When you are new to the crypto ecosystem, the vital questions to ask are: which crypto to buy; which one is the best to make payments to, or which is the best to hold. In these cases, it is vitally important that we know the characteristics of each crypto and what is its advantages over others.
Currently, there are more than 3000 cryptocurrencies and tokens in the world. It is normal to have doubts about which we should buy, but the real question is: what am I going to do with cryptocurrency? Below, we will illustrate some cases about this and explain which are the best cryptocurrencies or tokens for any need.
We all know that more cryptocurrencies are consolidated as a payment method. Therefore, they are increasingly used to making purchases of goods and services; making payments by traditional means is indeed very comfortable, but cryptocurrencies offer extra security that is not too much, and the commissions in some cryptocurrencies are extremely low. Cryptocurrencies such as Litecoin, Ripple, Tron, Polygon, Stellar are ideal for payments because their commissions are low, and very fast to make transactions.
At this point, something very similar to the previous point happens; sending remittance from one continent to another is sometimes very uncomfortable. It usually takes days, and its commissions are high cryptocurrencies solve this problem since in some the commissions are very low and the transactions happen in a couple of minutes, cryptocurrencies like Ripple, Tron, Stellar, even Stablecoins like Tether, USD Coin, and DAI are excellent options to send remittances since their costs are very low and, in most of them, the transaction lasts less than 1 minute, the only drawback of this shipping method is that the conversion to the local currency must be made when it is sent, platforms such as Ccoins help solve this problem.
To be clear, people use almost any cryptocurrencies or token to hold them, except Stablecoins, since these always remain anchored at a fixed price. Despite this, when holding cryptocurrencies, you look for the highest value to make future profitability. Cryptocurrencies that, over time, have proven to be ideal for this practice can be Bitcoin, Ethereum, Cardano, Binance Coin, Ripple, Solana, and Polygon, but saying that these cryptocurrencies will always be best possible for holding is a bit subjective but over time they have been very profitable.
There is a certain type of cryptocurrency that is very particular since they maintain a fixed value, stablecoins or stable coins are all those cryptocurrencies or tokens that are anchored to a currency such as a dollar, to an object of value such as gold, or directly to a fund made up of other cryptocurrencies and controlled by a smart contract, they are ideal for freezing value in the event of sudden falls in the prices of other cryptocurrencies since the value of these is usually always 1 Dollar and they do not change or are not affected by the fall in the prices of the most popular cryptocurrencies, among the most popular we have, Tether, USD Coin and DAI.
Some cryptocurrencies specialize in the issuance of smart contracts, which is a feature that has become very important since many things can be done with this feature, such is the case of the creation of Dapps or decentralized applications. Among the cryptocurrencies that allow this development is Ethereum being the leader in this area, Tron, EOS, and Cardano.
No. If you want to buy the ideal cryptocurrency you only need to address the necessity and then filter into a small number of cryptocurrencies. Remember that some cryptocurrencies and tokens fulfill specific functions and are more effective for certain problems.
Of course not! There are indeed many cryptocurrencies and tokens that can be very similar. Each cryptocurrency has a characteristic that makes it unique, whether it is a unique characteristic within its protocol or something very simple such as its market capitalization, the difference between two very similar coins.
Of course! There is a group of cryptocurrencies and tokens called Stablecoins whose price is generally very close to 1 US dollar, allowing you to store this token without worrying about price drops.