In recent times, cryptocurrencies are on the rise and the three digital currencies, Bitcoin, Dogecoin and Ethereum are taking the lead. Since all cryptocurrencies are created differently, it becomes difficult to decide which one is the right one for you. All these currencies have some advantages and disadvantages and whichever one you select will depend on your situation.
Before investing into cryptocurrency you need to think whether it is right for you or not. All these cryptocurrencies are subjected to high volatility as they are highly speculative investments. It is unsure if cryptocurrency will succeed in the long run therefore you need to have a high tolerance for risk before investing.
Bitcoin is an original cryptocurrency which is less risky compared to Dogecoin. Even though it is risky, it comes with various advantages over its competition.
Bitcoins are accepted as a form of payment by few merchants. For the long term success of crypto, widespread adoption is necessary. Bitcoin is referred to as digital gold as there are only a limited number of tokens available and this raises the Bitcoin’s value while driving up its price.
This year the price of Dogecoin has surged over more than 14,500% as per the Motley Fool reports. However, it is the riskiest cryptocurrency. In the crypto industry it does not have a significant competitive advantage. It has limited utility as very few merchants accept Dogecoin.
Bitcoin is the largest player in the game and has significantly outperformed Bitcoin since the beginning of the year but that does not mean you should buy it.
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