The top 8 best cryptocurrencies you should know
Are you planning to make a cryptocurrency investment this year? Unless you have been living under a rock, you are probably aware that Bitcoin and other types of cryptocurrency have whipped up a frenzy in the investment world. Especially, during the first two months of 2021. Bitcoin reached a record high of nearly $60,000 in mid-February, having risen 72 percent this year, before retreating again. Keep reading to discover more about the 8 best types of cryptocurrencies you should know before going into investment.
While cryptocurrency is undoubted the center of attention. It may also be confusing for those unfamiliar with the field. Because market swings are significant, with massive gains quickly followed by massive losses. However, it’s reasonable to say that cryptocurrencies may be both exciting and risky.
While it is possible to earn a regular income from crypto trading. The massive price swings mean that many people prefer to deal in cryptocurrencies as a speculative investment rather than more regular trading. Furthermore, before you decide how heavily you want to invest. First, you may need to learn more about Bitcoin and other popular cryptocurrencies by reading this article. Learn more about investment and investment plan to understand how it works.
Cryptocurrency Brief History
According to crypto history, Bitcoin is the first digital currency to exist. It was launched in 2009 by Satoshi Nakamoto, whose true identity still remains unknown. However, Bitcoin has gained so much popularity over the years. Not only that, it has as well made way for other digital currencies to come into light in the stock market. Currently, there are thousands of cryptocurrencies available in the market. However, this article covers the top 8 best cryptocurrencies in circulation you should know.
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So, How Does Cryptocurrency Work?
Cryptocurrency is a widely accepted payment method. It allows the transfer of funds between currency owners through digital transactions. Meanwhile, you don’t need to be a bank customer to use cryptocurrency. As the decentralized technology it functions on, actually enables secure payment transactions without asking for your identity.
Along with the transactional use of cryptocurrencies, there are several investment opportunities available. This is where the market truly comes alive. However, to obtain cryptocurrency units, the majority of individuals will need to purchase them through cryptocurrency brokers. Before keeping them in their crypto wallets. While others will engage in cryptocurrency mining, which involved solving a series of complex mathematical equations. And storing the results on the blockchain in order to obtain your currency. Keep reading to discover the top 8 best cryptocurrencies to invest in.
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Cryptocurrencies Stay Off the Banks
While some people enjoy the privacy that cryptocurrencies give. However, others just do not want their money to be kept in a bank or other financial institution. How come? Consider Greece residents as an example, they pay a 45 percent tax. Depending on the current state of the economy, keeping your money in a bank can be risky.
However, Cyprus is in a similar situation. Where the government has been forced to seize depositors’ funds in order to stay afloat. But, the sweet part of cryptocurrency is that due to its decentralized nature, unlike fiat currencies, there is no central authority in charge of your money. Which means your money is under your own control and not the government.
Furthermore, while cryptocurrency does have its share of security concerns and hacking reports. As long as you keep your currency secure, there is no risk of it being seized. Precisely, by any government or higher authority.
Therefore, now that you’re familiar with the benefits of cryptocurrencies and how it works. Let’s take a look at some of the industry’s most famous cryptocurrency names. The top 8 best cryptocurrencies, starting with the first to exist, the giant, Bitcoin.
Let’s begin with the market’s most actively traded and dominant player, Bitcoin, or BTC. It provides short-term liquidity in the event that you require it. In addition, you may anticipate BTC to be the most widely recognized digital currency as a means of payment.
Although Bitcoin’s value has dipped slightly from its mid-to-late-February high, it is still performing well. With some experts projecting growth of up to $100,000 or even $200,000 per Bitcoin. Though, the market is incredibly crowded. But, with this type of growth forecast, there is a need for you to participate. Even if you are yet to join the train.
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Ether is the cryptocurrency that represents the Ethereum network, and it is perhaps the second most well-known cryptocurrency after Bitcoin. Ethereum also permits the development and operation of apps, or decentralized apps, without the involvement of a third party.
However, due to the fact that Ethereum runs on its own blockchain. Developers can create and run their own distributed apps.
If you’re curious about Ethereum’s investing potential, there’s no reason to accept that it has reached its peak yet. Moreover, it would be a good and safe addition to any crypto portfolio. We can see the involvement of Microsoft and Intel in Ethereum investment.
Ripple, or XRP, has carved out a unique market niche for itself, widely used, and expects to expand further in the financial world. It is also used for high-speed and low-cost international money transfers. Compared to other types of cryptocurrency.
However, are you considering Ripple as an investment option? Given that it increased by 36,000 percent in 2017, it is unlikely that it will continue to expand at that rate in the following years. But it may not retreat either due to its widespread use.
What is the primary benefit of EOS? Without a doubt, the fact is that it supports EOS transactions for free. Unlike numerous other cryptocurrencies, including Ethereum that levy a transaction fee. Especially, when coins or tokens are transferred between crypto-wallets.
However, with EOS’s decentralized apps running on the blockchain, it ensures lightning-fast transaction speed at no cost. This means that EOS is one of the most stable cryptocurrencies in the market. As well as one of the most actively traded on exchanges such as Coinbase.
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The Dot was credited as a serious hot crypto-market contender in March 2021. Although it has existed for a few years. But, the May 2020 genesis block launch of its Relay Chain has transformed the way this currency is used. However, the price has climbed 350 percent in the last twelve months, making the DOT the industry’s sixth-largest coin. Therefore, Polkadot is worth a try if you’re new to crypto investing.
Cardano, or ADA, has been around for a few years. But its popularity has risen in recent months as a result of several blockchain updates. The most significant element of these improvements is the incorporation of smart contract capability. Which means it can now compete with Ethereum in terms of scale and power. Meanwhile, given its current ranking of third in terms of market capitalization, it’s surely worth considering. Especially, if you’re looking to start your crypto portfolio in 2021.
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Uniswap is also not a new initiative, but its UNI currency has exploded in popularity since June 2020. As the DeFi sector has risen beyond belief. However, one of the most compelling features of Uniswap is the opportunity for other projects to offer their coins for free, which expands investment prospects for everyone.
Providers of liquidity can earn benefits for assisting the platform, which is an excellent loyalty program in the crypto world. As a result, UNI is the industry’s largest Defi player.
Litecoin has continuously been ranked. Perhaps, among the top ten cryptocurrencies by market capitalization. It has also made its way into the retail world like Overstock.com as a payment method. Meanwhile, individuals who have been investing in Litecoin for some time may have witnessed gains of up to 20x. But the current price is still much below its 2017 high.
Despite this, the future of Litecoin appears to be bright. Particularly given its faster transaction times than the crypto master, Bitcoin. Now you have the knowledge and understand the 8 best cryptocurrencies you can consider investing in, what next? Look at cryptocurrency scams and protect yourself from them.
Be Cautious Of Cryptocurrency Scams.
Now that you’re aware of the various types of cryptocurrencies to invest in. Here’s a word of caution before you dive in. Anyone new to cryptocurrency investing should be aware of the widespread nature of Bitcoin scams. These are invented to deceive internet users into clicking on fake news headlines. Before requesting to register them for cryptocurrency investment programs.
Basically, the victims will be contacted via phone call. As well as bullied into depositing a small amount of money first. But then, gradually trick them into putting more money into a fake crypto bank account. It is so sad that such scams operate on a global scale. And have resulted in the loss of thousands of people’s life savings. In addition, here is how you can spot and protect yourself from the crypto pump and dump scheme, also known as crypto scams.
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Now the question is, which cryptocurrency is best for your portfolio?
If you’re new to cryptocurrency trading, choosing the best cryptocurrency options for your portfolio may seem confusing. Therefore, it’s wise, to begin your investment with a diverse range of widely traded digital currencies. In other to ensure the highest level of stability for your investment.
What Should You Do?
Because cryptocurrency trading is connected with volatility, it is advised to invest your risk cash initially. Until you have a better knowledge of the crypto market. Meanwhile, avoid getting tempted by frequently newly produced coin offers (ICOs). As well as likely to experience sharp drops. However, by investing in more established currencies, you can reduce some of the harm of sudden drops in value.
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Beware that cryptocurrency investment involved a lot of risks due to the high level of its volatility. Therefore, it’s a wise thing to invest the amount you can afford to lose. Don’t put your life savings in one basket, spread your investment. Meanwhile, take your time to do good research on any coin you want to invest in. Perhaps, before putting in your money. Learn how to spot and protect yourself from any kind of crypto scams, and always play safe. Hopefully, you have learned the top 8 best cryptocurrencies you can start investing in now.
Do you want to learn more about investing in cryptocurrencies and a variety of other financial investments? Then, see the Neptunmag vast collection of finance articles, to help you make the most and reasonably financial decisions.