Earlier this month, US President Donald Trump announced the creation of a strategic Bitcoin(Crypto: BTC) Reserve and supplies of digital assets of the United States. The first will hold Bitcoin – there are no surprises there. The latter will maintain four other largest cryptocurrencies: Ethereum(Crypto: eth),, Xrp(Crypto: xrp),, Saltworks(Crypto: Salt)and Cardano(Crypto: Ada).
Bitcoin is the original currency of the currency and was also the most successful. At the time of writing, its market cap is $ 1.7 trillion, greater than that in each other crypto currency. Over the last three years (from March 19), the price of bitcoin has increased by 98%, far ahead S & p 500Refund 27%.
Although Bitcoin is conceived as a decentralized digital currency, transactions are too slow and expensive to work as a payment method. The processing times are mainly ranging from 10 minutes to more than an hour, depending on the congestion of the network, and the fees are around $ 1 per transaction.
Nevertheless, Bitcoin has caught himself as a digital value trade or “digital gold”. The supply is limited to 21 million bitcoins, adding to it an element of scarcity. If you are looking for a way to protect yourself from inflation or add a crypto currency to your portfolio, Bitcoin is worth considering.
Ethereum is the second largest currency crypto in the market, and has become popular with the introduction of smart contracts. A smart contract is a program built into the blockchain network of a cryptocurrency to record transactions.
Developers can use smart contracts to start decentralized applications (DAPPS). This gives the Ethereum a wide range of use, including the services of decentralized finances (Dead), such as cryptocurrency loan platforms, playing blockchain and launching new crypto token.
Because Ethereum was the first to offer smart contracts, plays a big role in terms of market share. According to Defillam, Ethereum currently has $ 46 billion in total value locked in its defined apps, which is most of any blockchain.
Negative, Ethereum’s performance lags behind other blockchains smart contracts. The average transaction fee is $ 0.19 from March 19, compared to $ 0.00025 for Solan’s rivals. Ethereum has also lost 34% of its value in the last three years. It is better to avoid Ethereum until it proves that it can turn this trend downward.
XRP is the original Crypto currency for Ripple, blockchain designed as a cross -border decision to pay. The current system of elections for international payments, the Society for World Interbancar Financial Telecommunications (Swift), can take three to five days for international banking transfers. The fees mainly cost from $ 15 to $ 50, depending on the banks involved.
On Ripple Blockchain, transactions are processed within four to five seconds with a fee of 0.00001 xrp, a fraction of the cent. In addition to being used for its minimum transaction fees, the XRP is also a currency of a bridge used to facilitate international transfers.
With cases in the real world, XRP is one of the stronger crypto investments currently available. Over the last three years, on this list has surpassed every other crypto currency with its 187% return. His biggest wind since 2020 was a lawsuit lawsuit for securities (SEC), but on March 19, the Ripplelabs CEO of Brad Garlinghouse announced that the sec had given up the lawsuit.
Solana is a competitor of Ethereum, as it also provides developers with a platform to start DAPPS. The difference is that Solan’s unique system of evidence of history to confirm transactions, which makes it a far more effective blockchain.
As mentioned above, the average transaction fee in the solan is only $ 0.00025. Processes over 4,000 transactions per second (TPS). For comparison, Ethereum processes about 17 TPS because it has not developed a quick method for confirming transactions such as Solana has.
Like all cryptic currencies, the solana is highly risky, volatile investment. However, in the last three years, it is an increase of 39%, and its speed and low cost should continue to attract developers in the ecosystem of Solane.
Cardano is another competitor of the Ethereum who supports smart contracts and allows the development of DAPPS. This has helped to popularize the role evidence system, where people who own a crypto currency can promise that their tokens will be part of the transaction checking process and earning rewards. The role evidence system has minimal energy needs, and even Ethereum adopted it in 2022.
One of the unique things about Cardan is the dedication to the developer the use of peer examinations and research based on evidence. This, however, was not always in his favor. Kardan’s development is notoriously slow. For example, he did not introduce smart contracts until 2021.
Cardano’s price has decreased by 18% in the last three years. As with Ethereum, it is best to see if Cardano can build any momentum before his obligations of money.
Just because the US government will make these five crypts of currency does not mean that you should invest in all of them. Crypto currency is a risky, unproven asset class. Two cryptocurrency on this list, Ethereum and Cardano, have lost value in the last three years. Although the others did good, they are still very unstable.
As for the crypto investment, Bitcoin is the safest option, relatively speaking. It is the most famous cryptocurrency, and the biggest is from the beginning. If you are looking for crypto currencies, except Bitcoin, XRP and Solana, there are two prominent projects. With Bitcoin, XRP and Solana, you could have a solid crypto portfolio that covers multiple cases of use.
No matter what cryptocurrencies they choose, be careful in the distribution of assets. Due to the risk, the Crypto currency should not exceed 5% to 10% of your portfolio. Use the rest to invest in shares, bonds and other stable assets.
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Lyle Daly He has positions in Bitcoin, Cardano, Ethereum and Solana. Motley Fool has positions and recommends Bitcoin, Cardano, Ethereum, Solana and XRP. Motley Fool has disclosure rules.
