There are many cryptocurrencies, with their specificities and advantages. Discover our complete comparison to choose the best crypto according to your needs.
Unless you’ve been living on another planet for 10 years, you’ve probably heard of Bitcoin. Praised by some, criticized by others, cryptocurrencies leave no one indifferent.
So, should we invest? And in which crypto? To help you decide, here is a complete comparison of the most popular assets…
Ranking of the best cryptocurrencies
- Bitcoin
- Ethereum
- Binance Coin
- XRP
- Tether
- Dogecoin
- Monero
- Litecoin
- Bitcoin Cash
- Cardano
- USD Coin (USDC)
- Polkadot
- Uniswap
Ranking of the best cryptocurrency exchanges
- Binance
- FTX
- Coinbase etoro
- Crypto.com $25 Offered for new customers
- Coinhouse
- Bittrex
What is cryptocurrency?
In 2009, a man named “Satoshi Nakamoto” created Bitcoin. The mysterious character, whose identity is still unknown, had just laid the foundations of cryptocurrency: a fully digital and decentralized currency.
Over time, cryptocurrency has become both a currency of exchange and an investment opportunity. It is also a way to convert a currency in a completely digital way and without going through banks or traditional institutions.
Faced with the economic crises experienced by many countries of the world, crypto also appears as an alternative to traditional currencies. In Greece, Bitcoin has been a resounding success with the people. The advantages of cryptocurrency
Cryptocurrency offers several advantages over traditional currencies, wire transfers, and even the banking system. Here are some of them. Increased security
First of all, many of them are designed to offer privacy. The identity of the sender and recipient is concealed. Each wallet islinked to an address and a secret key to access it. Decentralization
Another major advantage is decentralization. Cryptocurrency owners access their funds through a virtual wallet. It is also used to receive or send funds.
Cryptocurrency is based on a blockchain of which a copy is registered on each “node” of the network. A node is a computer, on which the chain ledger is stored locally and synchronizes with other connected machines.
Thus, unlike the banking system, money is not stored centrally. The data is copied to nodes around the world.
Cryptocurrencies are therefore less likely to be seized, and are also not likely to be impacted by a hardware failure or a disaster such as a fire. Rarity
Another advantage is a certain rarity for several cryptocurrencies. Bitcoin, for example, is a limited resource. There are already 17 million BTC in circulation, but their number is limited to 21 million. This limit is written in its computer code.
Therefore, this crypto enjoys asimilar status to gold,silver or other rare precious metals and traditionally used as a currency throughout history. Unlike the Dollar or the Euro, its value will never decrease because of inflation. Smart Contracts
“Smart Contracts” are another strong point of some cryptocurrencies, like Ethereum. These are programs that exist on the blockchain and can be used to manage transactions,and for many other use cases, some of which have not yet been imagined.
Finally, the costs of cryptocurrency transfers are often lower than those of conventional currencies. For example, Ripple is very fast and inexpensive to transfer, which strongly promotes its adoption by financial institutions. How many cryptocurrencies are there?
There are more than 6700 cryptocurrencies, according to CoinMarketCap.com. New crypto is constantly appearing, and many are raising funds through Initial Coin Offerings (ICOs).
As of April 2021, the total value of cryptocurrencies is estimated at more than $2.2 billion. Bitcoin alone is worth nearly $1.2 trillion. Are cryptocurrencies a good investment?
In the eyes of many experts, cryptocurrencies are not a real investment. Although their value may increase, they think it is rather speculation.
This is explained by the fact that cryptocurrencies do not generate “cash flow”. To make a profit, someone must pay the currency, an amount higher than that paid by the owner. Cryptocurrency thus illustrates the investment theory of the “greater fool”. It is impossible to compare your purchase with the investment in a well-run company. In fact, the value of the business increases with time and sales.
As a result, experts recommend that investors stay away from these resources. Warren Buffett compares cryptocurrencies to paper checks. For him, “this is an effective way to transfer money anonymously. Cheques can also transfer money, but they have no value.”
Some see bitcoin as the currency of the future. However, a currency must be stable so that traders and consumers can determine the right price for a good or service. Cryptocurrencies have never been stable.
Knowing that bitcoin or another crypto could be worth more in the future, owners are less likely to spend them today. Therefore, it is not a viable resourceas a bargaining chip. The European Union wants to make cryptocurrencies traceable
One of the main advantages of cryptocurrencies is their untraceable nature. This is the reason to buy them for a large number of people, and therefore one of the sources of their value.
Cryptocurrency wallets are currently completely anonymous, and are only linked to complex passwords. No personal information can be found.
However, the European Union seems to have decided to make cryptocurrencies less anonymous. The aim is, among other things, to prevent money laundering and other financial crimes.
On Tuesday 20 July 2021, the EU announced a series of laws. The goal would be to force exchange platforms to collect information about the users of their platforms.
According to Mairead McGuinness, Commissioner of Financial Services, “cryptocurrency is the new way to launder money.” According to a study conducted by Chainalysis, more than $2 billion worth of cryptocurrency was laundered in 2020. Of this total, 55% transited through 270 blockchain accounts.
On Twitter, McGuinness claims that “anonymous crypto wallets will be banned, and cryptocurrency transfers will be traceable.” This would make criminal activity much more difficult.
Already in 2020, the US Treasury’s Financial Crimes Enforcement Network required similar traceability in the United States. Its purpose was to combat illicit crypto-based activities, such as those of the Lazarus Group.
In the eyes of the European Commission, “virtual currency transfers present the same risks of terrorist financing and money laundering as cash transfers. So it seems logical to use the same legislative instrument to solve common problems.”
