Robinhood (NASDAQ:HOOD) is a commission-free inventory buying and selling app that additionally permits its customers to commerce cryptocurrencies. The app may be very widespread because of its simplicity and user-friendly design. Thus, it’s typically the go-to funding app for customers that aren’t very aware of superior funding strategies. The app additionally permits customers to put money into cryptocurrencies seamlessly, which helps these in search of cryptos on Robinhood.
Along with that, Robinhood can be increasing its crypto-related companies. Robinhood now has a non-custodial cryptocurrency pockets which provides customers whole management over their crypto property, and the corporate not too long ago expanded its crypto offerings to 12.
With the enlargement of crypto companies, many Robinhood customers are contemplating making a crypto funding for the primary time. Nonetheless, it’s tough for brand spanking new crypto traders to decide on which cryptos they need to prioritize first. Due to this fact, I’ll be discussing the next high seven cryptos on Robinhood and if you can purchase them or not.
Bitcoin (BTC)
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Bitcoin (BTC-USD) is the most well-liked cryptocurrency and is the largest by market capitalization. BTC is a time-tested asset, and it’s by far probably the most safe cryptocurrency. Bitcoin is the go-to asset should you want to depart your funding within the cryptocurrency market for a very long time.
The first characteristic that makes Bitcoin distinctive and invaluable is its shortage. Bitcoin’s circulation is capped at 21 million, and the mining reward for Bitcoin is halved each 4 years. Because of this “halving,” the crypto market normally has a bull market round each 4 years. Furthermore, Bitcoin may be very safe as a result of variety of miners contributing to the community. With that in thoughts, Bitcoin is a purchase if you don’t care about its short-term value.
In fact, issues could possibly be very completely different from right here. The crypto market might expertise a recession for the primary time, and its impact on the costs of those property is unknown because of their novelty. Thus, I’d not advocate placing a good portion of your portfolio into crypto.
Ethereum (ETH)
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Ethereum (ETH-USD) is the second-largest cryptocurrency by market cap. Ethereum might rival Bitcoin sooner or later, as a result of its community is extra superior. Most blockchain growth is at the moment occurring on the Ethereum community, and its builders are working onerous to scale Ethereum much more.
In case you imagine that the metaverse or non-fungible tokens (NFTs) have a robust future, Ethereum ought to be your go-to selection. Most Web3 initiatives are primarily based on Ethereum and want ETH to make use of the community. From deploying a wise contract to minting an NFT, ETH is required. Thus, it should probably be a really invaluable asset sooner or later as these new and revolutionary blockchain applied sciences proceed to be adopted.
One other factor to notice is that Ethereum normally outperforms Bitcoin because of its smaller market cap, nevertheless it additionally has worse crashes. The usual deviation (SD) of Ethereum is a little higher, and should you anticipate the value to drop a bit extra, I imagine the long-term return on funding could possibly be a lot greater on ETH. Moreover, a major improve is coming to the Ethereum community known as “the Merge,” and it’ll probably give ETH a short-term enhance. Thus, I imagine ETH is one of the best crypto should you want to maximize revenue.
Solana (SOL)
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Solana (SOL-USD) is among the many largest cryptocurrencies and is likely one of the quickest and most scalable cryptocurrencies. The mission took off in mid-2021 because of its scalability. Nonetheless, it has since declined by 86% because of lingering stability issues on the Solana blockchain.
Though the community could also be quick, it’s positively not probably the most secure. The Solana blockchain has been shut down many occasions and is much much less safe than Ethereum or Bitcoin. Furthermore, the Ethereum community’s upgrades might additionally hamper Solana’s development. As increasingly more Web3 builders select to place their initiatives on Ethereum, Solana may have a tougher time rising.
Nonetheless, Solana is innovating and is value a purchase as its builders have not too long ago introduced that they’re constructing the world’s first Web3 phone. That might undoubtedly drive up the community’s worth within the quick time period.
The Solana cellphone is anticipated to come back with a $1000 price ticket and has spectacular specs. Nonetheless, it’s unlikely to have an effect on the value of SOL in the long run. Within the meantime, I’d not counsel placing an excessive amount of of your crypto portfolio into Solana because of its community points.
Dogecoin (DOGE)
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Dogecoin (DOGE-USD) is the most well-liked meme coin within the crypto market. DOGE began gaining recognition in late 2020 earlier than reaching its peak in Might 2021. Nonetheless, it has since declined by greater than 90% from its peak.
Regardless of its decline, some folks nonetheless purchase Dogecoin because of Elon Musk selling it. Nonetheless, the hype for Dogecoin has died down, and Elon Musk’s recognition shouldn’t be sufficient to maintain a long-term uptrend for DOGE. Elon Musk’s tweets about Dogecoin have had much less and fewer of an impact on its value over time, which is more likely to proceed.
As well as, DOGE has nearly no utility so as to add worth to the asset, nor does it have a max provide cap. The community has a block time of 1 minute with a block reward of 10,000 Dogecoins, which additionally provides some inflationary pressure to the token. Furthermore, even when Elon Musk lets folks purchase all his merchandise with Dogecoin, it’s nonetheless unlikely to assist in its development until there’s a hefty low cost. With that in thoughts, it’s best to not purchase Dogecoin for now.
Shiba Inu (SHIB)
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Shiba Inu (SHIB-USD) is one other meme coin that beforehand meant to revenue off the Dogecoin hype. Nonetheless, Elon Musk has publicly stated he does not hold any Shiba Inu tokens, and the hype surrounding SHIB has decreased.
As well as, Shiba Inu is an ERC20 token which implies it runs on the Ethereum community and doesn’t have its personal blockchain. Thus, SHIB transactions are expensive, and the token can’t even be used as an alternate medium outdoors centralized areas.
The dearth of use and the excessive market cap of $5.7 billion makes SHIB a precarious funding. There may be nothing significantly noteworthy about Shiba Inu that might assist it maintain such a big market cap. It’s destined to say no in the long run and isn’t value an funding.
Polygon (MATIC)
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Polygon (MATIC-USD) is a classy mission that seeks to make blockchains extra interoperable and scalable. The mission primarily focuses on the Ethereum community, and MATIC is an ERC20 token.
Sadly, Polygon will lose relevancy as a result of frequent Ethereum upgrades that make it extra scalable. As well as, blockchain interoperability won’t add important worth to the token because the overwhelming majority of Web3 initiatives are already on the Ethereum community.
Moreover, the Ethereum community shall be considerably quicker sooner or later with sharding, permitting it to course of round 100,000 transactions per second. With that kind of pace, the need of a community resembling Polygon shall be minimal. Due to this fact, I’d discourage shopping for Polygon for the long run as it’s fairly dangerous.
Litecoin (LTC)
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Litecoin (LTC-USD) is a replica of Bitcoin with slight modifications in its tokenomics and a special algorithm. The Litecoin community is quicker and cheaper than Bitcoin. Nonetheless, it has not been capable of outperform BTC because of a scarcity of demand.
Litecoin solely barely broke its 2017 peak within the present bull market and at the moment has no distinctive attributes to it. Even the latest MimbleWimble upgrade is nothing new, as privateness cash resembling Monero (XMR-USD) exist already.
Bitcoin and Ethereum will proceed to outperform LTC in the long run. Thus, you need to prioritize them first earlier than making any important investments into LTC.
On the date of publication, Omor Ibne Ehsan didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
