This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. While both are considered to be high-risk when it comes to investing, the two have foundational differences that investors should know. We’ve also included XRP, as it was one of the largest cryptocurrencies when this series began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.”
For a better understanding of crypto market cycles, read more here.
Bitcoin
Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide.
Bitcoin’s price hovered around $68,000 for most of the past week and is currently up ~55% year to date.
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Ether
Ether another cryptocurrency run on the Ethereum blockchain platform and has the second largest market share, despite being the newest of the three discussed in this article with its launch in July 2015.
Ether’s price continued to increase this week, reaching its highest level since mid-March. ETH is currently up ~63% year to date.
XRP
XRP, which is owned by Ripple and launched in 2012, was one of the larger cryptocurrencies for some time until new coins joined the market. We’ve included it in this article for reference.
XRP’s price inched back down to $0.53 this week and is currently down ~16% year to date.
Bitcoin vs. Ether vs. XRP
An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. Ether tops the chart, i.e., the price of an ether has changed the most out of all three cryptocurrencies.
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On January 10th, the SEC approved spot bitcoin ETFs from a range of issuers such as (GBTC ), (IBIT ), (FBTC ), (ARKB ), (BITB ). Here are some of the quick takeaways from the spot bitcoin ETF launch.
Other ETFs associated with cryptocurrencies include: (BITO ) (BITI ), (EFUT ), and (AETH ).
Originally published on Advisor Perspectives.
For more news, information, and analysis, visit the Crypto Channel.
