Generating a consistent rate of success calls for you to know which currencies to trade with. Crypto, as a single industry, has tremendous potential and room for growth.
This industry, however, is made up of thousands of currencies that might or might not make you rich.
Building a portfolio of cryptocurrencies should be done through diversification. The more coins you study and follow, the more options you have to diversify against the risk of loss. Start with crypto pairs.
What is a Cryptocurrency Pair?
Investing in any currency and building a portfolio of cryptocurrencies requires that you value your currency but based on another.
Bitcoin, after comparison, can be priced in terms of US dollars. You might have seen it before: USD/BTC. Currencies written with slashes (/) are paired up with another currency. The true value of any currency is based on its relative demand among other currencies.
When you trade crypto as a trader, you’ll need to choose pairs if you want fast entries and exits.
A Better Understanding of Altcoins
Alternative coins, which are known as altcoins, are currencies that get paired against bitcoin.
These coins are, essentially, any coin that isn’t bitcoin. The distinction is important to make because altcoins still need bitcoin to be purchased with.
However, bitcoin is limited to purchasing power while altcoins represent an array of useful innovations. Ethereum, Cardano, Polkadot and Dogecoin are just a few altcoins that exist in a portfolio of rising options.
Top 3 Best Cryptocurrency Pairs to Invest and Trade Today
Here’s a better look at the top altcoins to pair up and starting trading now:
1. Monero (XMR)
Anonymity is the central objective of the Monero coin. Its blockchain operates on the basic commands of DLT but with privacy as a central focus.
This crypto is bought through modern exchanges, but it doesn’t have the same reach as bitcoin. Monero is only accepted by a few businesses. What makes it stand out is its market cap. It trades at $145 in 2022.
2. Ripple (XRP)
“Instant processing” is Ripple’s motto and is achieved globally, making the XRP coin valuable. Merchants that complete transactions without delays are better suited for profit and eliminating fraud.
Ripple operates on a secure blockchain and speeds monetary transactions up as a result. The boost this platform offers makes it valuable to banks and traders alike.
Stellar follows a model similar to Ripple, and both use the same developers. What Stellar does differently is its focus on international banking.
Allowing international transitions to finalize almost instantly has reduced many common insecurities of doing global business. With its Lumen (XLM) coin now trading at $0.22, it’s a hot coin to now buy low and then sell high later.
Key Indications for Other E-Coins
Always search for new innovations in crypto, but new coins must remain relevant to society. Relevance, for example, keeps bitcoin a hot item to invest in.
It has great trading volume and thus awesome liquidity. The capped number of 21 million bitcoins still hasn’t been mined yet.