Although the crypto market has exploded this year, not all coins and digital assets are created equal, according to billionaire investor Mark Cuban.
When asked what cryptocurrency he would suggest to beginners or new investors in the space, Cuban explained how he views many of the most popular digital coins.
“As an investment, I think Ethereum has the most benefits,” Cuban told CNBC Make It. And bitcoin is “better gold than gold”.
To learn more about cryptocurrency and the impact of the rich communities of space on the markets, Cuban recommends the memes-inspired dogecoin. Earlier this year, dogecoin became one of the top 10 currencies by market value, in part thanks to the influence of the dogecoin community and its supporters.
Cuban also recommends dogecoin for “fun,” he says.
However, it’s important to remember that financial experts generally view cryptocurrency as risky, volatile, and speculative, and they warn that investors should only invest what they can afford to lose.
Cuban has a large crypto portfolio, which includes digital coins such as bitcoin, ether, dogecoin, and other altcoins; NFT or non-fungible tokens; and many blockchain companies.
Why Cuban sees value in ether, bitcoin and dogecoin
This is not the first time that Cuba has presented Ether, Bitcoin and Dogecoin.
Smart contracts, or collections of code, on the ethereum blockchain “really changed everything” in the crypto space, the “Shark Tank” investor and Dallas Mavericks owner said on “The Delphi Podcast” in April.
This is because smart contracts are capable of doing so many things, including decentralized energy finance, or DeFi, applications, and NFTs, which themselves have many use cases.
In fact, “I would have liked to buy [ether] earlier, “Cuban said. Partly because” I think that’s the closest thing to a real currency. “
Cuban has also repeatedly called bitcoin as a better alternative to gold due to its algorithmic scarcity, as only a limited amount exists by design.
And while dogecoin was originally created as a joke, Cuban sees it as a unique use case. “It is a medium that can be used for the acquisition of goods and services,” he previously told CNBC Make It. “The community for doge is the strongest when it comes to using it as a medium of exchange.”
In February, Cuban bought a small amount of dogecoin with his 11-year-old son Jake, saying the purchase was meant to be “fun and educational” for his son while also helping Cuba learn more about the space himself. same.
Register now: Get more information about your money and career with our weekly newsletter
Don’t miss: Mark Cuban explains why DeFi will disrupt banks: “Some industries are against change”
Disclosure: CNBC owns the exclusive rights to the off-grid cable of “Shark Tank”.