The cryptocurrency market has certainly not been giving investors great satisfaction for several months now. However, there are 2 digital currencies to focus on any time you want to invest.
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Cryptocurrencies: a more difficult investment than stocks?
Just think of Bitcoin, which from the all-time high reached in the area of 68,000 dollars last November, has collapsed to below 20,000 dollars and now travels about 15% above it.
The cryptocurrency market, compared to the stock market, can prove to be much more difficult for long-term investors. There is simply so much volatility on a daily basis that it can be much more difficult to hold certain investments when the market starts to fall, or to avoid the temptation to take profits when it rises sharply.
The good news, however, is that there are two cryptocurrencies to buy and hold forever: Bitcoin and Ethereum, both of which have strong growth prospects.
Bitcoin remains the world’s number one cryptocurrency
There is a good reason why Bitcoin remains the world’s # 1 cryptocurrency more than a decade after its creation. Despite the many ups and downs of the cryptocurrency market, Bitcoin has always rebounded stronger than ever.
In May 2010, you needed 10,000 Bitcoins to buy two large pizzas and 12 years later, a single Bitcoin is worth over $ 22,000. There seem to be no other investments to be made right now that will increase in value over time like Bitcoin.
According to some investors, such as Cathie Wood of ARK Invest, the price of Bitcoin could be as high as $ 1 million. For good reason, then, digital currency enthusiasts refer to Bitcoin as “digital gold”. It’s a store of value you can count on, no matter what happens to the broader market.
The latest correction in the cryptocurrency market has tested some investors’ confidence in the digital gold thesis, but Bitcoin remains one of the best possible hedges against market volatility.
Read also: Global taxation for the digital age
Ethereum, the second most powerful cryptocurrency
If Bitcoin is digital gold, Ethereum is digital oil. Ether, the native token of the Ethereum blockchain, is the fuel that powers the modern blockchain world.
Think of the great innovations in the world of blockchain and cryptocurrencies, such as smart contracts, non-fungible tokens (NFTs) and decentralized applications.
All of them originated on the Ethereum blockchain, a cryptocurrency with real-world uses for individuals and businesses.
Ethereum’s true value comes from everything built on its blockchain. In cryptocurrency parlance, Ethereum is a level 1 blockchain, which means people can build on it, like Lego blocks.
Anything built on Ethereum can use its core infrastructure and security for transaction processing and information storage. This is why so many people are creating games, Metaverse worlds, decentralized exchanges, and decentralized apps on Ethereum.
Those who buy and hold Ethereum are benefiting not only from the intrinsic value of this cryptocurrency as a blockchain network, but also from all the accumulated value of what developers and entrepreneurs can think of doing next.