As a digital currency, cryptos aren't regulated by the government or financial institutions. Instead, cryptos are based on blockchain technology. So far, bitcoin is the most popular and valuable cryptocurrency by Ethereum. With the growing popularity of digital currency on Wall Street, more cryptocurrency options continue to spring up.
Currently, there are more than five thousand digital currencies in the market. While you can perform online exchanges with cryptocurrencies, the same can be used as a long-term investment. However, if you are not familiar with the market, investing in it can be risky. Here are the top five Cryptocurrencies to invest in 2021. You can also learn more about the new topiacoin.io and altcoin.
Bitcoin is the oldest and the most valuable currency available. It has the highest price, market cap, and volume of other digital currency options. In a market full of thousands of cryptos, bitcoin boasts a shopping 40% market share.
Most businesses such as Visa accept bitcoin as a medium of exchange, and Tesla's Elon Musk recently invested more than $1.5 billion in bitcoin. The only downside of investing in bitcoin is fluctuating prices which are consistent and can be in thousands of dollars. This makes it an option for few investors.
Ethereum is the second-best Cryptocurrency that also serves as a network for developers to build their own digital money using Ethereum. Ethereum comes with multiple sophisticated technologies that have given it a decisive advantage against other cryptocurrencies.
The main disadvantage of using Ethereum is that it is much slower since it uses a single transaction channel, and the system can overload, slowing down transactional processes. Furthermore, an error in the Ethereum wallet led to a loss of more than $60 million following a cyber hacking in 2016.
Binance option was once an industry leader until 2017 when fluctuating prices reduced its value significantly. However, Binance Coin has managed to bounce back and reclaim its original market position posing fewer risks.
Another thing that gives Binance a competitive advantage is that it was developed by a company of tech experts and has continued to maintain a robust blockchain.
Tether is closely tied to the US dollar, making it one of the most stable digital currencies. One Tether unit equals one Us dollar in the
The Federal Reserve Bank is making Tether an excellent option for investors seeking to transact with their cryptocurrency.
Cardano is both crypto and a network with little yet significant footprints. It is popular with most investors given its simple and easy transaction process. The cryptocurrency also strives to stay ahead of hackers by creating certain loopholes and improving its development.
The only downside of this otherwise convenient cryptocurrency is relatively tiny, with fee adopters and developers. This makes it less attractive to long-term and growth-focused investors.