There are still plenty of mysteries to me when it comes to cryptocurrency. Not only the internal workings of it (how it is mined, etc.), but also what to make of the now 1,482 cryptocurrencies available to invest in. (You may remember I reported there were 1477 a little more than a week ago.)
Why So Many Cryptos?
I don’t think I can give an intelligent answer to that question. I know that in typical, Western capitalistic fashion (I am pro-capitalism but not pro-materialism), everyone wants to create a better Bitcoin and get a second chance to get rich. However, I think it is also true that certain cryptos have arisen due to expediency in certain venues, none of which I understand or am qualified to talk about.
My question is how will so many cryptos co-exist? My own short answer is that they won’t—at least not 1,482 of them! But the common logic on this is that some will work well in certain types of transactions, while others will work better in other circumstances (here’s a discussion thread on the topic).
My Current Entry Into Cryptocurrency
However, even with all of my naïveté on the subject, I will bring you up to date with what I have done.
First, my total venture into Bitcoin is $400 (plus $10 I earned as a bonus which you can do as well!)
Second, because so many are excited about it, I bought $50 worth of Litecoin.
Third, I got information from someone about another up-and-coming crypto called Verge which you can’t buy through Coinbase directly. However, a great way to make purchases is by using the crypto Ethereum. So, I purchased $60 of Ethereum on Coinbase, and used it to buy Verge from Binance (a site similar to Coinbase). So, I now have 389.61 Verge coins which I purchased for $50.
So, how am I doing?
Altogether, I am up $14.16. That doesn’t seem like much but you must keep in mind that, due to the sudden rise of Bitcoin Cash— (apparently a major Bitcoin investor announced he was selling his Bitcoin and buying Bitcoin Cash which temporarily has affected the value of Bitcoin)—Bitcoin reversed as low as $15,005 yesterday. Today it is back up as high as $16,950 in the last hour. I expect things will settle in soon and Bitcoin will get past that $20,000 mark. We’ll see.