Cryptocurrency probably is one of the best ways to invest your money, especially because it is a growing market with a promising future. When Bitcoin was introduced into the market for the first time, it was uncertain whether it would survive. Those who invested in the coin at that time were the luckiest people because they bought it all at very low prices but are now selling at high prices. This has enabled them to make large amounts of profits, and most of them are now millionaires. As a result, individuals have been searching for the best crypto to invest in, at least to try their luck.
Bitcoin is not the only cryptocurrency in existence. Many others have come up, and most of them seem to have good offers and promising futures. If you are to benefit from investing in the cryptocurrency market, you must know the different available coins and the advantage each has.
Here are the 9 best cryptos to invest in
7. Binance coin
8. Stellar Lumen
Bitcoin BTC is not any different from other high-risk investments in the sense of practical application. Whether you decide to put your money into it or not is highly dependent on your risk tolerance and future goals and objectives. Bitcoin is a renowned cryptocurrency as it was the first to be introduced to the world. Despite the emergence of many different cryptocurrencies, bitcoin still remains the best investment you can make in crypto. It is available on almost all crypto exchanges and is also the most widely accepted for payment. Due to its popularity, Bitcoin’s price is significantly more stable than some of the recently developed coins on the market.
Bitcoin’s influence on cryptocurrency will never be matched by any, but again its age seems to be working against it. The technology behind the Great Bitcoin invention is becoming outdated day by day since creatives are coming up with better inventions. Furthermore, Bitcoin BTC has been receiving criticism because of the adverse effect of the mining and use of bitcoin. If it is to survive, Bitcoin must come up with better ways to conduct such activities. However, it is without a doubt that Bitcoin is the best penny cryptocurrency to invest in 2021 and the best cryptocurrency to buy today.
Also read: The Next Bitcoin
The Pros of Bitcoin
Fast and efficient
It would take you a few minutes to send any amount of cash using Bitcoin and this factor is not dependent on the location. Most traditional banks charge huge chunks of money to transact through their system, especially if you send the money to a faraway land. With Bitcoin, you can efficiently send money to anyone worldwide within seconds and at an affordable rate.
Unlike traditional banks, Bitcoin uses a decentralized system to operate its activities meaning that it cannot be regulated by any government nor Central bank. There is no third-party body involved therefore no one has the authority to freeze or take control over your money.
Bitcoin enables its users to transact without revealing any of their private details. The risk of hackers getting hold of your money is also eliminated since every user is given a private key to their account, one that they must only keep to themselves. The Bitcoin website is also highly secured with firewalls that hackers are unable to break.
Cons of Bitcoin
It is Volatile
Bitcoin’s prices are liable to change rapidly and unpredictably as they continually rise and fall. If you can take the risk, well enough. Genuine investors however see Bitcoin and the rest of its kind as avoidable risk and opt not to invest in it.
Risk of Loss
If the hardware or software wallet you are using to store your coins gets lost, you can never recover that money. A wealthy Bitcoin investor could simply get bankrupt if such an event occurs.
Ethereum is Bitcoin’s largest competitor and could probably be the next big thing. The cryptocurrency was developed in 2015 by a Russian Tech guy and currently holds a market capitalization of about$40.6 billion. Ethereum eth was developed to create smart contracts, which is like a command. When many smart contracts are combined, it forms something known as DApps (Decentralized Applications). Decentralized applications are becoming more popular because they eliminate intermediaries, in this case, exchanges that run on centralization. Most cryptocurrencies emerging are actually DApps that run on the Ethereum blockchain system. There are speculations that Ethereum eth could be the next big cryptocurrency, as experts have demonstrated how it could be the next cryptocurrency to explode in 2021.
Also read: The Best Ethereum Wallet
Pros of Ethereum
Coin Price Is Reasonable
The Ethereum coin currently sells at a lower price than bitcoin, giving it an advantage. The reasonable price per coin makes it easier to conduct technical analysis on price charts. Ethereum is a stable coin, therefore, tries to maintain its prices.
The Ethereum network has received security threats before but the platform managed to neutralize them. This gave people confidence in the platform because they witnessed Ethereum defend the network. People want to invest their money where risks such as cyberattacks are low or non-existent.
Ethereum is accessible to everyone across the globe as long as there is an internet connection. Like Bitcoin, Ethereum is decentralized therefore not controlled by any region or country.
Cons of Ethereum
Slow Transaction Speed
The proof of work feature used by the platform to approve transactions makes the network slower and subject to congestion. This slowness is however justified by the decentralization, security and tradeoff speed.
It Is Not That Well-known
Not everyone is aware of Ethereum and this is a disadvantage because some retailers might not accept it as a means of payment. However, it is expected to be the most popular and probably the best crypto to invest in India 2021 and anywhere else worldwide.
Litecoin is another cryptocurrency that seems to be growing at a high rate. It was introduced to the market in 2011 and since then, its popularity has gone to greater ends. Litecoin allows its users to have fast, low-cost global payments via its decentralized network. Generally, it is supposed to be the faster and better version of Bitcoin, with vast coins supplies. This explains why it is mostly referred to as the “silver to Bitcoin’s gold.” Even though the next big cryptocurrency after Bitcoin is Ethereum, Litecoin’s future seems to be bright. Its technical pros and credibility make it a probable long-term contender in the cryptocurrency market. Litecoin is probably the best cheap cryptocurrency to invest in 2021.
Pros of Litecoin
Litecoin is among the top valuable cryptocurrencies in the market, giving it high visibility and liquidity. Due to the volatile nature of cryptocurrency, liquidity is regarded as a key factor and therefore an advantage for Litecoin.
You can rely on Litecoin to provide interest on year investment because it is a stable coin.
Nobody can regulate the activities of Litecoin because it works using a decentralized method. Like Bitcoin and other decentralized currencies, there are no third parties involved therefore the user has full control over their accounts and funds.
Cons of Litecoin
Litecoin is viewed as Bitcoin even though it has proven to be an independent cryptocurrency that is better and faster.
The use by underground vendors on the dark web has ruined Litecoin’s reputation.
Dash was launched in 2014 and had a clear mission of becoming digital cash. At the moment, Dash has plans underway for completing its credit cards and making PayPal its method of payment. The coin is proud to be a facilitator of instant and free transactions, unlike other cryptocurrencies in the market. With the increasing popularity of cryptocurrencies, more retailers online and off will soon accept crypto as a form of payment, which is why Dash has a promising future. Dash may be the cheapest there is and the best cryptocurrency to invest in 2021 for short term and long term. If you were wondering which crypto to buy in India or any other country at an affordable price, you have your answer.
Pros & Cons of Dash
Privacy Is Assured
Dash is a cryptocurrency that ensures users have privacy at all times regarding transactions and finances. They do not let people see your confidential matters because that would expose you to fraudsters.
Faster and Cheaper Transactions
Transactions with Dash are faster due to the InstantSend feature in its network. This is much better than methods used by other cryptocurrencies as it also allows users to transact large amounts of cash.
Lower Transaction Fees
Dash offers low costs for transactions compared to credit cards and banks, making it economical and likable.
One con of Dash is that there are rumors that the core development team members have been stealing two milling coins meant for miners each day.
Ripple was launched to the market in 2012, its main offices being in San Francisco and other offices in twenty-seven countries. Its main focus is multi-currency transactions that are less expensive and faster compared to Bitcoin. Ripple token is known as XRP and the cryptocurrency has a market capitalization of about $332 million. By the end of 2017, Ripple had more than 100 international banks signed up to RippleNet.
Pros & Cons of Ripple
Low Coin Price
The Ripple coin currently sells at a lower price than bitcoin, giving it an advantage. The reasonable price per coin makes it easier to conduct technical analysis on price charts.
Ripple is accessible to everyone across the globe as long as there is an internet connection. Like Ethereum and Bitcoin, Ripple is decentralized therefore not controlled by any region or country.
One major con is the liquidity of Ripple is questionable at the moment although it is among the top cryptocurrencies in the market.
6. Tether (USDT)
This is an out-of-the-ordinary cryptocurrency because its value is connected to the US dollar . Every tether coin is valued at 1 USD, which protects it from the extensive price fluctuations characteristic of most cryptocurrencies. Tether has earned its reputation as a stable coin because of this method and may open doors for the digitalization of the USD in the near future. If you are an investor looking for a stable coin, Tether USDT might be a great option to take.
Pros & Cons of Tether
Tether is known as a stable coin because of its connection to the USD.
Sending money from one USDT account to another is free and if you want to transform USDT to other cryptocurrencies or Fiat, low costs are incurred.
One con of Tether USDT is that it is not known by most people even though its market value among cryptocurrencies is high.
7. Binance Coin BNB
Binance is a decentralized crypto exchange platform for trading that also has its cryptocurrency and it trades with the BNB symbol. You can buy, sell and exchange as many digital coins as possible on the Binance exchange platform at very affordable prices. Users of Binance get a discount if they pay fees with Binance Coin. Binance exchange platform is the largest globally, thus enabling users to trade Binance while ensuring its longevity and growth. Trading with Binance exchange gives traders an advantage since most of their charges are low.
Pros & Cons of Binance Coin
The fact that it is tied to the largest exchange platform is an advantage because users get a lot of privileges when trading.
The largest con of Binance Coin is that more than half of its tokens are owned by the exchange.
8. Stellar Lumen
Stellar is an open-source blockchain that deals with settling global financial transactions such as currency exchange within 2-5 seconds. It is faster than Bitcoin and has better rates, making it more favorable to investors who do not have much money. Currently, the market capitalization of Stellar is about $9.2 billion.
This cryptocurrency will soon be the most popular for new projects and many have predicted that the cryptocurrency my take over Bitcoin’s supremacy as it is both more scalable and less resource-intensive. The mining of its coin has no adverse effects on the environment and provides its services at cheaper rates.
Also read: Bitcoin Mining Rig
Market capitalization (Market Cap)
After listing the 9 best crypto to invest in, lets now go into Bitcoin, the market cap is defined as the total value of coins that have been mined. The value of these coins is calculated by multiplying the number of mined coins by the current market price of a single coin. Market cap can also be used to determine the stability of a coin, or how stable it is likely to be in the future.
However big a cryptocurrency is in the crypto market, it may still be susceptible to volatility which is why market capitalization is important. But the same way a large ship can safely manage its navigation during bad weather is the same way a big cryptocurrency with a larger market cap is likely to survive. Digital currencies with smaller market capitalization are more likely to hover and can regularly encounter huge gains or dramatic losses therefore the value may change from time to time.
One way to tell the value of a cryptocurrency is through its price and the other is by checking its market cap. Investors concentrate more on the market cap to ensure they invest in a digital currency that will last as long as possible. As a key statistic, a market cap can be used to show how much a cryptocurrency can grow. The largest cryptocurrency by market cap is more likely to get investments compared to those with a smaller market cap. When trading cryptocurrency, ensure you check its market cap so as to avoid incurring any losses.
Cryptocurrency is a very risky investment to make, but there is no doubt that it yields large amounts of profits. To venture into such a market, you need to know the different digital currency coins. If you had no knowledge of the option to take, I am sure now you know the best crypto to invest in. The data provided in this article is based on the reviews of each digital currency.