Bitcoin, Ethereum, Dogecoin? It can be very difficult for those who are not familiar with the cryptocurrency field. Here’s everything you need to know about the best cryptocurrencies….
While cryptocurrencies have been enthusiastically welcomed among a small group of early investors, they have recently attracted the attention of the wider community of institutional investors. In recent months, cryptocurrencies that have been traded largely among technology addicts have been adopted by large corporations, financial institutions, and even auction house Sotheby’s, which on Wednesday held the first auction accepting cryptocurrency as payment for a physical work of art. Bitcoin
- Market Capitalization: $945.5 billion
- Annual Earnings: 72.5%
Bitcoin is considered by many investors to be the original cryptocurrency. When it circulated in 2009 through anonymous programmer Satoshi Nakamoto, he started the cryptocurrency craze. In the following years, the famous crypto caught the imagination of those looking for alternative investments, especially in late 2017, and reached a peak of about $20,000 in December and January of the following year. It soon fell again and introduced it for the first time with its dramatic volatility to market followers.
Throughout the wild journey, Bitcoin has sparked a debate about whether cryptos should be adopted as regular currency or another collectible asset class such as gold. In 2021, companies like Tesla began accepting Bitcoin as a form of payment (and Tesla even bought Bitcoin for $1.5 billion). This decision was reversed just two months later. And now more financial services, such as Goldman Sachs Group Inc. and Morgan Stanley, are looking for ways to offer Bitcoin funds to customers.
One of the limitations of Bitcoin, however, is that its supply is limited to a total of 21 million Bitcoins, taking advantage of its value as an asset, but limiting its capacity as a potential currency.
Late last year, Bitcoin began to skyrocket to record-breaking highs, reaching almost $65,000 in April 2021. These levels have drawn warnings from skeptics such as economist David Rosenberg that the cryptocurrency is just a bubble. However, for those who believe in Bitcoin in social media circles, this rally has cemented Bitcoin’s place as an investment asset. Ethereum
- Market Cap: $447.3 billion
- Annual Earnings: 414.3%
Ether is a cryptocurrency asset that is exchanged on the open-source Ethereum blockchain network. In short, Ethereum is a platform that works outside the control of a single organization for exchanging goods and services.
Ethereum’s price followed a similar trajectory to Bitcoin when it rose in late 2017, reaching its first peak above $1,300 in January 2018. In late 2020, ETH rose along with Bitcoin and all other cryptos, and in May 2021 it rose to just over $4,000.
One of the benefits of Ethereum over Bitcoin is that its supply is not limited, the supply is determined by the members of the Ethereum community. However, the Ethereum platform is experiencing difficulties due to transaction congestion with uses such as the popular CryptoKitties craze in 2017, when individuals used the currency to buy and sell virtual cats. Ethereum has begun a major update to move to Ethereum 2.0 in late 2020 to fix this. Dogecoin
- Market Cap: $54.3 billion
- Annual Earnings: 8,573.0%
Dogecoin, a joke-driven cryptocurrency inspired by Shiba Inu, first hit the market in 2013. With a market capitalization of billions of dollars, Dogecoin holds the biggest gains in 2021 compared to any cryptocurrency to date. Celebrities from Snoop Dog to Gene Simmons and most importantly Tesla CEO Elon Musk have supported and still support Dogecoin.
Dogecoin fell after Elon Musk appeared on Saturday Night Live last weekend, but its price rose today after Elon Musk tweeted a new Dogecoin.
Dogecoin has no supply limit, so Dogecoin can be created forever. With the same “joke culture” enthusiasm that boosted stocks like GameStop earlier this year, Doge raised concerns that it could feed a bubble that was about to burst. Other cryptocurrencies
With the rise of cryptocurrencies, there are also cryptocurrencies that appeal to different preferences and protect against different risks. Binance Coin, for example, is an altcoin popularized by the Binance trading platform and Binance Smart Chain.
Some cryptocurrencies are more stable and follow real-world currencies or indices like Tether whose performance equals the U.S. dollar. For investors interested in financial democratization, Cardano is a cryptocurrency that focuses on decentralizing assets by ensuring transparency and giving individuals more control.
The cryptocurrency market is also home to new cryptocurrencies such as Internet Computer, a crypto that was launched last Monday and has already grown to a market capitalization of around US$45 billion.
Related Content: Which Is the Most Profitable Option for Cryptocurrency Investing?
