In 2009, the Bitcoin protocol came into being in response to the financial crisis that leads to economic calamities. Since then, thousands of new cryptocurrencies have surfaced. Each of the digital currencies offers a different promise, adoption, and utility. Today, the value of this broad market is $1.3 trillion, give or take. Therefore, aspiring investors are wondering which is the best Crypto to invest in. If you go through this guide, you will be able to choose the best cryptocurrency to buy. We are going to talk about some of the most popular cryptocurrencies of today. You can compare these to make an informed decision. Read on to find out more.
Although different theories are revolving around Bitcoin, one thing is certain: Bitcoin is the top player in the field of cryptocurrencies. This is the reason small and large investors are willing to invest their hard-earned money in Bitcoin.
In fact, many of the smart entrepreneurs are taking interest in this “digital gold”. According to the CEO of Twitter and Square, cryptocurrency is an ideal choice for poor countries to fight the depreciation of the currency. Apart from this, cryptocurrencies allow them to transfer funds without paying heavy transaction fees.
Although the price of Bitcoin dropped over half over the past two months, Tesla Inc. put this currency in its balance sheet. Therefore, this initiative by Tesla may add to the buyers of Bitcoin. And this can give a boost to the value of Bitcoin.
Bitcoin Cash (BCH)
Since Bitcoin was the first cryptocurrency, it inspired a lot of other digital currencies that appeared one after another. Although Bitcoin is great, there is only one problem that all out of users and developers are worried about.
This problem was related to the data “block” size, which was capped at only one megabyte. Due to the small block size, computers took more time to process transactions, which also added to the transaction fees.
Bitcoin Cash tried to solve this problem when it separated from its parent company and adopted a block size of 8 MB. Although Bitcoin cash is not as stable or popular as Bitcoin, it is better as far as scalability is concerned.
The price of Bitcoin fell from $1600 to $500 but it’s still higher than the $342 at the beginning of this year.
Ethereum is the second most popular digital currency after Bitcoin. It is a decentralized software platform, which is why it allows the development of decentralized applications and smart contracts. Therefore, they can run without any interference, control fraud, and downtime.
Ethereum was introduced to develop a set of decentralized financial products that can be accessed from anywhere in the world. This is the reason the implications have become more compelling. In other words, it is possible to get access to several financial products, such as insurance loans and bank accounts even if there are no state identifications and state infrastructure.
On Ethereum, the applications run on Ether, which is a platform-oriented cryptographic token. Basically, Ether serves as a vehicle to move about on the platform. Therefore, it’s the best choice of developers who want to build and run apps inside Ethereum.
Besides, investors are also developing an interest in digital currencies. The market cap of Ethereum is 19 % of the cap of Bitcoin. In 2014, a pre-sale was launched for Ethereum, which got an overwhelming response.
According to Ethereum, one can use it to codify, secure, decentralized, and trade almost everything. After the attack on the DAO, Ethereum split up into Ethereum Classic and Ethereum. In January 2021, the market cap of Ethereum was $138.3 billion and the value of one token was $1,218,59.
Now, Ethereum has plans to switch the algorithm to proof-of-stake from proof-of-work. The purpose of these changes is to make the network improve the speed of transactions and consume less energy.
Introduced in 2011, Litecoin is the first cryptocurrency that followed in the footsteps of the most popular cryptocurrency called Bitcoin. Therefore, it is also called “silver to Bitcoin’s gold”. The founder and creator of this currency was the Ex-Google engineer Charlie Lee.
Litecoin is based on a decentralized open-source Global Payment Network. For PoW or proof of work, the system makes use of “scrypt”, which can be decoded using a regular CPU.
While there are many similarities between Bitcoin and Litecoin, the latter offers a faster rate of block generation. Therefore, it allows quirk time of transaction confirmation. Apart from developers, many merchants are now accepting Litecoin as a form of payment.
In January 2021, the market cap of Litecoin was $10.1 billion, and the value of the token was $153.88. Therefore, it is the sixth-largest cryptocurrency you can purchase.
Cardano is based on “Ouroboros proof-of-stake”. Cryptography experts, mathematicians, and engineers came together to create this cryptocurrency. The co-founder of the currency was Charles Hoskinson, who was among the 5 founding members of the second-biggest cryptocurrency called Ethereum.
The team of developers carried out a lot of peer-reviewed research and experimentation to develop the Blockchain. The researchers wrote more than 90 papers that involved a lot of topics on Blockchain technology.
Due to this process, this currency differentiates itself from the proof-of-stake peers and other big currencies. Also, consider that Cardano is better than Lithium due to its power for blockchain despite the fact that Cardano is not developed.
Cardano aims to be the financial operating system of the world. This digital currency wants to introduce decentralized financial products like Etherium and provide solutions for legal contract tracing, voter fraud tracing, and chain interoperability.
In January 2021, the market cap of Cardano was $9.8 billion, and the value of one Cardano token was 0.31 dollars.
This is another popular proof of stake cryptocurrency. The founders of this currency want to deliver interoperability in the world of blockchains. Also, the Polkadot protocol is made to create a link between permissionless and permissioned blockchain and Oracle. The idea is to make the systems work together.
Polkadot is a main component in the relay chain, which allows many networks to work together. Also, it allows for parallel blockchains or “parachains” with their native tokens just for certain uses.
The main difference between Ethereum and Polkadot is that it allows developers to develop their own blockchain.
With Ethereum, they can develop new changes with their own security measures. As a result, smaller projects will be prone to attack. We know that the bigger a blockchain, the most secure it is. In Polkadot, the concept is called shared security.
Govin Wood is the founder of Polkadot. Wood was the founding member of a theorem project, and he had a difference of opinion about the future of the project of Ethereum. In January 2021, the market cap of Polkadot was $11.2 billion and traded value of one DOT was $12.54.
Stellar is one of the best open blockchain networks, which was designed to offer powerful enterprise solutions through interlinking financial Institutions to allow large transactions.
Before the advent of Stellar, large transactions between financial Institutions used to take several days due to the involvement of several intermediaries. Plus, these transactions cost a great deal of money. Today, these transactions have become a lot less expensive and take almost no time to process.
Although Stellar is an enterprise blockchain for big transactions, you can still use this open blockchain as a common user. The beauty of this system is that it allows you to use any currency for cross-border transactions.
The native currency of Stellar is lumens, which is abbreviated to XLM. If you want to make a transaction on the network, you need to have Lumens. Founded by Jed McCaleb, Stellar has a market cap of $6.1 billion and the value of each token was $0.27.
Chainlink is a great decentralized oracle network, which fills the gap between external data and smart contracts. Blockchains can’t connect to external apps in a trusted fashion. The decentralized oracles of Chainlink enable smart contracts to interact with external data.
If you want to find out about the uses of the system, you can check out the blog of Chainlink. For instance, it can be used to monitor the supply of water for illegal siphoning or pollution in some cities.
It’s possible to install sensors to keep an eye on the level of water supply, water tables, and corporate consumption. A chainlink oracle can allow the tracking of data and transfer it to a smart contract.
Also, the smart contract can help execute fines, issue flood warnings, or invoice organizations that use too much water based on the oracle-provided data. In January 2021, the market cap of Chainlink was $8.6 billion and the value of one LINK was $21.53.
Binance Coin (BNB)
Binance is a type of utility cryptocurrency, which operates as a great payment method. So, if you use the token for making payment on the Binance Exchange, you can trade at an awesome discount.
The interesting thing is that the blockchain of Binance Coin is the same platform that the decentralized exchange of Binance works on. Created by Changpeng Zhao, the Binance Exchange is one of the most popular exchanges regarding trading volume.
In the beginning, Binance Coin was an ERC-20 token that worked on the Ethereum blockchain. As time went by, it launched its own Mainnet that makes use of a proof-of-stake consensus model.
In January 2012, the market cap of Binance was $6.8 billion and the value of one BNB was $44.26.
Tether was on the list of the most popular stable coins, which refers to cryptocurrencies that aim to reduce volatility by pegging their market value to a specific currency or an external reference point.
Since most cryptocurrencies, including Bitcoin, has dramatic volatility, many stable coins and Tether aim to stabilize price fluctuations to attract cautions users.
The price of Tether is connected to the US dollar price. This system enables users to exchange other cryptocurrencies into the US dollar quickly, unlike the conversion of normal currency.
Introduced in 2014, this cryptocurrency is a type of blockchain-supported platform to facilitate the digital use of fiat currencies. This cryptocurrency allows you to use the blockchain network and other technologies to conduct transactions in conventional currencies, which reduces the complexity and volatility linked with digital currencies.
In January 2021, the total market capitalization of Tether was $24.4 billion and the value of one token was $1.
Monero is one of the most secure and untraceable currencies. Launched in 2014, this open-source currency attracted the attention of crypto enthusiasts and the community. Also, this cryptocurrency development is community-driven and donation-based.
Actually, the purpose of the launch of Monero was to achieve scalability and decentralization. Monero allows total privacy through a special technique known as “ring signatures”
This technique allows a set of cryptographic signatures to show up, which includes a minimum of one actual participant. However, it’s not possible to isolate the participant as they all look valid.
Due to this state-of-the-art security mechanism, this crypto has been an ideal choice for criminals as it allows them to do criminal transactions without being detected. But the high level of privacy offered by Monero is greatly useful for the dissidents of many oppressive regimes of the world.
In January 2021, the market cap of Monero was $2.8 billion and the value of one token was $158.37.
So, these are some of the top cryptocurrencies in the world. Based on your personal preferences, you can opt for the best currency to invest in. All you need to do is invest an amount that you can afford to lose. Plus, you should divide your investment and avoid putting all your eggs in one basket. This will divide your risk and increase your chances of making a great return on your investment.