Crypto is a big deal, especially as the fiat markets continue to struggle around the world. If there’s one thing that we’ve learned over the past year it’s that investment diversity is key if you want to generate the best possible returns. In this article, we’ll be looking at which cryptocurrency assets will help you diversify your investment portfolio next time you’re on a cryptocurrency exchange.
Bitcoin
One of the big boys, and something that any trader should have in their portfolio, Bitcoin has had a tough year but still represents a significant portion of the cryptocurrency market. It’s the most popular cryptocurrency for a reason and although it has struggled to regain the heights it once had, it still has a high ceiling.
If you’re looking to diversify your investment portfolio and want to enter the cryptocurrency world, Bitcoin should be one of your first considerations. It holds enough weight in the market to remain stable above a certain level, and it always seems to have the potential for greatness, regardless of fluctuations.
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Ripple
Another one of the larger and more popular cryptocurrencies on the market, Ripple differs from Bitcoin and Ethereum in that it has been designed as more of a payment transaction tool, instead of being something designed to hold value or support the development of decentralized applications. It’s unique in this regard.
The core aim is to make it easier for institutions and individuals to move money around internationally without having to jump through the existing hoops that are currently in place. As digital payments become increasingly common and we become even more connected on a global level, Ripple should have its best days ahead.
Ethereum
The second largest cryptocurrency behind Bitcoin, Ethereum has been around for a while and is seen by many traders as having the potential to be the very best. It’s been widely adopted around the world and is currently rivaling Bitcoin for the top spot, although it does still have its work cut out if it wants to take the crown.
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What makes Ethereum unique is that it isn’t seen as a store of value, but rather as a platform for decentralized applications. This makes it an interesting investment for any trader with an interest in this area, and positions it on the cusp of a potential uptake once Web3 becomes more mainstream.
EOS
A direct competitor to Ethereum, EOS represents a great opportunity for portfolio diversification, as you can bet on both and reap the rewards if one pulls ahead in value. Although they operate in the same sector of cryptocurrency, EOS doesn’t have quite as much adoption as Ethereum yet.
Bitcoin Cash
Although Bitcoin Cash does have some connection to Bitcoin, it’s unique in that it’s a much more recent entrant to the cryptocurrency space, only being created towards the end of 2017. It was launched in response to traders being concerned about the stability of Bitcoin, and represents a safer alternative.
Although Bitcoin Cash was initially only launched as a spin-off to keep traders happy, it has since become a really popular cryptocurrency. Its biggest benefits are quicker trade turnaround times and lower transaction fees, which are a big deal for cryptocurrency traders. In addition, it still makes use of blockchain technology.
Litecoin
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A great alternative to Bitcoin, Litecoin is a great way to diversify your portfolio, as it isn’t tied to anything else, unlike some of the alt-coins currently available to buy. Although it has limited functionality and doesn’t have much wider use, Litecoin is a great store for value and is a strong Bitcoin alternative.
Again, Litecoin has a fast turnaround when it comes to transaction times and is much cheaper to transfer and acquire, which is a really appealing offering for traders who trade with tight deadlines and high budgets. It’s a great currency if you want to trade on a daily basis without too much worry about fluctuating value.
Tether
If you’re an investor who prefers to play the long game and wants an investment that you can rely on moving forward, Tether is a great cryptocurrency option to consider as it’s pegged to the US Dollar, and so enjoys many of the benefits that its stability brings, providing peace of mind for the more risk-averse traders.
The biggest reason to consider Tether as an investment is that you won’t need to worry about the market volatility that can cause problems for some green investors. While such volatility is expected, and is part of the reason why cryptocurrency trading is so popular, Tether helps to alleviate this somewhat.
