In the cryptocurrency world, more than 10,000 cryptocurrencies are currently available for investment or trading. It is a lot!
Even though you may buy things with cryptocurrencies, most people view them as long-term investments.
The recent freefall across cryptocurrencies, including stablecoins linked to the U.S. dollar, shows that volatility makes investing in cryptocurrencies perilous.
Before investing, it’s critical to understand what you’re getting into. Take your time reading through this information; it is helpful knowledge for all crypto traders. Don’t think about crypto trading or investing until you are comfortable with the names.
And… picking the best can be extremely difficult, especially if you are a beginner. Here is where we will help you discover cryptocurrency’s uniqueness. Just a little bit.
That said, these are ten top cryptocurrencies that could prove to be worthy of investment this year.
1. Bitcoin (BTC)
This is the most popular crypto among others and has been around for the longest of any cryptocurrency. Bitcoin is the leader with a price and market cap much higher than any other crypto investment options.
Many businesses already accept bitcoin as payment, making it a wise investment. Here are some companies that have begun to accept Bitcoin payments:
- Visa
- Stripe
- Tesla
Not only that, but the larger banks have also begun to incorporate bitcoin transactions into their offerings. On April 8, CNBC reported that Blockstream and Block (formerly Square) are launching a bitcoin mine in Texas. It will be fully powered by Tesla’s solar array and Megapack battery.
2. Ethereum (ETH)
It is a network that enables developers to create their own cryptocurrency and use it to deploy smart contracts. While Ethereum is far behind bitcoin in value, it is far ahead of its competitors.
Even though released years after other cryptocurrencies, it has far outperformed its market position due to its unique technology.
It is currently the most popular blockchain and the second most valuable cryptocurrency after bitcoin.
According to The Wall Street Journal, Fidelity, for instance, is expanding its IT team to build the infrastructure required to provide its customers with Ethereum custody and trading services.
3. Binance Coin (BNB)
After years of relatively stable prices, at least by cryptocurrency standards, Binance Coin took off in early 2021, skyrocketing from around $38 on January 1 to an all-time high of $683 in May.
Because of its performance over time, Binance Coin has established itself as one of the most stable investment options — relatively speaking.
4. Cardano (ADA)
Due to several factors, investors appreciate the Cardano network’s limited reach. Compared to a bigger network like Bitcoin, Cardano requires less energy to conduct a transaction. Transactions are therefore quicker and more affordable.
A “hard fork” that improved functionality – in this case, enabling the deployment of smart contracts—was introduced by Cardano last year.
And more recently, it unveiled a test version of the AdaSwap platform, on which programmers may create decentralized financial apps.
Cardano’s standing as a Web3 network may be enhanced through AdaSwap, which can also increase the value of its coin.
5. Polygon (MATIC)
A development team that made important contributions to the Ethereum blockchain platform is responsible for creating Polygon.
According to CoinMarketCap, Polygon intends to help with Ethereum scaling and infrastructure development. It develops Ethereum into a multi-chain system as a “layer two” solution, enhancing transaction and verification speed.
The cryptocurrency exchanges Binance and Coinbase support Polygon. MATIC’s token serves for settlement currency, transaction fees, and payment services.
6. Terra 2.0 (LUNA)
Stablecoins, or coins linked to fiat currencies like the US dollar, South Korean Won, and the International Monetary Fund’s Special Drawing Rights currencies, were employed by the Terra Classic blockchain to power international payment systems, according to CoinMarketCap.
The prices of the stablecoins on the blockchain get stabilized by its native coin, currently called LUNC.
7. Avalanche (AVAX)
According to Binance, Avalanche is a new “layer one” blockchain — a blockchain that improves the base protocol to make the system more scalable.
Meanwhile, CoinMarketCap reported that Avalanche was founded as an Ethereum competitor by Ava Labs and computer scientists at Cornell University, one of whom, former professor Emin Gün Sirer, is a cryptographic research veteran.
8. Chainlink (LINK)
According to CoinMarketCap, Chainlink uses a decentralized oracle network to provide safe communication between blockchains and external data feeds, events, and payment options, to enable smart contracts to overtake other forms of digital payment.
One thing working in Chainlink’s favor is a strategic partnership with Google under which Google uses Chainlink’s protocol to connect users to its cloud services – Benzinga report.
9. Ripple (XRP)
Ripple is a blockchain-based digital payment network and protocol, where XRP is the native cryptocurrency token. All Ripple transactions are known due to their lower energy consumption when compared to Bitcoin and their quicker confirmation time.
It uses a consensus mechanism; however, it uses a group of bank-owned servers to confirm transactions.
10. Litecoin (LTC)
A former Google engineer named Charlie Lee created the first altcoin, Litecoin, in 2011. It was a direct rival to Bitcoin that sought to speed up and reduce the cost of bitcoin transactions.
Litecoin is a peer-to-peer (P2P) virtual currency whose network offers instant, zero-cost payments that individuals or institutions can conduct. It uses Proof-of-Work (PoW) as a consensus mechanism.
According to PrimeXBT, Litecoin has a higher reward-to-risk ratio because it has a much longer way to go before catching up to the rest of the market and more potential for financial gain.
There is no doubt about it: cryptocurrency is here to stay. The question then becomes, where is the best place in the market to invest your money?
NB: It’s important to remember that cryptocurrency isn’t a get-rich-quick scheme. Instead, think of it as a long-term investment.
