If you plan on investing in cryptocurrency, you should check out which currencies available today will yield you great returns. For beginners at crypto, a cryptocurrency takes coins or tokens and exists on a decentralized and distributed ledger.
Bitcoin continues to lead in the world of crypto, and if you’re planning on investing in cryptocurrency, what other virtual currencies can you support aside from Bitcoin?
Top 5 currencies to consider when investing in cryptocurrency
The first on our list (and on anyone’s list, for this matter) when it comes to investing in cryptocurrency is Ethereum. ETH is a decentralized software platform that allows smart contracts and dapps (decentralized applications) to run without downtime, control, fraud, or interference from third parties.
The second on our list when it comes to investing in cryptocurrency is Litecoin. It was launched in 2011 and has always been the “silver to Bitcoin’s gold.”
It was created by Charlie Lee – a former Google Engineer. Litecoin uses an open-source global payment network controlled by a central authority and uses “scrypt,” decoded using a consumer-grade CPU. It has a per token value of $153.88, which makes it the 6th largest cryptocurrency worldwide.
Bitcoin Cash (BCH)
BCH or bitcoin cash is one of the earliest and most successful hard forks of the original Bitcoin. A “fork” occurs when there is an argument and debate between the developers and crypto miners, and BCH came to life in August 2017 due to this split.
The market capitalization of BCH is at $8.9 billion as of January 2021, and its price per token is $513.45.
Stellar provides enterprises with solutions by connecting various financial institutions to conduct large transactions. For instance, huge transactions between banks and some investment firms usually take several days. Still, you can now do it instantly with no intermediaries and with lesser costs incurred through Stellar.
Jed McCaleb founded Steller (a founding member of Ripple Labs), and as of January 2021, it is valued at $0.27.
When it comes to investing in cryptocurrency, Doge has made an unusual entry. Started from a popular internet meme of a Shiba Inu, Dogecoin was created as a “joke” on the blockchain craze.
However, the currency has surged by approximately 4,000% this year alone, which immediately made it the 8th largest cryptocurrency by market cap. Of course, Elon Musk’s tweets about Doge contributed to its significant increase. Still, aside from this, its more extensive circulation and unlimited capacity for mining make it popular among investors.
Investing in cryptocurrency is something that you shouldn’t jump on if you do not understand it yet. It is free from the manipulation and control of the government and of any individual, which means no one will be liable for the losses you will incur but you.
Before putting your money into an investment, make sure that you have studied it well and have gained a deeper understanding of what it is really about and the possible risks.
What's your reaction?