Invest in Crypto. Table of Contents
- Invest in the Most Profitable Cryptocurrencies
- How to invest in guaranteed cryptocurrency?
- Stablecoins: Top 10 Cryptocurrencies 2021 to Invest in
- Which cryptocurrency is better to invest in 2021?
- How to Invest in Gold Backed Cryptocurrency?
- How to Invest in Oil Backed Cryptocurrency?
- How to invest in a metal-backed cryptocurrency
Invest in the Most Profitable Cryptocurrencies
An independent yet stable cryptocurrency with a high degree of protection is the dream of any financier, from a retailer to the Central Bank. Let’s consider how you can invest in a cryptocurrency backed by reliable traditional assets
Any cryptocurrency is an ordinary program code that does not have any material (guarantee) value, and this independence is very expensive. It is too dangerous to invest your capital in a cryptocurrency if the price of such an asset can change by 50-200% per day, and, as a rule, at a loss. But there is a solution: cryptocurrencies called Stablecoin.
How to invest in guaranteed cryptocurrency?
Stablecoin is a special “family” of crypto assets that are tied to the rate of fiat currencies, physical goods or raw materials (gold, oil). Officially, this idea appeared in 2012 in the documentation for the first variant of Mastercoin, and the first full-fledged Tether coin (USDT) appeared only in 2015 and it cost $ 1. A kind of financial compromise, as a result of which the stablecoin loses a number of cryptocurrency features, but in return receives the properties of traditional money, which allows it to be used in settlement and commodity relations.
Stablecoins show volatility several orders of magnitude lower, since they are strictly dependent on the price of the real asset. They are even characterized by inflation, traditional for a normal currency, which stimulates not to accumulate stablecoins, but to spend. As a result, credit and even insurance services based on the blockchain began to appear on the crypto market. To invest, it is enough just to buy the corresponding token using the usual methods: for cash or non-cash fiat or cryptocurrency.
Stablecoins: Top 10 Cryptocurrencies 2021 to Invest in
All currently available stablecoins are conditionally classified into one of three groups:
- Backed by traditional currencies and other assets: currency, gold, securities – the most reliable scheme;
- Guaranteed by other cryptocurrencies: as a rule, BTC, BCH, BTG, LTC, XRP, ETH are a more dangerous option;
- Stablecoins without collateral: tokens can have any price, but they still differ from ordinary cryptocurrencies – in the functions of their smart contracts, an automatic increase or decrease in the volume of supply is declared to adjust the price.
At the moment, the list of the most popular stablecoins looks like this:
- Tether (USDT)
- Digix (DGX)
- DAI (DAI)
- Trueusd (TUSD)
- USD coin (USDC)
- Gemini dollar (GUSD)
- TRUEUSD (TUSD)
- Tiberius (TCX)
- Stonghold USD
- EL PETRO
Which cryptocurrency is better to invest in 2021?
Alas, assets backed by material values remain the most stable. Stablecoins backed by standard tokens or a basket of cryptocurrencies, such as BitUSD from Bitshares, or Ether backed Dai tokens, are rapidly losing value and credibility along with the depreciation of their “guarantors”
How to Invest in Gold Backed Cryptocurrency?
They tried to tie gold to cryptocurrency in Dubai (OneGram), Slovenia (Xaurum), Malaysia (HelloGold, AurumCoin) and even Russia (GoldMint) – 1 gram of pure gold for 1 ERC20 token, but they all fail to compete with a confident in itself Digix. In addition, we recommend the Swiss stablecoin Ekon.
How to Invest in Oil Backed Cryptocurrency?
In addition to the much-publicized, but most likely, killed in revolutionary battles Venezuelan EL PETRO, there is also Oilcoin, as a cryptocurrency analogue of American shale oil, and Bilur, for the creation of which the Texas oil company Hockley initially allocated 1 million barrels of crude oil. However, these tokens are not very popular.
How to invest in a metal-backed cryptocurrency
First of all, the “silver” currencies Silvercoin, EthereumLink and Silver Back Coin are of interest. Israeli developers have issued a diamond-backed Carat coin, besides them, less popular variants D1, Sparklecoin and Kela are positioned with such guarantees. The “zirconium” ZRcoin looks promising.
It is believed that in order to increase the stability of the cryptocurrency, it can potentially be tied to any commodity in demand – from real estate to labor. The growing popularity of stablecoins directly depends on the dynamics of the cryptocurrency market and the demand of large market players.
For those looking to avoid speculative risk, stablecoins are the most promising cryptocurrencies for investment. With their help, you can safely store money at the same time fully trade. If you periodically fix the profit and withdraw it into such “stable coins”, then you can safely invest in any, even the most active tokens, at least for a medium-term.