Cryptocurrencies are now more popular than ever before. Cryptocurrency exchanges have exploded in popularity, and the number of transactions per day is increasing at an exponential rate. Cryptocurriencies are a unique alternative investment to traditional stocks, bonds, and other types of securities. In this blog post we will take a look at 10 most popular cryptocurrencies in the world 2021!
What are cryptocurrencies?
Cryptocurrencies are a type of digital currency, like Bitcoin or Ethereum. Cryptocurrencies operate on decentralized platforms which means they don’t rely on banks to process transactions and manage the supply of money. Cryptos also allow for anonymous transactions so you can send funds without giving your name away
Cryptocurrencies are made by people who take the initiative to learn blockchain technology and create their own currency. With more than 1,600 cryptocurrencies on major exchanges, there is a crypto for everyone!
But only about 100 of them have any real value. At the top of this limited list is Bitcoin with its peer-to-peer payment system that renders it as an international currency. Other currencies follow closely behind including Ethereum (the second most popular) and Litecoin (which processes transactions faster than other coins).
Best 10 cryptocurrencies to invest in
In the world of cryptocurrency, there are many innovative and imitative coins that have been developed over time. Below we will list some cryptocurrencies which investors find most attractive:
Bitcoin, the most popular cryptocurrency in the world is proving a trend all of time. The currency has been market dominant since January 2009 and faced all kinds of ups and downs over the past decade. The currency reached its peak at $ 20,000 in December 2017 before surpassing $ 40,000 recently on March 23rd 2019! It currently hovers around $ 30K USD with a 24 hour volume now exceeding 150 million dollars (according to CoinMarketCap).
Ether, the cryptocurrency on Ethereum‘s software platform and which enables decentralized apps (dApps) and Smart Contracts is currently considered a more technologically advanced currency than Bitcoin. What sets it apart from other currencies are that transactions can be delayed or approved based on real world events as opposed to just being verified through an algorithm like in bitcoin.
It has been successful due to its amazing potential for solving many problems within society such as improving economic markets by allowing people anywhere in the world who have internet access investment opportunities without any borders or limitations. It currently holds second place for market capitalization, right behind Bitcoin with approximately $154 billion at its current value.
Litecoin is a cryptocurrency created by Charlie Lee, former Google engineer and MIT alumnus in 2011. It was designed to simplify the underlying technology for cryptocurrencies while addressing some of Bitcoin’s limitations such as transaction speed. Litecoin transactions take less than 3 minutes which are four times faster than that of Bitcoins’ 10-minute transaction time. This makes it more viable when compared with other BTC clones because its size means that vulnerability of 51% attack decreases significantly due to lower difficulty required for an attacker to gain control over network’s mining power.
One of the most successful and earliest shares of cryptocurrency, Bitcoin Cash (BCH) came into being in August 2017. It came with the idea to increase data storage capacity for each block (from 1 MB to 8MB), which enables faster transactions. Although BCH is much less popular compared its predecessor, many users have pointed out that BCH’s scalability makes it a very promising cryptocurrency.
The Polkadot project was created by Ethereum’s Chief Technology Officer Gavin Wood and is an improved proof-of-stake cryptocurrency. The protocol features several blockchains running in parallel, a solution for Bitcoin’s blockchain problems that have arisen over the years. Smart contracts, scalability, security aspects – these are all new innovations which make this currency more attractive than ever before!
Ripple (XRP) is a centralized currency that was created and marketed by its founding organization, Ripple Labs. Due to this centralization it has one major drawback: no decentralization. Although the creators of XRP designed it as a cryptocurrency in order for people around the world to be able to trade freely without restrictions from any government or institution, many questioned if they could still call it crypto due how much power these founders have over their creation and who gets access while others do not.
Despite some believing that because banks are using them doesn’t make them true cryptocurrencies, Ripple’s transactions can happen quicker than other currencies like Bitcoin which allows financial institutions an alternative when there isn’t enough time on the SWIFT network during busy periods such as Black Friday sales.
Cardano (ADA) is a fairly new cryptocurrency launched in 2017. It stands out for being the first to implement “Ouroboro’s proof-of-stake” system. This means that it uses an algorithm which ensures greater efficiency than both conventional cryptocurrencies who use the Proof of Work protocol as well as POS currencies like Ethereum. It runs on Cardano network with smart contracts monitoring transactions just like Bitcoin but also offering better transaction speed without compromising security or decentralization.
Stellar is an open blockchain network and has emerged as one of the biggest competitors for Ripple. They are looking to be a major player in both domestic transactions between financial institutions, international transfers, real estate purchases or sales, privately-held stocks trading on stock markets and more. Stellar’s 2020 growth was incredible given that it increased by 200% during their first week of January 2021 – giving them stellar momentum heading into this year!
Advantages and disadvantages with Cryptocurrencies
- Cryptocurrencies are a safe alternative to fiat currencies.
- Currencies like Bitcoin are resistant to inflation.
- There is no third-party interference with cryptocurrencies.
- Transactions can be done anonymously.
- The cryptocurrency market never sleeps. It is active 24/7.
- Investments are transparent, and each item is added to a decentralized blockchain.
- You do not have to invest in a whole unit of the currency but you can buy a fraction of it.
- Access to an alternative payment method.
- New digital currency that is completely decentralized.
- Good for payments and large purchases online.
- Programmed with a finite supply.
- High liquidity, means that you can quickly convert them into a fiat currency.
- Cryptocurrencies are very volatile.
- Fraud – Check so that your crypto exchange meets adequate KYC requirements for compliance.
What is the single most important thing to know about cryptocurrency before investing?
One cannot predict the future price or market fluctuations. Cryptocurrency becomes very volatile during times and people can lose a lot of money if they don’t sell their coins when prices fall.
Are we overreacting to a temporary correction or do you think crypto is a bubble waiting to burst?
Cryptocurrency is inevitable. It’s going to take time for people to adapt, but eventually crypto will be the norm.
If you had invested $1000 in bitcoin on January 2020 and sold your bitcoins today where would they have ended up?
If one bought Bitcoin at a low point of $5400 then their investment would now be worth about $26000 – meaning that over 100x of what someone put into it has been generated! That is an incredible return even though there are many risks involved with cryptocurrency investing.
What is the difference between the prices of crypto and stocks?
Cryptocurrency and stocks are two different things. Cryptocurrencies like bitcoin, ethereum or litecoin function through blockchain technology to secure transactions between people without the need for a middleman like banks. Cryptos can’t be manipulated by governments either because they aren’t tied down to their national currency.
What would be a good investment to have in the cryptomarket?
A good-to crypto for beginners is Bitcoin. Cryptocurrency wallets are available on most platforms and all that’s needed to purchase Bitcoins is a form of ID or proof of residency as well as the wallet’s address.
What is the best and safest way to invest in cryptocurrency?
The safest and best way to invest in Cryptocurrency is through Coinbase, which offers a mobile app for iOS and Android. The app stores your crypto assets securely on the device with encryption technology to keep them protected from hackers or other bad actors looking to steal your coins.