This Year’s Best Cryptocurrencies To Invest In
It has been a decade since the father of Cryptocurrencies Satoshi Nakamoto created Bitcoin. And investors originally wary of the new digital currency are now eager to find the next best ones. While Bitcoin has become the most popular cryptocurrency in the world, this wasn’t always the case. Its shy and bumpy beginnings could not foresee the day when 1 Bitcoin would equal approximately $15,000. The surge in popularity and legalization of Crypto in many countries is contributing to the growing demand. Today, there are more than 7,000 cryptocurrencies on the market. And so, you ask, what are the current best digital currencies you should invest in? Here is a shortlist of 6 of the best ones to consider, and others to keep watching.
No list for top digital currencies worth investing in would be serious if it did not include the king of cryptocurrencies, Bitcoin. While it has had its share of volatility and has been on a rocky road trip since its inception in 2009, Bitcoin is also known to have the highest liquidity in the crypto sphere. With a market cap of around $200 billion, bitcoins account for more than 57% of the market. All expectations are for the currency’s value to keep increasing in 2021. As the demand rises so will its price because there will only ever be 21 million coins. Eventually, investing in bitcoin remains a sound move, as you will have no problem finding someone to match your order.
Bitcoin Cash (BCH)
Digital currencies are based on blockchain technology. This means blocks store 1 megabyte of data. And as a currency becomes popular, the blocks fill up, increasing the price. A pure result of the market’s demand. The Bitcoin Cash, however, was created in 2017 with the aim of having blocks that store 8 megabytes of data allowing more transactions to occur at lower fees. This also makes it much more scalable and gives BCH more potential than its predecessor. This is why it is on the list of digital currencies worth investing in this year.
Some digital currencies tend to seem ambiguous, especially if you have a hard time grasping the technology behind it. This is why Litecoin came along. One might say it is a cryptocurrency that has used the best features of Bitcoin and improved on features that weren’t user friendly. Thus, it has faster transaction times and less complex system requirements. These factors make it an appealing investment, especially because PCs can mine Litecoin. Another main reason to invest in LTC is its high liquidity and large market cap. Its limited supply of 84 million coins also makes for increased demand in the long run.
The main concept of Ethereum is to decentralize the internet by replacing servers with a system of nodes. And ETH is based off blockchain tech from which users can exchange the currency ether. It has become one of the most popular digital currency with a market cap of approximately $40 billion. This puts it second only to Bitcoin. The platform itself has also grown as a host for other cryptos. It is considered as one of the best cryptocurrencies to invest in at the moment. Its high liquidity means you won’t ever have to worry about buying or selling Ethereum. In addition to that, it has a loyal community behind it which contributes to its stability. Finally, Ether is behind the dApp sphere, so developers and businesses need it to support smart contracts and applications.
Binance Coin (BNB)
If you’re looking for a diversified portfolio of investments, BNB is for you. Quite similar to Ethereum, Binance Coin is more than a cryptocurrency. The Binance DEX is a decentralized platform, where users can buy, sell, and convert BNB to other cryptos. In a way, it is the cryptocurrency exchange market. The success of BNB stems from the resourcefulness of its founders. As it stands, it is the fastest growing cryptocurrency this year in terms of trading volume. Consistency in growth and steady price increase is proof that this is a good investment opportunity.
Basic Attention Token (BAT)
Other digital currencies to keep an eye on
The list is not exhaustive. And amidst all the options available, it is challenging to truly sort out the best of the best cryptocurrencies of the year. There are more opportunities to look into, and it would be interesting to keep an eye on these digital currencies.
NEM appeals to a younger audience of investors. The reasons for that are the differences in the process. First, the lexicon is not the same. It is ‘harvest’ instead of ‘mining’, and ‘proof-of-importance’ to determine who will harvest the next block. Second, it is also a platform to build applications.
In addition to these unique features, NEM has very fast transaction speeds and low costs.
The team behind it has set ambitious goals for NEM, including its utilization for loans, games, smart contracts, ownership records, and more.
So, consider it a project to observe closely.
Dubbed as the China-based Ethereum, NEO is a smart contract platform, which allows developers to launch decentralized applications on blockchain. The technology behind it is advanced and improves on the existing frameworks. Sitting in the top 20 liquid assets, NEO is gathering a lot of credibility and value along the way.
The main attraction of NEO is similar to that of Ethereum. It allows the creation of digital assets, smart contracts, and applications. However, tokens are used to prove ownership of assets, not as an asset itself. This makes it ideal for setting clear transfer shares and equities.
This, in a nutshell, is why it deserves a place on the investment watchlist.
Often times depending on the weaknesses of a business, that its competitor gains ground. This is what EOS is working on. They have filled the gaps of Ethereum, and many investors are already moving to EOS.
Ethereum requires users to know the Solidity code to develop dApps. EOS countered this with account management services and creating databases that don’t require programming knowledge. The technological advantage of EOS includes the fact that it performs faster than its predecessors and is more scalable.
Keep an eye out for a growing EOS as it acquired the capital needed to develop its full potential.
To wrap things up, whatever up and coming cryptocurrency you prefer, the best way to get started, is to start trading.