The meteoric rise and fall of Bitcoin have dominated financial headlines for years. Today, cryptocurrency is an enormous market – and an extremely volatile one. Many traders are heading to the “Wild West of Finance” to see if they can strike crypto gold.
Major corporations like PayPal and Square are accepting cryptocurrency payments. El Salvador became the first country to accept Bitcoin as legal tender. Even some banks – those institutions most threatened by cryptocurrency – choose Ripple (XMR) to speed up their transactions. Before you dip a toe (or jump headfirst) into the crypto waters, which are the five best cryptocurrencies to buy right now?
First off, let’s cover the essentials. The cryptocurrency world can be a confusing one – one might even say “cryptic!” What are cryptocurrencies? Why do people talk about “Bitcoin miners,” and what is meant by “blockchain technology?”
A cryptocurrency is essentially digital money. In theory, the idea behind most cryptocurrencies is to provide an alternative to fiat currencies (the US Dollar, Euro, Pound, etc.) The best way to understand cryptocurrency is to break it down. “Crypto” refers to the cryptography used by developers, “crypt” stands for “hidden,” and “graph” means “writing. In other words, cryptography is a complex coding system that adds security and anonymity to information. Currency is, of course, a payment system for exchanging goods or services.
Many cryptocurrencies rely on blockchain technology (a “chain” of financial information with each transaction represented as a “block” of data). “Miners” are the users who solve complex cryptographic puzzles to verify each transaction, and they tend to be rewarded for their effort with a stake in coins or “tokens.”
Generally, each cryptocurrency will have its own whitepaper, laying out its mission or goals. While some coins are purely for speculative investment, others have underlying technology that transcends finance. IOTA, for example, is an ambitious non-profit that aims to monetize the shared data in the Internet of Things.
Now that we have the basics covered, what are the top five best cryptocurrencies to buy right now?
Litecoin vs Bitcoin
Litecoin is essentially a faster Bitcoin. This long-standing cryptocurrency was developed by a former Google engineer, Charlie Lee, and first hit the markets in 2011. Litecoin uses the same principle as Bitcoin but with one crucial difference: transaction speeds are three times faster. Another critical disparity between the two is supply: there can only ever be a total of 21 million Bitcoin in existence, whereas Litecoin capped its capacity at 84 million.
By and large, the two cryptocurrencies are very similar, and this could work in Litecoin’s favor as it will closely follow Bitcoin’s progress up the charts. Litecoin is dubbed “the silver to Bitcoin’s gold.” For this reason, alongside the impressive transaction speeds and upcoming upgrades to privacy and fungibility, Litecoin could be a worthy addition to your crypto portfolio.
Cardano: "Making The World Work Better For All."
Cardano is a cryptocurrency that dreams big. Technically, the affiliated digital token is called “Ada.” The idea behind Cardano is to use their blockchain protocol to enable “a decentralized future without intermediaries, in which power is returned to the individual.” The platform site reads almost like a political manifesto, with promises of being inclusive and transparent and “making the world work better for all.”
If you are looking to buy cryptocurrency, their token Ada is well worth looking into. Bitcoin plummeted in value after Elon Musk criticized the heavy energy use required for mining cryptocurrencies. Ada runs on an environmentally sustainable blockchain: “Ouroboros.” The coin had a market capitalization of around $68.8 billion as at November 2021 and you can purchase crypto in Ada for about $2.02 per token (as the current market price). For a cryptocurrency with an inspirational future and a promising trajectory in the markets, check out Cardano.
Ethereum: "The World Computer"
Ethereum is more than just a cryptocurrency. The digital token tied to Ethereum is called “Ether.” This coin is a software platform on which you can run decentralized applications (dApps) and “smart contracts” (an agreement built in computer code.) The ethos behind Ethereum is to create a digital community for decentralized finance, applications, and creative projects. After Bitcoin, Ether is the second-largest digital currency. This year, Ethereum plans to launch a new consensus algorithm build on “proof-of-stake” where users can “stake” their Ether to the whole network. This promises to be more environmentally sustainable than Bitcoin’s “proof-of-work” algorithm, where miners are rewarded with more coins.
There are alternative blockchains that can process faster and cheaper transactions than those of ether. Chinese cryptocurrency Neo has been called the “Ether of the East, and some call Cardano the “killer of Ethereum.” Yet even in the face of stiff competition, Ethereum occupies a herculean position in the coin market charts, and ether won’t be replaced anytime soon.
Monero: XMR The "Privacy Token"
Monero has promising underlying tech. It uses “ring signatures” to scramble transactions for privacy. It is arguably the most private digital currency and this is becoming increasingly valued by consumers. After all, you don’t need to be buying a gun to want your online purchase to be anonymous. And where privacy is concerned, this is one of the best cryptocurrencies to buy right now.
Bitcoin: Strength In Numbers
Bitcoin was the first, and it may not be the last, but it is most definitely the biggest cryptocurrency. Like most cryptocurrencies, Bitcoin is better viewed as a speculative investment than a viable alternative to fiat currencies. You still can’t whip out your Bitcoin wallet to pay for that cappuccino because the transaction speeds are too slow, and the fees are too high.
From an investor’s perspective, Bitcoin is crypto gold. The fact that Bitcoin’s supply is capped at 21 million coins makes it inflation-proof. Even in the volatile waters of the cryptocurrency market, Bitcoin has weathered the storm and climbed steadily in 2021, reaching a new all-time high of $67,000 (in October 2021). Of course, nothing is too big to fail, and competitors like Ethereum and Ripple are closing the gap. The environmental concerns around the mining of Bitcoin have dented its value in the markets. Also, the fact that an individual like Elon Musk appears to control the value of Bitcoin with a single tweet highlights the risk of putting all your eggs in the Bitcoin basket.
Nonetheless, if you want to purchase cryptocurrency, it is worth exploring Bitcoin. You don’t need a whole token; you can purchase as little as $25 worth of Bitcoin on certain brokers and exchanges.
New Cryptocurrencies To Watch Out For
TradeOr is always looking to expand its cryptocurrencies portfolio.
You can now trade one of the most popular cryptos around: Shiba Inu (SHIB). Widely regarded as the alternative to Dogecoin, it is created and hosted by the Ethereum blockchain and has recently surged by x1000, ranking it 10th amongst all cryptocurrencies.
You will soon be able to enjoy trading four new cryptocurrencies on our platform: Cardano (ADA), Solana (SOL), Polkadot (DOT) and Avalanche (AVA). All these altcoins present great opportunities to traders due to their low entry points and possibilities for profitable returns.
Where To Buy Cryptocurrency?
When it comes to investing in cryptocurrency, there are essentially two options available to you:
- Buy cryptocurrency coins or tokens on an exchange.
- Trade cryptocurrency using a broker.
If you are looking to purchase cryptocurrencies as an investment, number two gives you more options.
Here at TradeOr, you can trade Bitcoin or other digital coins in the cryptocurrency market, forex, stocks, indices, or commodities. Essentially, you would take “long” or “short” positions (buy or sell) according to the price movements. If you bet right, you can win big. The crypto market is highly volatile, however, which can swing both ways. At TradeOr, we arm you with a suite of trading tools, including charting software TradingView alongside a stellar customer support team to help you make informed decisions.