Over a decade ago, the first-ever digital currency was released to the public. Not only did Bitcoin become a trendsetter, but it also ushered a wave of other cryptocurrencies built on the same decentralised network.
Despite Bitcoin’s peer-to-peer network, the digital asset became a de facto standard for all digital currencies, which resulted in an ever-growing legion of alternatives and followers inspired by it.
In 2022, thousands of digital currencies are already circulating on the market, so if you’re planning to invest in your first crypto, you might get overwhelmed by the choices.
With that in mind, you must do all the necessary research before investing in something as highly volatile as cryptocurrencies. But in a fast-changing industry, the top 3 cryptocurrencies in the market are best suited for first-time inventors.
Bitcoin is the father of all digital currencies, considering it’s the first-ever cryptocurrency released to the public.
Over a decade after its initial release, Bitcoin is still in the lead by market cap, which may not sound exciting. However, it shows that this digital asset has already survived multiple market crashes and remained on top.
Ultimately, more established cryptocurrencies have the best chance of surviving any market crashes in the future, not to mention that Bitcoin is now influencing the prices of other cryptocurrencies as well, thus considered to be a solid first buy.
Down to the number 2 stop is Ethereum, and the reason for that is because Ethereum is second to Bitcoin in the rankings, and it’s commonly considered as the silver to Bitcoin’s Gold.
There are also other reasons why this digital asset is in the top 3, and it’s because of how it powers a large portion of the decentralised finance industry.
It also was the first digital currency asset to introduce smart contracts into the market, which are small self-executing codes that reside in the blockchain, which developers utilise to make programs based on the Ethereum network.
The number 3 on the list is Cardano, and it’s relatively new compared to Ethereum and Bitcoin; because of how new this asset is, it’s considered the riskiest out of the top 3 digital assets.
But despite how new the technology is, it’s a great way for new crypto investors to learn more about what blockchain generally is and what it can potentially do.
Furthermore, Cardano already has partnerships with several African countries, like the agreement with the Ministry of Education in Ethiopia, which utilises Cardano to record their student’s academic records on the blockchain.
Check out reliable and useful apps like Binance, eToro and the Bitcoin Loophole app if you are seeking beginner-friendly platforms to trade Bitcoin, Ethereum, Binance Coin (BNB) and other cryptocurrencies.
Tips To Protect Yourself and Your Funds
Regardless of whichever digital currency you invest in, risks are always involved, but you shouldn’t be scared of the risks because there’s also the potential to reap massive gains from it, so it’s better to be prepared for it.
Now that you know the top digital currencies to add to your portfolio and invest in let’s tackle ways you protect yourself and your funds from unfortunate events.
- Invest With What You Can Afford to Lose
Digital currencies, in general, are extremely volatile in the market as your assets can easily go down or increase in market value more times than you can count in a single week.
With that in mind, you should only invest with the money that you can afford to lose if ever something bad happens to your investments. Not to mention that there are already thousands of cryptocurrencies in the market, so there are always many coins that are bound to fail.
So if you invest in crypto with money you can survive without, you won’t be affected if the market suddenly crashes.
- Your Emergency and Retirement Savings are Priority
It’s relatively easy to get caught in the hype around digital currency investments, especially in 2022, when everyone has easy access to the internet.
As you scour through the internet seeing various posts and news about individuals making millions with crypto, you’ll get a feeling that you’re missing out on something great if you don’t invest now, but this is one of the main reasons people lose in their investment.
Regardless of what they say, you should always prioritise your emergency and retirement savings as they will sustain you either with a financial crisis or when you’re at old age.
- Have Only 5% Crypto In Your Portfolio
Regardless of how much money you make or expect to make with cryptocurrency investments, limiting the asset to as much as 5% in your portfolio is advisable.
One common mistake investors make is going all-in in crypto investment; instead, that you can ensure that all of your digital currency assets are only a small part of a balanced and diversified portfolio. In doing so, you won’t ever get exposed to the crypto market’s fluctuations.
- Choose the Best App or Exchange To Transact With
One of the best pieces of advice you’ll ever receive is to do your research and look for the best cryptocurrency app or exchange platform that suits all of your needs. Choosing a reputable crypto exchange would mean choosing the best place to store your crypto funds.
One of the best options is cold storage, a physical storage device where you can keep all of your funds away from the internet and keep them with you at all times. It’s already a bonus if your crypto wallet has third-party insurance that would provide extra protection to your funds.
- Don’t Stop Researching.
When it comes to investing in digital currencies, you don’t necessarily need to be a crypto or blockchain expert; however, it’s required that you would know about the basics. If you want, however, you won’t be able to determine which cryptocurrency assets are worthwhile from the thousands that don’t have any potential.
With that in mind, it’s essential for you to do your research before investing and to keep doing your research to determine the best course of action with your investments.