You’ve come across so many cryptocurrency conversations that you may want to invest in cryptocurrency. Maybe you’ve even been willing to buy some Bitcoin, or you’re interested in the recent Dogecoin rise.
According to statistics, the first thing to know about crypto is that you have thousands of options: to be specific, you have 4,833 options. So which cryptocurrency will be the right option to invest in when you have so many options? We’ve researched this a bit for you. We’ve listed 10 of the solid cryptocurrencies you can invest in. The Best Cryptocurrencies to Invest in
Don’t run out of budget for investing, don’t invest more than you can afford to lose because you’ll add something to it. This is especially true when investing in risky cryptocurrencies. But if you’re interested in trying something new, here are the top 10 cryptocurrencies you can invest in by market capitalization.1. Bitcoin (BTC)
These days, it’s not unusual for you to arrive at the invention of the ATM while researching BTC, the most perfect example of crypto. Indeed, it was the first crypto to be released. There are only 21 million BTC that can be created, and only about 18 million BTC have been found so far.
This scarcity, along with being very well known, is helping to drive the BTC market. Even your grandmother has probably heard of Bitcoin, but explaining how it works might be a different story.
It’s also attracting a lot of interest from big-name investors like the Winklevoss twins (Mark Zuckerberg stole the Facebook idea) who tried to create a BTC ETF but were eventually rejected.2. Ethereum (ETH)
Bitcoin is based on the idea of limited supply, but Ethereum is the opposite. You can buy, sell, and trade ETH through a crypto company like Coinbase, but it’s also used to power certain decentralized apps, such as apps (called dapps). It’s also a safer way to make a payment, as it can’t steal your data, and the payment won’t be credited to the other party’s account until both parties are satisfied with the transaction.
Ethereum as an investment has seen rapid growth since the end of 2020. It also experienced a huge increase in value in 2018 but then collapsed, so while growth may sound tempting, invest at your own risk.3. Binance Coin (BNB)
Binance is a platform in its own right that uses Binance Coin (BNB) as its currency. You can buy, sell and trade BNB itself, you can also use it as a payment method for the Binance Ecosystem.
Like many other cryptocurrencies, the value of BNB has skyrocketed over the past few months. Interestingly, Binance maintains a shortage of its currency, “burning” the currency every quarter4. Tether (USDT)
Crypto is known for some drastic fluctuations in value. This scares you, but if you’re still interested in diversifying blockchain technology, you might want to consider using Tether as the best cryptocurrency to invest in.
It is actually backed by bank reserves and pegged to currencies such as the US Dollar or Euro. In addition, its value over time is more or less in a straight line without risk. It’s basically another way to invest in government-issued currency, plus it allows you to avoid fees charged by financial institutions in a digital way. XRP (XRP)
XRP was launched as a way to speed up transactions and reduce costs for international payments. Transactions only take three to five seconds to complete and can even process two different currencies without the need to convert them beforehand.
XRP also saw some very large value fluctuations that rose as high as $3.15 before returning to its previous level after a few weeks of being 24 cents in early December 2019. It’s on the rise again, and it will be interesting to see how long that takes.6. Cardano (ADA)
Older cryotos, such as BTC, use a lot of energy to produce. Cardano Ada (named after Ada Lovelace) is one of the first cryptos to address this issue wholesale, aiming to be the most environmentally friendly crypto you can buy.
It is based on the Ethereum model, where it is used in smart contracts, but you can buy, sell and trade normally.7. Dogecoin (DOGE)
Bitcoin may have been the first cryptocurrency, but Dogecoin’s claim to fame is to be an “internet currency.” It’s built specifically as a secure and inexpensive payment method for online content creators like bloggers, podcasters, and Twitch streamers.
Dogecoin has been in the news lately with its meteoric rise, but it’s still not yet seen by most people as an investment-quality material. After all, it’s a crypto built on a meme. But that doesn’t have to stop you from playing around with it a bit, but remember, as always, don’t invest more than you can afford to lose.8. Polkadot (DOT)
Cryptocurrencies use blockchains, but what if you could create your own blockchain and control everything? This is the premise behind Polkadot. It is an open source system that allows transfers between chains. It was created by the nonprofit Web3 Foundation as a way to decentralize things, making it harder for individuals and companies to control things9. Uniswap (UNI)
Uniswap is another crypto designed to make financial systems a decentralized structure. A token that uses the Ethereum exchange network. In September 2020, Uniswap made waves when it mysteriously dropped 400 UNI tokens worth $800 ($12,000 today) into people’s wallets. If you believe in supporting decentralized cryptocurrencies, this may be a good option for you.10. Litecoin (LTC)
Litecoin is one of the older cryptocurrencies that was launched in 2011. It offers many of the same features as the other new cryptocurrencies on this list (fast transactions, cheaper to use, etc.), so it’s a bit outdated.
Its founder, Charles Lee, has given up on his Litecoin entirely, which is not very good for trust in this crypto. Still, the fact that it’s rising a little bit increases the interest.