As of February 28, 2021, it is said that there are thousands of types of virtual currencies in the world. However, even if you decide to buy virtual currency, there are many people who say, “I don’t know which virtual currency to buy.” Therefore, this time, after organizing how to select virtual currencies, I will introduce stocks with high future potential that can be recommended for beginners and domestic virtual currency exchanges where you can purchase them.
How to choose recommended virtual currency?
First, the following three points should be emphasized when selecting a virtual currency to be invested.
Reliability as a currency
The first is reliability as a currency. Whitelisted cryptocurrencies handled by domestic cryptocurrency exchanges are considered to be more secure and reliable than other cryptocurrencies. However, it should be noted that the FSA does not guarantee the security of whitelisted currencies.
Liquidity in the market
The second is liquidity in the market. In general, the larger the market capitalization of a virtual currency, the greater the liquidity. Therefore, when selecting a cryptocurrency stock to invest in, it is necessary to confirm whether or not there is a sufficient market capitalization.
The third is high volatility. In many cases, without volatility, it is difficult to make a profit from cryptocurrency investment. To check volatility, you need to look at the cryptocurrency price chart.
Top 5 cryptocurrency recommended stocks
Based on the above, we will introduce the top 5 cryptocurrency recommended stock rankings.
1st place Bitcoin (BTC)
The first recommended brand is Bitcoin (BTC). Bitcoin is a system developed following the electronic currency system “Bitcoin: P2P” launched by Satoshi in 2008, and began operation in 2009 the following year. The most distinctive feature of Bitcoin is that it has noticed a decentralized electronic payment system with no public issuers or administrators by a decentralized system based on P2P technology. Traditional payment systems have completed transactions with the presence of a third-party intermediary, but in the case of Bitcoin (BTC), this intermediary does not exist and is managed by all participants for the first time in the world. The turning point is building a decentralized payment system. In addition to the above, Bitcoin (BTC) functions as the de facto key currency among many cryptocurrencies, and most existing altcoin prices are bitcoin (BTC) prices. affected in no small part. In this context, Bitcoin (BTC) is very central among the many cryptocurrencies that exist and is one of the first actions to be considered as an investment goal when starting a cryptocurrency investment.
2nd place Ethereum (ETH)
The second recommended brand is Ethereum (ETH). Ethereum (ETH), which appeared in July 2015, is said to be the leading cryptocurrency after Bitcoin (BTC) and has the second largest market capitalization after Bitcoin (BTC) (Source: Cryptocurrency Market Capitalization Top 100). One of The Ethereum’s unique features is its smart contract feature.
3rd place Ripple (XRP)
The third recommended brand is Ripple. Ripple is a platform dedicated to payment systems. Ripple is operated by a trading entity called Ripple, unlike Bitcoin, which does not have a centralized entity. Ripple uses decentralized accounting technology, but the mechanism is very different from the public blockchain represented by Bitcoin. Specifically, the verification was done by an approver called a validant (single list of nodes: UNL), certified by Ripple as a “trusted participant”, and a certain number of verifiers said, “This transaction was successful. In acknowledging this, we have adopted a mechanism for reaching an agreement. In fact, for Bitcoin, the payment processing time is up to 10 minutes, while for Ripple, the payment is completed in up to 4 seconds
4th place Bitcoin Cash (BCH)
The fourth recommended brand is Bitcoin Cash. Bitcoin Cash is a cryptocurrency created by Bitcoin’s Hard Fork in August 2017, who has a basic specification similar to Bitcoin’s. Specifically, bitcoin block size is capped at 1MB, but Bitcoin Cash is trying to solve the scalability problem by expanding the block size limit to 8MB.
5th place Litecoin (LTC)
The fifth recommended brand is Litecoin (LTC). Litecoin (LTC) is a cryptocurrency developed in October 2011 based on bitcoin source code. If Bitcoin (BTC) is gold, Litecoin (LTC) is often referred to as silver. As of February 28, 2021, it has the ninth largest market capitalization. The Litecoin block generation time (LTC) is about 2.5 minutes, which increases the payout speed. In addition, the maximum number of bitcoins issued (BTC) is 21 million, and the maximum number of Litecoin (LTC) is 84 million. Litecoin (LTC) ranks fifth overall in the cryptocurrency rankings by Weiss Ratings, which was released in April 2020 and rated more than 120 shares.
After purchasing virtual currency, store it in your own wallet
After purchasing cryptocurrencies, it is recommended to store them in your wallet to reduce the risk of hacking. There are various types of wallets such as web wallets, mobile wallets, desktop wallets, hardware wallets, and paper wallets, but from the viewpoint of convenience and security, we would like to keep them in the hardware wallet. The main wallet types are as follows.
A web wallet is a type of wallet that manages virtual currency on the service provider’s server. It is characterized by its high convenience, and can be accessed at any time in an environment connected to the Internet. On the other hand, it should be noted that the security aspect depends on the service provider.
A mobile wallet is a type of wallet that runs as an app on an iPhone or Android. It is characterized by the fact that the QR code can be used and that it can be carried around, and it can be said that it is one of the most convenient wallets when used in an actual store. Generally, it is said to be more secure than a web wallet.
A desktop wallet is a type of wallet that is installed on your own PC and managed in a local environment. The advantage is that it is superior to the web wallet in terms of security.
A hardware wallet is a type of wallet that stores virtual currency in a dedicated hardware terminal. It is possible to save in an offline environment, and the advantage is that it is excellent in terms of security. However, you need to be aware of the risk of losing the hardware wallet itself.
A paper wallet is a type of wallet in which a private key or a password for recovering a private key is transferred to a physical medium such as paper and stored. Like a hardware wallet, it can be saved in an offline environment and boasts extremely high security performance. However, you need to be aware of the risk of losing the paper wallet itself.