President Trump plans to encrypt with these five currencies. Should you invest in it?

Earlier this month, US President Donald Trump announced the establishment of the strategy Bitcoin ((BTC 0.96 %)) Reserves and United States Asset Stockpile. The previous will carry bitcoin – no surprises there. The latter will keep four of the largest cryptocurrencies: ethereum ((Eth 2.05 %))and Xrp ((Xrp 0.80 %))and Solana ((Teller 2.26 %))And Cardano ((Lead 0.57 %)).

The fact that the United States is the storage of encryption is exciting news for encryption investors. But this Good cryptocurrency investments? Let’s take a closer look at each one.

1. Bitcoin

Bitcoin It is the original cryptocurrency and was also the most successful. At the time of writing this report, it is The maximum market It is 1.7 trillion dollars, larger than each other encrypted currency combined. Over the past three years (as of March 19), the Bitcoin price increased by 98 %, before S & P 50027 % return.

Although Bitcoin coin was a decentralized digital currency, the transactions are very slow and expensive so that it does not act as a means of payment. Treatment times generally range from 10 minutes to more than an hour, depending on the crowding of the network, and fees for about $ 1 per transaction.

Nevertheless, Bitcoin caught as a digital store, or “digital gold”. The offer was placed in 21 million bitcoin, adding an element of scarcity. If you are looking for a way to hedge from inflation or add Coded To your wallet, Bitcoin is worth looking.

2. Ethereum

ethereum It is the second largest encrypted currency depending on the maximum market, and it has become common by submitting smart contracts. A Smart contract It is a built -in program in the Cryptocurrency Blockchain network for transactions.

Developers can use smart contracts for launch Decentralization applications (DAPS). This gives Ethereum a wide range of uses, including Decentralized financing (Defi) Services, such as Crypto Linding Prottts, Blockchain games, and launch new encryption codes.

Since Ethereum was the first to submit smart contracts, it has great progress in terms of market share. According to Defillalama, ETHEREUM currently has $ 46 billion in the total value that has been secured in Defi applications, which are most Blockchain.

In a negative note, ETHEREUM performance is lags behind other smart nodes groups. The average treatment fee is $ 0.19 as of March 19, compared to $ 0,0002 for his opponent Solana. Ethereum has lost 34 % of its value over the past three years. It is better to avoid Ethereum until it proves that it can reflect this declining trend.

3. xrp

XRP is the original encrypted currency rippleBlockchain is designed as a border payment solution. The current preferred system for international payments, the Financial Communications Association between World Banks (SWIFT), can take three to five days for international bank transfers. The fees generally cost $ 15 to 50 dollars, depending on the banks concerned.

On Ripple Blockchain, transactions work within four to five seconds for a fee of 0.00001 XRP, which is part of a hundred. In addition to using it in the minimum transactions fee, XRP is also a bridge currency used to facilitate international transportation operations.

With a useful case in the real world, XRP is one of the most powerful encryption investments currently available. Over the past three years, each other encrypted currency has topped this list with its return by 187 %. The largest winding wind since 2020 was a lawsuit from Securities and Stock Exchange Committee (SEC)But on March 19, the CEO of Riplelabs Brad Garlinghyus announced that the Securities and Stock Exchange Committee had dropped the lawsuit.

4. Solana

Solana It is a competitor to Ethereum, as it also provides developers for the launch of DAPS. The difference is the unique Solana system for the date of date to verify the authenticity of transactions, making it more efficient in Blockchain.

As mentioned above, the average treatment fee on Solana is only $ 0.00025. It processes more than 4000 transactions per second (TPS). In comparison, Ethereum processes about 17 TPS, as it has not developed a quick way to verify the health of transactions such as Solana.

Like all cryptocurrencies, Solana is a highly dangerous and volatile investment. But it has increased by 39 % over the past three years, and its low speed and costs should continue to attract developers to the Solana environmental system.

5. Cardano

Cardano Another ETHEREUM competitor is supporting smart contracts and allows the development of DAPS. Help organize The abyss demonstration systemWhere people who have an encoded currency can pledge their symbols to be part of the process of verifying treatment and earning rewards. The ventilation system has minimal energy requirements, and even ETHEREUM adopted in 2022.

One of the unique things about Cardano is the developer developer to use the pendant review and evidence -based research. This was not always in his favor. Cardano’s development was slow. For example, smart contracts were not submitted until 2021.

Cardano has decreased by 18 % in the past three years. As with Ethereum, it is better to know if Cardano can build any momentum forward before your money is committed to it.

Do not build your wallet on the encryption reserve

Just because the United States government will store these five encrypted currencies, it does not mean that you must invest in each of them. The cryptocurrency is a category of risky and unprotected assets. Two of the encryption in this list, Ethereum and Cardano, have been value over the past three years. Although others have done well, they are still very volatile.

As the encryption investment goes, Bitcoin is the safest, relatively, relatively option. It is the most famous cryptocurrency, and it was the largest from the beginning. If you are looking for encrypted currencies other than bitcoin, XRP and Solana are two prominent projects. With Bitcoin, XRP and Solana, you can have a solid encryption wallet covering multiple cases of use.

Regardless of your choice, be careful about customizing your assets. Because of the risks involved, the cryptocurrency should not be more than 5 % to 10 % of your wallet. Use the rest Investing in stocksAnd bonds, and other stable assets.