Bitcoin and Ethereum are the most well-known cryptos, but there are actually thousands of cryptocurrencies. In this post, we’ll go over some of the key cryptos you should know about - from less volatile "stable coins" to tokens and altcoins like Zcash, Litecoin, Chainlink, and BAT.
Bitcoin is a virtual asset secured by cryptography, originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. The true identity behind the alias remains unknown.
Recently, some investors have been using Bitcoin as a hedge against currency depreciation and political instability because it is attractive as a potential store of value:
Moreover, despite Bitcoin’s volatility, it has been increasing in value year-over-year for over 5 years. As explained by Ark Invest:
"Over long time horizons, bitcoin’s purchasing power has increased significantly. Since 2011, for example, the price of bitcoin has compounded at an annual rate of roughly 200% and, despite significant intra-year moves, it has appreciated on a year-over-year basis every year since 2014 as measured by its lowest value of the year".
Ethereum is a decentralized and open-source Blockchain system with its own cryptocurrency, ETH. The Ethereum project expanded upon the idea of Bitcoin’s blockchain technology to provide an infrastructure for a multitude of cryptos and smart contracts. In short, Ethereum is more than a cryptocurrency - it is a platform for decentralized applications.
CoinMarketCap explains the concept of smart contracts as follows:
“Smart contracts are computer programs that automatically execute the actions necessary to fulfill an agreement between several parties on the internet. They were designed to reduce the need for trusted intermediates between contractors, thus reducing transaction costs while also increasing transaction reliability”.
Stablecoins are “stable-value cryptocurrencies”, which often mirror the value of a fiat currency or basket of fiat currencies. The value of stablecoins is that they provide advantages of other cryptos, such as global access and almost instant digital transfers, with less volatility.
Tether (USDT) - Tether is a crypto that has its value based on the US dollar. 1 Tether is supposed to equal US$1.00 and it usually does in the market but it can vary. According to Tether, whenever it issues new USDT tokens, it allocates the same amount of USD to its reserves, thus ensuring that USDT is fully backed by cash and cash equivalents. Find out more about Tether.
DAI Stablecoin - DAI is similar to Tether in that it’s target value is equal to US$1.00. However, DAI coins are generated in a different way - anyone can create DAI by backing them with collateral. Find out more about DAI.
PAX Gold - PAX Gold (PAXG) is a digital asset backed by physical gold bars that are kept in Brink’s vaults and held in custody by Paxos Trust Company. Anyone who owns PAXG owns the underlying physical gold. Find out more about PAX Gold.
Altcoins refer to a wide range of cryptocurrency alternatives to Bitcoin, the original cryptocurrency. There are altcoins of all kinds, created to solve different user needs. There are altcoins focused on transaction speed, privacy, supply chains, and much more. Below are a few examples:
Litecoin - Litecoin was created by Charlie Lee, a former Google Employee, in 2011. Litecoin is based on Bitcoin’s code, but provides considerably faster transactions as a “light version of Bitcoin”. Find out more about Litecoin.
Basic Attention Token - The Basic Attention Token (BAT) is a cryptocurrency that runs on the Ethereum network and that you can earn whenever you view ads in the Brave Browser. You can also support publishers and content creators by donating BAT on Brave. The idea behind the Basic Attention Token is to better price our attention online and give back value to users. Find out more about BAT.
Orchid Token - Orchid is a cryptocurrency-powered virtual private network (VPN) with its own token, OXT. Its aim is to overcome internet freedom limitations by using cryptocurrency payments to allow anyone to purchase bandwidth from any participating provider in the network. Find out more about Orchid.
ZCash - Zcash (ZEC) is a decentralized and open-source privacy-focused cryptocurrency that enables selective transparency of transactions. As explained on the Zcash site: “Like Bitcoin, Zcash transaction data is posted to a public blockchain; but unlike Bitcoin, Zcash ensures your personal and transaction data remain completely confidential”. Find out more about Zcash.
With Passfolio, you can trade the following 9 cryptos at the moment: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Zcash, Orchid Token (OXT), Basic Attention Token (BAT), Chainlink (LINK), and the Dai Stablecoin (DAI). Many more cryptos are being added as well!
Download Passfolio on the App Store or on Google Play and get started today! Find out more at www.passfolio.us
Currency and cryptocurrency exchange services provided by Passfolio Financial LLC (“Passfolio Crypto”), a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker-dealer. Cryptocurrencies are not protected by FDIC or the SIPC.
Passfolio is a San Francisco fintech company democratizing investment opportunities by creating a unified, global, and borderless investment market starting with the United States Stock Market.
Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.
Please see the terms of our referral program.
Please see our fractional shares disclosure.
Please read important legal disclosures that apply to your relationship with Passfolio.
Investing involves risk, including possible loss of principal.
Securities and cryptocurrencies are very different types of assets.
Cryptocurrencies are not securities.
Purchasing cryptocurrencies comes with a number of risks. Please read Passfolio Financial Cryptocurrency Risk Disclosure.
Currency and cryptocurrency exchange services provided by Passfolio Financial LLC (“Passfolio Crypto”), a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker dealer. Cryptocurrencies are not protected by either FDIC or SIPC. Securities products and services offered to self-directed investors through Passfolio Securities LLC Member FINRA / SIPC. Passfolio Securities, LLC does not provide cryptocurrency-related services. Passfolio Securities LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
Passfolio is the brand name of Panchain, Inc. Passfolio Securities LLC and Passfolio Financial LLC are fully-owned subsidiaries of Panchain, Inc.
To purchase securities using cryptocurrencies, you must first convert it into U.S. Dollars using Passfolio Financial LLC. You must then move the U.S. Dollar proceeds to your brokerage account at Passfolio Securities LLC where you can use it to buy securities.
Online trading has inherent risk due to system response, execution price, speed, liquidity, market data and access times that may vary due to market conditions, system performance, market volatility, size and type of order and other factors. An investor should understand these and additional risks before trading.
Content, news, research, tools, market data and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The information provided should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results.
All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Consider the investment objectives, risks, charges, and expenses of a fund before investing. Contact us for a prospectus containing this information.
Please remember that diversification is not an investment strategy without risk, and in certain circumstances, it may not fit your investment objectives. Past performance is no guarantee of future results.
Certain services (“Services”) offered through our mobile app are offered only in jurisdictions where it is legal to do so. The availability of the Services over the Internet is not a solicitation for or offering of the Services to any person in any jurisdiction where such solicitation or offering is illegal. We reserve the right to limit the availability of the Services to any person, geographic area, or jurisdiction, at any time and in our sole discretion. We make no representation that the Services are appropriate or available for use in locations outside of United States, or that accessing our mobile app is legally permitted in countries or territories where the Services may be illegal. If you access the Services from other locations, you do so at your own risk and are responsible for compliance with local laws. In particular, we are not authorized by the Brazilian Securities and Exchange Commission (CVM) to offer securities distribution services to investors who reside, are domiciled or incorporated in the Federative Republic of Brazil. The Services are not specifically directed to investors who reside, are domiciled or incorporated in the Federative Republic of Brazil and should not be understood as an offer of services directed to such investors.
According to CVM's Legal Opinion No. 33, dated September 30, 2005, Passfolio contracted RB Capital Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. ("RB Investimentos"), a Brazilian securities distributor duly authorized by the Central Bank of Brazil and the CVM, through which RB Investimentos makes Passfolio's services available to investors resident, domiciled or incorporated in the Federative Republic of Brazil. The services provided by RB Investimentos should not be understood as an offering of securities directed to such investors. Although RB Investimentos has been hired to provide Passfolio's services, Passfolio offers its services exclusively in the United States and under the rules and regulations applicable in that country. As these services are investments made directly in the United States through Passfolio, they are not registered with or subject to the supervision of the CVM or any other Brazilian regulatory agency, so the investor must have knowledge of the language and local regulation. Investors resident, domiciled or incorporated in the Federative Republic of Brazil who have become or will become clients of Passfolio through RB Investimentos may contact the following e-mail addresses: suporte@passfolio.us / contato@rbinvestimentos.com
Investors should consider the investment objectives, risks, and charges and expenses of an Exchange Traded Fund ("ETF") carefully before investing. Before investing in any ETF, you should consider its investment objective, risks, charges and expenses. Contact us at support@passfolio.us for a prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange-traded products are not designed for buy and hold investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.
Be sure to consider your own financial situation, perform thorough research, and consult with a qualified tax professional before making any investment decisions concerning REITs. Investments in REITs and other real estate securities are subject to similar risks as direct investments in real estate. The real estate industry is particularly sensitive to economic downturns.
Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment.
Securities products are: Not FDIC insured · Not bank guaranteed · May lose value
Market data refreshed at least every 15 minutes unless otherwise indicated. Market data provided by Polygon.
FINRA BrokerCheck reports for Passfolio Securities LLC are available at https://www.finra.org/brokercheck.
Trademarks and logos are the property of their respective owners and do not represent endorsements of any kind. Unless otherwise noted, Passfolio Securities, LLC and its affiliates are not partners, affiliates, or licensees of these companies.
Passfolio Securities, LLC
Member FINRA/SIPC
V.09 11/24/2020
.jpg)
