Cryptocurrency is digital money that’s not managed by a central system such as a government. Instead, it is based on blockchain technology, with Bitcoin being the most famous one.
As digital money continues to grow, more and more options are becoming available. Now, there are more than 5,000 cryptocurrencies. While cryptocurrency can be used to make purchases, still most people are taking it as a long-term investment.
But remember not to invest more than you can risk! That is particularly true for investing in risky cryptocurrency. But if you are interested in trying something new, here’re some 10 best cryptocurrencies to invest in as per market capitalization. (once again – invest at your own risk!)
These days it isn’t uncommon to find ATMs while you are out wandering about for BTC, the most quintessential of crypto. Indeed, it was the 1st crypto launched. There are only 21 million BTC that can be created, and so far, only 18 million or so are found. This scarcity is what aids drive the market for BTC, along with the fact that it is so well-known. Even your grandmother has likely heard of Bitcoin, though explaining how it works is a different story.
Bitcoin is based on the idea of limited supply, but with Ethereum, it is the opposite. You can purchase, sell, trade ETH via a crypto brokerage, such as Coinbase, but it is used to power specific decentralized apps such as applications. It is a more secure way to make a payment since it cannot steal your data, and payment is not released unless both parties are satisfied with the transaction.
XRP was launched as a way to speed up transactions and reduce prices for international payments. It takes 3 to 5 seconds for transactions to complete, and it can handle 2 different currencies without the required conversion first.
Binance Coin (BNB)
Binance is a whole platform on its own, which uses Binance Coin (BNB) as a currency. You can purchase, sell, trade BNB itself, but you can use it as a payment method for the Binance Ecosystem. Such as many other cryptos, BNB’s value has skyrocketed over the past few months. Interestingly, Binance maintains a scarcity of its currency by burning it once a quarter.
Crypto is known for w wild swings in value. But if you are interested in blockchain technology, consider using Tether as the cryptocurrency to invest in. It’s backed by bank reserves and pegged to currencies such as the United States Dollar or the Euro. Actually, its value over time is more or less a flat line. It is basically another way to invest in government-issued currency, but in a digital way that lets you avoid fees charged by financial institutions.
The Cardano network has a small footprint, which is appealing to investors for many reasons. It takes less energy to complete a transaction with Cardano than with a large network such as Bitcoin. This means transactions are very fast and cheap. It claims to be further adaptable and more secure. Cardano is improving its technology consistently to be ahead of hackers.
Polka dot (DOT)
It was created by the leaders of Ethereum who got separated and formed their own cryptocurrency. Rather than having a single lane to complete transactions in, Polka dot has many. This cryptocurrency was designed to reward genuine investors and weed out people who are trading on the stock market to make money fast.
Dogecoin is a hotter currency as well. Actually, one can have become rich if they had invested in the meme coin since the beginning of the year. After all, DOGE has surged more than 12,000 percent year to date. Dogecoin holders can use Dogecoin to purchase goods and services or trade them for other currencies. Holders use Dogecoin to tip fellow internet-goers who make or share the best content.
Uniswap is another crypto that is designed to decentralize financial systems. It is a token that uses the Ethereum exchange network, and it made waves in September 2020 when Uniswap mysteriously dropped 400 UNI tokens into people’s wallets, worth $800 ($12,000 in value of today). If you believe in supporting decentralized cryptocurrencies, this can be a better option for you.
Litecoin is one of the old cryptocurrencies launched in 2011. It provides many of the same features as the other, newer cryptocurrencies on this list (fast transactions, cheaper to use, etc.), so it becomes somewhat obsolete. Its founder Charles Lee totally divested from his Litecoin himself, which does not bode well for confidence in this crypto. Still, it is enjoying a bit of a resurgence.