5 Cryptocurrencies To Invest In During These Extraordinary Times

The global health crisis may have put national economies into turmoil, but many people also found this time as a wake-up call to check out safer investments such as digital assets like cryptocurrencies. Before we look at the different cryptocurrencies you can invest in, let's briefly discuss what cryptocurrencies are.

By all means, cryptocurrencies, also known as digital currencies, are digital money that takes the form of "coins" created and secured by cryptography and maintained in a decentralized system based on blockchain technology. It is impossible to duplicate, steal, and even double-spend cryptocurrencies. This is traded using a mobile phone or laptop.

Now, let's examine a few of the most important cryptocurrencies in the market that you can invest in during tough times.

1. Ethereum (ETH)

Ethereum is a decentralized software platform based on blockchain technology that allows Smart Contracts and Decentralized Applications (DApps) to be created without the risk or threat of any downtime, fraud, duplication, and interference from a third party.

The applications on Ethereum run on its token, ether. For everything you want to do around the platform, you have to use it. ETH is the second most liquid digital coin after Bitcoin. Its robust team and community keep it stable, and its value continuously increases over the years. This makes it a viable investment option for you.

2. Ripple (XRP)

Ripple is a venture-backed company that offers a real-time global settlement network that allows instant and affordable transactions across national borders. Ripple works with large financial entities like banks to settle international payments in real-time and with full transparency.

It's a unique cryptocurrency in the sense that it doesn't require mining. The XRP coins were "pre-mined" before its introduction, which means there will be no new Ripple coins in the future. What makes XRP a good investment is it is safe from SEC regulation, and it revolutionizes cross-border transactions.

3. Tether (USDT)

Tether is categorized as a stablecoin or a cryptocurrency designed to have low price volatility, making them resistant to the volatility of other cryptos like Bitcoin and Ether. USDT and other stablecoins aim to minimize the fluctuations to capture users who are more cautious and looking for a low-risk investment option in the crypto market.

Tether enables users to use the blockchain network to transact digitally in traditional currencies while reducing the risk of dramatic price movements and the complexity of cryptocurrencies.

4. Litecoin (LTC)

Many people still find digital coins a bit too futuristic or complicated to completely grasp what it is and how the technology that powers it works. Litecoin swept in to make cryptocurrencies more accessible and easier to use for users and investors alike.

Litecoin was launched in 2011 and dubbed as the "silver to Bitcoin's gold." The open-source global payment system adopted and modified the most significant features of Bitcoin. For example, LTC transactions take under 3 minutes to complete, while BTC transactions take 10 minutes. Moreover, ordinary computers can be used to mine LTC, which makes it more convenient for users.

5. Bitcoin (BTC)

The Bitcoin market has massively grown and is now one of the dominating forces in the cryptocurrency industry. When talking about which digital currency is a good investment, Bitcoin is always a part of the discussion.

The peer-to-peer system provides high liquidity in the market, which means you will have to issue buying or selling Bitcoin. There's always business with Bitcoin and consistent demand for it, and mass adoption is expected to rise in the coming years.

As with other volatile markets, Bitcoin's price moves up and down. When you see people selling low, don't lose the opportunity to buy it.

Summing it up

The cryptocurrency industry will continue to rise in the future. The digital coins above are strong coins with a solid community and team behind them. If you're looking for a safe investment option to diversify your portfolio, consider any of the cryptocurrencies above.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes