In our guide ‘Trading with Crypto: Top 3 Myths,’ we covered how to buy crypto on Deriv and start trading. But with thousands cryptocurrency trading basics of digital coins out there, how do you pick the one that fits your needs?
Don’t worry, we make it simple. At Deriv, we keep it simple by offering widely used and trusted cryptocurrencies. In this guide, we’ll break down what to consider before choosing a crypto asset.
Trusted cryptos and stablecoins
When funding your Deriv account, you’ll see major names like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). But there’s another category to consider: stablecoins.
A stablecoin is a type of cryptocurrency designed to maintain a stable value, often pegged to an asset like the US dollar or gold. Think of it as a digital version of traditional money, offering the benefits of crypto without the extreme volatility.
Crypto comparisons: Choosing the right one
Each cryptocurrency serves a different purpose. Here’s a breakdown of the key options on Deriv:
Bitcoin (BTC): The digital gold
Bitcoin isn’t just the first cryptocurrency. It’s the most widely accepted and valuable digital asset. Many consider it the gold of the crypto world because:
- It has a fixed supply of 21 million coins, making it resistant to inflation.
- It’s decentralised, meaning no government or bank controls it.
- It’s a strong store of value for long-term investors.
Transaction details:
- Processing time: ~30 minutes
- Confirmations: 3 (each taking about 10 minutes)
- Fees: High
Ethereum (ETH): Powering innovation
Ethereum is more than just a cryptocurrency. It’s a full-fledged blockchain platform for apps, smart contracts, and more. Over time, Ether (ETH) has gained mainstream acceptance, making it a strong alternative to Bitcoin.
- The second-largest cryptocurrency by market cap.
- Experts believe it still has room for growth.
- Powers decentralised finance (DeFi) and NFTs.
Transaction details:
- Processing time: 1 to 15 minutes
- Confirmations: 6 (each taking about 10 seconds)
- Fees: Varies (depending on network congestion)
Litecoin (LTC): Fast and affordable
If Bitcoin is gold, Litecoin is often seen as the silver to Bitcoin's gold. Faster, cheaper, and built for everyday transactions.
- Larger supply: 84 million coins vs. Bitcoin’s 21 million.
- Lower transaction fees make it ideal for transfers.
- Faster and more efficient than Bitcoin for small purchases.
Transaction details:
- Processing time: approximately 30 minutes
- Confirmations: 12 (each taking about 2.5 minutes)
- Fees: Very low
Tether (USDT) and USD Coin (USDC): Stability first
For those who prefer stability, stablecoins like Tether (USDT) and USD Coin (USDC) are pegged 1:1 to the US dollar. They are great for quick transactions without worrying about price swings.
- USDT is the world’s largest stablecoin.
- USDC is highly transparent and backed by full reserves.
Transaction details:
- Processing time: 1 to 15 minutes (varies by network)
- Confirmations: 3 to 6
- Fees: Varies (depending on network congestion)
What to consider before choosing a cryptocurrency
Before picking a cryptocurrency, ask yourself:
- What’s your goal? Are you prioritising long-term growth (BTC), everyday utility (LTC), or price stability (USDT)?
- Diversification matters. A mix of BTC for growth and stablecoins for easy transactions can help balance risk.
- Market trends impact price. Crypto prices move based on news, adoption, and sentiment. Stay informed.
- Transaction fees and speed. If you need quick transactions, Ethereum or stablecoins might be better than Bitcoin’s slower processing times.
Ready to fund your trading account account with crypto?
Now that you understand what to look for, you can make a confident choice. Whether you go for Bitcoin’s security, Ethereum’s innovation, or Stablecoins’ reliability, you’re in control of your trading journey.
Sign up, buy crypto, and start trading on Deriv today!
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