Why You Should Invest in Blue Chip Crypto in 2023

Cryptocurrencies are one of the most exciting and innovative developments in the financial world. They offer a new way of transferring value, storing wealth, and participating in the digital economy. However, not all cryptocurrencies are created equal. Some are more reliable, reputable, and resilient than others. These are the blue chip crypto.

Blue chip crypto are the established and dominant cryptocurrencies that have a large market capitalization, high liquidity, low volatility, and solid reputation. They are the ones that set the standards and trends for the rest of the market. They are also the ones that offer the best returns and security for investors.

In this blog post, we will explain what blue chip crypto are, how they differ from other types of crypto, what are the benefits of investing in them, and how to get started with blue chip crypto investing.

What are blue chip crypto?

The term blue chip comes from poker, where the blue chips have the highest value among the red, white, and blue chips. The term was later adopted by the stock market to refer to the stocks of large, well-known, and financially sound companies that have a history of consistent performance and growth.

Similarly, blue chip crypto are the cryptocurrencies that have a proven track record of success and stability. They are the ones that have been around for a long time, have a loyal and growing user base, have a strong network effect, and have a clear vision and roadmap.

Some examples of blue chip crypto are:

Bitcoin (BTC): The first and most popular cryptocurrency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. Bitcoin is a decentralized peer-to-peer electronic cash system that uses cryptography to secure transactions and prevent double-spending. Bitcoin has a limited supply of 21 million coins and is widely accepted as a store of value, medium of exchange, and unit of account.
Ethereum (ETH): The second-largest cryptocurrency by market cap, launched in 2015 by Vitalik Buterin and other co-founders. Ethereum is a decentralized platform that enables smart contracts and decentralized applications (DApps) to run on its blockchain. Ethereum also supports its own native currency, Ether (ETH), as well as thousands of other tokens that run on its network.
Binance Coin (BNB): The native token of Binance, the world’s largest cryptocurrency exchange by trading volume. BNB was launched in 2017 as an initial coin offering (ICO) to fund the development of the exchange. BNB can be used to pay for trading fees, access various services and features on Binance, and participate in token sales on Binance Launchpad.
Tether (USDT): The most widely used stablecoin in the crypto market, pegged to the US dollar at a 1:1 ratio. Tether was created in 2014 by Tether Limited, a company that claims to hold reserves of fiat currency equivalent to the amount of USDT in circulation. Tether can be used to hedge against volatility, transfer value across different platforms, and access various DeFi applications.

How do blue chip crypto differ from other types of crypto?

Blue chip crypto differ from other types of crypto in several ways:

Market capitalization: Blue chip crypto have a large market cap, meaning they have a high total value of all their circulating coins or tokens. This indicates their popularity, dominance, and influence in the market. For example, as of December 2022, Bitcoin has a market cap of over $1 trillion USD, making it larger than many countries’ GDPs.
Liquidity: Blue chip crypto have high liquidity, meaning they can be easily bought and sold without affecting their price significantly. This indicates their availability, demand, and efficiency in the market. For example, as of December 2022, Bitcoin has a daily trading volume of over $40 billion USD, making it more liquid than many stocks or commodities.
Volatility: Blue chip crypto have low volatility, meaning they experience less price fluctuations than other types of crypto. This indicates their stability, resilience, and predictability in the market. For example, as of December 2022, Bitcoin has an annualized volatility of about 60%, while some altcoins have volatility above 100%.
Reputation: Blue chip crypto have a strong reputation among users, investors, regulators, and media. They are widely recognized as legitimate, trustworthy, and innovative projects that contribute to the development and adoption of blockchain technology. They also have a loyal community that supports them and advocates for them.

What are the benefits of investing in blue chip crypto?

Investing in blue chip crypto offers several benefits for both beginners and experienced investors:

Convenience: Investing in blue chip crypto is easy and accessible. You can buy them from various platforms such as exchanges, wallets, or brokers. You can also store them in different ways, such as hardware wallets, software wallets, or custodial services. You can also use them for various purposes, such as trading, spending, lending, borrowing, or staking.
Savings: Investing in blue chip crypto can help you save money on fees, taxes, and inflation. You can avoid paying high fees to intermediaries such as banks or brokers by using peer-to-peer transactions. You can also reduce your tax liability by using tax-efficient strategies such as holding, donating, or harvesting losses. You can also protect your purchasing power from inflation by using deflationary or stable assets.
Rewards: Investing in blue chip crypto can help you earn rewards for your participation and contribution to the network. You can earn interest by lending your crypto to other users or platforms. You can also earn dividends by holding or staking your crypto in certain protocols or platforms. You can also earn tokens by participating in airdrops, faucets, or bounties.
Sustainability: Investing in blue chip crypto can help you support the environment and social causes. You can choose to invest in crypto that use green energy sources or low-energy consumption algorithms. You can also choose to invest in crypto that support charitable organizations or social movements.

How to get started with blue chip crypto investing?

If you are interested in investing in blue chip crypto, here are some steps you can follow:

Visit some reputable sources of information about crypto and learn more about the basics, the risks, and the opportunities.
Download a reliable and secure crypto wallet and create an account. Make sure you backup your private keys and passwords and keep them safe.
Buy some blue chip crypto from a trusted exchange or broker . You can use your credit card, bank transfer, or other cryptocurrencies to buy them.
Store your blue chip crypto in your wallet or transfer them to another platform if you want to use them for other purposes.
Enjoy your investment and keep learning more about the crypto market.

Conclusion

Blue chip crypto are the best of the best in the crypto world. They offer convenience, savings, rewards, and sustainability for investors who want to diversify their portfolio and benefit from the blockchain revolution. If you want to invest in blue chip crypto, you need to do your research, choose your platform, buy your coins, and store them securely. You can also use them for various purposes such as trading, spending, lending, borrowing, or staking. Investing in blue chip crypto is not without risk, but it can be rewarding if you do it wisely.