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Here are some of the best cryptocurrencies to invest in at the moment.
It’s been over ten years since the mysterious Satoshi Nakamoto created Bitcoin. Despite how popular the coin is, Bitcoin is not the only cryptocurrency in the market; we have over 7,000 cryptocurrencies today. With such a huge number of cryptocurrencies, how do you know the best coin to invest in?
Here are 4 of the best cryptocurrencies that you can buy right now.
Bitcoin (BTC)
Bitcoin has been dominating the market ever since it was first mined in January 2009. Its prices increased to over $60,000 in April 2021 for a market capitalization of over $1 trillion. Earlier this year, Bitcoin was about 70% of the cryptocurrency market, which means that other cryptocurrencies may be increasing.
Bitcoin is now seen as the ‘gold standard’ within the decentralized ecosystem, where traders and investors use it as collateral for stablecoins, loans, and others. This makes Bitcoin to be needed by both sides of the fence. Its position in the crypto industry makes it to be accepted throughout the world.
<< Read: Simple Ways To Buy And Invest In Bitcoin >>
Bitcoin Cash (BCH)
Bitcoin is based on blockchain technology. Blockchain technology stores information about cryptocurrency transactions within blocks of data that’s capable of containing 1 megabyte of data. As Bitcoin’s popularity grew, these blocks were filled up; thereby slowing down transactions and increasing transaction fees.
These challenges compelled some Bitcoin developers to come up with a solution targeted at reducing the amount of data that is required in each block. Others, however, believed that this would affect Bitcoin’s integrity. As a result, they created their version of Bitcoin in August 2017 and named it Bitcoin Cash.
Bitcoin Cash’s blocks can store 8 MB of data. This gives room for faster and more frequent transactions with low transaction fees. It may be newer and less popular than Bitcoin, but its scalability shows that there’s room for growth and this makes it one of the best cryptocurrencies.
Dogecoin (DOGE)
According to Ben Weiss, the CEO, and co-founder of Coinflip, “2021 has been the year of DOGE.” The cryptocurrency increased more than 13,000% this year. It reached the highest price in May at over 70 cents, although it has pulled back.
While Bitcoin has a market cap of 21 million coins, we have 129 billion Dogecoins in circulation already. We also have new blocks to mine every year.
The Elon Musk effect contributed to the success of Dogecoin. The price of the cryptocurrency doubled after tweets from the Tesla (TSLA) CEO who called it his favorite cryptocurrency.
Ethereum (ETH)
Decentralization is one of the philosophies behind cryptocurrencies. Ethereum’s goal is to decentralize the internet by replacing servers with a global system of nodes, thereby creating a single computer for the whole world.
Ethereum is a software platform that is based on blockchain technology where users exchange ether. Ether is now one of the most popular cryptocurrencies in the world. It has a market cap of over $400 billion. The recent success of Ethereum can be attributed to the surge in the technology that uses the Ethereum blockchain like decentralized finance (Defi) and non-fungible tokens.
The Berlin hard fork (a system upgrade), which was launched in April 2021, is another factor responsible for Ethereum’s success. This optimized the use of transaction fees, enhanced the system’s security, and gave room for some new types of transactions.
Another upgrade, known as the London hard fork, which is scheduled for summer 2021 shows that Ethereum’s future is bright.
Note that you should do your due diligence before jumping on any of these cryptocurrencies.
