3 Common Cryptocurrencies to Invest In If You're A Risk-Taker

Like any new investment, there will be survivors and ones that fail. Dot-com era investors probably remember all the search engine startups and many that no longer exist. 

What is Cryptocurrency?

Cryptocurrencies are digital money or virtual currency. It is a digital asset stored on a network of distributed computers. 

Cryptocurrencies utilize blockchain technology to record and verify transactions on a distributed ledger. It can be thought of as a shared public distributed database. The decentralized feature means transactions are permanent and irreversible. 

Like any investable asset, there exist risks to an investor. Early on, cryptocurrencies had a reputation for being used in criminal activities. However, they are now increasingly mainstream, with banks, large companies, governments, and the wealthy investing in or backing cryptocurrencies.  

Next, cryptocurrencies are difficult to use in actual commerce. Very few retail transactions take place using digital currencies. Lastly, unlike stocks, ETFs, bonds, gold, and cash, cryptocurrencies are not well regulated. 

Bitcoin

Bitcoin has the longest track record and has the largest market share of digital currencies. However, Bitcoin’s dominance has declined, and it now has about 40% of the total market share due to the proliferation of other cryptocurrencies. 

Ethereum

Ether (ETH) is the actual cryptocurrency underlying Ethereum. The blockchain technology platform that drives ether is Ethereum. In any case, Ethereum is now often referred to as a cryptocurrency, but there is a distinction between it and ether. 

USD Coin

USD Coin attempts to solve one of the shortcomings of most cryptocurrencies, their volatility. It is a type of cryptocurrency known as stablecoins. The token does this by trying to maintain a peg of one USDC to $1.00. USD Coin was announced and launched in 2018 based on Ethereum. 

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