Should Physicians Invest In Cryptocurrency: The Asymmetric Opportunity

Last updated Feb 16, 2022 | Published on Feb 7, 2022

Investing in cryptocurrency is an excellent way to diversify your investment portfolio and take advantage of the asymmetric risk-reward opportunity. In short, the blockchain is here to stay. Whether you’re a winner or loser in this new industry will depend on how well your business adapts and innovates with its revolutionary technology-driven approach that’s already having an incredible impact beyond what anyone could have imagined just 13 years ago.

This newsletter will first introduce what cryptocurrency is and why physicians should consider investing in it. Lets look at how cryptocurrency works, the benefits, the top 10 cryptos by market cap vs the 10 cryptos that are trending.

What Is Cryptocurrency And How Does It Work?

Cryptocurrency is a digital asset or currency that uses cryptography to secure its transactions and to control the creation of new units. Cryptography is a method used to protect communications, including financial transactions, from being read by unauthorized individuals.

Cryptocurrencies are decentralized software platforms, which means governments or financial institutions do not operate them. In 2009, the first and most well-known cryptocurrency, Bitcoin, was founded.

According to Coinbase (cryptocurrency trading platform), these assets are essentially a type of decentralized digital money meant to be used over the internet and built on a technology known as the blockchain, which is essentially an open-source ledger that anybody can easily access.

The blockchain is maintained by mines, which are massive server farms that compete to solve millions of arithmetic equations to verify transactions. Mining has become an appealing proposition for individuals with additional computer power because the first miner to complete the computations and update the ledger is rewarded with more currency.

Cryptocurrency transactions, according to proponents, are more secure than traditional online payments because of the decentralized foundation and open nature of the ledger. The prospect of spending the asset on goods and services adds an extra layer of appeal that traditional investments cannot match.

Top 10 Cryptocurrencies By Market Cap

Crypto is a hot new investment opportunity that has been sweeping the world of finance lately. With thousands of cryptocurrencies in existence, it can be tough for beginners to keep track at first glance which ones are worth their time and money – but don’t worry! Here’s our list of some popular cryptocurrencies that we think would make great investments based on their market capitalization ranking as well:

1. Bitcoin (BTC)

Market Cap: About $724 billion

Price: 1 BTC = $38,573 USD (As of January 22, 2022)

Bitcoin (BTC) is based on a distributed ledger (blockchain) that logs transactions across thousands of computers networked worldwide and a proof-of-work mechanism that is not backed by a central bank or government.

Bitcoins are a digital or virtual type of currencies that may be used for peer-to-peer electronic transactions and traded for products and services with sellers who accept Bitcoins as payment.

2. Ethereum (ETH)

Market Cap: About $331 billion

Price: 1 ETH = $2,792 USD (As of January 22, 2022)

Ethereum’s potential applications, such as smart contracts, run automatically when conditions are satisfied and non-fungible tokens (NFTs).

The Ethereum platform is powered by Ether (ETH), the native currency. Ethereum is a decentralized software platform that allows smart contracts and Distributed Applications to be built and function without the need for third-party intervention, downtime, fraud, or control.

Ethereum has also exploded in popularity. Its price increased by approximately 33,500 percent from April 2016 to January 2022.

3. Binance Coin (BNB)

Market Cap: About $70 billion

Price: 1 BNB = $417 USD (As of January 22, 2022)

Binance is the world’s largest cryptocurrency exchange according to daily trading volume. The objective of Binance is to bring cryptocurrency exchanges to the forefront of global financial activity. Binance was picked as a new financial paradigm known as Binary Finance or Binance.

Additionally, Binance has created a whole ecosystem of features for its consumers. The Binance Chain, Binance Academy, Trust Wallet, Binance Smart Chain, and Research are all constituents of Binance’s network, and they all utilize blockchain technology to deliver new-age money to the world. Binance Coin is needed to effectively operate many of Binance’s sub-projects.

4. Tether (USDT)

Market Cap: About $78 billion

Price: 1 USDT = $1 USD (As of January 22, 2022)

Tether was created by a Hong Kong-based business, a stablecoin (stable-value cryptocurrency) that matches the price of the U.S. dollar. The USDT is pegged to the U.S. dollar by keeping a commercial paper reserve, cash, repo notes, fiduciary deposits, and treasury bills with a USD value equal to the number of USDT in circulation.

The unique feature is that Tether guarantees USDT’s value will remain tied to the U.S. dollar. Tether claims that anytime new USDT tokens are issued, the identical amount of USD is allocated to its reserves, ensuring that USDT is fully backed by cash and cash equivalents.

USDT does not have its own blockchain. It is a second-layer token that appears at the top of the blockchains of other cryptocurrencies such as Bitcoin, Ethereum, Algorand, EOS, Bitcoin Cash, Tron, and OMG and is secured by their hashing algorithms.

5. Solana (SOL)

Market Cap: About $38 billion

Price: 1 SOL = $122 USD (As of January 22, 2022)

Solana is an open-source project that utilizes the permission-less aspect of blockchain technology to create decentralized financial (DeFi) solutions. The Solana protocol aims to simplify the development of decentralized apps (DApps). By merging a proof-of-history (PoH) consensus with the blockchain’s underlying proof-of-stake (PoS) consensus, it hopes to improve scalability.

The Solana protocol will benefit small-time traders and enterprise customers/institutional traders. Customers wouldn’t be surprised by higher fees and taxes, one of Solana’s primary pledges. The protocol has been developed to have low transaction costs while still ensuring scalability and speed of processing.

The Solana Foundation is working hard to increase the accessibility of decentralized finance on a larger scale.

6. U.S. Dollar Coin (USDC)

Market Cap: About $42 billion

Price: 1 USD Coin = $1.00 USD (As of January 22, 2022)

USD Coin (USDC) is a stablecoin that is 1:1 tied to the U.S. dollar. In circulation, every unit of this cryptocurrency is backed by $1 in reserve, stored in a mixture of cash and short-term U.S. Treasury bonds. According to the Centre consortium, USD Coins are supplied by regulated financial institutions.

The stablecoin market has gotten extremely competitive in recent years, but USD Coin has attempted to differentiate out in numerous ways. One of them has to do with transparency and assuring customers that they would be able to withdraw 1 USDC and receive $1 without any problems. According to the report, a large accounting company has been tasked with validating the amount of cash held in reserve and guaranteeing that it corresponds to the number of tokens in circulation.

Circle and Coinbase, unlike some other crypto ventures, have achieved regulatory compliance, which has paved the way for international expansion. These projects are well-funded, ensuring the stability of the stablecoin.

USD Coin is also available for purchase and trading on centralized exchanges such as Poloniex, Binance, OKEx, and Bitfinex and decentralized exchanges like Uniswap.

7. Cardano (ADA)

Market Cap: About $41 billion

Price: 1 ADA = $1.19 USD (As of January 22, 2022)

Cardano is one of the well-known blockchains to successfully implement a proof-of-stake consensus mechanism, which is less energy-intensive than Bitcoin’s proof-of-work method. Although Ethereum, which is much larger, will upgrade to PoS, this will be a gradual process.

Cardano allows users to create and deploy smart contracts, enabling the creation of native decentralized apps on the blockchain.

8. XRP (XRP)

Market Cap: About $36 billion

Price: 1 XRP = $0.67 USD (As of January 22, 2022)

Ripple is a privately held fintech firm that offers a global payment solution through its patented Ripple Network or RippleNet payment network. Ripple, unlike most cryptocurrencies, was designed to connect banks, payment providers, and digital asset exchanges, allowing for real-time settlement expeditions and lower transaction rates.

Ripple’s open-source distributed consensus ledger, which features a public ledger, records all transactions, has a data structure similar to a blockchain and includes the preceding block’s hash in each subsequent data block. However, it does not use the same consensus method as Bitcoin or Ethereum. Since it does not use Proof of Work (PoW), there is no mining associated with XRP.

9. Terra (LUNA)

Market Cap: About $24 billion

Price:  1 LUNA = $69 USD (As of January 22, 2022)

Terra is a decentralized financial payment network that recreates the traditional payment stack using blockchain technology. It uses a basket of fiat-pegged stablecoins that are algorithmically stabilized by its reserve currency, Luna, to promote programmable payments and the building of open financial infrastructure.

The Terra network maintains price stability by algorithmically modifying supply in response to demand changes. Users are encouraged to burn their Luna to create more Terra stablecoins when the price of a stablecoin climbs above the value of its associated currency. When the value of the Luna stablecoin dips in comparison to the base currency, users are encouraged to burn their Terra stablecoins to manufacture more Luna. As the Terra platforms become more popular, Luna’s worth rises.

10. Polkadot (DOT)

Market Cap: About $23 billion

Price: 1 DOT = $21 USD (As of January 22, 2022)

Polkadot is a platform that allows many blockchains to transmit messages, including currency, in an untrustworthy manner while sharing their distinctive features and pooling their security. Polkadot is a scalable heterogeneous multi-chain technology in a nutshell.

Polkadot is heterogeneous as it is completely flexible and does not make any assumptions about the type or structure of the network’s chains. If a set of criteria is met, even non-blockchain systems or data structures can become parachains.

Every investment and trading decision entails some level of risk. When making a decision, you should extensively do your research.

Top 10 Trending Cryptocurrencies

The most popular cryptocurrencies that are currently trending are listed below.

  1. GamingShiba – GAMINGSHIBA
  2. SpookyShiba – SPOOKYSHIBA
  3. Green Chart – GREEN
  4. Shinji Inu – SHINJI
  5. Voxel X Network – VXL
  6. Bitgert – BRISE
  7. Bitcoin – BTC
  8. Metal – MTL
  9. BleuFi – BLEU
  10. MetaPlanet – MPL

Easiest Marketplace To Buy Cryptocurrency

If you desire to buy or sell cryptocurrencies, you’ll need to use a cryptocurrency exchange. These online businesses, which are comparable to stockbrokers, allow you to buy and sell digital currencies like Bitcoin, Ethereum, and Dogecoin. The best cryptocurrency exchanges make it easy to buy and sell the currencies you choose, with low fees and strong security measures.

It’s important to consider supported currencies, pricing, withdrawal options, and security when choosing the best cryptocurrency exchange for your needs, which we did when developing this list of the best cryptocurrency exchanges. Continue reading to learn which cryptocurrency exchange is most suited to your requirements.

1. Coinbase and Coinbase Pro

Crypto Exchanges: Best Overall

Currencies: 123

Transaction Fees: 0.04% to 0.50% (taker orders); 0% to 0.50% (makers orders)

Wallet Included: Yes

Coinbase is a very user-friendly exchange, which helps to decrease the barrier to entry for cryptocurrency investment, which is generally seen as complicated and confounding.

Coinbase’s insured custodial wallets are also available to investors and traders. Your money is housed in FDIC-insured bank accounts, and they’re protected against data breaches and hackers. Coinbase custodial accounts are great for novice users getting their feet wet, but Coinbase owns the encryption keys to the coins, not the investor.

Coinbase now provides the Coinbase Pro edition with the same pricing structure but with many more tracking and indicator options. Coinbase Pro is an excellent next stepping stone for those who’ve gotten their feet wet with Coinbase, and it helps complete out the whole offering by providing features that a more advanced user would appreciate.

2. Cash App

Best For: Beginners

Currencies: 1

Transaction Fees: Varies

Wallet Included: Yes

Cash App is simple to use and offers a variety of withdrawal alternatives to different cryptocurrency wallets. Cash App users can have their own debit cards and use the app like a bank account.

Cash App lets users invest in stocks, ETFs (exchange-traded funds), and Bitcoin. The mobile-first design of this exchange is easy to understand and use, making it ideal for first-time investors.

It features a simple bitcoin investment option and its main purpose of money transfers. Users can withdraw their assets to their wallets using the Cash App.

3. Bisq

Best For: Decentralized Exchange

Currencies: 45 (18 cryptocurrencies + fiat)

Transaction Fees: 0.05% to 0.70%

Wallet Included: Yes

Bisq is downloadable software and peer-to-peer decentralized Bitcoin and cryptocurrency exchange that, like Bitcoin itself, doesn’t have any single point of failure and cannot turn the system off. Bisq is non-custodial, implying that only the user has access to and control their money.

Bisq is instantly accessible to everyone with a computer or smartphone because there is no registration process or KYC rule. It makes it suitable for those seeking privacy and dissidents living under oppressive regimes or those who lack government-issued identification.

Bisq allows you to trade various fiat currencies, including the U.S. dollar, Bitcoin, and several other cryptocurrencies. Low trading volumes and slower transactions may result from its decentralized and peer-to-peer nature, but this is well worth it for others.

4. Binance.US

Best For: Altcoins

Currencies: 100+

Transaction Fees: 0.015% to 0.1%

Wallet Included: Yes

Binance is a good option for anyone interested in trading or investing in lesser-known altcoins. Binance is a great option for those who require more advanced charting than most other exchanges, as it supports over 50 different cryptocurrencies. The graphing capabilities, tools, and data that come with your account are exceptional, particularly given the inexpensive rates.

Why Should Physicians Invest In Cryptocurrency?

There are several reasons why physicians should consider investing in cryptocurrency. First, cryptocurrencies are a very diversified investment opportunity. Unlike traditional investments like stocks or bonds, cryptocurrencies can be used to purchase goods and services, exchanged for other currencies, or held as an investment. As such, they offer a way to diversify your investments and hedge against inflation.

Cryptocurrencies also provide exposure to an emerging asset class that is experiencing explosive growth, which means there is the potential for high returns in the long run.

Cryptocurrency can be used as a speculative investment opportunity, too – it’s highly volatile compared to traditional currencies, meaning it could go up or down over short periods. It isn’t necessarily true of other types of investments like real estate or stock market portfolios where you need significant funds to buy one piece of property/company share, respectively. However, even relatively small amounts of money are sufficient to purchase whole coins (which represent units) with cryptocurrency.

Another reason to invest in cryptocurrency is that it is the no. 1 risk opportunity of our lifetime. Cryptocurrency has the potential to revolutionize how we do business. In fact, some experts believe that it could eventually replace traditional currency altogether. So, by investing in cryptocurrency now, you are putting yourself in a position to benefit from this massive paradigm shift.

Finally, investing in cryptocurrency can be a great way to generate passive income. Many cryptocurrencies such as Bitcoin and Ethereum have been designed specifically for this purpose. By holding onto these digital assets, you can earn a steady stream of revenue without having to do anything extra.

So, if you are a physician looking for new ways to invest your money, consider putting some of your money into cryptocurrency.

Takeaway

Selecting the appropriate exchange for your needs is critical if you want to start trading or investing in cryptocurrencies. Whether you desire the most currencies, the lowest fees, or the easiest experience, there is a decent alternative for you.

To acquire your first bitcoin, all you need is a funded account, whether it’s through Coinbase or a competitor like Binance.

Reference

https://en.wikipedia.org/wiki/Cryptocurrency

Disclaimer: The trading or investment of Bitcoins or alternative cryptocurrencies has potential rewards and potential risks involved. Trading or investing may not be suitable for all people. Anyone wishing to invest should seek their own independent financial or professional advice.

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