Top 10 Cryptocurrencies to Invest
Since the release of Bitcoin in 2009, crypto has become a critical invention of the 21st century. Initially, inventors and tech analysts were quite skeptical about cryptocurrency. However, this has changed drastically as many big players in the business world have invested heavily in crypto. Every day many people contemplate whether or not to invest in these currencies. Let’s delve into a list of the top 10 currencies that you should invest in.
1. Bitcoin (BTC)
Bitcoin was created by someone under the alias Satoshi Nakamoto as the first cryptocurrency. The currency runs on the blockchain, a digital ledger running in a decentralized network of computers. With a market cap of over $1.08 trillion, Bitcoin is the most valuable crypto in the world. In the recent past, it has experienced tremendous growth. Five years ago, 1 Bitcoin was worth $500. As of 13th December 2021, 1 BTC was worth $47,336. This is why Bitcoin is a preferred investment option for crypto traders.
2. Ethereum (ETH)
The cryptocurrency has a market valuation of over $557 billion making it the second most valuable crypto. Ethereum is also a blockchain platform that has applications like smart contracts and non-fungible tokens (NFTs). In the last 5 years, ETH has grown from $11 to $4700, a growth of 42000%.
3. Binance (BNB)
With a market capitalization of over $104 billion, BNB is one of the fastest-growing cryptos in the world. The BNB coin is available on Binance, a platform where you can do crypto trading. Initially, the coin was designed to facilitate trading on the Binance platform. Now the coin can be used on other tasks such as payment processing and booking travel services. The coin is also exchangeable with other cryptocurrencies. Between 2017 and 2021, the coin has grown from $0.10 to $628, a 627,000% increase.
4. Tether (USDT)
Tether is a stable coin, which means its value is tethered to the real world in a 1:1 ratio. For instance, 1 Tether is equal to 1 dollar. A key issue facing cryptocurrencies is volatility. The value of many cryptos changes drastically, making them undesirable to investors who are wary of extreme volatility. Unlike most cryptos, Tether eliminates this risk by maintaining a 1:1 ratio with fiat currencies. If you are a crypto investor planning to invest in low-risk crypto, Tether is for you. Tether has a market cap of over $73 billion and is expected to go up.
5. Solana (SOL)
Solana is a blockchain platform developed to facilitate smart contracts, decentralized finance (DeFi) uses, and decentralized apps (DApps). SOL, the platform’s native cryptocurrency powers the platform. Essentially, Solana uses proof-of-stake and proof-of-history techniques to ensure quick and secure transactions. Proof-of-stake is a mechanism whereby an individual can verify blockchain transactions depending on the number of coins that they hold. Basically, the power that one holds on the platform is directly proportional to their coins. Proof-of-history involves the use of complex cryptography functions to ensure that input cannot be used to predict output and thus, transactions must be executed in their entirety to get the output. Since its launch in 2020, the coin has grown from $0.77 to $213.42, a 26,500% increase. Currently, Solana has a market cap of $64 billion and it is expected to grow steadily.
6. Cardano (ADA)
Despite being a late entrant to the crypto market, Cardano is well-known for its early adoption of the proof-of-stake mechanism. A key advantage of this mechanism is the reduction of transaction time and low energy consumption as opposed to other cryptos like Bitcoin which have had a huge impact on the environment through high energy usage. Just like Ethereum, Cardano facilitates smart contracts and decentralized transactions, which run on ADA, Cardano’s native crypto. Cardano has a market cap of over $52 billion and has experienced steady growth since its introduction in 2017. One ADA was valued at $0.02 and now it is valued at $1.57, a gain of 7,850%.
7. XRP (XRP)
XRP was created by some of the developers of Ripple, a payment company designed to provide financial services. XRP runs on Ripple and it enables exchanges of fiat currencies and cryptocurrencies. The 16,666% rise from $0.006 in 2017 to $1.00 in 2021 shows that XRP’s market cap of $47 billion will continue to increase.
8. U.S. Dollar Coin (USDC)
USDC is a stable coin backed by the US dollar just like Tether and is aimed at a 1 USD to 1 USDC ratio. Running on the Ethereum platform, USDC is available for multiple global transactions.
9. Polkadot (DOT)
Cryptocurrencies run on various blockchains. Polkadot platform and DOT, its native coin, are meant to integrate these blockchains to make them work together. The integration is expected to cause a significant change in how crypto networks are operated. Since the launch of Polkadot in 2020, it has led to rapid growth in the integration and has also helped DOT to grow from $2.93 to $38.62, a whopping 1300% growth in one year. AS the growth continues, Palkadot’s value will continue to grow from the current market cap of over $37 billion.
10. Dogecoin (DOGE)
While it started as a joke in 2013, Dogecoin has become one of the most popular choices for crypto investors. The joke aspect of the cryptocurrency encouraged millions of popular memes all over the internet that played a big role in its growth. Also, DOGE Has been a major topic of discussion among prominent people like Elon Musk, the CEO of SpaceX and Tesla. Since 2017, DOGE has grown from $0.0002 to $0.22, a 110,000% gain.
Notably, crypto trading is one of the fastest investment opportunities in the world. To avoid making risky investments, it is important to know which coins can give you the highest return. This article highlights the top ten cryptocurrencies that you should consider for investment. Warren Buffet, the American business magnate once said, “Never invest in a business you do not understand.” This applies to everything investment including crypto trading. Try to understand the workings of a currency before investing in it. A little time spent learning about a currency can save you a lot of financial mistakes.