Throughout the years, cryptocurrency has become very popular among crypto enthusiasts, both individuals and businesses. Since the development of the first cryptocurrency called Bitcoin, several new ones popped up while others vanished. With thousands of cryptocurrencies in the market, some are doing very well and are close to success like Bitcoin, while others just failed to engage some investors or just did not make an impact at all.
The development of many cryptocurrencies led to an increasing number of investors, traders, or enthusiasts who were attracted and engaged in Cryptocurrency activities. However, with all the different cryptos available, deciding on which currency to invest in is a very tricky thing, especially for newbie investors.
One thing that every beginner in crypto must know is that the Crypto market is highly volatile, which means that the values in the market could either go up or down in just a matter of time. Gaining a constant profit for a consecutive number of days does not guarantee that the values won’t fall the next day, leading you to lose all your profits overnight.
Despite its naturally constant fluctuations in price, the interest surrounding Cryptocurrency is still developing. The ‘high risk, high reward’ disposition of investing in Cryptocurrency attracts people due to the possibly low starting capital required for a majority of new cryptos in the market.
One major selling point for digital currencies is their usability. This is why there are businesses and firms that are now starting to accept cryptocurrency as a mode of payment, most especially Bitcoin. If services and goods accept transactions done with a specific cryptocurrency, its value will surely increase.
To help you progress your crypto trading career and start trading in platforms like Bitcoin Up, check out these five cryptocurrencies that can be utilized for purchasing goods and services for businesses or companies that accept cryptocurrency.
Bitcoin
As the first major cryptocurrency, bitcoin ranks number one as the most popular and usable digital currency in the market today. Bitcoin was developed by Satoshi Nakamoto for the purpose of utilizing it for regular transactions, making more establishments accept it as a valid mode of payment due to its high value.
The first product bought using Bitcoin was a box of pizza worth 10,000 BTC, which was $80,000 USD during that time. Though it may sound ridiculous now due to its current high value, that transaction was a huge step that helped change people’s views on cryptocurrency.
From then on, people started to take cryptocurrency seriously, which is a great factor that led to its success today. The value of bitcoin today is considerably high, and a huge part of that value is due to its usability, which makes it challenging to invest.
Ethereum
Ethereum was released in 2014 with the goal to ‘dethrone’ Bitcoin. This cryptocurrency’s creator, Vitalik Buterin, wanted to develop a cryptocurrency that has all the features of Bitcoin, but without issues such as simple factors like the speed of transaction and easier direct exchanges. Ethereum runs on decentralised applications, which means that all the transactions in this crypto are only between the two parties, and does not include a third-party mediator in between.
Compared to traditional currency such as credit or debit cards that have a third-party mediator in the form of governments and banks, cryptocurrencies like ethereum only works on the two involved parties. With its transaction speed and usability, Ethereum is a usable Cryptocurrency with rising values.
Ripple
Ripple or XRP works with certain financial institutions to create a more efficient experience for financial transactions by offering lower currency rates at real-time exchanges. The major use of Ripple is to be an intermediary between physical and digital currencies by improving cross-border transactions by making them simpler and faster. As the usability of Ripple goes beyond the basic day-to-day transactions, this cryptocurrency is more valued on a larger scale.
Cardano
Cardano was named after the world’s first computer programmer, Ada Lovelace. It was developed to be a high speed and low energy consumption Cryptocurrency. Since its creation, it was evident that the developers’ goals were to start a Cryptocurrency that would impact the world on a larger scale rather than on a day-to-day basis.
Similar to Ripple, Cardano also focuses on large transactions. This Cryptocurrency’s high speed and low energy consumption allow lesser developed countries to transact through this digital currency. Due to its usability, Cardano’s value will continue to rise with the importance of Cryptocurrency growing on a global scale.
Monero
Monero is another Cryptocurrency for newbie investors with a well-known and well-loved key feature: make transactions anonymous. This key feature changes the way it is used as a whole, making it more focused on money transfers, asset exchanges, and other transactions that need to be encrypted. However, this Cryptocurrency encountered a big issue due to its anonymity – even regulators cannot see the details of each transaction.
The five listed above are just some of the Cryptocurrencies that are acceptable for goods and services payment methods. The main takeaway after reading and researching the five cryptocurrencies is that usability is indeed a large range of things – from buying pizza to developing cities. Investing in cryptocurrency always depends on the main purpose of the chosen cryptocurrency and how that aligns with what you want to do with it.
Cryptocurrency may not be similar to the physical cash that you store in a wallet where you can get some bills or coins if needed, but this digital currency also needs a digital wallet. Your digital wallet acts as a security to ensure the protection and safety of your virtual assets, however, it does not contain the cash at all. What it stores is the history of every transaction you made from different cryptocurrencies and is locked by a digital key.
Your digital key should be well-protected and must be secured in a safe place. This is extremely important as losing your key means losing access to your digital funds and opens a higher chance of being a victim of crypto scams online.
Its development also paved the way for scams and thefts situations online, so after choosing a cryptocurrency, your main goal should be focused on how to secure your digital funds to avoid falling into the hands of scammers online.
