What’s the Best Crypto to Invest in
Why Invest in Cryptocurrency?
Have you seen the state of traditional finance lately? Even with interest rate rises, savers still get an insulting rate of interest while inflation ravages the real value of their assets.
At times like this, experienced investors turn to developing markets for better rates of return. But regular people… well, do you fancy investing in the Mexican stock market, or in a Far-East investment fund?
No, I didn’t think so. Only experts and the foolhardy would dare!
Luckily, there’s another developing market on your doorstep that can offer excellent returns: Cryptocurrency, which has now achieved a certain respectability in traditional finance. Three years ago they would cancel your bank account for even thinking about sending money to a
Cryptocurrency exchange, and now they just warn you about scammers. This is progress!
Cryptocurrency is high risk though, compared to traditional finance. But there are ways that beginners can at least manage that to acceptable levels.
There are thousands of Cryptocurrencies, and everything but Bitcoin is called an “altcoin” – an acknowledgement of Bitcoin’s special place in the ecosystem. Altcoins come in all shapes, sizes and Blockchains, but Ethereum aside, they’re generally riskier and more volatile than Bitcoin.
In this article, we’ll explore some of the best Crypto to invest in. Remember, this is not financial advice and you should always do your own research before investing.
Bitcoin is the big gorilla in the Crypto market. It was also the first proper Cryptocurrency and is the one with the biggest overall value (“market cap”). It’s bought and sold everywhere, and as a decentralised system, isn’t under the control of any Government or company.
Traditionally the biggest risk in Bitcoin was that Governments would ban it and kill it. While Governments can still ban their citizens from using it or trading it, the Crypto itself is now effectively untouchable, which reduces the risk it will ever “go to zero”.
The main reason someone would invest in Bitcoin is simply because they think its value will increase. Historically (over 5-year periods), this has always been true. It’s volatile though: its price often jumps up and down by as much as 10% in a day (2% is quite common). The reason an investor might expect it to go up over time is that there are only 21,000,000 of them that can ever exist, and they’ve found 18,000,000. Since the difficulty goes up all the time, scarcity is introduced. Also, people keep finding more uses for Bitcoin.
Some people call Bitcoin “Digital Gold” because it acts as a store of value.
If people find more uses for Bitcoin quickly, the use of Ethereum has exploded so much that it needs an upgrade!
While Bitcoin was planned as a digital currency, Ethereum was planned as a world computer that could safely process financial information, run computer programs (called “Smart Contracts”) and a lot more besides.
The native currency of the Ethereum Blockchain is “Ether” (ETH for short), and it’s needed to run Smart Contracts. This means anyone using the facilities of the Ethereum Blockchain has to buy ETH, ensuring constant demand. Luckily for investors, it has also tended to go up in price over the long term (but it’s also volatile in the short term).
ETH can also be bought anywhere that Bitcoin is sold. These two are the Coke and Pepsi of Crypto.
Ethereum is also undergoing an upgrade at the moment: if that succeeds, and traditional finance jumps into Ethereum 2.0, it could be a wild ride.
If BTC and ETH are the Coke and Pepsi of Crypto, Stablecoins are the sparkling water. They’re designed to track the price of a real-world asset. There are Stablecoins for most currencies. They’re not official central bank currencies, which are called CBDCs – Central Bank Digital Currencies.
Instead, Stablecoins are run by private companies who use a variety of tricks to make the currencies worth something.
Where Bitcoin and Ethereum can go up (and down!) against the dollar, US Stablecoins are designed to stay 1:1 with it through a variety of methods best described as “complicated”. They don’t stay exactly 1:1 either, but they’re supposed to correct when they drift off. USDC is “asset-backed” – that is, they have (or claim to have) enough dollar assets locked up to pay for every token they have issued.
Of course, there are thousands more Cryptocurrencies and tokens. Some can look very sexy when they’re going up. But many an investor dollar has been lost to the world of altcoins when they start plummeting more than Bitcoin and Ethereum do. Equally, not all Stablecoins are created equal, and some have very dodgy underpinnings that are causing a lot of concern in the Cryptocurrency sector.
Choose AQRU to Invest your Cryptocurrency
It’s not entirely by coincidence that AQRU offers interest on your BTC, ETH and US Dollar Stablecoins, but only includes coins that have a good track record. For AQRU, safety is the name of the game (even if with BTC and ETH your asset value is still market-driven).
AQRU’s app and web platform enable you to invest in BTC, ETH and a basket of USD Stablecoins if you want, which means you can diversify your portfolio and also get 0% interest on them, and up to 7% on your Stablecoins.
Interest calculated daily and reinvested means that you can claim you’re Yield Farming (if anyone asks)!
Fee-free deposit and withdrawal (except for a $20 fee for withdrawals to Cryptocurrency) also help, and you can even buy Crypto in-app with MoonPay, a trusted third-party payment provider (fees apply for Crypto purchases).
Other attractions include a no-strings 10USDC investment so you can see the system in action, referral bonuses of $75 (T&Cs apply of course). The minimum deposit is low at 100 Euros, so you can make regular deposits.
Overall, AQRU is a good way to have a diversified portfolio of the most mainstream Cryptocurrency and have it working for you in a tough financial environment. Sign up for free today to get started!