With so many different digital currencies today, most with very little to no value and unclear potential, many experts advised to just stick with the ones that have the most reputation, mainly Bitcoin, and Ethereum. Regardless, all of the different digital currencies today have different utilities, as well as having different founders that have different visions as to where their technology is headed.
From Bitcoin and Ethereum to the meme Dogecoin and a stablecoin Tether, there are literally thousands of different digital currencies in the market today. With that in mind, it can be quite overwhelming when choosing which digital currency asset to invest in, so to help you get started, we’re going to show you the top 5 digital currencies in the market for 2021.
The first one on the list is the first-ever digital currency that was released to the public, and the name of the crypto is Bitcoin. Since it was created and released to the public back in 2009 under the name Satoshi Nakamoto, it slowly gained the attention of a lot of investors and is now, at the time of this writing, remains at the top of the list as one of the best cryptocurrencies in the market. As with most digital currencies, Bitcoin runs on a blockchain, which is basically a digital ledger that holds all of the crypto-related transactions that are distributed across a network of thousands of different computers.
Bitcoin, overall, is the most popular digital currency in the market and it’s also the most valued asset despite its high volatility as seen over the course of its history. Regardless of the situation of Bitcoin today, the technology was initially developed to be used as an alternative for digital payments, however, experts and speculators are still dictating that digital currencies, in general, are still way too volatile to be used as such. Additionally, Bitcoin is generally kept safe and secure from potential fraudsters through its process called proof of work, which is basically verifying the transactions by solving some sort of cryptographic puzzle before being added to the blockchain. Make sure to read up on the latest developments in the crypto world and find reliable sources for bitcoin news now.
The second-best is a cryptocurrency called Ethereum, and some are even considering it to be the silver to Bitcoin’s gold, not to mention that it’s among the best cryptocurrencies in the market today. Ether, on the other hand, is the cryptocurrency of the network of Ethereum, which is basically an open-source blockchain that developers can fully utilise to build software applications or other digital currencies. Despite being fundamentally different from Bitcoin, Ethereum is now, at the time of this writing, the most-used blockchain in the world. Also, it’s the young investors’ network of choice as it’s the source of the booming field of decentralised finance, as well as the popular NFTs or nonfungible tokens.
For the year 2021, it has been quite a fruitful year for digital currencies as a whole, however, one of the remarkable outbreaks of 2021 was the development of a new cryptocurrency called Solana, which went from a mere 0.01% in the market to more than 2.6% by the end of the year. The technology was initially developed to help power the uses of DeFi or decentralised finance, DApps or decentralised apps, and smart contracts. Furthermore, Solana runs on a unique processing system which is a hybrid of proof-of-stake and proof-of-history mechanism that ultimately helps the process of transactions to be significantly faster and more secure.
Furthermore, to any individual who is basically placing a wager the continued growth of decentralised finance would find themselves to be well served with Solana, which is basically a developer-friendly network that has significantly lower transactions fees compared to Ethereum, which results in a maturing ecosystem and a promising future for decentralised finance, hence rendering Solana to be one of the best digital currencies to buy in the market.
4. Binance Coin
Binance Coin is currently, at the time of this writing, the third-largest token by market cap which accounts for just over 4.1% of the digital currency market, hence leaving plenty of room for the technology to build up the market share over a period of time. Not to mention that in 2021, that’s exactly what Binance Coin has done, marking its dominance in the market as it rose from a mere 0.7% to 4.1% at the end of the year. Furthermore, Binance Coin is considered a form of cryptocurrency that individuals can use to trade or pay for fees on Binance, which is one of the largest digital currency exchange platforms in the market.
Unlike some other forms of digital currencies in the market, Tether is different as it is a stablecoin, which basically means that Tether is a cryptocurrency that is backed by fiat currencies such as Euros or the US dollar and keeps its value equal to either one of those. Hypothetically, Tether’s value is speculated to be more consistent than other digital currencies in the market, hence being more favoured by investors who are a bit wary of the high volatility of most cryptocurrencies.
Choosing Which to Invest In
Regardless of a crypto asset’s reputation and how it’s making individuals richer by the day, if you’re wondering which digital currency to invest in, you have to realise that at the end of the day, it’s all about the fundamentals. Overall, choosing which digital currency to invest in is relatively easy, all you would have to do is to do a bit of research and catch up on the latest crypto news before dropping your hard-earned money into the highly volatile assets. On top of that, one way to invest in cryptocurrency effectively is to check out a well-established crypto trading platform like Bitcoin Evolution.
Furthermore, you would need to consider all the factors when choosing a cryptocurrency to invest in, such as what does the community say about it, the team behind the technology, the technology’s purpose and direction, and the crypto’s white paper, which outlines its purpose is, how it works, and the technology’s vision towards the future. Also, you should include the reputation of the digital currency, its pricing history, and its roadmap.
When choosing which digital currency to invest in, you should always be aware and vigilant towards them as it can be a daunting task. To choose the investment that’s right for you, you should always stick to the facts and never make emotional decisions. After doing everything you can and having selected the digital currency asset to invest in, you should still remain vigilant and constantly monitor your portfolio easily.