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The blockchain cyberspace is a rare instance of free-market economics that is so plain to see. Because of the lack of restrictions, the decentralized finance (DeFi) business, for example, has developed to a total value locked (TVL) of $80 billion by 2021 from virtually nothing. Furthermore, by 2022, that figure is expected to rise to $800 billion.
With that said, let’s take a look at some high-flying cryptocurrencies and see how they may boost your net worth.
What Are Cryptocurrencies?
First, let’s define a few words like cryptocurrency and altcoin so we know what we’re talking about when we say “alternatives to Bitcoin.” To put it another way, a cryptocurrency is a digital money that comes in the form of discrete “coins.” For the time being, the bulk of cryptocurrencies will stay purely digital. This includes credit cards and other physical initiatives.
As the name implies, “crypto” in cryptocurrency refers to the complex encryption required for the creation, processing, and transfer of digital currencies and their associated transactions across decentralized networks. There is also a shared commitment to decentralization that goes hand in hand with the currency’s “crypto” characteristic. Cryptocurrencies are typically created as code by teams that include systems for issuing and other controls (often but not always through a process called “mine”).
Although they’ve risen in popularity, this fundamental element of the sector has come under scrutiny as cryptocurrencies are nearly usually meant to be free of government manipulation and control. Altcoins, or “shitcoins,” are cryptocurrencies that are based after Bitcoin and have attempted to market themselves as improved or modified versions of Bitcoin. While some of these cryptocurrencies may have unique characteristics that Bitcoin lacks, no altcoin has yet achieved the same degree of network security that Bitcoin has.
Best Cryptocurrency For Long-Term Investment
These days, cryptocurrency is seldom considered a speculative asset. Digital assets are being taken seriously by both retail and institutional investors. Due to all the hype around digital currency, investors now view it as a tool for both short-term profit and long-term gain. However, which of them should you put your money into? Here are a few cryptocurrencies that have been consistently at the top of the market capitalization rankings so you don’t have to. Long-term investors may want to consider them due to their relative stability.
Ethereum (ETH)
When it comes to cryptocurrencies, Ethereum or ether are nearly always in rivalry with Bitcoin. Its crypto market share recently increased from 18% to 20%. There are no third parties involved because it’s a decentralized blockchain network.
To build and execute smart contracts and decentralized applications (dapps) without any downtime, fraud, control, or intervention from a third party, Ethereum uses a decentralized software platform. It is Ethereum’s objective to establish a decentralized set of financial goods that everyone in the world may use freely, no matter where they are in the world or what religion they practice.
People in other nations may be more concerned about the consequences since people without governmental infrastructure and identity may be able to obtain banking services such as credit cards and loans or other financial goods.
Ethereum’s platform-specific cryptographic token, ether, powers the platform’s apps. Ethereum’s ether is like a vehicle for getting about, and it’s desired mostly by developers who want to build and operate apps on Ethereum, or by investors who want to buy other cryptos using ether. Even though it’s a long way behind Bitcoin in terms of market value, Ether, which was created in 2015, is presently the second most valuable digital currency. Ether’s market value is half that of Bitcoin’s as of September 2021, trading at about $3,600 per ETH.
Ethereum conducted an ether presale in 2014 to a roaring success, ushering in the era of the initial coin offering (ICO). To paraphrase Ethereum, “codify, decentralize, secure and exchange just about anything” may be accomplished with it. ETH and ETH Classic were created as a result of the 2016 cyberattack on the decentralized autonomous institution (DAO) (ETC).
Cardano (ADA)
Decentralized blockchain platform Cardano also makes use of a native digital currency (CARDANO). By using it, you may conduct secure peer-to-peer transactions with confidence. Smart contracts will be enabled on it very soon, according to the current intentions.
Developed by technologists, mathematicians, and cryptography specialists, Cardano is an “Ouroboros proof-of-stake” cryptocurrency. Charles Hoskinson, one of Ethereum’s original five founders, was a co-founder of the project. He quit Ethereum because he didn’t like the way the project was going in and went on to help build Cardano in its place.
Cardano’s blockchain was developed by a team of developers that experimented extensively and conducted peer-reviewed research. Over the course of the project’s history, the researchers have published over 90 papers on various aspects of blockchain technology. Cardano is built on this study.
Cardano stands out from its rivals in the proof-of-stake space and other major cryptocurrencies because of this exacting procedure. With its blockchain supposedly capable of more, Cardano has been nicknamed “Ethereum killer.” Having said that, Cardano is still a young project. In terms of blockchain-based applications, it beat Ethereum to the proof-of-stake consensus mechanism, but it still has a long way to go.
This project’s goal is to become the world’s financial operating system by developing decentralized financial products comparable to Ethereum as well as addressing issues such as voter fraud and the tracking of legally binding contracts. At the end of September 2021, Cardano will be the third-largest cryptocurrency by market capitalization, with a value of $71 billion.
Polkadot (DOT)
Many Polkadot applications can now operate on Ethereum and Bitcoin thanks to this currency’s role as a network bridge. This approach has the advantage of being scalable and quick.
This proof-of-stake cryptocurrency, Polkadot, aims to bring interoperability between different blockchains by using a novel approach. In order for systems to operate together under one roof, its protocol is designed to link permissioned and permission-less blockchains as well as oracles. The relay chain at the heart of Polkadot’s system is what makes it interoperable with so many other networks. There is also an option to create so-called “parachains,” which are other blockchains with their native currencies.
Polkadot varies from Ethereum in that developers may construct their own blockchain and use the security that Polkadot’s chain already provides, rather than merely implementing decentralized apps on Polkadot. Developers may construct new blockchains with Ethereum, but they must also develop their own security mechanisms. This leaves fresh and smaller projects vulnerable to attack since a blockchain’s security increases in size. Polkadot refers to this notion as “shared security.”
Gavin Wood, another one of the Ethereum project’s key founders who had conflicting views on the project’s future, founded Polkadot. Poloniex’s value will be around $35 billion by September 2021 when Polkadot’s shares sell for $36.25.
Tether (USDT)
Tokens based on this currency were known as Dollar Coins (USDC). It’s digital money built on the Ethereum network. Bank fiat currency serves as collateral for the coins.
It was the first and most widely used stablecoin, a cryptocurrency that attempts to minimize market volatility by pegging its valuation to a currency or other foreign reference point. Tether and other stablecoins aim to smooth out price swings in order to attract investors who may otherwise be wary since most digital currencies, including the most important ones like Bitcoin, have suffered regular bouts of extreme volatility. The value of Tether is inversely proportional to the value of the US dollar. Transferring money from one cryptocurrency to another in U.S. dollars is easier and faster using this approach than converting to fiat cash.
A blockchain-enabled platform for digital usage of fiat currency, Tether was launched in 2014 and portrays itself as such. With this coin, users may use a blockchain network and similar technologies to conduct transactions in fiat currencies while reducing the volatility and complexity commonly associated with digital currencies. With a market capitalization of $68.3 billion with a par value of $1, Tether is the sixth biggest cryptocurrency as of September 2021.
Binance Coin (BNB)
There is a cap on the total amount of tokens that may be created, like in Bitcoin: 200 million coins. It also destroys or “burns” a significant amount of its money on a quarterly basis. These are some of the primary factors contributing to the asset’s skyrocketing price.
As a utility coin, Binance Coin serves as a means of paying trading costs on the Binance Exchange. Token holders get a discount on their trades since they pay with the token. Binance’s decentralized exchange runs on the Binance Coin blockchain. Changpeng Zhao created the Binance exchange, which now has one of the highest trading volumes of any in the world.
In the beginning, Binance Coin was an Ethereum-based ERC-20 coin. Mainnet launch was ultimately achieved. Proof-of-stake consensus is used by the network. The market capitalization of Binance Coin is $71 billion as of September 2021, with one BNB worth $426.
Cryptos That Have Much Brighter Futures
With over 11,000 cryptocurrencies available now, predicting which ones will be successful in the long run is difficult.
When buying cryptocurrencies, you have to make an educated guess because the industry is so nascent. Because of the lack of regulation, you have no way of knowing if individuals are being honest.
As we progress into the next stage of this technology, many cryptos will fail. That’s why long-term success is more possible for cryptocurrencies led by visionary long-term leaders with solid foundations.
Aave (AAVE)
When it comes to financial transactions, cutting out the intermediaries (banks) is known as decentralized finance (DeFi). Using crypto as collateral for a loan eliminates the requirement for a background check or other documents normally required.
Aave is, at its core, a debt consolidation loan provider. Lending their bitcoin to a lending pool might earn investors interest. This person receives a share of the value lent back to them as interest. It has a terrific track record and a number of solid collaborations. The DeFi industry may also have a significant impact on how banks do business going forward.
Be warned that greater regulation may result in authorities cracking down on the entire DeFi industry. However, this is unlikely to have a catastrophic effect on the market as a whole. Companies like Aave, which are well-established, are much more likely to ensure their goods can withstand any regulatory scrutiny they may face.
Monero (XMR)
Because of its capability to maintain user anonymity, Monero has become quite popular recently. This is made easier with the use of ring signatures and stealth addresses. The Monero cab’s privacy-focused technology conceals the sender and recipient’s identity.
The main issue with Monero’s method is that anonymity isn’t really a choice for anyone using the currency. It imposes complete anonymity at every level. That may irritate some folks.
One of the primary attractions of blockchain technology was the ability to stay entirely anonymous. However, there are some individuals who like this feature and wish to keep their online identities safe.
Algorand (ALGO-USD)
Following El Salvador’s declaration that it will use Algorand to build its blockchain infrastructure, investors in Algorand have seen their investments soar to new highs.
The platform’s creator is Silvio Micali, an Italian computer scientist. ALGO-USD sees itself as a rival to Ethereum in the cryptocurrency market. In terms of pros, it has a low energy consumption proof-of-stake verification method. Bitcoin has been panned because of its high energy usage. ALGO-USD distinguishes itself from other cryptocurrencies by utilizing a proof-of-stake algorithm.
Stellar (XLM)
Stellar is an open ledger network that connects financial institutions for big transactions in order to deliver business solutions. Banks and financial businesses that used to conduct large-scale transactions over many days, requiring several middlemen and costing a significant amount of money may now do it very instantly and for next to nothing.
Despite its positioning as a corporate ledger for institutional transactions, Stellar is an open blockchain that anybody may utilize. Transnational transactions in any currency are possible thanks to the technology. Lumens are Stellar’s native currency (XLM). To transact on the network, users must have Lumens in their possession.
Jed McCaleb, one of the original members of Ripple Labs and the creator of the Ripple protocol, created Stellar. After a while, he decided to leave Ripple and co-found the Stellar Development Foundation with his partner. As of September 2021, Stellar Lumens is worth $0.33 billion and has a market valuation of $565 million.
Chainlink (LINK)
Ethereum’s smart contract network, Chainlink, functions as a link between that network and the rest of the world’s data. The blockchains themselves lack the trustworthiness to link to third-party apps. Since Ethereum cannot connect to data outside its own network, Chainlink’s decentralized oracles enable smart contracts to interact with it.
Several use cases for Chainlink’s technology are described on the company’s blog. The monitoring of water sources for contamination or illegal siphoning in some places is one of the numerous use cases described. Incorporations, water tables, and municipal water bodies may all have sensors installed to keep tabs on their usage. This data may be tracked by a Chainlink oracle and sent straight into a smart contract. Incorporating the oracle’s data into the smart contract may be used for a variety of purposes, including issuing flood warnings to communities and billing corporations for excessive use of a city’s water supply.
Sergey Nazarov and Steve Ellis came up with Chainlink. Chainlink has a market valuation of $13.5 billion as of September 2021, with each LINK worth $30.50.
Best Cryptocurrencies to Invest in Now
While the Bitcoin technology was intended to counteract financial crisis-related economic harm, few realized that it also established a new asset class in addition to digital cash. Now, twelve years later, there are hundreds of cryptocurrencies, each with its own specializations and levels of value, acceptance, and potential. How can investors figure out which cryptocurrencies are the greatest investments in a market worth at least $1.3 trillion? With that in mind, here are the top cryptos to buy in 2021. Because even blue-chip cryptocurrencies may be extremely volatile, investors should only put money on the line if they’re prepared to lose it.
Bitcoin Cash (BCH)
As the first decentralized digital currency, Bitcoin served as a warning sign for others to come. Many Bitcoin users and developers were annoyed by the 1 megabyte limit on the size of the currency’s “blocks” of information on the Bitcoin blockchain. As a result, transaction speeds slowed and fees rose, which is why Bitcoin Cash “forked” away from its parent in 2017, switching to an 8 MB block size. Although BCH isn’t as popular or as stable as Bitcoin Cash, it has the potential to grow much larger and is now the 12th most valued cryptocurrency in the world, according to CoinMarketCap. It’s still considerably over the $342 level it started the year at despite the sharp decline from its April 2021 highs of around $1,600.
Dogecoin (DOGE)
To make the blockchain mania more approachable, Dogecoin was named after the Shiba Inu dog meme prevalent on the internet. Since the beginning of the year, the value of this cryptocurrency has increased by more than four thousand percent, making it the seventh most valuable one. Its value peaked at almost 70 cents in early May, but it has since fallen. For the time being, Dogecoin’s price remains much below $1 due to its higher circulation and the ability to generate an infinite number of additional units at the same time. While the total number of Bitcoins is limited to 21 million, Dogecoin has 130 billion coins in circulation and fresh blocks are accessible every year for mining. Despite its wild speculation, Dogecoin has a higher hash rate than Bitcoin, which gives it a measurable edge over the most popular crypto.
Litecoin (LTC)
Since its inception in 2011, Litecoin has been compared to Bitcoin as the “silver to its gold,” earning the nickname “the silver to Bitcoin’s silver.” Charlie Lee, a former Google developer, and MIT alumnus invented it.
A key feature of Litecoin is that it is built on an open-source global payment mechanism that is not centralized and employs “scrypt” as a proof of work that can be decoded using low-cost consumer-grade CPUs. Litecoin is similar to Bitcoin in many aspects, except it generates blocks at a quicker pace, allowing for speedier confirmation of transactions. Merchants are increasingly accepting Litecoin in addition to developers. Litecoin is the sixteenth-largest crypto in the world, with a market cap of $4 billion and a token value of about $190 as of September 2021.
Top Performing Crypto: October 2021
There’s no escaping the crypto world, whether you’re a casual spectator of the internet phenomena as it takes off on social networks or a potential investor.
Because of record-high stock market gains since the start of the year and Twitter references from celebrities like Elon Musk and Snoop Dogg, it’s suddenly become trendy.
In this article, we examine the best-performing cryptocurrencies currently available on the market.
XRP
As a result of its outperformance over its more moderate competitors, Ripple’s XRP digital asset made news in April 2021 by outperforming Bitcoin and Ethereum.
With a market worth of £33.1 billion, it’s the ninth most valuable cryptocurrency on the market right now.
China’s crackdown has dropped the value of XRP to around one-third of what it was on April 14th, and it has subsequently rebounded considerably to £0.93p per coin.
A rise of 12.31% in the previous 24 hours and a substantial growth of 315.11% in the last year may be attributed to this cryptocurrency, which was launched in 2012.
Sushi (SUSHI)
Sushi, formerly known as SushiSwap, began as a competitor to Uniswap’s decentralized exchange. Since its start, the application’s creators have added a number of new features, and more are on the way. Uniswap does not provide dividends to holders of its tokens, but Sushi does. For every SUSHI token that is staked, token owners earn a fee of 0.05 percent of the total trading volume on the platform.
Token launch pads, loan markets, and even leverage trading are all part of the decentralized application. Shoyu, a new NFT platform being developed by Sushi, aims to take on OpenSea, the current leader in the NFT marketplace industry. This fee will be paid to SUSHI token investors in the form of dividends, rather than being levied to NFT token sellers.
Polygon (MATIC)
In order to keep up with the rapid growth of DeFi, Polygon, an Ethereum sidechain, was created. As a result of Ethereum’s high gas prices, the network’s difficulty to move to Eth2 has been brought to light. Layer 2 scaling options, which process transactions on a side chain prior to submitting a batch to Ethereum’s layer 1 blockchain, are supported by Ethereum co-founder Vitalik Buterin. User transaction costs are drastically reduced as a consequence, allowing them to complete transactions much more quickly.
Using layer 2 sidechains, like Polygon, is important for scaling Ethereum. Switching expenses will keep users on Polygon for the long haul since assets must be linked to the sidechain. Coinbase and Gemini both have Polygon available for purchase.
Final Thoughts
Bitcoin and other cryptocurrencies are here to stay, and that is certain. It begs the question: Where should you put your money to get the highest return?
Here are some more considerations to bear in mind when you choose which cryptocurrency to invest in:
- How quickly transactions are executed
- Costs related to making a transaction
- The ability to make routine transactions and bank transfers with your cryptocurrency
