No one can think of finance today without thinking of cryptocurrencies. These are the new kinds of currencies and they have been around for some time. They have more benefits than fiat currency which is why they’re so popular. Also, there’s more than one kind of cryptocurrency.

The secret behind their existence is a technology called blockchain technology. This technology enables the features of cryptocurrencies but has also been seen in other areas. NFTs also run on blockchain technology and they have also been making noise. However, buying an NFT is not so simple, at least not as simple as buying crypto.

But there’s more than one crypto available online. This might have you confused as to choosing your first buy. Once you have it, you might wonder if you should stick to certain crypto or diversify your portfolio. In that regard, you should consider the most popular digital currencies before you make the decision to buy one.

Bitcoin

When it comes to cryptocurrencies, Bitcoin is the most popular one. It has been around since 2009 and is still going strong. As a cryptocurrency, it has numerous benefits to offer its users and investors choose it for its profit potential. Bitcoin is popular in various areas, business included, and you’ll see it as a payment method at various sites online. So, if you’re looking to buy products or services Bitcoin is the way to go. As it’s the most popular crypto, you’ll have no trouble finding online vendors that support this cryptocurrency.

If you’re in it for the profit potential, then you should know that this is a double-edged sword. That’s because of volatility. This property of Bitcoin is what adds a certain level of risk to it. Volatility can add value to your assets, but it can also lower them without warning. In short, you’ll need to accept this kind of risk if you’re going for Bitcoin. It’s a decentralized currency, which means no third parties will look into your assets, but it also means that there’s no one to impose regulations to stabilize the currency.

Ethereum

The thing about Ethereum is that it’s just as popular as Bitcoin. It has been mentioned as an additional crypto to consider when it comes to Bitcoin. It has certain advantages over Bitcoin. One of them is its ability to enable faster transactions. This is because cryptocurrency is based on smart contracts technology. This enables the parties that are parts of the transaction to conduct them without the interference of third parties.

Ethereum isn’t as popular as Bitcoin, but it’s around. Its features make it popular with a good number of people which is why you should consider it. It doesn’t offer a profit potential as high as Bitcoin, but it’s more stable. You’ll also see certain vendors offering Ethereum as a payment method, so you can use it to buy and sell things, and you can use it as an asset in your crypto portfolio.

You can think of Ethereum as your safe bet in the crypto world as it’s pretty stable, offers decent profit potential, and is available at sites online as a payment method. Naturally, you should also consider other cryptocurrencies when creating your portfolio or making your first buy.

Cardano

Cardano is not as popular as the other cryptocurrencies on this list, but it’s around. You’ll see it on more than one list of digital currencies since it has its fair share of users. Moreover, this crypto and Ethereum share a bond. That bond is Charles Hoskinson.

He was one of the first founders of Ethereum, but he decided to leave the team because he didn’t like where Ethereum is going. So, he got some crypto researchers on his side and created another cryptocurrency called Cardano. His cryptocurrency is based on research and it doesn’t have the limitations of Ethereum which is why some consider it better, making it a cryptocurrency you should consider.

Besides these 3 cryptocurrencies, there are other ones you should look into. You can for either one or all of them as it’s a good idea to diversify your portfolio. These currencies will give you a solid base in the world of crypto.