Knowing the cryptoactives that are traded on the market is the best way to understand the specifics and advantages that each one of them provides.
Since they emerged, cryptoactives have provided great changes in the financial market .
No wonder, since they were created to challenge traditional financial institutions and offer new perspectives for those who usually make investments.
There are several digital currency options offered by brokers. However, some are still little known by most people.
For this reason, we present here some of the cryptoactives offered on the market.
Contents [ hide ]
- 1Cryptoactives traded on the market
- 1Bitcoin
- 2Ethereum
- 3Cardano
- 4Binance Coin
- 5Stellar Lumens
- 6Litecoin
- 7Tron
- 2 Is itworth investing in cryptoactives?
- 3Why build a diversified portfolio?
Cryptoactives traded on the market
In this text, we are going to talk about seven types of cryptoactives. They are: Bitcoin, Ethereum, Cardano ADA, Binance Coin, Stellar Lumens, Litecoin and Tron. Read on to learn more.
Bitcoin
Bitcoin is the best known cryptoactive in the financial market , and the favorite of those who usually make this type of application.
Created in 2008 as an alternative to the global financial crisis, this digital currency arouses the interest and curiosity of investors and many people around the world. In fact, it is already accepted in the United States and in several other places.
Bitcoin is a decentralized cryptocurrency that does not need intermediaries for its transactions. This means that there is no need to pay high interest rates to banks, companies or governments.
Although they do not require the intermediary of these organizations, transactions are verified by nodes and written to blockchain .
- Nodes: distribution point that allows the operations of a cryptoactive network.
- Blockchain: A ledger that records asset movements.
Bitcoins can be acquired in three ways: Mining, Exchanges and buying from others.
- Mining
It is the process of recording and validating transactions, which does not require central control.
Basically, it works as a competition to find the sequences of compatible blocks of transactions.
The miner who discovers these sequences receives Bitcoins as a reward.
- Exchanges
These are brokers that act as intermediaries in cryptocurrency negotiations.
- buying from other people
Negotiations for purchases of Bitcoin from other people can be carried out through direct contact with them.
In these cases, one party is responsible for making the payment to another person – through a deposit, for example – while the other party complies with the agreement by transferring the digital coins to the buyer’s wallet.
It is worth noting that Bitcoin cannot be confiscated by any government and therefore its dealings can be done more freely. However, it is subject to cyber attacks.
Ethereum
Ethereum differs from Bitcoin in terms of possibilities – that is: through it, it is possible to develop more tasks.
Founded in 2014, Ethereum consists of a platform that enables the application of smart contracts ( smart contracts ) and decentralized investments ( dapps ) through blockchain .
All transactions carried out, however, are funded with the digital currency developed by the platform: the Ether (ETH), which can be obtained in three ways:
- Mining.
- User donations.
- Digital Asset Trading.
- Acquisition through specialized brokers.
Ethereum had as its initial proposal to establish itself as a decentralized platform – focused on the application of smart contracts – but the currency valued more than the initial project and, currently, it is the second largest digital currency on the market.
Also check:
- What is Ethereum and how does it work? Is it safe to invest?
Cardano
Cardano (ADA) is known as the third generation of cryptocurrencies, and is distinguished from Bitcoin and Ethereum in that it is developed based on scientific methods.
This factor made it possible to create more robust code, analyzed and revised by developers, engineers and scientists from around the world.
The digital currency is part of the Cardano platform project, launched in 2017 to carry out applications using blockchain technology . Today, the project executes smart contracts, multiparty computing, metadata, and decentralized investments.
Cardano also does not need intermediaries for its negotiations, and the platform’s blockchain makes it possible to send and receive the amounts negotiated through transparent and secure transactions.
This system consists of two layers, the first (CSL) to simplify transactions between accounts on the same platform, and the second (CCL) to facilitate smart contracts.
Binance Coin
The Binance Coin (BNB) emerged in 2017 to be used in transactions within the Binance platform (the largest exchange in the world) as payment of fees trad and sending and cancellation requests, transfer of assets and issuing new tokens .
This coin showed excellent performance and provided great results within the operating system. As a result, it was also made available for trading outside the platform, becoming one of the most traded cryptocurrencies in the market.
As a way to encourage transactions, users are awarded discounts on trades carried out within Binance Coin.
In addition, there is a proposal to repurchase and burn the currencies (50%) with the purpose of making the asset rare and enabling the increase of the value of BNB for the asset holders.
The vulnerabilities of this cryptoactive are: the points of centralization, the subjection to security laws and the dependence on the performance of the stock exchange.
They can be obtained through Binance Coin, other exchanges and cryptoactive traders.
See also: What is Binance Coin?
Stellar Lumens
Stellar Lumens (XML) is a decentralized cryptocurrency, developed by Stellar Networking, which works as a bridge between currencies, allowing the value sent in a certain type of currency in a transaction to be received in another currency by the recipient.
These movements are characterized by ease, safety and absence of abusive fees.
XMLs can be purchased through a broker or through a cryptocurrency exchange.
Litecoin
Litecoin is one of the first cryptoactives created and is very similar to Bitcoin – so much so that it is known as “silver”, while Bitcoin is called “gold”.
It is decentralized and can also be mined, but, compared to other digital currency, it is considered more agile for movement.
Tron
Tron was developed in 2017 and integrated the tokens used by Ethereum. However, it became its own asset the following year, after the separation of this platform.
The asset consists of a decentralized operating system based on blockchain technology , used to memorize smart contracts and other types of transactions.
Tron can also be used to share media files and access operational resources.
The platform offers the possibility of being used as a store of value, application or trading tool to obtain other cryptocurrencies.
It is important to note that Tron does not allow mining. For this reason, the most viable way to acquire this cryptoactive is through the accumulation of coins from other transactions.
Is it worth investing in cryptoactives?
Cryptoactives are high-risk applications and require a lot of planning and market research.
For this reason, the ideal is that the investment in digital currencies is carried out by a financial manager experienced in dealing with market fluctuations and in building a diversified portfolio for the client, controlling their proportion of cryptoactives.
Why build a diversified portfolio?
The market is very fickle and there is not just one investment, or one ideal asset class. It is necessary to build an allocation that balances risk and return.
A diversified investment portfolio can provide access to riskier assets with greater potential for return, and more conservative assets that are safer.
For this reason, the best way to be successful in investments is through a diversified portfolio , consisting of investments in fixed income assets and variable income assets .
This diversification helps to avoid financial losses and enables more consistent wealth growth, even in times of crisis. This is because the portfolio remains resilient to market fluctuations.
For this, however, the ideal is to have a reliable partner , who will develop the appropriate portfolio for each investor profile.
We are the 1st investment manager in the country and we have a structure formed by specialized and recognized professionals in the investment area, who offer the best services.
Learn more about our portfolios and talk to us about your goals. We are sure that all of them will be achieved through this great partnership.
