Cryptocurrency is in news for the last few months and the most attractive cryptocurrencies are, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE). This is extremely hard to say which is better for you since they are not equal. They have their Pros and Cons and the investment should solely depend on your financial situation.
It is a must to think before any investment in these cryptocurrencies and above all, it is also important to know if you need this type of investment as it is a high-risk matter. Moreover, we cannot predict if it is going to succeed in the long run. If you have made up your mind about this investment, I would suggest you reconsider your decision as it involves high-risk factors.
Now, let’s see which cryptocurrency is better to fit your financial needs.
Before explaining this, I would like to remind you that no cryptocurrencies are safe for high investment. But Bitcoin is less risky compared to Ethereum and Dogecoin. As I have said no cryptocurrencies are safe, Bitcoin has some advantages over other mentioned virtual currencies.
Bitcoin is said to be a native cryptocurrency and is a familiar one among the money market. We can find some merchants who use crypto as a payment and they choose Bitcoin over other currencies. Therefore, Bitcoin is on the first level compared to its competitor currencies.
Not only this, Bitcoin is usually mentioned as ‘virtual gold’ as the limitation of this coin is less, according to sources, it is 21 million tokens. This shortage of tokens has increased this virtual currency’s value. This is the reason, Bitcoin value is increasing.
After Bitcoin, next comes to the commonly known digital currency Ethereum. A coin named Ether is hosted for Ethereum currency and it uses blockchain technology. One can invest in Ether by buying it just like Bitcoin or Dogecoin. There are options you can use to invest in Ethereum blockchain than investing directly.
You can directly buy Ether coins or invest in the companies which use the Ethereum blockchain. If the value of Ethereum rises, these companies also will flourish. Ethereum has a big advantage as it has applications other than cryptocurrency. It puts a strong foundation for decentralized finance as it is a nun-fungible token.
As you all know, blockchain technology is the revolutionary one in the business area and Ethereum is the biggest player in blockchain technology. Ethereum investors always know that this currency has greater potential even though it is not so popular as Bitcoin.
This could fetch high returns as it is a more high-risk currency than Bitcoin. The risk in Ethereum is not having a track record like Bitcoin.
Dogecoin has emerged as a great option in the cryptocurrency market in the past six month ending May 2021, as its price has raised to 14,500%. In May one month only it had 350% higher price. The higher risk of this currency has made it hard to invest in it. It is said that there is no advantage in Dogecoin as in Bitcoin and Ethereum. There are very few merchants in the market who accept this digital currency. Since this crypto has emerged from a meme, its credibility is low.
The internet hype is making this currency rise in the money market and the online investors are playing with it to make some quick money. Also, it is advertised by some celebrities like Elon Musk which is why it is taking a hike in the crypto market.
Over the last few months, the price of Dogecoin has dropped to low and it is hard to predict if it will get a boost. This is why it is very risky to invest in this currency. You should take a confident step before investing in this coin.
So how can I invest in cryptocurrency then?
After you know the risks behind these cryptocurrencies, it is mandatory to think twice before you invest in them. The volatile nature of these virtual currencies makes it riskier for any to invest in a high amount.
If you want to invest in this popular digital money, you need to accept the risk it involves. Bitcoin is a big gamer right now in the crypto market, but Ethereum is not less. Do your research carefully and you will know on which you can invest and how much.