Best investment: Ethereum and Bitcoin

  Best Investment: Ethereum and Bitcoin, Ways to Diversify the Crypto Portfolio with Growth and Income   In general, the prices of leading cryptocurrencies such as Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) routinely fluctuate around 10% during the week.For investors, these changes can be stressful and frustrating. But crypto's long-term volatility may have worked in the investor's favor overall It's worth noting that exchanges like Nexo, BlockFi, Gemini, and Coinbase (NASDAQ:COIN) pay attractive interest rates on cryptocurrencies like bitcoin, Ethereum, and more. Like Traditional Banks, the companies mentioned above make money by lending assets at a higher interest rate than they pay customers. It is useful to browse through several different crypto assets and interest rates so that you can choose the best one. Let's examine one by one:

• 1-Ethereum: Bold, dynamic but very risky

Although Bitcoin stands out and attracts attention from other cryptocurrencies, only in the last year or two the real star has been Ethereum. Although Bitcoin stands out and attracts attention from other cryptocurrencies, in the last year or two the real star has been Ethereum. Despite falling more than 50% from its highs, Ethereum is still the cryptocurrency that has increased 190% to date and over 800% from last year. Ethereum's versatility has been one of the reasons it has been recognized. It also includes well-known coins such as Chainlink and Polygon on the Ethereum blockchain. Most immutable tokens (NFTs) also run on Ethereum's blockchain. In this way, Ethereum's blockchain resembles a smartphone that serves different purposes and can host a variety of applications. Ethereum leads the way in the use of smart contracts. That's why the advantages are huge. Thanks to the smart contract, many legal problems are solved and the costs are minimized without human intervention.

Ways to Diversify the Crypto Portfolio with Growth and Income

• 2- Bitcoin: Established, simple, but still risky

Although Bitcoin is much less dynamic than Ethereum, it is more attractive because of its simplicity. Bitcoin cannot be considered a valid currency due to its volatility. However, it becomes clear that it can be used as a commodity, especially as a store of value. It can be a globally recognized tool that provides value in situations of economic instability. Although the validity of bitcoin in America is not that attractive when there is a dollar, it maintains its attractiveness in other countries. Bitcoin, the most known cryptocurrency in the world, pays much lower interest than others. Conclusion A risk-tolerant investor will dedicate a high percentage of their crypto portfolio to Ethereum, while a risk-averse investor should turn to bitcoin and stablecoins. Best Investment: Ethereum and Bitcoin,    

Source The Motley Fool

 

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