TOP 10 CRYPTOCURRENCY TO INVEST IN 2021
A cryptocurrency is a form of currency that resides on a distributed and decentralized ledger and is represented by tokens or "coins." The term "crypto" refers to the advanced cryptography that permits the creation and processing of digital currencies, as well as their transactions through decentralized systems. Although this essential element of the sector has come under scrutiny as it has grown in popularity, cryptocurrencies are virtually always designed to be resistant to government exploitation and control.
But the important question is how can an investor choose which cryptocurrency to invest in when there are so many to choose from? Initial coin offerings (ICOs) can be difficult, and some coins simply vanish. In reality, the Securities and Exchange Commission (SEC) has begun to tighten down on initial coin offerings (ICOs) and the organisations that issue them.
People are still interested in investing in cryptocurrencies despite the enormous price volatility. It's perilous because you may lose everything or have your worth halved overnight. It can, however, pay off handsomely.
If you do decide to invest in cryptocurrency, keep in mind that you should never spend more than you can afford to lose. Calculate the impact on your investment if the coin you own drops 20%, 50%, or even 80% overnight, and decide if you can afford to wait on in the hope that prices would rise again, or if you'd be tempted to sell at a loss.
In this article we will be talking about the top ten cryptocurencies by market capitalization, or the total worth of all coins currently in circulation, to help you gain your bearings.
THE TOP TEN
1. Bitcoin: Bitcoin, the blue chip cryptocurrency, has been around since 2008. It has by far the largest market capitalization, highest coin value, and largest user base.
Satoshi Nakamoto, a pseudonym for an unknown person or group, invented Bitcoin. Regardless of whether its price rises or decreases, bitcoin will continue to dominate the cryptocurrency market. Traders will gain from strong liquidity as long as it exists, regardless of market stability. Bitcoin has a continuous rising tendency, despite its unpredictability.
Bitcoin is already accepted by a large number of businesses, making it a wise investment. Bitcoin is accepted by Visa, and Tesla CEO Elon Musk recently invested $1.5 billion in the cryptocurrency. In addition, major banks are beginning to include Bitcoin transactions in their services.
Market Cap: $674,792,676,455
2. Ethereum: Ethereum differs from Bitcoin in that it isn't just a digital currency. It's also a network that allows developers to use the Ethereum network to build their own coins. While Ethereum is far behind Bitcoin in terms of value, it is also considerably ahead of its rivals.
Vitalik Buterin established ethereum in 2015 with bigger and broader goals. It works on a programmable blockchain, which means it may run programs or apps on a decentralized basis, i.e. on millions of computers at once. This offers up a plethora of potential applications, ranging from technology and banking to games and collectibles, making Ethereum an appealing investment.
Despite the fact that it was released years after certain other cryptocurrencies, it has considerably outperformed its market position due to unique technology.
Market Cap: $261,465,084,652
3. Tether: Tether was launched in 2015 and is the only option on our top cryptocurrencies list that is the leader in the “stable coin” category of cryptocurrency. These are considered stable because they are linked to a traditional currency, the US dollar in this case. Tether's value is intended to be more consistent than other cryptocurrencies, which is why it's appreciated by investors who are frightened of other coins' excessive volatility.
Market Cap: $62,685,344,303
4. Cardano ADA: It is a cryptocurrency network and open source project aiming to build a public blockchain platform for smart contracts. Cardano's internal coin is called Ada. Co-founder of Ethereum and BitShares, Charles Hoskinson, began developing the platform in 2015 and published it in 2017.
Cardano appears to stand out among its proof-of-stake peers as well as other significant cryptocurrencies due to this stringent approach. Cardano has also been branded the "Ethereum killer" because of its blockchain capabilities. Cardano, on the other hand, is still in its infancy. While it has surpassed Ethereum in terms of decentralization by adopting the proof-of-stake consensus model, it still has a long way to go.
Market Cap: $45,237,566,893
5. Binance Coin: Binance Coin is a cryptocurrency that may be used to trade and pay fees on Binance, one of the world's largest cryptocurrency exchanges.
It has grown beyond simply conducting deals on Binance's exchange platform since its introduction in 2017. It can now be used for trade, payment processing, and even making travel reservations. It can also be exchanged or traded for other items.
Binance Coin was first released as an ERC-20 token on the Ethereum platform. It was subsequently given its own main net. A proof-of-stake consensus model is used by the network.
Market Cap: $52,341,400,638
6. Dogecoin: It's simply a Bitcoin clone with a cute dog meme for a mascot, and it was launched in 2013 by software developers Billy Markus and Jackson Palmer as a spoof of Bitcoin and the rising popularity of crypto.
Thanks to a dedicated community and clever memes, Dogecoin quickly became a popular cryptocurrency choice. Unlike many other cryptos, such as Bitcoin, there is no limit to how many Dogecoins may be issued, making the currency vulnerable to depreciation as supply grows.
Market Cap: $37,955,029,213
7. Ripple (XRP): Ripple is more than just a value transfer. It aids in the efficiency of cross-border financial transactions. Ripple decreases currency conversion prices and provides real-time exchange rates through partnering with financial institutions.
XRP was established in 2012 by a group of developers who then handed 80 billion XRP to a private firm called OpenCoin, which is now known as Ripple Labs. This is what distinguishes XRP from practically every other crypto project in the world: it is essentially a for-profit platform.
Market Cap: $43,903,451,740
8.Polkadot (DOT): Polkadot has one of the most ambitious ambitions among the major cryptocurrency projects: to “enable a totally decentralized web where people are in control.” Polkadot is the Swiss Web3 foundation's main project, which was launched in 2020. Think of Web3 as decentralization if Web 1.0 was commerce and Web 2.0 was social. Polkadot's technology connects different blockchains, making them more useful and allowing them to seamlessly exchange information and conduct transactions.
This cryptocurrency was created to reward real investors while weeding out those who are only interested in making quick money on the stock market. Investors that are actively involved in the company also assist in the decision-making process on issues such as fees for network improvements and creating or dismantling parachains.
Market Cap: $19,964,325,875
9.Bitcoin Cash: Built by a group of developers with the goal of lowering the cost of Bitcoin transactions, therefore it owes its existence to the market leader. Because it is one of the earliest and most successful hard forks of the original Bitcoin, Bitcoin Cash (BCH) occupies a significant place in the history of altcoins. A split occurs in the bitcoin sector as a result of disagreements and debates between developers and miners. Because digital currencies are decentralised, wholesale modifications to the programming underpinning the token or coin in question are not possible.
Market Cap: $10,758,497,767
10. Uniswap: The vast majority of cryptocurrency trading occurs on controlled exchanges like Coinbase, Binance, and Kraken. Uniswap is a decentralized cryptocurrency exchange that works on the Ethereum platform and requires transaction fees to be paid in ETH. There is no central facilitator, such as a bank or a broker-dealer, in place. Instead, smart contracts and pooled user resources power it. The code for Uniswap's platform is open source, so anyone can use it to build their own exchanges.
Market Cap: $11,840,769,063
It’s Here to Stay
Keep in mind that any cryptocurrency investment is very speculative. All of these currencies have some value, but you're only wagering on pricing at the end of the day.
Cryptocurrencies are here to stay, there's no doubt about that. But make sure of the finest spot in the market to invest your money. Also be sure of investing that amount of money you’re willing to lose.
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