We provide a roundup of 12 new cryptocurrency to invest in that have the potential to scale for mass adoption in financial markets, but also other areas of the economy, from cloud computing to content delivery networks.

In our survey we will resist the temptation to take an adversarial approach, where crypto’s gain is taken to be the current incumbents&#; loss. We don&#;t believe that is how things will develop. Indeed, many of today’s leading SaaS companies are likely to be leaders in adopting aspects of blockchain technology.

To have the best shout at gaining exposure to the best the crypto sector has to offer, it is probably necessary to diversify across the asset class&#;s various sub sectors, which is what we have tried to do with our nifty dozen picks.

We have picked 12 cryptocurrency with the technology, adoption progress, execution and product marketing prowess to deliver on the promise of blockchain as a disruptor and disintermediator that could change the face of the SaaS space in innovative and profitable ways.

As with all definitions, competing ones can bleed into each other, but we have grouped our token selections into the following four business sectors, with three crypto in each:

Here&#;s our 12 Best New Cryptocurrency to Invest in

Before you get started, you might also want to read our Best Bitcoin Brokers in the UK guide for a breakdown of the most popular places to buy cryptos in

Web cryptocurrency for

1. Lucky Block – transforming lotteries with blockchain tech

Lucky Block is a new lottery platform that aims to revolutionise the $ billion global industry by solving, among other things, the lack of transparency and trust in current lottery products. Breaking the grip of the centralised lottery operators by applying the power of &#;Web &#; decentralised networks is how Lucky Block plans to succeed.

With Lucky Block, winners are not just randomly generated in a verified manner but players will be able to vote on where charitable donations go – with all transactions visible on the public blockchain.

In addition, the cost savings that accrue from running lottery draws on a blockchain are the basis for better odds for ticket buyers. The benefits don&#;t end there. Lucky Block, which launches on 21 March when the desktop app is scheduled to be available, also pays a token distribution to every token holder. Ten per cent of every jackpot goes to token holders.

Then there is the added allure of the 12% transaction fee on sales of the native token of the platform, LBLOCK, which acts to incentivise long-term investment as opposed to purely speculative trading so common in crypto hitherto.

Lucky Block&#;s mission is nothing less than the replacement – or supplementing – of national lotteries with a truly global system open to all. There&#;s all to play for, so to speak.

Data in table below is from decentralised exchange PancakeSwap. We have included volume data from centralised exchange LBank, where LBLOCK also trades.

Launch partners

Buy LBLOCK Now

Cryptoassets are a highly volatile unregulated investment product. 

2. Tron Network (TRX) – multi-faceted dapp platform

TRON is a multi-faceted decentralised application platform operating with a delegated Proof-of-Stake (DPoS) consensus mechanism.

Tron was founded by Justin Sun who has become one of the best known characters in crypto. In Tron made the audacious move of acquiring BitTorrent, the peer to peer file sharing network. As a direct result of that purchase the BitTorrent Token (BTT) was launched soon after.

Tron momentum has slowed from a couple of years ago, but it is still one of the most active blockchains.

Institutional investors

Buy Tron (TRX) Now

Cryptoassets are a highly volatile unregulated investment product. 

Metaverse and NFT cryptocurrency for

3. The Sandbox (SAND) – metaverse and gaming digital asset monetisation platform

The Sandbox platform is an ecosystem where gamers can create, own, and monetise their activities wit the help of non-fungible tokens (NFTs) and its utility token $SAND. NFTs are in effect a digital certificate of ownership.

Players can use NFTs to assign verifiable ownership to their digital assets integrate into games and trade on marketplaces. The Sandbox provides tools such as the Game Maker to enable player engagement.

Also, The Sandbox virtual world – or metaverse – is comprised of digital lots of real estate bought with LAND tokens, where players can become digital property developers and interact.

Companies such as Facebook owner Meta are betting big on the metaverse as the next iteration of the internet, where people will work, play, socialise and shop, so there will be money to be made.

An unknown buyer recently paid $, for a patch of virtual land next to rapper and businessman Snoop Dogg’s Sandbox &#;residence&#;.

The Sandbox is an excellent new cryptocurrency to buy.

Institutional investors

• Binance Labs
• HASHED
• True Global Ventures

Buy The Sandbox on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

4. Filecoin (FIL) – distributed file transfer and storage

Filecoin is a relatively new cryptocurrency to invest buy for exposure to distributed data storage network that seeks to turn unused data storage into a business resource, where those with excess capacity are able to sell it users seeking greater capacity.

Exchange takes place in an automated algorithmically driven marketplace.

The network is built on top a protocol known as InterPlanetary File System (IPFS), acting as both a layer to incentivise participation in the network and provide security in addition to its peer-to-peer sharing of storage.

Protocol Labs is the company behind Filecoin.

Institutional investors

• Ausum Ventures
• Blockchain Capital
• BlueYard Capital
• Boost VC
• Coefficient Ventures
• Continue Capital
• Digital Currency Group
• Galaxy Digital
• Kosmos Capital
• Nirvana Capital
• Notation Capital
• Pantera Capital
• Placeholder VC
• Y Combinator
• a16z Crypto
• zk Capital

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

5. Enjin (ENJ) – gaming community platform, virtual goods marketplace

Enjin Coin is another game-focused metaverse product from the crypto world, this time focused on making its token the go-to digital asset for in-game items. Enjin aim is to become the “largest gaming community platform online” and already boasts the involvement of , gaming communities with a total of million gamers.

The Enjin team are innovators in the NFT field, with a token they invented winning approval as an Ethereum token standard for specialised NFTs – ERC

Similarly to the The Sandbox, Enjin distributes software development kits (SDKs) to developers in order to facilitate rapid deployment of integrations into games.

Institutional investors

• CoinFund
• Coinbase Ventures
• DT Capital Partners
• Digital Currency Group
• Framework Ventures
• Kilowatt Capital
• LedgerPrime
• Lemniscap
• Multicoin Capital
• ParaFi Capital

Buy Enjin on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

6. Decentraland (MANA) – Metaverse virtual world

Decentraland is similar to The Sandbox in its virtual world aspect and another solid cryptocurrency to invest in. Here there are also LAND tokens which are purchased with the ERCcompatible MANA token that runs on the Ethereum blockchain.

Again NFTs are used to assign ownership to the digital real estate. And just like in the real world, the most valuable LAND is to found in the busiest places.

NFT-focused company www.oldyorkcellars.com spent nearly $ million on LAND in the virtual world in an indication of the burgeoning interest in the metaverse and the commercial opportunities it offers.

And at the end of January the metaverse&#;s first mortgage was taken out. On 29 January TerraZero, a vertically integrated metaverse company, advanced financing to one of its clients so they could buy Decentraland real estate.

While Mark Zuckerberg&#;s Meta Platforms is spending billions to build its metaverse, crypto have been quietly building an &#;open&#; metaverse for a number of years, and at far less cost.

Institutional investors

• Animoca Brands
• Boost VC
• Digital Currency Group
• Fabric Ventures
• Fundamental Labs
• HASHED
• Kenetic Capital
• Kosmos Capital

Buy Decentraland on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

DeFi cryptocurrency for

7. Uniswap (UNI) – decentralised exchange

Uniswap took original form in in the mind of Ethereum co-founder Vitalik Buterin as a blue-sky idea he was musing about. As with Curve, it operates with an automated market making system that obviates the need for an order book. Prices are determined by the ratio of the paired swapping assets.

Uniswap is the largest DEX by volume and its AMM system solves the problem of low liquidity in assets that hard are deemed hard to trade by traditional market makers. Because on a DEX anyone can be a market maker, thin liquidity is not an issue.

Institutional investors

• Andreessen Horowitz
• Coinbase Ventures
• Defiance Capital
• Delphi Digital
• ParaFi Capital
• Paradigm
• Three Arrows Capital

Buy Uniswap on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

8. Curve (CRV) – decentralised exchange

Curve protocol has been a fast-grower in the decentralised finance (DeFi) sector. Its approach was initially centred on leveraging the liquidity of stablecoins to create more stable sources for yields on loans. There are no order books for the markets on Curve, with market making instead an automated process built around liquidity pool trading pairs.

Today it has expanded to become a venue trading all manner of coins with pegged values, such as so-called wrapped tokens that run blockchains other than Ethereum where Curve runs.

Currently, Curve has different liquidity pools for the pairs that can be swapped on the decentralised exchange (DEX), where its highly competitive trading fees, deep liquidity and constrained slippage (when the price slips between the time the trade execution began and it finishing).

At this point, we rate Curve as a safe choice of cryptocurrency to invest buy.

Institutional investors

• Fuel Venture Capital
• Crowdcube
• CreditEase Fintech Investment Fund
• Outward VC

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

9. PancakeSwap (CAKE) – decentralised exchange

PancakeSwap is a decentralised exchange (DEX) that run on the Binance Smart Chain (BSC) and is also based on automated market making system. PancakeSwap is a fork of SushiSwap, which is another Ethereum-based DEX.

A fork refers to a coin that shares it&#;s codebase with another crypto, but there are differences that add extra features. In this case, the change is the DEX runs on the Binance Smart Chain which is faster and cheaper to transact over.

BSC is built by the world&#;s largest crypto exchange Binance and operates with a form of what is known as a proof of stake system, where just 21 validators verify transactions as oppose to thousands of nodes on Ethereum.

CAKE is a relatively new cryptocurrency to invest in and we think it has much further to grow in the DEX space.

Institutional investors

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

Data management cryptocurrency for

The Graph (GRT) – indexing protocol for querying blockchains

We take for granted that the internet &#;just works&#;, without having to think about how universal resource locators (urls &#; web links) actually work of what TCP/IP protocols are. Without them there would be no Google search engine. The Graph is attempting to build the indexing standard for the decentralised application world, so that data on blockchains can be queried in an easily accessible way.

Developers build applications with The Graph&#;s open APIs can readily access on-chain data that have been previously indexed by a network of node operators.

The Graph&#;s technology – called Subgraphs – is open source so all-comers can build decentralised apps (dApps) using them. Among the many Ethereum dApps using Subgraphs are high-profile projects Audius, Uniswap, and Synthetix.

GRT is a good strategic pick for a cryptocurrency to invest in for your portfolio.

Institutional investors

• Coinbase Ventures
• DT Capital Partners
• Digital Currency Group
• Framework Ventures
• Kilowatt Capital
• LedgerPrime
• Lemniscap
• Multicoin Capital
• ParaFi Capital
• Tally Capital

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

Chinalink (LINK) – decentralised oracle network

Chainlink&#;s purpose is to solve the problem of connecting smart contracts to real-world events in a secure fashion. Smart contracts are pieces of code that embody certain business logic, such as when to pay an interest on a loan. In order to known when to make the payment to lenders, the smart contract in this case would need to know the calendar date.

Real-world information such as this is provided by &#;oracles&#;, which are in effect data feeds of one kind or another that exist off-chain. Chainlink is a network of independent oracle node operators, which makes it more secure than previous oracle services.

Services such as those provided by Chainlink are emerging as the essential plumbing of the blockchain world.

Institutional investors

• Anmi OECD
• Consensus Capital
• Framework Ventures
• Outlier Ventures

Buy Chainlink on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

Dent (DENT) – decentralised mobile data marketplace

Dent says its vision is to create a global exchange using the Ethereum blockchain, where everyone has the opportunity to buy and sell mobile bandwidth in any country. With billion thought to own a smart or feature phone – % of the world’s population – the business opportunity in this market is immense.

The company has already attracted more than 25 million mobile device users onto its decentralised marketplace for trading data surpluses. Dent&#;s service is available in more than countries.

It is making significant strides forward in enterprise. Dent has partnerships in place with Samsung Blockchain and Telecom Infra, for instance.

Institutional investors

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. 

Conclusion – the best cryptocurrency to buy March

Prices in the crypto market are rangebound at the moment, with altcoins taking their cue from bitcoin. With bitcoin trading around the $38, mark there is much chatter as to whether a breakout to the upside is imminent, perhaps assisted by the geopolitical tensions affecting the global economy in the first quarter of

The juries out on the exact timing of any such breakout. Nevertheless, we think the market is at or near the bottom for this cycle. That means a diversified portfolio of crypto assets based among the 12 coins highlighted here, should provide investors with plenty of upside.

If held for the medium term, which would be for up to three years, buying crypto assets near cycle lows presents an excellent risk-reward opportunity.

Investors may wish to consider dollar cost averaging into the market by buying relatively small amount on a regular basis to smooth out returns, thereby foregoing the need to attempt to time the best moment to invest a lump sum.

Visit Lucky Block Now

Cryptoassets are a highly volatile unregulated investment product. 

Cryptocurrency – meaning and definition

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

What is cryptocurrency?

Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.

Cryptocurrency received its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of encryption is to provide security and safety.

The first cryptocurrency was Bitcoin, which was founded in and remains the best known today. Much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward.

How does cryptocurrency work?

Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.

Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.

If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.

Although Bitcoin has been around since , cryptocurrencies and applications of blockchain technology are still emerging in financial terms, and more uses are expected in the future. Transactions including bonds, stocks, and other financial assets could eventually be traded using the technology.

Cryptocurrency examples

There are thousands of cryptocurrencies. Some of the best known include:

Bitcoin:

Founded in , Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.

Ethereum:

Developed in , Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.

Litecoin:

This currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.

Ripple:

Ripple is a distributed ledger system that was founded in Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions.

Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.

How to buy cryptocurrency

You may be wondering how to buy cryptocurrency safely. There are typically three steps involved. These are:

Step 1: Choosing a platform

The first step is deciding which platform to use. Generally, you can choose between a traditional broker or dedicated cryptocurrency exchange:

• Traditional brokers. These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features.
• Cryptocurrency exchanges. There are many cryptocurrency exchanges to choose from, each offering different cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.

When comparing different platforms, consider which cryptocurrencies are on offer, what fees they charge, their security features, storage and withdrawal options, and any educational resources.

Step 2: Funding your account

Once you have chosen your platform, the next step is to fund your account so you can begin trading. Most crypto exchanges allow users to purchase crypto using fiat (i.e., government-issued) currencies such as the US Dollar, the British Pound, or the Euro using their debit or credit cards – although this varies by platform.

Crypto purchases with credit cards are considered risky, and some exchanges don't support them. Some credit card companies don't allow crypto transactions either. This is because cryptocurrencies are highly volatile, and it is not advisable to risk going into debt — or potentially paying high credit card transaction fees — for certain assets.

Some platforms will also accept ACH transfers and wire transfers. The accepted payment methods and time taken for deposits or withdrawals differ per platform. Equally, the time taken for deposits to clear varies by payment method.

An important factor to consider is fees. These include potential deposit and withdrawal transaction fees plus trading fees. Fees will vary by payment method and platform, which is something to research at the outset.

Step 3: Placing an order

You can place an order via your broker's or exchange's web or mobile platform. If you are planning to buy cryptocurrencies, you can do so by selecting "buy," choosing the order type, entering the amount of cryptocurrencies you want to purchase, and confirming the order. The same process applies to "sell" orders.

There are also other ways to invest in crypto. These include payment services like PayPal, Cash App, and Venmo, which allow users to buy, sell, or hold cryptocurrencies. In addition, there are the following investment vehicles:

• Bitcoin trusts: You can buy shares of Bitcoin trusts with a regular brokerage account. These vehicles give retail investors exposure to crypto through the stock market. 
• Bitcoin mutual funds: There are Bitcoin ETFs and Bitcoin mutual funds to choose from. 
• Blockchain stocks or ETFs: You can also indirectly invest in crypto through blockchain companies that specialize in the technology behind crypto and crypto transactions. Alternatively, you can buy stocks or ETFs of companies that use blockchain technology.

The best option for you will depend on your investment goals and risk appetite.

How to store cryptocurrency

Once you have purchased cryptocurrency, you need to store it safely to protect it from hacks or theft. Usually, cryptocurrency is stored in crypto wallets, which are physical devices or online software used to store the private keys to your cryptocurrencies securely. Some exchanges provide wallet services, making it easy for you to store directly through the platform. However, not all exchanges or brokers automatically provide wallet services for you.

There are different wallet providers to choose from. The terms “hot wallet” and “cold wallet” are used:

• Hot wallet storage: "hot wallets" refer to crypto storage that uses online software to protect the private keys to your assets.
• Cold wallet storage: Unlike hot wallets, cold wallets (also known as hardware wallets) rely on offline electronic devices to securely store your private keys.

Typically, cold wallets tend to charge fees, while hot wallets don't.

What can you buy with cryptocurrency?

When it was first launched, Bitcoin was intended to be a medium for daily transactions, making it possible to buy everything from a cup of coffee to a computer or even big-ticket items like real estate. That hasn’t quite materialized and, while the number of institutions accepting cryptocurrencies is growing, large transactions involving it are rare. Even so, it is possible to buy a wide variety of products from e-commerce websites using crypto. Here are some examples:

Technology and e-commerce sites:

Several companies that sell tech products accept crypto on their websites, such as www.oldyorkcellars.com, AT&T, and Microsoft. Overstock, an e-commerce platform, was among the first sites to accept Bitcoin. Shopify, Rakuten, and Home Depot also accept it.

Luxury goods:

Some luxury retailers accept crypto as a form of payment. For example, online luxury retailer Bitdials offers Rolex, Patek Philippe, and other high-end watches in return for Bitcoin.

Cars:

Some car dealers – from mass-market brands to high-end luxury dealers – already accept cryptocurrency as payment.

Insurance:

In April , Swiss insurer AXA announced that it had begun accepting Bitcoin as a mode of payment for all its lines of insurance except life insurance (due to regulatory issues). Premier Shield Insurance, which sells home and auto insurance policies in the US, also accepts Bitcoin for premium payments.

If you want to spend cryptocurrency at a retailer that doesn’t accept it directly, you can use a cryptocurrency debit card, such as BitPay in the US.

Cryptocurrency fraud and cryptocurrency scams

Unfortunately, cryptocurrency crime is on the rise. Cryptocurrency scams include:

Fake websites: Bogus sites which feature fake testimonials and crypto jargon promising massive, guaranteed returns, provided you keep investing.

Virtual Ponzi schemes: Cryptocurrency criminals promote non-existent opportunities to invest in digital currencies and create the illusion of huge returns by paying off old investors with new investors’ money. One scam operation, BitClub Network, raised more than $ million before its perpetrators were indicted in December

"Celebrity" endorsements: Scammers pose online as billionaires or well-known names who promise to multiply your investment in a virtual currency but instead steal what you send. They may also use messaging apps or chat rooms to start rumours that a famous businessperson is backing a specific cryptocurrency. Once they have encouraged investors to buy and driven up the price, the scammers sell their stake, and the currency reduces in value.

Romance scams: The FBI warns of a trend in online dating scams, where tricksters persuade people they meet on dating apps or social media to invest or trade in virtual currencies. The FBI’s Internet Crime Complaint Centre fielded more than 1, reports of crypto-focused romance scams in the first seven months of , with losses reaching $ million.

Otherwise, fraudsters may pose as legitimate virtual currency traders or set up bogus exchanges to trick people into giving them money. Another crypto scam involves fraudulent sales pitches for individual retirement accounts in cryptocurrencies. Then there is straightforward cryptocurrency hacking, where criminals break into the digital wallets where people store their virtual currency to steal it.

Is cryptocurrency safe?

Cryptocurrencies are usually built using blockchain technology. Blockchain describes the way transactions are recorded into "blocks" and time stamped. It's a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that's hard for hackers to tamper with.

In addition, transactions require a two-factor authentication process. For instance, you might be asked to enter a username and password to start a transaction. Then, you might have to enter an authentication code sent via text to your personal cell phone.

While securities are in place, that does not mean cryptocurrencies are un-hackable. Several high-dollar hacks have cost cryptocurrency start-ups heavily. Hackers hit Coincheck to the tune of $ million and BitGrail for $ million, making them two of the biggest cryptocurrency hacks of

Unlike government-backed money, the value of virtual currencies is driven entirely by supply and demand. This can create wild swings that produce significant gains for investors or big losses. And cryptocurrency investments are subject to far less regulatory protection than traditional financial products like stocks, bonds, and mutual funds.

Four tips to invest in cryptocurrency safely

According to Consumer Reports, all investments carry risk, but some experts consider cryptocurrency to be one of the riskier investment choices out there. If you are planning to invest in cryptocurrencies, these tips can help you make educated choices.

Research exchanges:

Before you invest, learn about cryptocurrency exchanges. It’s estimated that there are over exchanges to choose from. Do your research, read reviews, and talk with more experienced investors before moving forward.

Know how to store your digital currency:

If you buy cryptocurrency, you have to store it. You can keep it on an exchange or in a digital wallet. While there are different kinds of wallets, each has its benefits, technical requirements, and security. As with exchanges, you should investigate your storage choices before investing.

Diversify your investments:

Diversification is key to any good investment strategy, and this holds true when you are investing in cryptocurrency. Don't put all your money in Bitcoin, for example, just because that's the name you know. There are thousands of options, and it's better to spread your investment across several currencies.

Prepare for volatility:

The cryptocurrency market is highly volatile, so be prepared for ups and downs. You will see dramatic swings in prices. If your investment portfolio or mental wellbeing can't handle that, cryptocurrency might not be a wise choice for you.

Cryptocurrency is all the rage right now, but remember, it is still in its relative infancy and is considered highly speculative. Investing in something new comes with challenges, so be prepared. If you plan to participate, do your research, and invest conservatively to start.

One of the best ways you can stay safe online is by using a comprehensive antivirus. Kaspersky Internet Security defends you from malware infections, spyware, data theft and protects your online payments using bank-grade encryption.

Related articles:

What is cryptocurrency and how does it work?

Cryptocurrency is a digital currency using cryptography to secure transactions. Learn about buying cryptocurrency and cryptocurrency scams to look out for.

It's possible to get filthy rich by investing in cryptocurrency in -- but you could also lose all of your money. Investing in crypto assets is risky but also potentially extremely profitable.

Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. A safer but potentially less lucrative alternative is buying the stocks of companies with exposure to cryptocurrency.

Let's examine the pros and cons of investing in cryptocurrency.

Is cryptocurrency safe?

Several factors make cryptocurrency a not entirely safe investment. However, other signs are emerging that cryptocurrency is here to stay.

There are numerous risks associated with crypto. Investors and users must decide for themselves if the benefits outweigh these risks.

Cryptocurrency risks

Cryptocurrency exchanges, more so than stock exchanges, are vulnerable to being hacked and becoming targets of other criminal activity. Security breaches have led to sizable losses for investors who have had their digital currencies stolen, spurring many exchanges and third-party insurers to begin offering protection against hacks. 

Safely storing cryptocurrencies is also more difficult than owning stocks or bonds. Cryptocurrency exchanges such as Coinbase(NASDAQ:COIN) make it fairly easy to buy and sell crypto assets such as Bitcoin(CRYPTO:BTC) and Ethereum(CRYPTO:ETH), but many people don't like to keep their digital assets on exchanges due to the risks of allowing any company to control access to their assets.

Storing cryptocurrency on a centralized exchange means you don't have full control over your assets. An exchange could freeze your assets based on a government request, or the exchange could go bankrupt and you'd have no recourse to recover your money.

Some cryptocurrency owners prefer offline "cold storage" options such as hardware wallets, but cold storage comes with its own set of challenges. The biggest is the risk of losing your private key; without a key, it's impossible to access your cryptocurrency.

There's also no guarantee that a crypto project you invest in will succeed. Competition is fierce among thousands of blockchain projects, and many projects are no more than scams. Only a small percentage of cryptocurrency projects will ultimately flourish.

Regulators may also crack down on the entire crypto industry, especially if governments view cryptocurrencies as a threat rather than an innovative technology.

The cutting-edge technology elements of cryptocurrency also increase the risks for investors. Much of the tech is still being developed and is not yet extensively proven in real-world scenarios.

The Motley Fool's 5 Million Dollar Crypto Bet. Read More »

Cryptocurrency adoption

Despite the risks, cryptocurrencies and the blockchain industry are growing stronger. Much-needed financial infrastructure is being built, and investors are increasingly able to access institutional-grade custody services. Professional and individual investors are gradually receiving the tools they need to manage and safeguard their crypto assets.

Crypto futures markets are being established, and many companies are gaining direct exposure to the cryptocurrency sector. Financial giants such as Block(NYSE:SQ) and PayPal(NASDAQ:PYPL) are making it easier to buy and sell cryptocurrency on their popular platforms. Other companies, including Block, have poured hundreds of millions of dollars into Bitcoin and other digital assets. Tesla(NASDAQ:TSLA) purchased $ billion worth of Bitcoin in early By February , the electric vehicle maker reported that it held almost $2 billion of the cryptocurrency. MicroStrategy (NASDAQ:MSTR) -- a business intelligence software company -- has been accumulating Bitcoin since It held $ billion in the cryptocurrency by the end of and said it plans to buy more with excess cash generated from operations.

Although other factors still affect the riskiness of cryptocurrency, the increasing pace of adoption is a sign of a maturing industry. Individual investors and companies are seeking to gain direct exposure to cryptocurrency, considering it safe enough for investing large sums of money.

Is crypto a good long-term investment?

Many cryptocurrencies such as Bitcoin and Ethereum are launched with lofty objectives, which may be achieved over long time horizons. While the success of any cryptocurrency project is not assured, early investors in a crypto project that reaches its goals can be richly rewarded over the long term.

For any cryptocurrency project, however, achieving widespread adoption is necessary to be considered a long-term success.

Bitcoin as a long-term investment

Bitcoin, as the most widely known cryptocurrency, benefits from the network effect -- more people want to own Bitcoin because Bitcoin is owned by the most people. Bitcoin is currently viewed by many investors as "digital gold," but it could also be used as a digital form of cash.

Bitcoin investors believe the cryptocurrency will gain value over the long term because the supply is fixed, unlike the supplies of fiat currencies such as the U.S. dollar or the Japanese yen. The supply of Bitcoin is capped at fewer than 21 million coins, while most currencies can be printed at the will of central bankers. Many investors expect Bitcoin to gain value as fiat currencies depreciate.

Those who are bullish about Bitcoin being extensively used as digital cash believe it has the potential to become the first truly global currency. 

Ethereum as a long-term investment

Ether is the native coin of the Ethereum platform and can be purchased by investors wishing to gain portfolio exposure to Ethereum. While Bitcoin can be viewed as digital gold, Ethereum is building a global computing platform that supports many other cryptocurrencies and a massive ecosystem of decentralized applications ("dApps").

The large number of cryptocurrencies built on the Ethereum platform, plus the open-source nature of dApps, creates opportunities for Ethereum to also benefit from the network effect and to create sustainable, long-term value. The Ethereum platform enables the use of "smart contracts," which execute automatically based on terms written directly into the contract code.

The Ethereum network collects Ether from users in exchange for executing smart contracts. Smart contract technology has significant potential to disrupt massive industries such as real estate and banking and also to create entirely new markets.

As the Ethereum platform becomes increasingly used worldwide, the Ether token increases in utility and value. Investors bullish on the long-term potential of the Ethereum platform can profit directly by owning Ether.  

That's not to say Ethereum doesn't have competition. A number of "Ethereum Killers," including Solana (CRYPTO:SOL), Polygon (CRYPTO:MATIC), and Avalanche(CRYPTO:AVAX), are all built to handle smart contracts and use a blockchain system capable of processing more transactions per second. The speed has the added advantage of being less expensive for users as well. But Ethereum is the most broadly adopted platform for using smart contracts.

Should you invest in cryptocurrency?

Owning some cryptocurrency can increase your portfolio's diversification since cryptocurrencies such as Bitcoin have historically shown few price correlations with the U.S. stock market. If you believe that cryptocurrency usage will become increasingly widespread over time, then it probably makes sense for you to buy some crypto directly as part of a diversified portfolio. For every cryptocurrency that you invest in, be sure to have an investment thesis as to why that currency will stand the test of time. If you do your research and learn as much as possible about how to invest in cryptocurrency, you should be able to manage the investment risk as part of your overall portfolio.

If buying cryptocurrency seems too risky, you can consider other ways to potentially profit from the rise of cryptocurrencies. You can buy the stocks of companies such as Coinbase, Block, and PayPal, or you can invest in an exchange like CME Group(NASDAQ:CME), which facilitates crypto futures trading. Although investments in these companies may be profitable, they do not have the same upside potential as investing in cryptocurrency directly.

Expert Q&A

The Motley Fool sought blockchain insights from three finance experts: Dr. Christine Parlour, professor and Sylvan C. Coleman Chair of Finance and Accounting at the Haas School of Business, University of California, Berkeley; Dr. Jimmie Lenz, director of Duke University's Master of Engineering in FinTech and Master of Engineering in Cybersecurity; and Dr. Merav Ozair, who is a leading blockchain expert and a FinTech Professor at Rutgers Business School.

Dr. Christine Parlour, professor and Sylvan C. Coleman Chair of Finance and Accounting at the Haas School of Business, University of California, Berkeley. Most of her work is in institutionally complex areas in finance, banking and financial technology. Her current work focuses on fintech, payment systems, blockchain and cryptocurrency, and market infrastructure.

The Motley Fool: What advice would you give to someone interested in investing in blockchain technology?

Parlour: Be curious but also be cautious. It is important to recognize that there is not a complete regulatory framework in this area. So, it is important to do your homework. First, consider the venue that you use to access the market. There are regulated crypto exchanges and trading places; however, there are also unregulated ones. Second, while most tokens are based on open-source code, it is not the case that they have the same disclosure regimes as blue chip stocks. So, be careful and investigate the nature of the underlying token. Note that in other countries (Canada, Europe), there are ETFs and ETPs that track crypto portfolios; these have not received regulatory approval yet in the U.S. If and when they are offered to consumers, these will be a low-cost way of accessing the crypto market, and then someone else will handle the market mechanics. 

Dr. Jimmie Lenz, director of Duke University's Master of Engineering in FinTech and Master of Engineering in Cybersecurity. Dr. Lenz is an experienced executive, lecturer, and scholar in the field of banking and capital markets, so we asked him a few questions about DeFi and blockchain.

Lenz:Learn and keep learning. The developments in the space are happening at a rapid pace, so much so that new knowledge is being generated constantly. As a professor teaching blockchain, this is the hardest part, reinventing the course every semester, but it keeps my students and me as current as possible. This doesn't mean neglecting base knowledge; having this is crucial, as well as some sense of the history to understand why developments have occurred at specific times.

Dr. Merav Ozair is a leading blockchain expert and a FinTech Professor at Rutgers Business School. She serves as research director of RBS Blockchain Hub, as well as an advisor and researcher at the Rutgers Blockchain and FinTech Collaboratory.

Ozair: Blockchain technology is definitely the future. There is no escaping that. However, it is difficult to predict which projects will last and which will fail and be forgotten.

Most blockchain technology companies are in their early, if not very early, stages. Hence, investing in companies utilizing blockchain technologies has all the same risks as investing in a start-up. And like in any start-up, the risk-reward ratio is high.

Therefore, learn about blockchain technology, do a thorough due diligence on any project -- from its technology to business model to execution. Learn about the "problem" it is trying to solve and what solution it's offering -- both from a technological perspective and a business perspective.

There's a lot of potential with blockchain technology, but the execution is in the details.

Despite its well-known volatility, cryptocurrency is on fire and many investors are looking to profit on its white-hot rise. Cryptos such as Bitcoin and Ethereum ebb for a while and then climb higher, and many other popular digital currencies are doing so, too. Experienced traders have been speculating on crypto for years, but what if you&#x;re new to the market and looking to get a piece of the action?

Here&#x;s how to start investing in cryptocurrency and what you need to watch out for.

5 steps for investing in cryptocurrency

First things first, if you&#x;re looking to invest in crypto, you need to have all your finances in order. That means having an emergency fund in place, a manageable level of debt and ideally a diversified portfolio of investments. Your crypto investments can become one more part of your portfolio, one that helps raise your total returns, hopefully.

Pay attention to these five other things as you&#x;re starting to invest in cryptocurrencies.

1. Understand what you&#x;re investing in

As you would for any investment, understand exactly what you&#x;re investing in. If you&#x;re buying stocks, it&#x;s important to read the prospectus and analyze the companies thoroughly. Plan to do the same with any cryptocurrencies, since there are literally thousands of them, they all function differently and new ones are being created every day. You need to understand the investment case for each trade.

In the case of many cryptocurrencies, they&#x;re backed by nothing at all, neither hard assets nor cash flow. That&#x;s the case for Bitcoin, for example, where investors rely exclusively on someone paying more for the asset than they paid for it. In other words, unlike stock, where a company can grow its profits and drive returns for you that way, many crypto assets must rely on the market becoming more optimistic and bullish for you to profit.

Some of the most popular coins include Ethereum, Dogecoin, Cardano and XRP. Solana has been another massively successful coin as well. So before investing, understand the potential upside and downside. If your financial investment is not backed by an asset or cash flow, it could end up being worth nothing.

2. Remember, the past is past

A mistake that many new investors make is looking at the past and extrapolating that to the future. Yes, Bitcoin used to be worth pennies, but now is worth much more. The key question, however, is Will that growth continue into the future, even if it&#x;s not at quite that meteoric rate?

Investors look to the future, not to what an asset has done in the past. What will drive future returns? Traders buying a cryptocurrency today need tomorrow&#x;s gains, not yesterday&#x;s.

3. Watch that volatility

The prices of cryptocurrencies are about as volatile as an asset can get. They could drop quickly in seconds on nothing more than a rumor that ends up proving baseless. That can be great for sophisticated investors who can execute trades rapidly or who have a solid grasp on the market&#x;s fundamentals, how the market is trending and where it could go. For new investors without these skills &#x; or the high-powered algorithms that direct these trades &#x; it&#x;s a minefield.

Volatility is a game for high-powered Wall Street traders, each of whom is trying to outgun other deep-pocketed investors. A new investor can easily get crushed by the volatility.

That&#x;s because volatility shakes out traders, especially beginners, who get scared. Meanwhile, other traders may step in and buy on the cheap. In short, volatility can help sophisticated traders buy low and sell high while inexperienced investors buy high and sell low.

4. Manage your risk

If you&#x;re trading any asset on a short-term basis, you need to manage your risk, and that can be especially true with volatile assets such as cryptocurrency. So as a newer trader, you&#x;ll need to understand how best to manage risk and develop a process that helps you mitigate losses. And that process can vary from individual to individual:

• Risk management for a long-term investor might simply be never selling, regardless of the price. The long-term mentality allows the investor to stick with the position.
• Risk management for a short-term trader, however, might be setting strict rules on when to sell, such as when an investment has fallen 10 percent. The trader then rotely follows the rule so that a relatively small decline doesn&#x;t become a crushing loss later.

Newer traders should consider setting aside a certain amount of trading money and then using only a portion of it, at least at first. If a position moves against them, they&#x;ll still have money in reserve to trade with later. The ultimate point is that you can&#x;t trade if you don&#x;t have any money. So keeping some money in reserve means you&#x;ll always have a bankroll to fund your trading.

It&#x;s important to manage risk, but that will come at an emotional cost. Selling a losing position hurts, but doing so can help you avoid worse losses later.

5. Don&#x;t invest more than you can afford to lose

Finally, it&#x;s important to avoid putting money that you need into speculative assets. If you can&#x;t afford to lose it &#x; all of it &#x; you can&#x;t afford to put it into risky assets such as cryptocurrency, or other market-based assets such as stocks or ETFs, for that matter.

Whether it&#x;s a down payment for a house or an important upcoming purchase, money that you need in the next few years should be kept in safe accounts so that it&#x;s there when you need it. And if you&#x;re looking for an absolutely sure return, your best option is to pay off debt. You&#x;re guaranteed to earn (or save) whatever interest rate you&#x;re paying on the debt. You can&#x;t lose there.

Finally, don&#x;t overlook the security of any exchange or broker you&#x;re using. You may own the assets legally, but someone still has to secure them, and their security needs to be tight. If they don&#x;t think their cryptocurrency is properly secured, some traders choose to invest in a crypto wallet to hold their coins offline so they&#x;re inaccessible to hackers or others.

Other ways to invest in cryptocurrency

While investing directly in cryptocurrency may be the most popular way to do so, traders have other ways to get into the crypto game, some more directly than others. These include:

• Crypto futures: Futures are another way to wager on the price swings in Bitcoin, and futures allow you to use the power of leverage to generate massive returns (or losses). Futures are a fast-moving market and exacerbate the already volatile moves in crypto.
• Crypto funds: A few crypto funds (such as the Grayscale Bitcoin Trust) also exist that allow you to wager on the price swings in Bitcoin, Ethereum as well as a few other altcoins. So they can be an easy way to buy crypto through a fund-like product.
• Crypto exchange or broker stocks: Buying stock in a company that&#x;s poised to profit on the rise of cryptocurrency regardless of the winner could be an interesting option, too. And that&#x;s the potential in an exchange such as Coinbase or a broker such as Robinhood, which derives a huge chunk of its revenues from crypto trading.
• Blockchain ETFs: A blockchain ETF allows you to invest in the companies that may profit from the emergence of blockchain technology. The top blockchain ETFs give you exposure to some of the key publicly traded companies in the space. But it&#x;s important to note that these companies often do much more than crypto-related business, meaning your exposure to cryptocurrency is diluted, reducing your potential upside and downside.

Each of these methods varies in its riskiness and exposure to cryptocurrency, so you&#x;ll want to understand exactly what you&#x;re buying and whether it fits your needs.

Cryptocurrency investing FAQs

How much money do I need to start investing in cryptocurrency?

In theory it takes only a few dollars to invest in cryptocurrency. Most crypto exchanges, for example, have a minimum trade that might be $5 or $ Other crypto trading apps might have a minimum that&#x;s even lower.

However, it&#x;s important to understand that some trading platforms will take a huge chunk of your investment as a fee if you&#x;re trading small amounts of cryptocurrency. So it&#x;s important to look for a broker or exchange that minimizes your fees. In fact, many so-called free brokers embed fees &#x; called spread mark-ups &#x; in the price you pay for your cryptocurrency.

How does a blockchain work?

Cryptocurrency is based on blockchain technology. Blockchain is a kind of database that records and timestamps every entry into it. The best way to think of a blockchain is like a running receipt of transactions. When a blockchain database powers cryptocurrency, it records and verifies transactions in the currency, verifying the currency&#x;s movements and who owns it.

Many crypto blockchain databases are run with decentralized computer networks. That is, many redundant computers operate the database, checking and rechecking the transactions to ensure that they&#x;re accurate. If there&#x;s a discrepancy, the networked computers have to resolve it.

How do you mine cryptocurrency?

Some cryptocurrencies reward those who verify the transactions on the blockchain database in a process called mining. For example, these miners involved with Bitcoin solve very complex mathematical problems as part of the verification process. If they&#x;re successful, miners receive a predetermined award of bitcoins.

To mine bitcoins, miners need powerful processing units that consume huge amounts of energy. Many miners operate huge rooms full of such mining rigs in order to extract these rewards. As of early , running the Bitcoin system burned as much energy as a medium-sized country.

How can I invest in Bitcoin?

If you&#x;re looking to invest in Bitcoin, you have a variety of ways to do so, and you can work with a number of companies, including:

• Crypto exchanges: Exchanges have some of the widest selection of cryptocurrencies, and they tend to be the most competitive on price. Top players include Coinbase, Kraken and Binance, but there are literally dozens of others.
• Traditional brokers: Many traditional brokers also allow you to trade Bitcoin in addition to stocks and other financial assets, though they have a relatively limited selection of other cryptocurrencies. Top players here include Interactive Brokers, TradeStation and tastyworks.
• Financial apps: Many financial apps now allow you to trade Bitcoin and a few other cryptos. Top players here include Robinhood and Webull as well as payment apps such as PayPal, Venmo and Cash App.

If you&#x;re looking to buy Bitcoin, pay particular attention to the fees that you&#x;re paying. Here are other key things to watch out for as you&#x;re buying Bitcoin.

What are altcoins?

An altcoin is an alternative to Bitcoin. Many years ago, traders would use the term pejoratively. Since Bitcoin was the largest and most popular cryptocurrency, everything else was defined in relation to it. So, whatever was not Bitcoin was lumped into a derisive category called altcoins.

While Bitcoin is still the largest cryptocurrency by market capitalization, it&#x;s no longer as dominant as it was in the very early days of cryptocurrency. Other altcoins such as Ethereum and Solana have grown in popularity, making the term altcoin somewhat outmoded. Now with a reported 15, or more cryptocurrencies in existence, it makes less sense than ever to define the industry as Bitcoin and then everything else.

Bottom line

Cryptocurrency is a highly speculative area of the market, and many smart investors have decided to put their money elsewhere. For beginners who want to get started trading crypto, however, the best advice is to start small and only use money that you can afford to lose.

Learn more:

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies based on their market capitalization, or the total value of all of the coins currently in circulation.

1. Bitcoin (BTC)

• Market cap: Over $ billion

Created in by someone under the pseudonym Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.

Bitcoin’s price has skyrocketed as it’s become a household name. In May , you could buy a Bitcoin for about $ As of March 1, , a single Bitcoin’s price was over $44, That’s growth of about 7,%.

Related:How To Buy Bitcoin

2. Ethereum (ETH)

• Market cap: Over $ billion

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April to the beginning of March , its price went from about $11 to over $3,, increasing more than 27,%.

Related:How To Buy Ethereum

3. Tether (USDT)

• Market cap: Over $79 billion

Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it&#;s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins.

4. Binance Coin (BNB)

• Market cap: Over $68 billion

The Binance Coin is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world.

Since its launch in , Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

BNB&#;s price in was just $ By the beginning of March , its price had risen to around $, a gain of approximately ,%.

Related:How To Buy Cryptocurrency

5. U.S. Dollar Coin (USDC)

• Market cap: Over $53 billion

Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

6. XRP (XRP)

• Market cap: Over $37 billion

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.

At the beginning of , the price of XRP was $ As of March, , its price reached $, equal to a rise of more than 12,%.

7. Terra (LUNA)

• Market cap: Over $34 billion

Terra is a blockchain payment platform for stablecoins that relies on keeping a balance between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, are tied to the value of physical currencies. Their counterweight, Luna, powers the the Terra platform and is used to mint more Terra stablecoins.

Terra stablecoins and Luna work in concert according to supply and demand: When a stablecoin&#;s price rises above its tied currency&#;s value, users are incentivized to burn their Luna to create more of that Terra stablecoin. Likewise, when its value falls compared to its base currency, this encourages users to burn their Terra stablecoins to mint more Luna. As adoption of the Terra platforms grows, so too does the value of Luna.

From Jan. 3, , when its price was $, to the beginning of March , Luna has risen over 14,% to $

8. Cardano (ADA)

• Market cap: Over $33 billion

Somewhat later to the crypto scene, Cardano is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification present in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which are powered by ADA, its native coin.

Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In , ADA’s price was $ As of March 1, , its price was at $ This is an increase of 4,%.

9. Solana (SOL)

• Market cap: Over $33 billion

Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms that help it process transactions quickly and securely. SOL, Solana&#;s native token, powers the platform.

When it launched in , SOL&#;s price started at $ By March 1, , its price was around $, a gain of nearly 13,%.

Avalanche (AVAX)

• Market cap: Over $22 billion

Similar to Ethereum and Cardano, Avalanche provides blockchain software that can create and execute smart contracts powered by a native token (in this case, AVAX). Since its launch in , Avalanche has rapidly grown, thanks in no small part to its comparatively low gas fees and fast transaction processing speeds.

From July 12, , to March 1, , AVAX&#;s price has risen more than 1,%, from $ to $

*Market caps and pricing current as of March 1,

Crypto FAQs

It's possible to get filthy rich by investing in which cryptocurrency to invest in in -- but you could also lose all of your money, which cryptocurrency to invest in. Investing in crypto assets is risky but also potentially extremely profitable.

Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. A safer but potentially less lucrative alternative is buying the stocks of companies with exposure to cryptocurrency.

Let's examine the pros and cons of investing in cryptocurrency.

Is cryptocurrency safe?

Several factors make cryptocurrency a not entirely safe investment. However, other signs are emerging that cryptocurrency is here to stay.

There are numerous risks associated with crypto. Investors and users must decide for themselves if the benefits outweigh these risks.

Cryptocurrency risks

Cryptocurrency exchanges, more so than stock exchanges, are vulnerable to being hacked and becoming targets of other criminal activity. Security breaches have led to sizable losses for investors who have had their digital currencies stolen, spurring many exchanges and third-party insurers to begin offering protection against hacks. 

Safely storing cryptocurrencies is also more difficult than owning stocks or bonds. Cryptocurrency exchanges such as Coinbase(NASDAQ:COIN) make it fairly easy to buy and sell crypto assets such as Bitcoin(CRYPTO:BTC) and Ethereum(CRYPTO:ETH), but many people don't like to keep their digital assets on exchanges due to the risks which cryptocurrency to invest in allowing any company to control access to their assets.

Storing cryptocurrency on a centralized exchange which cryptocurrency to invest in you don't have full control over your assets. An exchange could freeze your assets based on a government request, or the exchange could go bankrupt and you'd have no recourse to recover your money.

Some cryptocurrency owners prefer offline which cryptocurrency to invest in storage" options such as hardware wallets, but cold storage comes with its own set of challenges, which cryptocurrency to invest in. The biggest is the risk of losing your private key; without a key, it's impossible to access your cryptocurrency.

There's also no guarantee that a crypto project you invest in will succeed. Competition is fierce among thousands of blockchain projects, and many projects are no more than scams. Only a small percentage of cryptocurrency projects will ultimately flourish.

Regulators may also crack down on the entire crypto industry, especially if governments view cryptocurrencies as a threat rather than an innovative technology.

The cutting-edge technology elements of cryptocurrency also increase the risks for investors. Much of the tech is still being developed and is not yet extensively which cryptocurrency to invest in in real-world scenarios.

The Motley Fool's 5 Million Dollar Crypto Bet. Read More »

Cryptocurrency adoption

Despite the risks, cryptocurrencies and the blockchain industry are growing stronger. Much-needed financial infrastructure is being built, and investors are increasingly able to access institutional-grade custody services. Professional and individual investors are gradually receiving the tools they need to manage and safeguard their crypto assets.

Crypto futures markets are being established, and many companies are gaining direct exposure to the cryptocurrency sector. Financial giants such as Block(NYSE:SQ) and PayPal(NASDAQ:PYPL) are making which cryptocurrency to invest in easier to buy and sell cryptocurrency on their popular platforms. Other companies, including Block, have poured hundreds of millions of dollars into Bitcoin and other digital assets. Tesla(NASDAQ:TSLA) purchased $ billion worth of Bitcoin in early By Februarythe electric vehicle maker reported that it held almost $2 billion of the cryptocurrency. MicroStrategy (NASDAQ:MSTR) -- a business intelligence software company -- has been accumulating Bitcoin since It held $ billion in the cryptocurrency by the end of and said it plans to buy more with excess cash generated from operations.

Although other factors still affect the riskiness of cryptocurrency, the increasing pace of adoption is a sign of a maturing industry. Individual investors and companies are seeking to gain direct exposure to cryptocurrency, considering it safe enough for investing large sums of money.

Is crypto a good long-term investment?

Many cryptocurrencies such as Bitcoin and Ethereum are launched with lofty objectives, which may be achieved over long time horizons. While the success of any cryptocurrency project is not assured, early investors in a crypto project that reaches its goals can be richly rewarded over the long term.

For any cryptocurrency project, however, achieving widespread adoption is necessary to be considered a long-term success.

Bitcoin as a long-term investment

Bitcoin, bitcoin investering 6 year the most widely known cryptocurrency, benefits from the network effect -- more people want to own Bitcoin because Bitcoin is owned by the most people. Bitcoin is currently viewed by many investors as "digital gold," but it could also be used as a digital form of cash.

Bitcoin investors believe the cryptocurrency will gain value over the long term because the supply is fixed, unlike the supplies of fiat currencies such as the U.S. dollar or the Japanese yen. The supply of Bitcoin is capped at fewer than 21 million coins, while most currencies can be printed at the will of central bankers. Many investors expect Bitcoin to gain value as fiat currencies depreciate.

Those who are bullish about Bitcoin being extensively used as digital cash believe it has the potential to become the first truly global currency. 

Ethereum as a long-term investment

Ether is the native coin of the Ethereum platform and can be purchased by investors wishing to gain portfolio exposure to Ethereum. While Bitcoin can be viewed as digital gold, Ethereum is building a global computing platform that supports many other cryptocurrencies and a massive ecosystem of decentralized applications ("dApps").

The large number of cryptocurrencies built on the Ethereum platform, plus the open-source nature of dApps, creates opportunities for Ethereum to also benefit from the network effect and to create sustainable, long-term value. The Ethereum platform enables the use of "smart contracts," which execute automatically based on terms written directly into the contract code.

The Ethereum network collects Ether from users in exchange for executing smart contracts. Smart contract technology has significant potential to disrupt massive industries such as real estate and banking and also to create entirely new markets.

As the Ethereum platform becomes increasingly used worldwide, which cryptocurrency to invest in, the Ether token increases in utility and value. Investors bullish on the long-term potential of the Ethereum platform can profit directly by owning Ether.  

That's not to say Ethereum doesn't have competition. A number of "Ethereum Killers," including Solana (CRYPTO:SOL), Polygon (CRYPTO:MATIC), and Avalanche(CRYPTO:AVAX), are all built to handle smart contracts and use a blockchain system capable of processing more transactions per second, which cryptocurrency to invest in. The speed has the added advantage of being less expensive for users as well. But Ethereum is the most broadly adopted platform for using smart contracts.

Should you invest in cryptocurrency?

Owning some cryptocurrency can increase your portfolio's diversification since cryptocurrencies such as Bitcoin have historically shown few price correlations with the U.S. stock market. If you believe that cryptocurrency usage will become increasingly widespread over time, which cryptocurrency to invest in, then it probably makes sense for you payday 2 money making tips buy some crypto directly as part of a diversified portfolio. For every cryptocurrency that you invest in, be sure to have an investment thesis as to why that currency will stand the test of time. If you do your research and learn as much as possible about how to invest in cryptocurrency, you should be able to manage the investment risk as part of your overall portfolio.

If buying bitcoin investing for beginners questions and answers seems too risky, you can consider other ways to potentially profit from the rise which cryptocurrency to invest in cryptocurrencies. You can buy the stocks of companies such as Coinbase, Block, and PayPal, or you can invest in an exchange like CME Group(NASDAQ:CME), which cryptocurrency to invest in, which facilitates crypto futures trading. Although investments in these companies may be profitable, they do not have the same upside potential as investing in cryptocurrency directly.

Expert Q&A

The Motley Fool sought blockchain insights from three finance experts: Dr. Christine Parlour, professor and Sylvan C. Coleman Chair of Finance and Accounting at the Haas School of Business, University of California, which cryptocurrency to invest in, Berkeley; Dr. Jimmie Lenz, director of Duke University's Master of Engineering in FinTech and Master of Engineering in Cybersecurity; and Dr. Merav Ozair, who is a leading blockchain expert and a FinTech Professor at Rutgers Business School.

Dr. Christine Parlour, professor and Sylvan C. Coleman Chair of Finance and Accounting at the Haas School of Business, University of California, Berkeley. Most of her work is in institutionally complex areas in finance, banking and financial technology. Her current work focuses on fintech, payment systems, blockchain and cryptocurrency, and market infrastructure.

The Motley Fool: What advice would you give to someone interested in investing in blockchain technology?

Parlour: Be curious but also be cautious. It is important to recognize that there is not a complete regulatory framework in this area. So, it is important to do your homework. First, consider the venue that you use to access the market, which cryptocurrency to invest in. There are regulated crypto exchanges and trading places; however, there are also unregulated ones. Second, which cryptocurrency to invest in, while most tokens are based on open-source code, it is not the case that they have the same disclosure regimes as blue chip stocks. So, be careful and investigate the nature of the underlying token. Note that in other countries (Canada, Europe), there are ETFs and ETPs that track crypto portfolios; these have not received regulatory approval yet in the U.S. If and when they are offered to consumers, these will be a low-cost way of accessing the crypto market, and which cryptocurrency to invest in someone else will handle the market mechanics. 

Dr. Jimmie Lenz, director of Duke University's Master of Engineering in FinTech and Master of Engineering in Cybersecurity. Dr. Lenz is an experienced executive, lecturer, which cryptocurrency to invest in, and scholar in the field of banking and capital markets, which cryptocurrency to invest in, so we asked him a few questions about DeFi and which cryptocurrency to invest in and keep learning. The developments in the space are happening at a rapid pace, so much so that new knowledge is being generated constantly. As a professor teaching blockchain, this is the hardest part, reinventing the course every semester, but it keeps my students and me as current which cryptocurrency to invest in possible. This doesn't mean neglecting base knowledge; having this is crucial, as well as some sense of the history to understand why developments have occurred at specific times.

Dr. Merav Ozair is a leading blockchain expert and a FinTech Professor at Rutgers Business School. She serves as research director of RBS Blockchain Hub, as well as an advisor and researcher at the Rutgers Blockchain and FinTech Collaboratory.

Ozair: Blockchain technology is definitely the future. There is no escaping that. However, it is difficult to predict which projects will last and which will fail and be forgotten.

Most blockchain technology companies are in their early, if not very early, stages. Hence, investing in companies utilizing blockchain technologies has all the same risks as investing which cryptocurrency to invest in a start-up. And like in any start-up, the risk-reward ratio is high.

Therefore, learn about blockchain technology, do a thorough due diligence on any project -- from its technology to business model to execution. Learn about the "problem" it is trying to solve and what solution it's offering -- both from a technological perspective and a business perspective.

There's a lot of potential with blockchain technology, which cryptocurrency to invest in, but which cryptocurrency to invest in execution is in the details.

10 Which cryptocurrency to invest in Cheap Cryptocurrency to Invest in

If you're interested in investing in the cryptocurrency market, an excellent way to bitcoin investor ervaringen sign up above-average returns is to look for the best cheap cryptocurrency to buy. As these coins tend to be trading at a low price, any upwards moves can result in market-beating returns for savvy investors.
The 10 Best Cheap Cryptocurrency to Buy
Found below is our picks for the best new crypto in the market right now, which cryptocurrency to invest in, resulting from in-depth research and analysis:
1. Lucky Block (LBLOCK)– Overall Best New Crypto to Buy
2. Avalanche (AVAX)– Most Promising Cryptocurrency to Buy in
3. Maker (MKR)– Exciting New Crypto with DeFi Exposure
4. Ethereum (ETH)– One of the Best Altcoins with Long-Term Value
5. Chainlink (LINK)– Best Cryptocurrency to Invest in with Unique Use Case
6. Uniswap (UNI)– Huge DEX with Great Price Prospects
7. Enjin (ENJ)– Best Crypto Related to NFTs
8. Basic Attention Token (BAT)– Exciting New Crypto with High Demand
9. www.oldyorkcellars.come (YFI)– Cheap Cryptocurrency to Buy for High Yields
Solana (SOL)– Best Blockchain Project with Super-Fast Transactions
A Closer Look at the Best New Cryptocurrency to Buy
If you’re looking for which cryptocurrency to buy with great future prospects – then look no further!
1. Lucky Block (LBLOCK) – Overall Best New Crypto to Buy
Our pick for the best cryptocurrency to buy in is Lucky Block. Lucky Block is a crypto-lottery platform that uses blockchain technology to improve traditional lottery systems. Users can purchase lotto tickets using LBLOCK, which cryptocurrency to invest in, the platform's native token, which cryptocurrency to invest in, meaning the entire process is digitized and fair.
Using LBLOCK instead of FIAT, Lucky Block can make pay-outs much faster – and conduct multiple prize draws every day. In addition, since geographical boundaries are removed, users from across the globe can take part in these prize draws. The hype around Lucky Block right now is enormous, with the presale selling out two weeks ahead of schedule. Furthermore, Lucky Block already has over 20,+ members in its Telegram group, highlighting its solid community backing.
Buy Lucky Block on PancakeSwap
Cryptocurrency markets are highly volatile and your investments are at risk.
2. Avalanche (AVAX) – Most Promising Cryptocurrency to Buy in
Another exciting new cryptocurrency to invest in is Avalanche. Avalanche is a super-fast blockchain platform that uses three chains rather than one – meaning tasks are divided, and transaction speeds are significantly increased. Speeds are boosted even more since Avalanche uses two separate consensus mechanisms, ensuring that the platform is immensely scalable.
Buy AVAX on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
3. Maker (MKR) – Exciting New Crypto with DeFi Exposure
Maker is the native token of MakerDAO, a decentralized lending bitcoin investition card built on the Ethereum network. Users can lock up ETH in the protocol and create 'DAI', a stablecoin pegged to the dollar. Essentially this allows users to receive crypto loans and generate yields without the need for invasive KYC checks.
Buy MKR on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
4. Ethereum (ETH) – One of the Best Altcoins with Long-Term Value
Ethereum is the second-largest crypto in the world behind Bitcoin and has grown exponentially in recent years. Unlike Bitcoin, Ethereum offers a platform where developers can build dApps, with full support for smart contracts. The upcoming release of Ethereum will see the platform increase its transaction speeds and scalability whilst reducing fees. Ultimately this could be great news for investors, as these changes could see ETH rise in value.
Buy ETH on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
5. Chainlink (LINK) – Best Cryptocurrency to Invest in with Unique Use Case
Chainlink is an innovative network that uses 'oracles' to provide off-chain data to the blockchain. Off-chain data, such as stock market prices, can be used by smart contracts within dApps, yet has to be sourced in a decentralized manner, which cryptocurrency to invest in. Chainlink’s nodes can source the data for a fee, which is paid in LINK.
Buy LINK on eToro.
Cryptoassets are a highly volatile unregulated investment product, which cryptocurrency to invest in. No UK or EU investor protection.
6. Uniswap (UNI) – Huge DEX with Great Price Prospects
Another option for which cryptocurrency to buy in the DeFi space is Uniswap. Uniswap is a decentralized exchange (DEX) hosted on the Ethereum network and allows users to exchange crypto tokens easily. As it is decentralised, there is no requirement for users to provide personal details.
Buy UNI on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
7. Enjin (ENJ) – Best Crypto-Related to NFTs
Enjin is an Ethereum-based cryptocurrency used to power an ecosystem of NFTs. The exciting thing about Enjin is that the coin can be used in various blockchain games to buy and sell items. Furthermore, which cryptocurrency to invest in, items denoted in ENJ can be used across multiple games, offering interoperability between different developers.
Buy ENJ on eToro.
Cryptoassets are a highly which cryptocurrency to invest in unregulated investment product. No UK or EU investor protection, which cryptocurrency to invest in.
8. Basic Attention Token (BAT) – Exciting New Crypto with High Demand
Basic Attention Token (BAT) is a unique crypto that looks to revolutionize the digital advertising industry. Users on the Brave web browser can be rewarded in BAT simply for watching ads, whilst advertisers can also get rewarded for creating advertisements that capture users' attention, which cryptocurrency to invest in.
Buy BAT on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection. what to look for when investing in cryptocurrency. www.oldyorkcellars.come (YFI) – Cheap Cryptocurrency to Buy for High Yields
According to Binance Academy, www.oldyorkcellars.come is a DeFi protocol that provides users with access to high yields on their crypto holdings. Users can deposit their holdings into ‘vaults’ and generate impressive passive returns – for example, which cryptocurrency to invest in, depositing Curve tokens can net investors an APY of up to %!
Buy YFI on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Solana (SOL) – Best Blockchain Project with Super-Fast Transactions
The final new cryptocurrency to buy with great potential is Solana. Like Ethereum, Solana is a blockchain network that provides a medium for developers to build and host dApps. However, Solana seeks to improve on the poor scalability of current systems by using a 'Proof of Stake' consensus mechanism that is less energy-intensive and can provide faster transaction speeds.
Buy SOL on eToro.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
How to Buy New Cryptocurrency
Found below are walkthroughs on how to buy Lucky Block and how to invest in cryptocurrencieswith eToro - both of which can be completed in minutes.
eToro is our pick for the best crypto exchangesince users can invest from which cryptocurrency to invest in little as $10 (£) per position and benefit from tight spreads. Furthermore, all users can download eToro's free crypto wallet on iOS or Android, which features advanced security measures (such as DDoS protection) to safeguard your holdings.
How to Buy Lucky Block

• Step 1 – Create a Crypto Wallet: Download and set up a reputable crypto wallet, such as Metamask or the Binance Trust Wallet.
• Step 2 – Buy BNB: How to make money stocks and shares Binance Which cryptocurrency to invest in (BNB) using a broker or crypto exchange and transfer it to your crypto wallet.
• Step 3 – Connect Wallet to PancakeSwap: Go to the PancakeSwap website, click ‘Connect Wallet’, and follow the on-screen instructions to link your wallet.
• Step 4 – Buy Lucky Block: Search for Lucky Block on the exchange and click on it. In the order box that appears, enter the amount of BNB you’d like to swap for LBLOCK and click ‘Swap’.

Buy Lucky Block on PancakeSwap
Cryptocurrency markets are highly volatile and your investments are at risk.
How to Buy Cryptocurrency on eToro

• Step 1 – Join eToro: Open your trading account by heading to the eToro website, clicking ‘Join Now’, and entering the required personal information.
• Step 2 – Verification: Verify your account by uploading proof of ID (passport or driver’s license) and proof of address (bank statement or utility bill).
• Step 3 – Deposit: Deposit at least $10 (£) into your account.
• Step 4 – Buy Cryptocurrency: Search for your chosen crypto and click ‘Trade’. Enter your investment amount (minimum $10) and click ‘Open Trade’.

Buy Cryptocurrency Now.
Cryptoassets are a highly marco baldini bitcoin unregulated investment product. No UK or EU investor protection. Your capital is at risk. Additionally, 68% of which cryptocurrency to invest in investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Disclaimer:
The above content is non-editorial, and BCCL hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content. Crypto/NFTs are unregulated, which cryptocurrency to invest in, highly risky, and there may be no regulatory recourse for any loss from such transactions. Readers to exercise caution/due diligence, and comply with all applicable laws, including but not limited to taxation laws. Above content does not constitute investment advice nor promotes, suggests or presents Crypto/NFTs to solve financial difficulties/achieve financial security/act as an alternative to employment/income opportunity.

Disclaimer: Content Produced which cryptocurrency to invest in CryptoPR