With thousands of options, including bitcoin, ethereum and binance coin, here’s how to pick the cryptocurrency that’s right for you. (Via MarketWatch Picks)
If, like us, you find that the cereal aisle at the grocery store can be overwhelming at times, trying to pick out a cryptocurrency may leave you downright flustered. The digital coin that upended how we think about money — bitcoin — has spawned some 11,000-plus other options, including ethereum, tether, binance coin, and solana. And now, the global crypto market tops $2.7 trillion.
“I always start people with bitcoin,” Kuiper says, adding that as the biggest cryptocurrency, there’s more information available about bitcoin for new investors to research. In addition to being a way to store value, other benefits of bitcoin are its limited supply and its likelihood of sticking around, pros say.
If you decide to venture beyond bitcoin, it’s important to understand the technology behind the crypto asset — along with the risks it may pose to your portfolio, says Matt Schwartz, senior advisor and a certified financial planner with Great Waters Financial. The largest coins are attractive because you can trade them through various brokers, and there is also more research and analysis available to learn more about specific assets.
The Wave fund is made up of the top five largest cryptocurrencies . Another index fund, managed by Invictus Capital, includes the top 20 cryptocurrencies.