Is Cryptocurrency a Good Investment in 2023? Everything You Need to Know

Cryptocurrencies have outperformed most asset classes in recent years, including stocks, gold, and real estate. But is cryptocurrency a good investment in 2023?

In this guide, we explore the investment thesis of Bitcoin and other digital assets – covering the upside potential, risks, and how to get started.

Is Cryptocurrency a Good Investment for Beginners? Our Opinion

  • In our view, cryptocurrencies are a solid long-term investment. Although volatile, cryptocurrencies have outperformed most financial markets in recent years.
  • Bitcoin was worth just $1,000 in 2017 – it has since increased to over $68,000. Even higher gains have been witnessed by other cryptocurrencies, such as Ethereum, BNB, and Solana.
  • It’s important that investors consider the risks before buying cryptocurrencies – not all projects succeed. Moreover, investors should have an investment strategy in place and a well-diversified portfolio. This should also include other asset classes for risk management.
  • Investors should also do their own research when choosing which cryptocurrencies to buy. This will ensure that investors enter the market with their eyes wide open.

The Basics of Crypto Investing

We’ll start with the basics to help investors answer the question – Is cryptocurrency a good investment? First and foremost, Bitcoin is the original cryptocurrency. It was launched in 2009 and is the largest cryptocurrency by market capitalization. During the prior bull market, Bitcoin was worth over $68,000 – valuing it at almost $1.2 trillion.

However, thousands of other cryptocurrencies have since entered the markets. These are known as alternative coins, or altcoins. Just like the stock market, this means that investors have a huge range of options to choose from. Similar to Bitcoin, many cryptocurrencies have witnessed sizable returns in recent years. For example, Ethereum was valued at under $1 when it launched in 2015. Ethereum has since hit all-time highs of almost $5,000.

How Crypto Works

Cryptocurrencies are digital assets. So unlike traditional money, they do not exist in the physical form. Some cryptocurrencies are decentralized. This means that no single person or entity controls the network. In turn, those holding a decentralized cryptocurrency like Bitcoin have full control over their funds.

In addition, cryptocurrencies operate on the blockchain network. This enables people to send and receive cryptocurrency tokens without needing a third party. Some cryptocurrencies have their own proprietary blockchain, including Bitcoin, Ethereum, Solana, and BNB. However, the majority of cryptocurrencies operate on top of another blockchain.

eToro Bitcoin chart

For instance, there are thousands of cryptocurrencies based on Ethereum – these are known as ERC20 tokens. Some cryptocurrencies offer real-world use cases. For example, Ethereum allows developers to launch smart contract agreements. XRP is used by financial institutions for cross-border payments. And BNB is used to pay commissions on the Binance exchange.

That said, all cryptocurrencies should be viewed as speculative assets. Not only are cryptocurrencies volatile but they are unpredictable. Furthermore, some cryptocurrencies do not have any identifiable use cases or utility. Instead, they are created for speculative reasons.

The Crypto Investment Markets 

The majority of people buy cryptocurrencies as an investment. Similar to stocks, cryptocurrency prices rise and fall. Prices are determined by demand and supply. The more people that buy a cryptocurrency, the higher its price will increase. And vice versa when people sell.

This means that investors can make or lose money, so it’s important to consider the risks. The investment process itself works much the same as any other asset. For example, investors first need to choose which cryptocurrency to buy. They can then open an account with a cryptocurrency exchange, deposit some funds, and buy their chosen digital asset.

The best cryptocurrency exchanges are regulated. This is why beginners often choose eToro to buy Bitcoin. After all, eToro is heavily regulated and it supports debit/credit card and e-wallet payments. More on this later. After buying a cryptocurrency, the investor will hope its value increases. If it does, and the investor sells, they will make a profit. Cryptocurrencies can be sold back to ‘real’ money at any time.

Here’s a real-world example to help answer the question – Is cryptocurrency worth buying?

  • Suppose an investor buys $1,000 worth of Bitcoin.
  • Bitcoin was priced at $20,000 when the investment was made.
  • The investor holds onto their Bitcoin investment for two years. It’s now worth $60,000.
  • The investor’s original $1,000 is now worth $3,000.
  • They sell their Bitcoin tokens back to dollars and withdraw the funds to their bank account.

As the example above shows, investing in Bitcoin is much the same as stocks.

For more information on the investment process, check out our guide on how to buy Bitcoin with a credit card.

Do You Need to Buy a Full Bitcoin?

  • There is often a misconception that Bitcoin can only be purchased in full. Fortunately, this isn’t the case. On the contrary, Bitcoin can be split into 100 million ‘Satoshis’.
  • In other words, there are Bitcoin and Satoshis, just like dollars and cents. This means that investors can buy any amount of Bitcoin that they like.
  • In turn, beginners can start off with small amounts. At eToro, for example, investors can buy just $10 worth of Bitcoin.

Why Cryptocurrency Can be a Good Investment

In this section, we take a much closer look at the question – Is cryptocurrency a good investment in 2023?

We’ll examine the investment thesis of Bitcoin and other cryptocurrencies to help beginners make an informed decision. After that, we’ll discuss some of the key risks.

Potential for Large Gains 

While cryptocurrencies are a volatile asset class, they have the potential to generate large gains. History suggests that when compared to the stock market, cryptocurrencies have performed significantly better. Albeit, over a much shorter period of time.

Bitcoin is a good example of this. It was worth less than $0.10 in 2011 but has since hit highs of over $68,000. This means that since 2011, Bitcoin has increased by nearly 68 million percent. Similarly, Ethereum was priced at under $3 in 2016. It has since hit highs of almost $5,000. This translates to growth of over 166,000%.

S&P 500 vs Bitcoin

There are many other examples of cryptocurrencies that have generated huge returns. But the key point is that cryptocurrencies will appeal to investors who want higher gains than the stock market can offer. For example, over the prior five years, the S&P 500 has increased by almost 55%.

Bitcoin has increased by nearly 325% over the same period. Now consider an investor who bought BNB five years ago. In doing so, their portfolio would now be up over 2,100%.

Cheaper Prices are Available in the Current Bear Market 

Bitcoin and other cryptocurrencies go through market cycles. Just like stocks, cryptocurrencies experience prolonged price increases (bull market) and decreases (bear market). Currently, cryptocurrencies are in a bear market.

So what does this mean for investors? Well, those considering buying cryptocurrencies today will enter the market at a lower price point. This is because most cryptocurrencies are trading well below their prior all-time highs. For example, Bitcoin is currently trading at just under $30,000. At the peak of the prior bull market, it surpassed $68,000. In theory, this means that Bitcoin is available at a 55% discount.

Some of the best altcoins are currently offering even bigger discounts. For example, Solana hit $260 during the last bull cycle. It is now trading under $25. This offers a discount of over 90%. Similarly, Ethereum was trading at just under $5,000 in late 2021, but it’s now available at around $1,800 – a discount of 65%.

The best thing about investing during a bear market is that investors can target a higher upside. After all, investors will secure a much lower entry price.

Many Cryptocurrencies Attract Vast Liquidity Levels  

Liquidity is one of the most important metrics to consider when choosing a cryptocurrency to buy. In simple terms, if the cryptocurrency attracts a lot of liquidity, this makes it easy to enter and exit the market.

  • For example, Bitcoin currently has a market capitalization of over $500 billion.
  • In the prior 24 hours, nearly $17 billion worth of Bitcoin was traded.
  • This means there will always be people willing to sell their Bitcoin to a buyer.
  • And there will always be people willing to buy Bitcoin from a seller.
  • Moreover, smooth market conditions mean that both buyers and sellers will get a fair market price.

This is also the case with other large-cap cryptocurrencies, such as Ethereum, BNB, Cardano, Solana, Dogecoin, and XRP.  However, the majority of cryptocurrencies have a small market capitalization and trading volumes are low. This can cause liquidity issues, making it more difficult to get a fair price when entering and exiting the market.

That said, unless a significant amount of money is being invested, buying and selling small-cap cryptocurrencies can still make sense. Plus, small-cap cryptocurrencies offer a much higher upside, as they have a lot more room to grow.

Some Cryptocurrencies are Decentralized    

Some cryptocurrencies have decentralized frameworks. As we briefly mentioned earlier, this means that nobody controls the network.

  • Bitcoin is the overall best cryptocurrency for decentralization. The network operates on code, which cannot be changed. This offers many benefits to investors.
  • For example, those holding Bitcoin in a self-custody wallet own their funds outright. As long as the wallet is kept safe, only the investor can access their Bitcoin.
  • In contrast, traditional money is kept in bank accounts – which are controlled by financial institutions. This means that at any time, the financial institution can freeze accounts or blockchain transactions.

Bitcoin transactions cannot be blocked – due to its decentralized system. Nor can self-custody wallets be frozen.

All that being said, investors should remember that not all cryptocurrencies are decentralized. This isn’t necessarily a drawback, but an important factor to consider nonetheless.

What is a Self-Custody Wallet?

  • There are two main types of wallets, which allow investors to store their cryptocurrencies.
  • First, there are custodial wallets. These are similar to bank accounts, as they are secured and managed by third parties.
  • Second, there are self-custody wallets, otherwise called non-custodial wallets. These are controlled exclusively by the owner – meaning nobody else has access to the cryptocurrencies.

Potential Risks of Investing in Crypto

Like all investment prospects, the risks should also be considered. In this section, we examine the key risks to bear in mind before buying cryptocurrencies.

Cryptocurrencies are Volatility    

The first risk to consider is volatility. Put simply, the cryptocurrency markets often witness huge pricing swings. This is especially the case with small-cap cryptocurrencies.

For example:

  • According to CoinMarketCap data, in the prior seven days of trading, Sei, Quiztok, and CyberConnect have increased by 2,325%, 259%, and 134%.
  • Over the same period, tomiNet, MUX Protocol, and Dybex have decreased by 36%, 28%, and 27%.

That said, even large-cap cryptocurrencies witness high volatility. For example, we mentioned earlier that Bitcoin and Ethereum are currently trading 55% and 65% below their all-time highs, respectively. Moreover, Solana is trading 90% below its prior peak.

eToro supported coins

Investors should bear this in mind, as the value of cryptocurrencies can decline rapidly. In fact, there is no guarantee that cryptocurrency prices will ever recover. For example, XRP’s all-time high of $3.84 was hit in early 2018. It has never recovered this price, even though we have since witnessed a prolonged bull market.

Some Cryptocurrencies are Scams    

It goes without saying that the majority of cryptocurrency projects have legitimate intentions. But a small segment of this industry has one clear goal – to convince as many victims as they can to part with their money. In other words, some cryptocurrencies are complete scams.

  • For example, one of the biggest cryptocurrency scams of all time was OneCoin – which duped investors out of $25 billion.
  • BitConnect was another notable scam, costing victims billions of dollars.

It is often difficult to separate a good project from the bad. After all, it might appear that the project has solid objectives – it simply needs to create a flashy website and a comprehensive whitepaper. But this isn’t to say that the project will achieve any of its goals – or even try to.

This is why research, due diligence, and diversification is so important. In fact, risk-averse investors will allocate a very small percentage of their portfolio to cryptocurrencies. Moreover, they will ensure they have a well-balanced portfolio that contains lots of different projects. This ensures that if one cryptocurrency investment fails, it won’t upset the broader portfolio.

Third-Party Risks – Such as Wallets and Exchanges    

First-time cryptocurrency investors should also consider third-party risks.

For example, those storing cryptocurrency tokens in a self-custody wallet are at risk of hacking attempts. If a hacker successfully gains access to the wallet, they control the funds. Naturally, the hacker will steal all of the cryptocurrencies stored in the wallet. In this instance, the rightful owner will have nowhere to turn – self-custody wallets are decentralized.

Another third-party risk to consider is exchanges. For example, one of the world’s largest exchanges at the time, FTX, held billions of dollars worth of customer funds. FTX has since collapsed, leaving many investors with life-changing losses.

With this in mind, investors should only consider using a regulated exchange. eToro, for example, is regulated by FINRA (US), FCA (UK), ASIC (Australia), and CySEC (Cyprus). Moreover, eToro also offers a custodial wallet that is licensed by the GFSC (Gibraltar).

Cryptocurrency Prices & Volatility

Cryptocurrencies operate in fully functional trading markets. Just like stocks, ETFs, bonds, and commodities, cryptocurrency prices rise and fall. As we mentioned earlier, prices are dependent on broader market conditions. Meaning – that demand and supply determine whether a cryptocurrency increases or decreases in value.

That being said, the wider cryptocurrency markets move in cycles. So, when the markets are bullish, many cryptocurrencies witness price increases. But when the markets are bearish, most cryptocurrencies decline in value. For instance, during the prior bull market, many cryptocurrencies hit their all-time high in November 2021. Most of these cryptocurrencies – including Bitcoin and Ethereum, are now trading at a fraction of their former highs.

Cryptocurrency Prices

Cryptocurrency prices are usually quoted in US dollars, just like gold, silver, oil, and other commodities. However, cryptocurrencies can be purchased in any local currency. Whether it’s British pounds, euros, or Argentine pesos, investing in cryptocurrencies has never been easier. Nonetheless, the price of a cryptocurrency will determine whether an investor makes or loses money.

For example, suppose an investor buys Ethereum when it’s priced at $1,800. If Ethereum increases to $2,700, the investor is looking at 50% gains. Investment gains are only realized once the investor sells. This is also the same with losses.

For example, those buying Bitcoin in late 2017 would have paid $20,000 at its peak. Although Bitcoin dropped to under $4,000 a year later, it has since recovered – hitting highs of over $68,000. As such, investors should avoid ‘panic selling’ during bearish markets.

Cryptocurrency Use Cases & Adoption

The best cryptocurrencies to buy are those with actual use cases. This gives the cryptocurrency a much better chance of being adopted by the masses. After all, the more people that use a cryptocurrency for its utility, the better chance it has of attracting new buyers. In turn, this will enable the cryptocurrency to appreciate over time.

Let’s explore some of the best use cases for cryptocurrencies.

Store of Value

Bitcoin is often considered a store of value – which gives the world’s largest cryptocurrency a solid use case. For a start, the total supply of Bitcoin is limited to just 21 million tokens. Just like gold, this finite supply creates scarcity. Currently, Over 19.4 million, or 92%, of the total supply is already in circulation. Moreover, new Bitcoin tokens enter the market based on code.

  • Every 10 minutes, 6.25 BTC are mined.
  • Approximately every four years, the 10-minute supply of Bitcoin is reduced.
  • As such, the next Bitcoin halving will reduce the supply to 3.125 BTC every 10 minutes.
  • Crucially, the supply of Bitcoin cannot be changed or manipulated.
  • This means that, unlike central banks, Bitcoin cannot experience hyperinflation.

Bitcoin is more suitable as a store of value when compared to real estate or gold. Bitcoin can be transferred and fractionized with ease. Moreover, Bitcoin operates in a liquidity market – investors can enter and exit a position 24 hours per day, seven days per week. The same cannot be said with traditional stores of value.

Medium of Exchange 

Another use case for cryptocurrencies is as a medium of exchange. For those unaware, a medium exchange allows people to ‘exchange value’. For instance, buying or selling goods and services. The globally accepted medium of exchange is currency – such as dollars, pounds, euros, etc.

However, cryptocurrencies are a far better medium of exchange when compared to traditional currencies. For example, consider the process of transferring funds to another country. The sender will likely use a bank or a money transfer service like MoneyGram or Western Union. Either way, it can take several days for the funds to arrive. What’s more, cross-border fees can be expensive, especially when minor or exotic currencies are used.

Now compare this process to a cryptocurrency like Ethereum  For example, according to EtherScan, senders will pay just $0.72 in transaction fees – with the transfer taking under 30 seconds. This is the case irrespective of where the sender or receiver is based. Moreover, the fee remains the same whether the sender is transferring $1 or $1 million worth of Ethereum.

Fast and cheap transactions are available with many other cryptocurrencies, including Dogecoin, Solana, and BNB. This means cryptocurrencies have a solid use case as a medium of exchange.

Network Fees 

Some cryptocurrencies have utility because they are required to pay network fees. For example, Arbitrum is a layer 2 solution for Ethereum-based projects.

Its network allows ERC20 to benefit from cheaper and more scalable transactions. To use the Arbitrum network, projects must pay network fees in ARB tokens. This is the native cryptocurrency of Arbitrum and it ensures the tokens have an actual use case.

Similarly, developers wanting to deploy smart contracts on the Ethereum network must pay fees in ETH. And those wishing to engage with the Binance Smart Chain must pay fees in BNB.

Short Term Cryptocurrency Trading vs Long Term Crypto Investing

Just like other asset classes, cryptocurrencies can be purchased as a short or long-term investment. Either way, it’s important that investors have a clear strategy in place before proceeding.

Let’s take a closer look at both short and long-term cryptocurrency trading, and which is likely to be more suitable for beginners.

Short-Term Trading

Many traders will buy and sell cryptocurrencies on a short-term basis. There are many different strategies that can be taken here.

For example, some traders will invest in cryptocurrency presales. These are similar to stock IPOs, as they allow investors to buy a brand-new cryptocurrency token before it’s listed on exchanges. In most cases, cryptocurrency presales offer a discounted price to early investors – just like IPOs. This short-term strategy will see traders buy the presale token at a lower price, and then sell once it lists on an exchange.

For instance:

  • Suppose a cryptocurrency presale is offering its native token to early investors at $1
  • After the presale, the cryptocurrency will be listed on exchanges at $1.50
  • Those buying the token at $1 will secure an immediate upside of 50%.
  • When the token is listed, the short-term trader might decide to instantly cash out – locking in their 50% gains

Another short-term strategy is to day trade cryptocurrencies. This entails buying a cryptocurrency and selling it a few minutes or hours later. The idea is to profit from ever-changing cryptocurrency prices. This is a lower-risk strategy, as traders never keep their positions open for more than a day. As such, gains or losses will be minimized.

In addition, some will opt for a swing trading strategy. While this is still a short-term cryptocurrency strategy, traders have more flexibility. This is because swing traders keep positions open for days or weeks at a time. This gives swing traders the opportunity to cash out at the optimal time.

Long-Term Investing

Long-term investors hold onto their cryptocurrencies for many months or years. They are less concerned with short-term volatility and more focused on long-term value. Many cryptocurrency investors have witnessed unprecedented gains by holding over longer periods of time. This is because they allow the cryptocurrency time to grow, taking advantage of at least one bull market.

For example, consider a long-term investor who bought BNB in December 2017. They would have paid just over $0.10 per BNB token. Five years later, BNB was trading at over $600. This represents gains of almost 600,000%. In other words, a BNB investment of $1,000 in 2017 would have been worth nearly $6 million in 2021.

BNB price

Another benefit of long-term strategies is that they enable investors to take a more passive approach. There isn’t a need to keep checking prices every day or worry about volatility. Moreover, investors won’t need to keep asking the question – will cryptocurrency go up?

Long-term investors can also take full advantage of dollar-cost averaging. This means buying small amounts of cryptocurrency at fixed intervals. For instance, buying $50 of cryptocurrency each month. This will average the cost price of the investment over time, based on wider market conditions.

What Experts Say on Whether to Invest in Crypto

Still asking the question – Should I buy cryptocurrency now?

In this section, we take a look at what the experts believe the future holds for cryptocurrencies.

Joseph Raczynski – Thomson Reuters Technologist and Futurist

“Some countries will leverage BTC as their primary currency of choice. With fixed circulation, ease of transfer, it will serve them well to move to a “bankless” model inherent in this ecosystem”

According to the Technologist and Futurist at Thomson Reuters, Joseph Raczynski, Bitcoin will play a major role as a medium of exchange. Raczynski makes reference to Bitcoin’s ease of transfer and predictable supply. There is also a belief that Bitcoin could be used by the unbanked.

Mark Yusko – Founder and CEO of Morgan Creek Capital Management

According to Mark Yusko, the founder and CEO of Morgan Creek Capital Management, the future of Bitcoin is very bright. Yusko believes that by 2028, Bitcoin will trade above $250,000. At this price point, Bitcoin would have a market capitalization of over $4 trillion. Based on current prices of approximately $30,000, this would offer an upside of over 730%.

Cathie Wood – CEO of ARK Invest

Cathie Wood, the CEO of investment fund ARK Invest, recently made one of the boldest Bitcoin price predictions. Wood believes that by 2030, Bitcoin will surpass $1 million per token. If this comes to fruition, this would give Bitcoin a market capitalization of about $17 trillion. From current prices, that would yield an upside of over 3,200%.

Just remember, these predictions are the subjective views of the individual. There is no guarantee that any prediction will be proven right. This should be considered when asking the question – Is cryptocurrency a good investment?

Is Now a Good Time to Buy Cryptocurrency?

  • One of the best times to buy cryptocurrencies is during a bear market.
  • This allows investors to enter the market at a much lower price.
  • This is much the same as buying stocks during a recession.
  • If the strategy goes to plan, investors will see the value of their cryptocurrencies increase when the next bull market arrives.
  • However, there is no guarantee that this will be the case, so investors should consider the risks of financial loss.

What Cryptocurrency are Investors Buying Now? Top 5 Coins for Beginners

Is investing in cryptocurrency a good idea? This will depend on the financial goals and risk tolerance of the investor. That said, the most difficult part of the investment process is knowing which cryptocurrencies to buy. There are thousands of cryptocurrencies in the market, each offering its own upside potential and risks.

In this section, we’ll discuss five cryptocurrencies that seasoned investors are buying right now.

1. Wall Street Memes – New Crypto Project Raising Over $24 Million From Early Investors 

Wall Street Memes is a new cryptocurrency project. In fact, this cryptocurrency is currently being sold at presale prices. As we mentioned earlier, cryptocurrency presales are similar to stock IPOs. They enable investors to buy the cryptocurrency token before it is listed on an exchange. And hence – at a lower price point. The Wall Street Memes presale continues to trend, inside and outside of the cryptocurrency markets.

This is because Wall Street Memes has already raised over $24 million in presale funding. Some investors are buying Wall Street Memes for short-term gains, while others believe that a long-term holding could yield much higher returns. So what exactly is Wall Street Memes? In a nutshell, this project wants to make the world a more financially fair place. It wants an equal playing field for the average citizen and reduce Wall Street’s grip on the global financial system.

Wall Street Memes presale

Wall Street Memes is spreading its message fast – more than 40 million people view its meme every month. This even includes Elon Musk, which replied to one of the project’s Twitter memes early this year. Musk’s Twitter reply was viewed over 1.1 million times and liked by nearly 20,000 people. Overall, Wall Street Memes has a community of over one million people – which continues to grow each day.  All that being said, like all cryptocurrencies, investors should consider the risks before proceeding.

This is especially the case with a new project like Wall Street Memes, which is yet to trade on public exchanges. Furthermore, Wall Street Memes is being run by an anonymous team. This is similar to Bitcoin, whose creator is still unknown. Nevertheless, those wanting to invest in the Wall Street Memes presale can do so in under five minutes. There is no minimum investment requirement and the presale accepts debit/credit cards, Ethereum, and Tether.

2. Sonik – Newly Launched Meme Coin Project Based on Sonic the Hedgehog

Another new cryptocurrency that is trending right now is Sonik. In a nutshell, this is a meme coin project that is based on the hugely popular video game, Sonic the Hedgehog. Before we go any further, it is important to note that Sonik isn’t affiliated with Sonic the Hedgehog or Sega. On the contrary, Sonik merely uses Sonic the Hedgehog as its project mascot.

In other words, the entire project is centered on the classic video gaming character. In light of this, many industry insiders believe that this could be one of the most profitable cryptocurrencies of 2023. The reason for this is simple – meme coins are one of the hottest investment markets right now. For example, Pepe, which is based on Pepe the Frog from the Boy’s Club comic, grew by over 4,000% just after a week of launching in April 2023.

Sonik presale

And many believe that Sonik could follow a similar trajectory. Moreover, although Sonik is a meme coin, it has a solid use case; investors can stake their tokens to earn passive rewards. One of the main benefits of buying Sonic tokens is that it is currently in stage one of its presale. This means that early investors can secure a huge discount.

Currently, Sonik tokens are selling for just $0.000014. This means that by investing $100, presale investors will get over 7 million tokens. After the presale has finished, Sonik tokens will be listed on the Uniswap exchange. To secure the lowest price possible today, investors can buy Sonik tokens with Ethereum or Tether.

3. Bitcoin – The World’s Largest Cryptocurrency Trading at a 55% Discount 

Bitcoin is the world’s largest cryptocurrency by market capitalization. At its peak, Bitcoin was valued at almost $1.2 trillion. This translated to an all-time high of over $68,000. The good news is that the value of Bitcoin has since declined. Due to broad market conditions, this allows first-time buyers to invest at a discount. Currently, Bitcoin is trading 55% below its prior all-time high. This offers an attractive entry point for new investors.

Bitcoin price

Moreover, the next Bitcoin halving event will take place in early 2024.  This will reduce the supply of new Bitcoins from 6.25 BTC every 10 minutes to just 3.125 BTC. As such, this increases the scarcity of Bitcoin. This will be the fourth time that Bitcoin has halved its mining reward. The previous three Bitcoin halvings have spurned the digital currency to set new all-time highs.

The safest place to buy Bitcoin is eToro. This regulated exchange allows investors to deposit funds with a debit/credit card, e-wallet, or bank transfer. Plus, a minimum investment of just $10 is needed.

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4. Ethereum – The Go-To Blockchain Framework for Thousands of Crypto Tokens  

Ethereum is one of the most popular cryptocurrencies in the market. It has a market capitalization of over $215 billion, making it the second-largest behind Bitcoin. That said, Ethereum is also trading at a bear market discount – 65% lower than its all-time high. Once again, this enables investors to buy Ethereum while it’s cheap.

Ethereum price chart

For those unaware, Ethereum is a decentralized blockchain that allows developers to build and deploy smart contracts. This means that other cryptocurrencies can host their ecosystem on the Ethereum blockchain. Thousands of projects have already done so, all of which pay network fees in ETH. This creates demand for ETH, as without it, projects cannot transact on the Ethereum network.

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5. Ripple – Decentralized Technology Allowing Banks to Make Fast and Cheap Cross-Border Payments 

Ripple – which was founded in 2012, is one of the most established cryptocurrencies. It has developed a cross-border payments network that offers unparalleled efficiency. This is why more than 200 banks are already trialing its technology. For example, Ripple transactions take seconds to process. This is the case regardless of where each bank is based on what currencies they are using. Moreover, Ripple fees amount to less than a cent.

Ripple price

Ripple’s native cryptocurrency, XRP, provides banks with liquidity when making cross-currency transactions. This ensures that XRP has real-world utility. Ripple has been held back for several years, due to its ongoing court battle with the SEC. However, the courts recently ruled in favor of Ripple – meaning that it now has the chance to reach its full potential. Currently, XRP is trading at less than $0.60. This gives XRP a market capitalization of over $31 billion.

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Where to Invest in Cryptocurrency

Cryptocurrencies are bought and sold on exchanges. However, if the investor is looking to buy a presale cryptocurrency – such as Wall Street Memes or Sonik, the process works differently. This is because presale projects sell their cryptocurrency tokens directly on their websites.

Here’s how it works:

  • The investor visits the Wall Street Memes presale website
  • They connect their crypto wallet – such as MetaMask or Trust Wallet
  • They type in the number of Wall Street Meme tokens they want to buy.
  • The investor pays for their presale investment with Ethereum or Tether
  • Investors can also use a debit/credit card if they don’t currently own any cryptocurrencies
  • After the presale finishes, investors receive their Wall Street Memes tokens. The tokens will then be listed on exchanges, where the general public can trade them.

For more information, check out our guide on how the best presales work.

Alternatively, established cryptocurrencies like Bitcoin and Ethereum can be purchased from an exchange. There are over 200 exchanges to choose from, but we found that eToro is the best. eToro is regulated by FINRA, FCA, CySEC, and ASIC. Unlike most cryptocurrency exchanges, this means that investors can trade in a safe environment. Moreover, eToro is ideal for beginners. It has a user-friendly website and investors only need to meet a $10 minimum deposit.

eToro review

This can be funded with a debit/credit card or bank wire. E-wallets like PayPal and Skrill are also supported. Best of all, US dollar payments are processed fee-free. eToro supports a wide range of cryptocurrencies. This includes Bitcoin, Ethereum, XRP, Dogecoin, Shiba Inu, BNB, Cardano, Solana, and dozens more. Any cryptocurrencies purchased will be stored in the eToro wallet. This is licensed by the GFSC for enhanced regulatory oversight.

We also like eToro for its smart portfolios. These are hand-picked portfolios that contain many different cryptocurrencies. Smart portfolios are managed by eToro, so the investment process is passive. There is also a copy trading tool, which allows investors to ‘copy’ successful cryptocurrency traders. For example, if the trader buys Bitcoin and XRP, the same trade will be carried over to the user’s portfolio.

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Should You Invest in Cryptocurrency Now? Our Conclusion

In summary, this comprehensive guide has helped answer the question – Should I invest in cryptocurrency?

Although most cryptocurrencies are trading below their all-time highs, this is still one of the best-performing markets to explore. Bitcoin, for example, has grown by several million percent over the prior decade. Many altcoins have witnessed similar returns over shorter periods of time.

That said, for the greatest upside potential, it’s worth checking out cryptocurrency presales. This enables investors to buy a brand-new cryptocurrency before it’s sold to the public.

Wall Street Memes stands out here, as its presale has already raised over $24 million. Those buying Wall Street Memes tokens today will secure a discount before they are listed on cryptocurrency exchanges.



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Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…