Blockchain technology is heating up, with the entire cryptocurrency market is worth a combined $267 billion. And in May 2020, Bitcoin jumped 6%, causing a $13 billion surge in market value for the entire cryptocurrency market.
Given this meteoric rise, it’s no surprise that investors are clamoring to figure out how to break into the Bitcoin marketplace. But there are many other cryptocurrencies (such as Ethereum and Ripple) and blockchain companies on the stock exchange where investors can funnel their money.
However, investing in a cryptocurrency is different than investing in a regular stock. When you invest in a company, you’re buying shares of that company and essentially own an extremely small percentage of it. When you invest in Bitcoin or Ethereum, you receive digital tokens that serve different purposes. With Bitcoin, you get decentralized currency that also happens to be partially anonymous. With Ethereum, you get a piece of the power that runs decentralized apps and smart contracts.
Trading cryptocurrencies occurs on dedicated exchanges. Larger exchanges like GDAX, Kraken, Bitfinex, and Gemini typically offer solid volume to trade cryptocurrencies through bank transfers or credit cards. Coinbase is also an option that is growing in popularity thanks to its ease of use and a built-in wallet.
Top Cryptocurrencies to Invest In
There are several paths one can take when deciding in which cryptocurrencies to invest, but a handful of these have risen to the top as the most popular options for investment:
Please note that due to constantly changing market cap, values at time of publication may be different than those reflected on our Markets Insider live dashboard.
- Bitcoin: There’s a reason you’ve heard the name Bitcoin all over the financial news space. Bitcoin has a market cap of over 169 billion. Moreover, the original design of Bitcoin ensured that there would never be more than 21 million inexistence (and math indicates we’ll never actually reach that number). This means Bitcoin is not subject to inflation.
- Ethereum: Arguably the second-most well-known cryptocurrency, Ethereum has more than doubled its value this year. And investors are paying a 220% premium to buy Ether. Even with that growth, the price remains significantly less than Bitcoin, so it could be a better value play for investors who don’t have the resources to afford Bitcoin.
- Ripple XRP: Ripple is a protocol that permits near instantaneous transaction settlements and…