What is cryptocurrency and how does it work?

With many cryptocurrencies on the market, it’s hard to know just what is the best crypto to buy now. However, the market is vast and continuously growing, from crypto juggernauts like Bitcoin and Ethereum to newcomers like Optical Bitcoin. Additionally, it’s also essential to get a cryptocurrency consultation from a trusted law firm, like those in the first4lawyers reviews, to run a successful business when dealing with digital assets. Although most companies use cloud storage like elephant drive reviews, blockchain technology in cloud computing is much more significant as it can transform vast amounts of data processing and documentary control in more cost-effective and secure ways.

What is HODLing?

HODL is crypto slang which means to buy and hold indefinitely. It insinuates that after you buy a coin or token, you won’t sell your stocks even if the market goes down or becomes volatile and the ‘hodler’ remains unaffected by price swings. HODL can thus be described as a long-term crypto investment strategy. HODLing is typically safer for investors because they are less exposed to short-term volatility. In addition, it removes the risk of buying high and selling low, a frequent occurrence when dealing with cryptocurrency.

5 of the best cryptocurrencies for you to invest in

Joining the crypto world can be overwhelming because of the thousands of cryptocurrencies you can invest in. To help you settle, here are 5 of the best cryptocurrencies in the world based on their market capitalisation or value of all coins in circulation; Bitcoin – Bitcoin is the first and biggest cryptocurrency with a market cap of over £743 billion. Bitcoin’s price, however, has skyrocketed in recent years as it became a household name. From needing to pay about £440 in 2016 to paying over £38,000 in 2022 to purchase Bitcoin. Ethereum – both a cryptocurrency and a blockchain platform, Ethereum has the second highest market cap with £317 billion. Ethereum is considered a favourite of program developers due to the potential of Ethereum’s applications. Ethereum also experienced massive growth as its price went up from £9 in 2016 to £23,000 in 2022. Tether – the cryptocurrency with the third highest market cap(over £69 billion), is not like other cryptocurrencies as Tether is a stablecoin. Because stablecoin is more consistent than other cryptocurrencies, it is mostly favoured by investors due to the extreme volatility of other coins. Binance Coin – created in 2017, Binance Coin is a cryptocurrency you use to trade and pay fees on Binance. However, Binance Coin does more than just facilitate trade on the exchange platform of Binance. It can also trade, process payments or book travel arrangements. Additionally, you can also trade or exchange Binance Coins for other cryptocurrencies. Binance has also seen a massive price increase, from £0.08 in 2017 to around £365. And finally, Terra/Luna – a blockchain payment platform for stablecoins which relies on keeping the balance between two types of cryptocurrencies. Luna, the counterweight that powers the terra, and Terra stablecoins work together according to supply and demand; when the stablecoin’s price rises above the currency value, users need to burn their Luna to create more Terra stablecoins, and if it drops, users need to burn their Terra stablecoins to mint more Luna. Luna also had a price increase from £0.56 in 2021 to over £80 in 2022.

Why you should HODL your crypto

Hodling is an ideal strategy as you won’t need to monitor market movements. There is also a massive payoff when the token becomes more popular in the long run.

Cryptocurrencies you should buy