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Being a newbie in the world of cryptocurrencies can be overwhelming, especially with so many different cryptocurrencies out there. Which currencies are worth investment and how can you determine this ahead of time?
For your reference, here are the top 5 cryptocurrencies you can invest in right now, market capitalizations, or the cumulative value of all currently circulated coins.
What Are Cryptocurrencies?
A cryptocurrency or crypto represents a digital currency that operates through a computer network as a medium of exchange. It is a type of digital asset created using cryptographic techniques for buying, selling, and trading.
Such currencies do not depend on a central authority for maintenance or upkeep, such as a government or a bank. The ability to circulate cryptocurrencies without a monetary authority as a central bank distinguishes them from traditional fiat currencies controlled by national governments.
Top 5 Best Cryptocurrencies You Can Invest In Right Now
Let’s check the top 5 currency cryptocurrencies and how to invest in them!
Table of Contents:
1. Bitcoin (BTC)
Even though bitcoin has fallen in the last couple of months, it is the cryptocurrency that has the highest potential to rise again. Despite that, bitcoin’s current position is still at the top of the rankings in terms of both market capitalization and popularity, indicating that it will remain at the top for some time to come.
In the history of cryptocurrency, Bitcoin has presented traders with the best value. During its rise to fame, its price has skyrocketed, and bitcoin’s future scope is now going anywhere down. One Bitcoin was approximately $500 in May 2016. Currently, the price of a single Bitcoin is around $16,131, which is a 3,126% increase. However, no more bitcoins will be created after the first 21 million are mined successfully; so if you plan to invest in such a currency, now is the right time!
Many new products only accept Bitcoin (BTC) as payment because US dollars (USD) are so scarce. Thus, investing in Bitcoin and deciding to buy Bitcoins is still a smart move.
2. Ethereum (ETH)
Because of its potential applications, including so-called “smart contracts” that automatically execute when certain conditions are met and non-fungible tokens; Ethereum is a darling among programmers (NFTs). The platform allows users to design and execute decentralized applications (dApps) without being controlled or influenced by third parties.
Ethereum is both a cryptocurrency and a blockchain platform that has experienced enormous growth. Its price increased by 10,161% from $11 to $1,129 between April 2016 and November 2022. After Bitcoin by a wide margin, Ether, launched in 2015, currently has the second-largest market capitalization.
You can easily use a crypto wallet if you want to transfer your coins, exchange them, or simply connect to dApps.
3. Litecoin (LTC)
Litecoin (LTC), which was first introduced in 2011, was one of the first digital currencies that aimed to follow Bitcoin’s fame. According to technical details, the main chain of Litecoin is based on a slightly modified version of the codebase of Bitcoin.
As a result of its quicker block generation than Bitcoin, Litecoin provides shorter confirmation times for transactions. This is because Bitcoin was the very first cryptocurrency to be created. In addition to software developers, an increasing number of business firms are starting to show support for Litecoin.
4. Tether (USDT)
The cryptocurrency stablecoin Tether is backed by assets. In 2014, Tether Limited Inc. announced its launch. It represents a type of cryptocurrency striving for a stable assessment. When investors want to hold funds within the cryptosystem but avoid the volatility that characterizes cryptocurrencies, they use Tether.
The stablecoin means that Tether is backed by fiat currencies like the Euro and U.S. dollars and fictitiously retains a value equivalent to one of those denominations. As a result, investors who are cautious of the severe volatility of other coins choose Tether. This preference is because its value is theoretically expected to be more stable than that of other cryptocurrencies.
5. Polygon (MATIC)
The cryptocurrency Polygon was established in 2017, and before changing its name, it was known as Matic Network. It is a platform for connecting and constructing Ethereum-compatible blockchain networks.
For Ethereum, Polygon provides various scaling architecture alternatives, including the Plasma Chain and the Matic PoS chain. Compared to using Ethereum directly, this results in significantly lower gas rates. Aside from that, Polygon can process 10,000 transactions per second, making it one of the fastest networks.
Polygon is also known as Ethereum’s internet of blockchains. Perhaps, as a result, MATIC offers compatibility with over 7,000 decentralized apps (dApps). Since its initial release, Polygon has also grown significantly.
When MATIC was initially introduced; its price was $0.00263. MATIC is now trading at $0.85, which is 32,276% higher. If you are still confused about how the whole digital currency system works, check out ebooks about cryptocurrencies to increase your crypto knowledge!
In Conclusion
If you think about investing in cryptocurrency, you’ve made the right decision. If you are not sure how digital money works, how to do it, and what are the best cryptocurrencies you can invest in right now, read this blog.
The five cryptocurrencies mentioned above are in high demand. If you opt for any of these cryptocurrencies, we do not doubt that you will see some numbers rising. You simply have to make the call on which one you want to invest in. I hope you like this article. Thanks for reading.
