With a market cap of nearly $200 billion, nothing has had a quicker rise to investor fame than cryptocurrency. Bitcoin’s foundation in 2009 was the first domino to fall. Hundreds followed. The industry continues its rapid expansion. Investors are piling on the train.

Blockchain provides users with a decentralized platform. This platform allows them to make untraceable transactions with lower transaction fees compared to standard online payment mechanisms.

The investment space carries great risk. This is because of its recent founding. It’s also due to an unsettled future. They face regulatory battles, central banks, and many obstacles. Nonetheless, they could prove revolutionary. And therefore, a great investment.

Bitcoin “Investors”

If the cryptocurrency market was the e-commerce industry, Bitcoin would be its Amazon (AMZN). It was first digital currency to take the world by storm. Bitcoin is the gold standard of the industry. That’s why it has a market cap of over $100 billion.

Furthermore, it was the first decentralized peer-to-peer network allowing for lower transaction costs and faster processing. New cryptocurrencies are created every day. Many of these are referred to as altcoins; they are simply modified versions of Bitcoin. Therefore, as Bitcoin continues to grow, it will be interesting to see how government authorities decide to regulate the digital currency.

There is obvious risk with a new market. This is especially true in an industry with a tentative future. But for now? Investors seem like they will keep pouring their money into Bitcoin.

Ethereum

Although Bitcoin is more of a household name, Ethereum is slowly becoming a strong competitor to its founding father. Launched in 2015, Ethereum created a cryptographic token, ether.

Although Bitcoin is strictly a currency, Ethereum is actually a software as well. Developers utilize Ethereum technology and use ether to run applications on its decentralized platform. They do so without any downtime or fraud. As a result, Ethereum has a market cap of nearly $30 billion. This is second only to crypto-giant Bitcoin.

Ripple

Ripple is a hot topic at the moment because it does not require mining. The creators of Ripple believe this reduces computing power, allowing for less network latency and downtime.

Instead, Ripple distributes value through business developments and investment deals. The cryptocurrency continues to rise in value. Investors are interested in currencies that provide enterprise solutions rather than just a digital security. Ripple currently has a market cap over $8 billion.

Litecoin

Launched in 2011, just two years after Bitcoin’s creation, Litecoin was one of the earliest cryptocurrencies to hit the market. Litecoin is very similar to its parent Bitcoin. There is one major difference: it offers faster block generation rate. This leads to faster transaction-processing.

Litecoin is continuously more accepted in the global marketplaces and has a market cap of over $3 billion.

So How Do Investors Trade It?

Cryptocurrency provides no intrinsic value. Any amount that you invest is at risk to become worthless. New markets extremely volatile. This is particularly true with cryptocurrencies. Uncertainty surrounding regulation makes digital currency’s future value unpredictable.

With such incredible growth, it is hard to avoid cryptocurrencies. The complex technology seems simple. A closer look at each individual digital currency proves it is a lot more complicated. With high-risk can come high-reward. Proceed with caution which is the advice we’d give if we could.


In case you missed it, check out our recent post about the G20 and if global leaders (and investors) are chasing an elusive dream

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