An upward trend

Since Nakamoto launched the first cryptocurrency on the market on January 9, 2009, the trend has not stopped growing. It was the starting gun for all kinds of options to be created, reaching, at present, up to more than 10,000 varieties.

Different types of cryptocurrencies

We analyze the five most important so that you know their characteristics better.

Bitcoin

The creation of Nakamoto (a series of programmers that is grouped under this pseudonym) has become number one. The bad thing is that it can die of success since the latest reports confirm that it is neither the most profitable nor the most reliable. It is so volatile in online markets that making money becomes quite complicated.

ETH

Ethereum is a different type of cryptocurrency. It acts like a giant computer that distributes its functions among smaller ones. All network operations are carried out with this currency. It exceeded 1200 euros in value per unit at specific times in 2020.

Cardano (Ada)

It is also known as a third-generation cryptocurrency. It improves the scalability of Ethereum, avoids the mistakes of Bitcoin and has managed to multiply its value by 40. It achieves this thanks to mathematical principles that bind a consensus mechanism framed in a specific multilayer architecture.

Tether (UDT)

It is characterized by being a bridge between cryptocurrencies and fiat currencies. It is the most economical per transaction and surprises with its undoubted stability. Although it uses the US dollar as a reference to determine its value, it cannot be exchanged for this currency.

Litecoin (LTC)

Charlie Lee, another Google employee, created it in 2011. Its limit is higher than Bitcoin, created to be used as a payment method. At present, there are more than 60 million units in circulation. It is the favourite choice of investment experts.

READ MORE: Abra Review 2023: Everything You Need to Know About This Crypto Investment App

How can you make a profit?

You must know how it works before deciding whether or not to invest in this intangible asset. It would help if you kept in mind that:

• It is a digital asset distributed in a network of computers. It does not depend on a single value or a specific computer.
• Your coins will always have to be stored on digital devices; there are no physical currencies.
• No government, bank or institution is responsible for controlling the ups and downs of its value. Any type of loss you experience will not allow you to claim. The usual thing is that the benefits are always attractive, but everything will depend on the option you choose to invest.

The final answer

Is it profitable or not to invest your money in this type of coin? Yes, but as long as you don’t do it blindly. You must bear in mind that the profitability of some options is 6000% and that of others is 40% depending on their quote.

Before making the final decision, review all the information you have. Check the trends of the current year and start establishing a strategy.