Which Cryptocurrency? - Bitcoin & Ethereum
The cryptocurrency industry is still forming and no one yet knows what it will look like in several years when it settles down. But it is safe to say that it is a bit Mad Max right now! I personally don’t believe any of today’s leading cryptocurrencies have much value or purpose, other than Bitcoin and Ethereum. There isn’t anything concrete to guarantee your investment in the long term, I believe it is more likely to be worthless!
I personally bought cryptocurrency to learn and be part of the ecosystem and I love anything new involving hardware or software. But I honestly think it isn’t a good investment if you want to achieve a return. Think of it as gambling or the riskiest item in your portfolio of mostly sensible investments including stocks, cash and bonds.
I like Bitcoin because it is the original coin, the one that is most liquid to fiat (hard currency), which means you can usually trade it easily for your own local hard currency. This means you are unlikely to get stuck holding it when you want to sell. I believe it will always be relevant while cryptocurrency still has relevance as most altcoins will typically require you to go through bitcoin to get hold of it.
For example, if you are buying in an ICO you’ll usually buy in bitcoin or ether, not AUD or USD. And if you want to trade a new coin or token, you will have to find out where it is listed. It will most likely be listed on an exchange you do not have an account with. Even if you do have an account or sign up for one it is highly unlikely you will be able to send your local hard currency to that exchange. This means you will have to get hold of some bitcoin or ether and transfer this to your exchange so you can then exchange the bitcoin or ether for your token of choice. And much the same way when you need to exit the coin because you’ve made 100x or perhaps it’s tanking all the way down to zero, you have to trade it into something else like bitcoin or ether so you can transfer that back out to your local exchange, to allow you to cash out your profits or losses into your local hard currency!
I like ethereum because it has a valid purpose in the cryptocurrency ecosystem, and underpins the majority of ICO’s. There are real world businesses that are built on and rely upon the ethereum network. This provides an incentive for those using it to support it to keep it relevant and healthy to keep their business alive. The currency on the ethereum network is ether. This is number two to bitcoin and is almost as liquid.Next : Secure Storage Locations