Bitcoin is the soil from which thousands of other cryptocurrencies have grown. Bitcoin launched in 2009 as the first crypto asset and remains the largest cryptocurrency in terms of market capitalization and prevalence. As with stocks and other financial markets, trading cryptocurrency can be complex, involving a variety of components and requiring knowledge. Related: Read Cointelegraph’s “What is Bitcoin? Over the years, however, an entire industry of other digital assets has come into existence with the assets being tradable for profit.

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Most active cryptocurrency traders allocate most of their capital to Bitcoin and Ethereum. Although small mid-market cap cryptos are riskier than large-market cap cryptos, they offer higher upside potential. These cryptos move more predictably than smaller altcoins, so trading with technical indicators can be easier. Many crypto traders allocate a portion of their capital to smaller altcoins. Many small altcoins have risen over 1,000% in a matter of months, making them attractive investments for risk-tolerant investors.

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This is great if you’re looking for high returns, but if you’re a risk-averse investor then investing in cryptocurrency may not be for you. For more conservative investors, earning interest on US dollars is a far more attractive option. PennyWorks is a great choice for doing so, perfect for investors new to the blockchain space. Cryptocurrency trading is often seen as more high risk than stock trading, but it depends on what stocks or cryptocurrency you are trading and how you’re trading it. Trading penny stocks or trading options can be equally, if not more, risky than trading cryptocurrency. You can earn up to 8% APY on idle US dollars with PennyWorks.

Receive 3 months for free! For example, Bitcoin is the best cryptocurrency to use as a store of value asset because it has the most widespread adoption and a finite supply of 21 million coins. Most of the best cryptocurrency projects are in the top 50 market capitalization of cryptocurrency. Most small market cap cryptocurrencies have questionable use cases or have underdelivered on their promises. There is no single best cryptocurrency, but there may be the best cryptocurrency for a certain use case.