Are you a seasoned financial expert, investor, or just a regular guy looking to get into crypto? You could learn how to invest 5k into the market in no time. It’s as easy as it sounds. Once you know why you are getting into crypto, carry out your research on the best platforms and coins to buy, you can kickstart your journey into the crypto world. You will learn more about this in the course of the article.
Why Get Involved In Cryptocurrency?
Cryptocurrencies are often seen as stores of value and they represent a revolutionary technology that could transform almost all industries. This alone gets people excited about the idea of crypto. Coins cannot be seized or printed and this decentralized dimension of finance gives more people control of their money.
Although much speculation and volatility remain in the crypto world, getting involved seems to be a good idea because apart from being safe, fast, and accessible, it could well represent the future, effectively replacing traditional banking systems.
Where To Invest 5k? Buy These 3 Coins
After deciding to join the crypto bandwagon, you might find yourself lost at sea with thousands of coins in your face. The safest bet on your 5k remains to buy valuable coins that are backed up by a strong project and community of investors and users. Currently, Bitcoin Cash, Ethereum, and The Graph are at the top of the list for several reasons, which you would discover shortly.
Coin 1 – Bitcoin Cash (BCH)
Bitcoin Cash is a p2p electronic cash system aiming to replace physical cash but in a bigger capacity and with faster payments, lesser fees, and more privacy. Like other decentralized cryptocurrencies, BCH boycotts any financial third parties.
Bitcoin Cash has a limited total supply of about 21 million coins with over 18 million of them already in circulation. Transaction fees are extremely fast with fees costing less than one-tenth of a cent. The coin is also used in transactions between online merchants. Other uses include simplified smart contracts, private payment, and tokens.
Due to problems with Bitcoin’s scalability, there was a split in the community and a resultant hard fork leading to the birth of BCH. However, unlike its parent coin, BCH is on a global payment system mission.
Coin 2 – Ethereum (ETH)
Ethereum is a decentralized platform and is the largest altcoin. It enables decentralized applications (dapps) and smart contracts to run seamlessly with reduced risk, control, lag time, or third-party meddling. Ethereum’s mission is to create decentralized financial products and make them easily accessible to people regardless of their race, faith, or location.
Apart from its smart contracts, Ethereum’s platform hosts other tokens using its ERC-20 compatibility protocol and this has been its most common use. Over 280,000 of such tokens have taken off with more than 40 of them ranking among the top 100 coins in the market.
Ether is the coin’s cryptographic token and it serves as a vehicle for moving the coin on the platform. Since being founded in 2014 by Vitalik Buterin, Ethereum has grown to become the second-largest digital currency, only behind the flagship cryptocurrency, Bitcoin. Users can encode, trade, decentralize, and secure virtually anything on the platform.
Coin 3 – The Graph (GRT)
GRT is an indexing protocol. It helps with data queries on networks such as Ethereum, POA, and IPFS and powers several applications in the DeFi and overall web3 ecosystem. Therefore, anyone who wants to make data readily available to the public can publish open APIs known as subgraphs.
Applications can query these subgraphs using GraphQL to get blockchain data. In other words, developers can integrate their Dapps on blockchains as seen with Uniswap, Aragon, Synthetix, AAVE, and many others. In much simpler terms, subgraphs aim to make information on blockchains easily accessible. Currently, The Graph powers over four billion monthly queries on several apps. The Graph team features professionals from Orchid, the Ethereum foundation, OpenZeppelin, Decentraland, and MuleSoft.
Over 200 software developers support the project. Community members, VCs, and top dogs in the blockchain community like Coinbase ventures, Framework, DTC, and others fund its network development.The ultimate goal of the project is to eliminate APIs, databases, and servers from becoming checkpoints, making data more decentralized than ever.
Benefits to Buying 3 Different Coins
If you were looking for how to invest 5k in crypto diversifying is just a smart move. More people are entering the crypto marketplace because of the potential to make millions of money from valuable coins but without the right knowledge and education, a lot of things could go south. Investing in any coin carries its own risk, yet you are about to find out how buying three different coins actually benefits you.
- Lesser risk: A diverse portfolio mitigates the inherent risks that come with owning a single coin. For instance, a cryptocurrency portfolio with 50% Ethereum, 25% Bitcoin Cash, and 25% GRT can withstand a greater degree of market volatility in any of the coins.
- Better position long-term: Because of the lesser risk involved, investors can hold a position on a coin for a long time if they have bought about three different coins. This plays an important role in reaching long-term financial goals since they won’t be simply bullied out of the market.
- Higher returns: With the right strategy, investing in three coins could lead to more profits, particularly in a bull run. Coins come with varying values and potential, and with educated speculation, you can make quick profits and even passive income from the various pumps.
As the ageless quote says, “do not put all your eggs in one basket”
Top 3 Best Crypto Exchanges
1. Binance US
Binance US is a cryptocurrency exchange for U.S. residents that allows users to buy, sell, and trade supported cryptocurrency. Binance US also offers “staking,” or lending of several cryptocurrencies, paying users interest for lending their crypto assets. They have a wide list of cryptos available and super low trading fees. You can get started on Binance US here.
- Great looking interface on desktop & mobile
- Beginner friendly
- Low trading fees
- Fewer crypto-to-crypto currency pairs than global Binance site
Uphold is considered to be one of the safest ways to buy cryptocurrency by many digital asset experts. Since launching in 2014, Uphold has maintained an exemplary reputation for security among its customers. The site is unique in the sheer amount of assets it offers. You can get started on Uphold here.
- Available in more than 180 different countries
- Transactions sent between Uphold users are completely free
- Huge list of cryptos available
- Fees are unclear in certain buy and sell spreads
If you’re looking for an affordable, all-in-one cryptocurrency platform, Crypto.com might be right for you. The more Cronos (CRO) you’re able to stake, the more benefits you’ll get from this exchange. They also have a huge list of cryptos available. You can get started on Crypto.com here.
- Wide list of crypto available
- Low trading fees
- Staking available
- Lack of educational resources
Investing in crypto does not come without its risks. However, if you were looking for how to invest 5k crypto, you might as well get it right by investing in Bitcoin Cash, Ethereum, and The Graph to increase your chances of getting huge returns. Getting these three coins in your portfolio comes with tons of benefits and using a platform like Binance US guarantees you a great experience.