Australian investors are progressively investing in cryptocurrencies and adding them to their investment portfolios for the purpose of diversification. However, with a variety of new cryptocurrencies to select from, deciding where to put your money may be a tough row to hoe.
There are over 15,000 cryptocurrencies, and the number is expanding every day. Choosing the right virtual currency to invest in is one of the most critical elements in achieving a positive return on investment. And we want that you don’t lose money on bad choices. Although 15,000 is a significant amount, when it comes to investing in cryptocurrencies in Australia, individuals typically choose the most renowned coins. There are various reasons why one would choose a renowned cryptocurrency, but the primary one is security.
2020 has been an exciting year for cryptocurrencies. It has become a year of survival after the coronavirus outbreak. Millions of Australians are trying to profit from cryptocurrencies as the value of certain digital coins has skyrocketed, sometimes in less than a week. During the past year, cryptocurrencies have skyrocketed, with some increase in value by 186 times, while the stock market has increased by 47% and Sydney home prices have increased by 10.4%.
If you’re a newbie and want to know how to invest in cryptocurrency in Australia, you can get complete information on coinrevolution.com/au/investing/how-to-invest-in-cryptocurrency-australia-2022.
Let’s give a boost to this discussion and learn what are those popular and reward-generating cryptocurrencies that you should invest in.
When discussing cryptocurrencies, how can we forget a very important name “Bitcoin” without which cryptocurrency had never come into existence? Bitcoin is the earliest and one of the most prominent cryptocurrencies in Australia to invest in. It was the first cryptocurrency published in 2009, heralding the start of the cryptocurrency age. It established the foundation of digital money. Bitcoin is still the most popular cryptocurrency for Australians to invest in. Bitcoin is the first decentralised online money, allowing wallet holders to conduct rapid, secure, and cost-effective P2P transactions. It may be used to acquire houses, automobiles, luxury items, food, beverages, and services, among other things.
But, many traders now approach Bitcoin as if it were gold rather than digital money. Because Nakamoto limited the entire number to 21 million coins, Bitcoin has become extremely expensive as its circulation has dropped. Bitcoin achieved an all-time record of $65,000 in April 2021, and it may appear a little exaggerated to predict that it will shortly surpass $100,000. But, Bitcoin will definitely surprise us soon as it did before.
Ether (ETH) is the native currency on the Ethereum network, a well-known open-source ledger technology that enables decentralisation. In 2013, Vitalik Buterin developed the second-largest cryptocurrency known as Ether. In July 2015, the Ethereum blockchain became online, with 72 million ETH currencies pre-mined. With exception of Bitcoin, there is no cap on the number of Ether that may be generated making it potentially more flexible.
Those who are confused about which cryptocurrency to invest in should consider Ether. Ethereum is available at all major exchanges that enable you to purchase cryptocurrency online Australia, and it has a variety of real-world applications.
Its biggest strength, though, is undoubtedly its irreducible ties to the Ethereum blockchain, which has widespread recognition and credibility. Its claimed purpose is to enable users to “codify, decentralise, secure, and exchange just about anything,” and if fully realised, it has the ability to upgrade whole economies. Ether itself has extremely fast transaction times.
Its market value has also climbed dramatically over the last 5 years, and many of the top billionaires who buy cryptocurrency in Australia visit cryptocurrency exchanges on a daily basis to expand their Ether asset portfolio. It is estimated that the value of Ethereum will be at $7,190 by the end of December 2022.
Litecoin (LTC) was an early Bitcoin fork. Charlie Lee, the inventor, stated that he never meant it to rival BTC, but rather to supplement it by enabling smaller transactions. It is similar to Bitcoin in many aspects, including a proof-of-work crypto mining environment. The supply cap, on the other hand, is four times bigger, with 84 million coins available in total. In 2021, the circulating supply will have topped 65 million. Litecoin also offers quicker transaction speeds than Bitcoin and has a different hashing method, making it better suitable for tiny, daily transactions.
Nonetheless, Litecoin has a devoted following that believes it is the greatest cryptocurrency to buy in 2022. Many businesses, service providers, and forward-thinking banking institutions have accepted it as a payment mechanism.
Its price remains fluctuating, but it is inexpensive in comparison to other currencies, and investors who missed out on Bitcoin when it was the greatest crypto to invest in owing to its low price now feel that Litecoin is the finest crypto to purchase today, saying that it has enormous potential.
4. Ripple (XRP)
Ripple is another revolutionary network that, through its open-source developer platform, supports transfers, currency trading, and remittance. XRP is the native coin of the Ripple network, and it has come a long way from its first release in January 2013.
XRP trading became very successful in 2017, however, its position has been jeopardised since the United States Securities and Exchange Commission launched a case against it in December 2020.
Because XRP is not decentralised, the SEC claims it is a security rather than a coin. Instead, XRP is confirmed by user consensus and issued on a regular basis by Ripple Labs. The SEC stated that Ripple Labs officials understood the cryptocurrency had minimal use case yet continued to sell it for personal gain. Its value plummeted following the SEC case, but if you believe Ripple Labs will survive, emerge with its credibility preserved, and rise, XRP may be the finest cryptocurrency to invest in.
5. Bitcoin Cash (BCH)
In 2017, Bitcoin Cash was considered as a fork of Bitcoin. It arose from a disagreement about Bitcoin’s future since some thought it was deviating from Nakatomo’s original goal. Bitcoin Cash is intended to be faster and less expensive to use than Bitcoin because the highest block size is 8MB, as opposed to 1MB on the prior Bitcoin network.
The community is still divided, with the mainstream supporting Bitcoin’s smaller units and a devoted group defending Bitcoin Cash’s larger blocks. Bitcoin Cash trading is available at all major cryptocurrency exchanges, and many exchanging companies like etoro, Binance, Coinbase, etc. support the buying and selling of this cryptocurrency. It also has a greater volume of 21 million coins, and those who believe it is the best crypto to invest in right now point to the performance and price advances it has achieved over Bitcoin.
Tether is another intriguing coin that has been mentioned in several crypto evaluations. It differs from the majority of cryptocurrencies in that it seeks to mirror the value of the US dollar. Tether is thus considered as a stablecoin in the midst of a sea of volatility.
There was great uproar in 2019 when it was found that Tether was only 74% backed by cash. It initially stated that it maintained one US dollar in reserve for every Tether token (USDT) released, but it was forced to reveal that Tether was really supported by cash plus lending to associated corporations.
Tether’s reputation suffered as a result, although it has since stabilised. It has periodically plummeted below US$0.90 and even soared to US$1.20, but it rapidly returns to US$1 and remains there in the long run.
The main concern for Australian traders is how the USD will move versus the AUD. The Tether may be among the best cryptocurrencies to invest in 2022 if you believe USD would outperform AUD during the Biden government, but if you believe the US dollar will remain weak, you should seek elsewhere.
With thousands of cryptocurrencies launching every day, it is difficult to analyse which cryptocurrency is the most profitable to invest in in Australia. But, today, we highlighted the most popular cryptocurrencies that are less risky and potentially lucrative. Before purchasing any of them, make sure you do extensive research. Most Australians prefer Bitcoin and Ether, which sounds plausible given the optimistic forecast for both coins.
Till now, no other coin has come to beat Bitcoin’s market domination. It is the world’s most decentralised monetary system. It has attained limited digital scarcity, and many astute investors believe in its future prospects. Ether is the most appealing option because the Ethereum blockchain has real-world use. They can complement one another and prosper together in the next years. Bitcoin and Ethereum are likely to be utilised in the future, which is not the case for many altcoins.