The best cryptocurrencies to purchase as US inflation rises.
Bitcoin has been compared to a hedge against inflation for good reason.
It may serve as a good investment even though it is subject to price fluctuations.
However, numerous other crypto assets can assist you in weathering the inflation storm more effectively. Here is why:
- The concept of cryptocurrencies has entered the realm of popular finance.
- Because there is so much liquidity in the crypto market, it’s more feasible to convert assets into money.
- Even though the cryptocurrency market has already demonstrated a lot of development, it still has a lot of potential for future growth.
Bitcoin: The original cryptocurrency is still the best store of value in the digital world and its deflationary nature (only 21 million will ever be mined) helps to keep it valuable.
Litecoin: Often called the “silver to Bitcoin’s gold”, Litecoin is faster and cheaper to transact than Bitcoin.
It also has a higher total supply (84 million), making it more immune to deflationary effects.
Ethereum: Although not a currency, per se, Ethereum is a smart contract platform that allows for the creation of decentralized apps and tokens.
These can be used as a hedge against inflation, as their value is not tied to any one country or fiat currency.
However, if you are concerned about the rising inflation in the US, two crypto assets may help avoid this. They are:
Paxos Gold (PAXG)
It is a cryptocurrency that functions on the price of gold and has a fixed value.
The coin moves in tandem with how real market gold prices vary, in essence.
Now that you know there’s no better inflation hedge than gold, you may guess what comes next.
The coin is backed by one ounce of gold in a London vault and the total supply is based on the total amount of gold that the team holds in its reserves.
The main selling point for this token is that it’s trustless and digital, so you don’t have to worry about storing or safeguarding physical bullion.
Gold prices have been on the rise in recent days, thanks to new inflation data released by the US.
Pax Gold (PAXG) allows you to get precious-metal exposure by investing in decentralized crypto assets.
Therefore, if you’re looking to add cryptocurrencies to your portfolio as a hedge against inflation, PAXG is worth considering.
If you’re not sure if you want to invest in gold, there’s no need to worry.
Bitcoin (BTC) has always been a popular component of global investment portfolios because it is resistant to runaway inflation.
The fact that BTC is not influenced by any central authority makes it the perfect store of value against inflation.
Furthermore, if Bitcoin’s value rises at a faster rate than usual, your potential profit is greater.
In addition to this, the BTC position has recently begun to correlate with technology stocks.
Tech companies have long been regarded as growth assets, and as a result; the coin may expose you to even more tech industry growth while also preserving your real money.