The problem of choosing an asset for investment is often solved through the creation of a portfolio. However, if you study the most liquid coins, you can improve this result. Of course, there are no questions about Bitcoin, it is in first place in its own right. But you have to think about whether to buy ethereum, ripple or monero cryptocurrency.
When creating Bitcoin, developers pursued two goals at once. They wanted to come up with a completely anonymous financial product that could be used as a means of payment. And partly they did it.However, progress does not stand still. It turned out that ripple cryptocurrency can be bought much easier and faster than bitcoin. A monero ahead of competitors in terms of anonymity of payments. At the same time, ethereum smart contracts have proved more effective in creating new coins. But this does not mean that when creating an investment portfolio, you should rely only on these assets. First, it is worth exploring their capabilities in more detail.
Bitcoin was born in 2009, and in 2012, the Ripple network began to operate. The developers set themselves the task of creating a blockchain with a record transaction processing speed. And they did it. And the network went a completely different way of development:
That is, the concept of the XRT token largely contradicts the principles of Satoshi. Yes, there is decentralization. However, Ripple Labs may sell new coins in almost unlimited quantities. Although the company imposed restrictions on itself in this regard, they are completely voluntary. In case of a change in domestic policy, the price of the token may drop sharply. This makes it a dangerous asset to invest.At the same time, the company has tremendous business success. Its developments are used by major financial groups such as Santander, MoneyGram and American Express. Therefore, there is no doubt about the future business. But its connection with the token is no longer so obvious.
Monero cryptocurrency is not so popular, but it has an undeniable advantage. The developers have made a bet on anonymity. To do this, they used the principle of Proof-of-work, that is, the action taken needs confirmation.In simple terms, the transaction is conducted in one direction. First, the buyer transfers funds to intermediary addresses, from where they move on. In order to make the operation basically inaccessible for control, with the passage of the chain, even the amount is divided into arbitrary parts. The recipient will never know from which wallet the transfer came. To understand the genius of the idea, it is enough to remember - operations are conducted in the blockchain, where everyone can see all the chains of transactions. Of course, when deciding to buy a cryptocurrency, the exchanger will receive some information about the user. But transfers directly, from wallet to wallet, pass absolutely without a trace. That is why the Monero team is often accused of creating a product to promote crime. This is very far from reality