and cash in when you see that they are on the rise again.
Many people are also choosing to invest in cryptocurrencies because they are reliable. As there is a finite supply of them, they are a stable currency that cannot be diluted or influenced by inflation caused by political events. Additionally, they cannot be seized or printed, so the possibility of getting robbed is lowered as well.
Where can you use crypto?
Before you decide to invest in crypto, however, you should understand that it is not yet used everywhere. More and more vendors are now accepting different cryptocurrencies and a growing range of services and products are within reach to individuals that prefer using this payment method. Here is what you can do with crypto.
For example, a rising number of car dealerships are accepting cryptocurrencies, or more specifically Bitcoin, as payment. They are available for everything from utilitarian vehicles to luxury cars like Lamborghini, which is a fan favorite among Bitcoiners. Some makers and retailers of luxury goods like jewelry and watches also accept crypto.
Then, there are also companies that sell tech products that also accept crypto. For instance, Microsoft accepts Bitcoin on its store but it’s not available on the Xbox gaming platform. Overstock, Shopify, Rakuten, AT&T, and Newegg also allow crypto payments. PayPal lets users store, buy, and sell cryptocurrency in their accounts as well. On the other hand, while Amazon-owned Twitch allows and encourages the use of Bitcoin, the parent company still hasn’t implemented crypto payments.
In addition to Twitch, there are other sources of entertainment that allow crypto payments. For one, you can find online casinos that accept cryptocurrencies. Gaming platforms that use crypto and implement blockchain technology also ensure your safety and privacy as these methods come with anonymity. Some media outlets accept crypto for subscriptions too, so if you’re looking to read news online, you can use this method to pay your monthly fees.
What is more, you can also find insurance companies that have embraced crypto. While life insurance is typically off-limits, different kinds of insurance are available depending on the provider.
Which are the best cryptocurrencies in 2022?
With all of that in mind, let’s go over the best cryptocurrencies to look into in 2022.
Of course, we have to start with Bitcoin. Often synonymous with crypto, the original cryptocurrency has seen its price skyrocket over the years. For instance, one Bitcoin was worth $500 in May 2016 while its price is $23,046 as of 1 August 2022. This is a growth of over 4,500%. However, its all-time high was in November 2021, when it was worth $68,990. As it has stood the test of time, it’s always recommended to look into ways of getting Bitcoin.
Another favorite in the crypto community is Ethereum. First released in 2015, it was worth $11 in April 2016. In August 2022, a single Ethereum coin’s price was $1,640, meaning that it saw an increase of 14,800%. While not as popular as Bitcoin, it is a solid investment that might be more approachable to some people.
Other alternatives you might want to look into include Binance Coin, XRP, Cardano, Solana, and Dogecoin.
On the other hand, there are also cryptocurrencies called stablecoin, which are backed by fiat currencies like the Euro and U.S. dollars. Theoretically, this makes the value of these currencies more consistent than those without backing, which is why they are preferred by investors that are afraid of the volatility that comes with other coins. If this is something that better suits you, you can look into Tether, Binance USD, and U.S. Dollar Coin. For example, USD Coin aims to have the price of 1 USD for 1 USDC.
As you can see, there are different types of crypto that you can look into and different ways how you can use them. Before you make a decision, make sure to look into their prices a bit more and some trends to see what you can expect.