When choosing options for investing in cryptocurrency, many analysts recommend paying attention to assets with high capitalization and a good history. Today these coins include Bitcoin and Ethereum.

Capitalization leader – Bitcoin

Bitcoin (BTC) ranks first in the capitalization rating. The coin epitomizes the cryptocurrency phenomenon. BTC hit an all-time high of $ 20,089 in December 2017, after which a protracted bearish trend known as “crypto winter” began. The fall was stopped only a year later, in December 2018, at a minimum of $ 3,126, after which a slow recovery process began.

Reasons to invest in bitcoin

Before investing in any cryptocurrency you should analyze the market. We can give you advantages on BTC investments: 

1. In May 2020, a halving took place on the bitcoin network – halving the reward for mining. According to experts, in the long term, the event will provoke an increase in the price of BTC.

2. In the context of the pandemic and financial crisis of 2020, the BTC exchange rate has shown stability. According to many analysts bitcoin turned out to be more stable than all other assets.

3. BTC is a cryptocurrency into which investments of deceased projects “flow”. Due to the withdrawal of altcoins from the market, bitcoin continues to increase its position. Also, visit Cryptocurrency Bitcoin ATM.

Not all members of the crypto community agree that investing in bitcoin is a smart decision. Some users believe that halving will negatively affect the position of BTC, including due to the surrender of miners amid falling revenues from mining the coin. And you can always transfer btc to eth for example in any converter. 

Almost PoS cryptocurrency – Ethereum

Ethereum (ETH) is the second most popular cryptocurrency. ETH hit a 2020 high on Feb 15 at $ 282. The absolute record for the value of the cryptocurrency was set on February 13, 2018 at around $ 1,432.

Reasons to invest in Ethereum 

The easiest way to buy cryptocurrencies is to use the services of exchanges. But let’s first see the reasons to invest in ETH:

1. The developers of the project are preparing to transfer the cryptocurrency to the PoS algorithm. The changes will make ETH more sustainable and make the digital asset more manageable. Cryptocurrency investors will be able to earn on staking, that is, by storing Ethereum in wallets.

2. Ethereum may lose its altcoin status, becoming an independent cryptocurrency. Analysts explained their point of view by the high correlation of ETH and BTC rates. In their opinion, the reaction of the Ethereum course to events, similar to Bitcoin, speaks of the independence of the project.

According to experts, Ethereum’s position allows a cryptocurrency with smart contract technology to “dictate its terms to the market,” which makes it similar to Bitcoin. The independence of the project has a positive effect on the stability of the price of its digital asset.

3. The popularity of Ethereum-based decentralized applications (dapps) continues to grow.

On the other hand, critics note that in 2020 ETH is not the best choice for investment. Among the arguments is the impossibility of predicting the behavior of the cryptocurrency after switching to the PoS algorithm.

Thus, all participants in cryptocurrencies for investment have their own advantages and disadvantages. The choice of investments should be made based on the characteristics of the digital asset and goals. Most often, the most popular cryptocurrencies are the leaders in terms of total trading volume. These are the ones that traders usually pay attention to.