Many people now ask what is the best cryptocurrency to buy. Undoubtedly, it is very difficult to give a clear answer to the question. But the post offers some insight for Bitcoin and others. Let’s look at the details.
Which cryptocurrency should you buy?
Are you an investor struggling to choose between Bitcoin (BTC-USD), Ethereum (ETH-USD) or XRP (XRP-USD)? If so, you should know that there is no clear answer to this question. It all depends on what kind of rise you are aiming for and the risks you want to take. Cryptocurrencies are much more difficult to predict than stocks due to the lack of an underlying business. Also, the only reason people invest in these assets is the possibility of high returns.
In fact, you should also consider the risks. Accordingly, the cryptocurrency market is volatile and unpredictable, as everyone knows. Major economies are currently facing some headwinds. However, Bitcoin also failed to break the $30,000 resistance level several times. Investors are increasingly questioning the Federal Reserve’s rate hikes in the face of still high inflation figures. These factors may cause a decrease in the demand for crypto assets. It can also trigger a sale. In particular, cryptocurrencies that are more cyclical in nature will see the worst of this. But there are still some cryptocurrencies that are trading at relatively attractive entry points for long-term investors. Potential interest rate cuts, coupled with the event of Bitcoin halving in 2024, could cause the cryptocurrency market to rise again.
Orientation to Bitcoin
Cryptocurrency Bitcoin started the year with a big rise. Accordingly, it has increased by more than 62% to date. On the other hand, many believe that despite the recent pullback from the $30,000 level, BTC could lead a new crypto rally. Also, the recent banking crisis and recession fears reveal a belief in the rally. Many other traditional assets have fallen. Bitcoin is the largest cryptocurrency. For this reason, it is purchased for security reasons. It is by far the best cryptocurrency. Unlike banks, no central authority can prevent you from withdrawing and transferring BTC. Therefore, Bitcoin becomes very attractive when people lose their trust in banks.
For those who believe a recession is approaching, Bitcoin is the best option. On the other hand, many cryptocurrencies have ties to the traditional banking system. Accordingly, they rely on third parties to support the network. For example, it is widely known that Ethereum uses AWS.
Will the cryptocurrency Ethereum rise more?
In fact, most ETH nodes are controlled by centralized entities like AWS. Speaking of Ethereum, there is a belief that it is the best crypto to buy for investors who prefer a combination of upside potential and security. While not as secure as Bitcoin and dependent on centralized partners, it is relatively decentralized. Not all nodes are validators. Central institutions will not have much control over the Ethereum network unless they hold the majority of staked ETH. Therefore, if AWS encounters any problems, it will likely cause at most some performance issues on the blockchain.
Let’s consider Ethereum’s price action once the security part is complete. The banking crisis fueled this year’s crypto rally. However, ETH performed slightly below its safer peer, gaining 51.3% year-to-date. If these bank failures continue, I don’t think ETH will continue to outperform BTC as it has throughout its history. However, if the looser monetary policy triggers the next crypto rally, Ethereum is poised to outperform Bitcoin.
Prospects for the cryptocurrency Ripple (XRP)
Excluding stablecoin Tether (USDT-USD), it is the third largest cryptocurrency in terms of popularity according to Google Trends. Investing in XRP is risky. Because Ripple has an ongoing legal battle with the Securities and Exchange Commission. In short, the case has dragged on and the latest development has caused a spike in the price of XRP. Crypto experts suggest that the case was changed in Ripple’s favor after Ripple’s chief legal officer tweeted about the Supreme Court’s adjustment to the modern world.
But there are warnings that this case is not under the jurisdiction of the Supreme Court. Rather, there is a case in a New York court. cryptocoin.com As we mentioned, Ripple’s legal director’s attempt to link an unrelated case is, in my opinion, misleading. Of course, no one can predict the judge’s decision. There is no end in sight to the case. Therefore, it kept the price of XRP low despite its wide utility. Ripple is a leader in the development of blockchain technology that can be integrated with traditional financial institutions as well as central bank digital currencies (CBDCs). XRP and its parent company, Ripple, have forged some compelling partnerships with numerous major banks. However, many are limiting their use of Ripple’s technology due to litigation. However, there will be significant gains if Ripple wins the case. If he doesn’t win, there will be losses. It may be preferred for investors who prefer to take more risks.
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