Did you know that as of 2023, over 22,000 types of cryptocurrency exist? That’s impressive, considering the first-ever digital currency only came out in 2009.
So, within 14 years, an average of 1,500+ cryptocurrencies went into circulation yearly.
By contrast, there are only about 180 fiat currencies used worldwide.
Still, of the more than 22,000 types of crypto that exist, only a fraction are active or valuable.
The rest are “dead” because they were a scam, abandoned by developers, or failed to get enough interest.
That said, before you buy cryptocurrency, ensure you know which types are worth it.
Fortunately, you came to the right page. We’ll discuss the best cryptocurrency types to consider investing in below, so read on.
- 1 Bitcoin (BTC)
- 2 Ether (ETH)
- 3 Tether (USDT)
- 4 Binance Coin (BNB)
- 5 U.S. Dollar Coin (USDC)
- 6 Consider Investing In One Or More Types Of Cryptocurrency
Bitcoin, trading as BTC, is the “grandfather” of crypto, as it’s the first-ever of its kind to have existed. An entity known as “Satoshi Nakamoto” is behind its launch.
Interestingly, Nakamoto’s identity remains unverified to date. Some believe this person is a programmer, while others think it’s a group of programmers.
In any case, one Bitcoin is divisible to eight decimal places (1/100,000,000). The smallest BTC unit you can buy is a “satoshi” or “sat.”
BTC’s Price History
Although Bitcoin’s introduction occurred in 2009, it only began trading in July 2010.
Back then, its starting value was $0.003 per 1 BTC. By the end of the year, it traded at $0.30, reflecting a 9,900% increase.
Bitcoin’s trading value continued to perform well in 2011 and 2012. However, it wasn’t until 2013 that it experienced its first significant price swing.
During the start of the year, it traded at $13.30 but reached a high of $1,163 and ended the year at $805.
BTC’s value dipped to $318 by the end of 2014, rose to $434 at the end of 2015, and finished 2016 at $966.
By 2017, its price hiked to as much as $19,892, although it dropped to $14,245 at the end of the year. These violent price swings continued, with the wildest being 2021’s all-time high of $68,789.
BTC’s value has since dipped considerably. As of April 2023, its price has hovered between the $27,000 and $28,000 levels.
Why Invest In BTC?
Despite its volatility, BTC remains the top choice if you want to buy cryptocurrency.
It has the largest user ecosystem that supports its long-term growth. It’s also one of the world’s fastest-growing cryptocurrencies.
Bitcoin is also the most accepted cryptocurrency for in-store and offline purchases. So, if you ever go to stores that allow crypto as a payment, it’s most likely BTC they take.
You can also buy, sell, send, and convert BTC to fiat currency using dedicated ATMS. With thousands of them in the U.S. and Canada, you’ll surely locate Bitcoin ATMs near you. Many of these machines also let you make transactions with other known cryptocurrencies.
Ether, trading as ETH, is the native crypto used by Ethereum.
Ethereum is a decentralized blockchain platform and network. It’s a technology designed to hold assets and build apps and organizations.
Ether, or ETH, is the transactional token used to pay for Ethereum-provided services.
Its developers didn’t intend it to be an alternative currency. Despite that, it has become the second-most valuable cryptocurrency in the world.
ETH’s Price History
Ether, conceptualized in July 2015, became available for trading on August 7, 2015.
Back then, its closing price was only $2.83. It grew slowly over the next two years, selling under $20 throughout March 9, 2017.
The first time ETH’s price crossed the $20 mark was on March 12, 2017. From then on, its value increased considerably, reaching as high as $1,410 on January 14, 2018.
However, it dropped after that and stayed under $1,000 for three years.
On January 6, 2021, ETH’s value shot up to $1,103.36. It hasn’t gone lower than that since then, even reaching an all-time high of $4,815 in November 2021. However, it’s currently trading at only around $1,800.
Should You Invest in ETH?
If you want to invest in crypto other than BTC, ETH may be a good choice, as it’s cheaper than BTC.
Ether’s blockchain, Ethereum, is also more extensive than BTC’s. Thus, crypto experts believe ETH will outpace Bitcoin in the future.
If that projection comes to pass, one possible outcome is that more people will want ETH. That may increase its value, so consider buying now before it becomes more expensive.
Tether is a stablecoin, a type of crypto designed to have a relatively stable price.
To achieve stability, stablecoins must have a reference asset pegged to them.
It may be fiat money or a commodity. In the case of Tether, it’s none other than the U.S. dollar.
Because of its reference asset, USDT has become the world’s third-largest crypto.
USDT’s Price History
Since the reference asset pegged to USDT is the U.S. dollar, 1 USDT is worth 1 USD.
So, aside from a few cents, give or take, this stablecoin’s price hasn’t changed. Therefore, as long as Tether matches the value of USD, its value should remain at 1:1.
Why Buy USDT, Then?
Cryptocurrencies not pegged to a real-world asset or currency are subject to volatility. That’s also why BTC and ETH see violent price fluctuations.
Based on historical cryptocurrency trends, Tether has proven to be more stable.
That makes it an ideal store of value for those who wish to own crypto but want to avoid extreme volatility.
If you’re not in the U.S., you may still be able to make some money by buying USDT.
This may work if you live in a country using a currency with a value lower than the USD.
An example is the Philippines, where the value of 1 USD fluctuates around 54.00 to 55.00 Philippine Pesos (PHP). In this case, you can buy USDT when its PHP exchange rate is lower.
Then, if that rate goes up (historically, it has, even reaching over PHP 59 in 2022), you’ll have more PHP.
Binance Coin (BNB)
Binance Coin, trading as BNB, is the native crypto the BNB Chain ecosystem uses.
It originally ran on the Ethereum blockchain, which is why it’s similar to ETH. For instance, users use BNB to pay for goods and services on the BNB exchange platform.
BNB’s Price History
When BNB first came out, it was available for purchase with BTC or ETH. Its earliest price recorded was around $0.10 in July 2017.
While its value increased over the next two years, it wasn’t until April 2019 that it crossed the $20 mark.
In January 2021, BNB traded at over $40. The following month, its price skyrocketed to over $200. It then kept climbing, reaching its highest-ever value of $623.82 in November 2021.
However, as of April 2023, BNB has only traded at the $300 level.
Is BNB A Good Buy?
It is if you want to own crypto that also works as an excellent utility token. For example, you can use BNB to pay for your Binance exchange transactions. Doing so even gives you a discount on your total bill.
Many merchants also accept BNB as payment for online purchases. These include gift cards, travel, and entertainment, to name a few. You can even use this token to pay for crypto credit card bills.
U.S. Dollar Coin (USDC)
Like Tether, the USD coin is a stablecoin. And like USDT, whose reference asset is the U.S. dollar, the same goes for USDC. So, 1 USDC is also equivalent to 1 USD.
USDC vs. USDT
One of the primary differences between USDC and USDT is their market capitalization.
As of March 2023, Tether’s market cap reached almost $75 billion. That’s nearly twice as much as USDC’s market cap.
Another difference is the entity that controls and issues the stablecoins. Tether Limited Inc., owned by the Hong Kong-based company iFinex Inc., is behind USDT. On the other hand, the Centre consortium governs and has complete control over USDC.
Is USDC Better Than USDT?
In terms of value, USDC isn’t necessarily better than USDT since they both depend on USD.
However, some crypto users prefer USDC, saying it is safer and more transparent. This may have to do with Tether’s controversial history.
Tether and its parent company iFinex Inc. got involved in a legal battle between April 2019 and February 2021.
Their case was vs. the New York Attorney General’s office. According to the latter, Tether misused funds intended to back USDT.
Tether supposedly used the funds to cover an $850 million loss suffered by Bitfinex. Bitfinex is another company owned by iFinex.
Despite all that trouble, USDT has rebounded and remains the largest stablecoin.
Still, if you prioritize transparency from crypto issuers, USDC may be a good choice.
Consider Investing In One Or More Types Of Cryptocurrency
While digital currencies won’t replace fiat money, they can still be a good investment.
After all, some types of cryptocurrency, like BTC and ETH, offer high return potential. Others, like USDC and USDT, are stable stores of value.
Just remember, though, that most digital currencies are very volatile. That’s also why investing in crypto can yield massive rewards.
However, for the same reason, you must prepare yourself for potentially significant losses.
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