India has seen a massive boom in cryptocurrency investing as more and more young investors prefer bitcoin and other cryptos to gold and 'boring' stocks.
From Bitcoin and Ethereum to Dogecoin and Tether, there are over 18,000 different cryptocurrencies, which can make it overwhelming for investors to decide on which one to invest in.
And then there is the insane volatility! In 2022, crypto market crashed by over 70% within a matter of seven months...
But picture this - if the Nifty or Sensex were down over 70%, what would you buy?
HDFC Bank or RBL Bank?
It’s a no-brainer... Obviously, you would buy the market leader and a proven blue chip - HDFC Bank.
Similarly, any conversation around the best cryptocurrency to invest in would be incomplete without considering Bitcoin, the first and most dominant crypto.
Even today with thousands of new cryptos available, Bitcoin dominates the market with over 40% of the total crypto market capitalisation across the globe.
Experts even call Bitcoin (BTC) the ‘gold standard’ of cryptocurrencies.
BTC runs on a blockchain or a ledger logging transactions distributed across a network of thousands of computers which makes it highly secure.
Bitcoins have a finite supply of 21 million which means there will never ever be any more than 21 million bitcoins. For investors this limited supply is a big contributor to Bitcoin’s value.
But just like any blue-chip stocks, investors shouldn't expect Bitcoin to give astronomical returns like smaller unknown cryptos have in the recent past.
However, it arguably has some of the best downside protection and even with its massively volatile price action has retained a loyal investor base.
It has survived bans by governments, mounting criticism from politicians and even the world’s greatest investor, Warren Buffet but it has remained resilient and reliable.
Before investing any money into this space, make sure to do your own research.
And yes, remember, you should invest only that you can afford to lose. This is a good rule to follow especially in instruments like Bitcoin which are very volatile. For more details about the best cryptos to invest, check out our learning course - CryptoMaster, which should help you understand cryptos better.
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