Do you know what cryptocurrency to choose? We will help you. Bitcoin is a worldwide phenomenon, having become a subject commented by professionals from various areas. Both entrepreneurs linked to the financial sector as technology enthusiasts have interest in the currency and its valuation.
We have prepared this article for you to choose a cryptocurrency and so you know the other options and the criteria for choosing the asset that mostly matches your profile. You will read about the following topics:
1.2. Bitcoin Cash;
1.5. Ripple (XRP);
How to choose a cryptocurrency;
2.1. Know the crypto market;
2.2. Be cautious in the initial moments;
2.3. Check the values;
2.4. Find a reliable trading platform;
2.5. Portfolio research;
What’s the importance of seeking expert help?
1. The cryptocurrencies
The most known cryptocurrency, the BTC holds the highest market value. Initially created in a white paper used by entrepreneurs and government agencies and signed by Satoshi Nakamoto, Bitcoin pioneered and revolutionized the financial market.
Its peak was in 2017 when it reached the value of 20 thousand dollars. Although this price has dropped, the high number of users still guarantees the appeal to users worldwide.
As the price of Bitcoin is especially high, which prevents smaller payments, each BTC unit is divided into a fraction of up to one hundred million, known as satoshi. Each operation using the BTC network takes an average time of 10 minutes to be properly evaluated.
Because it is the cryptocurrency with the most users, it is also the easiest to buy through other currencies such as the dollar, the euro or the real. One of its main features that have made it extremely popular in the market is its level of decentralization.
This is because there is no central authority responsible for issuing Bitcoins. New units are generated from the mining process in which users of BTC’s own network make their computers available to perform energy-consuming mathematical operations. This service is known as proof of work.
It is worth highlighting the very important role of these miners, as they are responsible for verifying the transactions made and recording them in the Blockchain (a kind of digital record). For doing this vital work, they receive a fee for each operation.
The official currency protocol stipulates a final number of 21 million Bitcoin units. By stipulating this exact value and ensuring that it is finite, the tendency is for the currency to gain more and more value over time.
1.2. Bitcoin Cash
Created in 2017 through a process known as fork, this coin was born after a split within the community formed by Bitcoin miners. Bitcoin Cash was designed to serve as an upgrade to the traditional option.
In this way, those who approved the changes from the original model transferred their operations to this new community. Bitcoin Cash introduced some important technical changes, such as increasing the limit for the virtual size of each block.
This was one of the first alternatives to Bitcoin. Created in 2011, the cryptocurrency presents some changes from the BTC. The central idea was to make operations more accessible and the mining easier to accomplish.
A significant difference has to do with validations that are performed in two and a half minutes, which is well below the 10 minutes of BTC. Another difference is the maximum currency limit of 84 million, four times higher than Bitcoin’s. However, Litecoin’s market is relatively smaller compared to Bitcoin’s.
Litecoin is regarded as a kind of “laboratory” for testing changes in the general cryptocurrency network. For example, by testing certain modifications in Litecoin, one can detect problems and when remedied, such solutions are implemented in the Bitcoin network.Thinking of choosing this cryptocurrency?
While Bitcoin was developed for use exclusively as cryptocurrency, Ethereum came up with a different purpose: creating a system of its own for Blockchain applications. Thus, the platform was designed to cover smart contracts, tokens and even other currencies.
To better understand this application, it is vital that you understand the concept of Blockchain. The technology consists of a public registry and shared database, and its main function is to serve as a global index for all transactions occurring in a given market.
Ethereum’s initial idea was published by Russian programmer Vitalik Buterin in 2013 and started to work effectively the following year. Due to their peculiar characteristics, there are cryptocurrencies that do not operate in their own Blockchains, but use the Ethereum registry.
With that feature, it’s possible to determine the specific number of units issued and the rate of these occurrences. The main benefit of this operation is that you no longer have to create your own Blockchain and pay all the miners on that network.
However, this does not mean that there is no specific currency in this system. The so-called ether is used to reward pay and keep the network up and running. With this payment, users can fund application development on top of Blockchain.
However, this does not mean that there is no specific currency in this system. The so-called ether is used to reward miners and keep the network up and running. With this payment, users can fund application development on top of Blockchain.
1.5. Ripple (XRP)
It was created with the idea that the Blockchain system is a great measure to help improve the operation of the international transfer and financial operations market. Ripple argues that payments made by traditional means are costly, time-consuming and subject to many errors.
The main idea is to ensure decentralization by reducing the number of intermediaries in operations. Thus, the Ripple cryptocurrency sells an agile financial service designed to connect institutions and payment companies, offering the possibility of transactions via Blockchain.
The payments can be made in currencies such as the dollar and yen, for example. In addition, the price is determined at the time the transfer takes place. Major financial institutions such as Santander and American Express use this system.
Ripple cryptocurrency is represented by the acronym XRP. Another interesting feature is that there is no mining. The number of units is much higher than that of Bitcoins in circulation, reaching 100 billion.
2. How to choose a cryptocurrency?
Now that you know the names, it’s time to show some criteria that should be considered to make the best choice.
2.1. Know the crypto market
If your goal is just to know how this market works or to start work more actively, the important thing is to understand how the transactions work. So, seek to understand the dynamics of buying and selling of currencies, which influences the valuation peaks in addition to the eventual devaluation.
This way, you ensure a high cause of knowledge, which will make a difference in the time to actively work with the chosen currency. You can get valuable tips by reading a Bleutrade post: There you’ll find a variety of sources, such as YouTube channels, documentaries, and expert books.
2.2. Be cautious in the initial moments
Even the experts started slowly. So do not rush too hard when choosing the cryptocurrency.
This is because the market is volatile and requires a good deal of knowledge to succeed. Spikes of appreciation are always changing so keep yourself level headed.
2.3. Check the values
What in the stock market is known as profit, in the context of currencies this concept is more closely linked to the amount of money moved.
In addition, observing the number of users is also important for making the right choice. If you are in doubt between two options that look quite similar in the overall operation, it is a good idea to see which one moves the most values.
That means more people are being drawn to that cryptocurrency – a good metric to make sure that that option is really wanted by users.
2.4. Find a reliable trading platform
Virtual currency trading platforms, also known as exchanges, work in a similar way to traditional stock market brokers. As such, they deal directly with your money: therefore, it is essential to choose an option that is highly valued by users.
This protects you from unforeseen events and avoids scams and illegal Bitcoin fundraising schemes. Some criteria for making a conscious choice are:
- The level of support offered;
- Ease of use;
- The functionality and features offered by digital access;
- The overall security of transactions;
- The compliance with applicable regulations and laws.
Thus, you need to look for information about the team behind cryptocurrency management and understand their credentials, team size, and team member expertise.
This is because virtual currencies require a high knowledge of technology for proper administration. So prioritize developers with a solid background in digital operations and understanding of the financial market as a whole.
2.5. Portfolio research
It is important to note that platforms and exchanges are not responsible for storing the contractor’s coins. This is done by the crypto wallet, a software with the specific function of storing all the customer’s virtual currencies.
Through it, the user can control their transactions optimally and perform any movement they want. To ensure proper operation, it is critical for the user to transfer all their coins to the wallet.
This is explained by the fact that, unlike bank transactions where money falls into the account without direct user interference, the operation of allocating cryptocurrencies in a wallet ensures a solid defense against cyber attacks.
3. What’s the importance of seeking expert help?
Using a reliable virtual currency trading platform, it will be much easier to choose and keep your asset management in good hands. Prioritize companies that already have a few years of experience in the market and with the possibility of acting globally.
Based in Malta, Bleutrade is a special option for those who want to ensure the security of their cryptocurrencies – whatever they may be. The company’s main objective is to establish a trusting relationship with users, connecting all users with the company.
Bleutrade provides the option to open an account on the platform and to subsequently buy and sell negotiations. In addition, it can operate in transaction arbitrations, ensuring the smooth operation of the user with other Blockchains participants.
Our professionals are on hand to advise you on how to choose a cryptocurrency that suits your interests.
Did you like the article and were interested in the possibility of establishing a partnership with Bleutrade? So contact us and get to know our work better!