Investing in cryptocurrency: less well-known options

When it comes to investing in crypto, the option which first springs to mind for most traders is bitcoin. This cryptocurrency is perhaps the most well-known and it’s the one which often hits the headlines for its high degree of volatility and its seemingly-constant fluctuations in value. However, it’s far from the only cryptocurrency out there – and you may well find that another crypto coin is more suitable to your requirements. This article will explore some of the alternatives.

Ethereum

As the BTC Profit official website shows, it is possible, in some cases, to make cash from bitcoin. But plenty of other crypto coins also offer money-making opportunities, including ethereum, which occupies a position as bitcoin’s unofficial deputy to the position of most high-profile crypto coin. One attractive characteristic of this crypto coin for an investor is that it can be used both for currency trading and for other purposes, such as transaction validation: that means it has value for a wider range of people, and could therefore be a smart choice for those who only want to invest in crypto assets with obvious sustainable support bases for the long term.

And it’s also worth exploring the “smart contracts” aspect of ethereum, too. This functionality allows firms and organisations to enjoy great efficiency benefits such as automatic order execution – a development which, again, means that the customer base of ethereum is diverse and potentially stronger.

Monero

One of the great things about the cryptocurrency markets is that a coin appears to exist for almost every set of purposes – and in the privacy field, monero is the one to look at. While cryptocurrencies such as bitcoin certainly have a strong privacy element thanks to the decentralisation aspect of the blockchain, monero takes things one step further by offering users even more ways in which to obscure the identity of the person sending the money.

This is something that isn’t on offer with many standard banks, as they are required to compile extensive data about their customers. However, one factor to consider is whether or not privacy coins will still exist in their current form in years to come. That’s because many regulators and national governments are considering introducing (or, indeed, have already introduced) stronger laws around anti money laundering (AML) and know your customer (KYC). How privacy coins will respond to what might essentially seem like an incursion on their right to operate as they currently do is yet to be seen.

Dogecoin

There’s really something for everyone under the cryptocurrency umbrella – and if you fancy a canine-themed trading experience, dogecoin may well be the right option for you. With a market capitalisation of $271,051,546 US dollars, this unusual cryptocurrency – which is known as DOGE for short – could be a great option.

Dogecoin is also a prime example of the relative newness of cryptocurrency trading putting a fresh spin on the idea of traditional investment. This coin uses a Shiba Inu dog, which is one of the most popular dogs in Japan, as its logo! So, if having fun while investing is something that is a big priority for you, looking into Dogecoin might well be a way to indulge your inner desire for meme-friendly activity and potentially even build your wealth in the process.

Ripple

Finally, it’s also worth investigating ripple. Ripple is a company which offers a variety of services designed to improve procedures in the cross border payments space, and it powers many of its offers via its own homegrown cryptocurrency called XRP. The idea behind XRP is that financial institutions can use it to add more liquidity to their international transactions. This stands in sharp contrast to the way that such transactions are currently executed: usually, the firms in question have to “pre-fund” before they can execute a transaction on behalf of a customer, which makes it difficult from a liquidity perspective. With ripple securing partnerships with many global institutions, however, it’s well worth considering as an investment option if you’re looking for an alternative to the dominant bitcoin agenda.

With the cryptocurrency world seemingly dominated by news of the ever-fluctuating value of bitcoin, it can be easy to forget the fact that many other crypto coins exist. From ethereum with its power to institute smart contracts to the fun and kitschy coins such as dogecoin, there are many different options out there – and doing some research before pressing ahead with a certain cryptocurrency is definitely a good idea.