Updated April 8, 2022 ∙ 4 min read
Metaverse, blockchain, NFT, Web 3.0, and cryptocurrency have emerged as trending investment frontiers. As two women pursuing FIRE (Financial Independence, Retire Early), we've monitored these innovations while hearing peers discuss Bitcoin investments or NFT purchases—though we haven’t yet included them in our portfolios. In evaluating these assets, we researched extensively. Here, we share insights on cryptocurrency, the most commonly discussed investment among our circles.
Understanding Cryptocurrency
Cryptocurrency (or Crypto) is a decentralized digital currency powered by blockchain technology. It uses cryptography for secure transactions recorded on a distributed ledger. Born in 2009, Bitcoin (BTC) pioneered this space, now comprising over 1,800 cryptocurrencies—none issued by governments or central banks.
Top Cryptocurrencies by Market Cap (2022)
Per CoinMarketCap, the top 10 cryptocurrencies as of January 2022 were:
| Rank | Cryptocurrency | Symbol | Key Features |
|---|---|---|---|
| 1 | Bitcoin | BTC | Digital gold; capped at 21M coins |
| 2 | Ethereum | ETH | Powers smart contracts & DeFi |
| 3 | Binance Coin | BNB | Native token for Binance ecosystem |
| 4 | Tether | USDT | Stablecoin pegged to USD |
| 5 | Solana | SOL | High-speed blockchain |
Note: Rankings fluctuate—e.g., Dogecoin (DOGE) once trended but fell off the top 10. Bitcoin and Ethereum remain dominant due to scarcity (BTC) and Ethereum’s utility (ETH).
How to Invest in Cryptocurrency
1️⃣ Cryptocurrency Exchanges
Top 5 global exchanges (per CoinMarketCap):
- Binance – Largest exchange; offers BNB token and TWD support.
- Coinbase – U.S.-based; no Chinese interface.
- FTX – Derivatives-focused.
- Kraken – Robust security.
- KuCoin – Supports TWD.
2️⃣ Cryptocurrency ETFs
2021 milestones:
- BITO: First U.S. Bitcoin futures ETF (ProShares).
- Traditional banks like Goldman Sachs entered the crypto space.
Taiwan has no crypto ETFs yet, but U.S. options include BITO, BTF, and XBTF.
3️⃣ Emerging Avenues
With growing institutional adoption (e.g., DBS Bank’s crypto services), 2022 may introduce safer, regulated investment methods.
Key Considerations
Before investing, assess:
- Portfolio balance: Ensure diversification and capital preservation.
- Risk tolerance: Crypto’s volatility demands emotional and financial preparedness.
FAQ
❓ Is cryptocurrency legal?
Most countries allow crypto trading but regulate exchanges. Always check local laws.
❓ How do I store cryptocurrencies securely?
Use hardware wallets (e.g., Ledger) or reputable exchange wallets with 2FA.
❓ Can I invest small amounts?
Yes! Many platforms support fractional crypto purchases (e.g., $10 in BTC).
Final Thoughts
While crypto offers high-reward potential, its risks necessitate thorough research. Whether via exchanges, ETFs, or future instruments, align investments with your FIRE roadmap.
👉 Start your crypto journey today
### SEO Keywords:
- Cryptocurrency investment
- Bitcoin ETF
- Binance exchange
- Passive income
- FIRE strategy
- Blockchain technology