Cryptocurrencies have become increasingly popular as the world learns about their existence and ability to be traded for other currencies (like USD). There are hundreds of coins that you can change, but not all of them are created equal. To start trading in cryptocurrencies, many investors prefer to use cryptocurrency mining.
Some are backed by large teams with strong leadership, while others are supported by nothing more than vaporware. Based on current market conditions and future potential, I’ve put together a list of the seven best cryptocurrencies you should invest in.
1. Bitcoin (BTC)
The first mover in terms of market capitalization, Bitcoin has captured more headlines than any other cryptocurrency.
New developments surrounding it (including an ETF and large firms like Microsoft accepting BTC) only serve to legitimize it further.
It’s hard to say anything definitive without a crystal ball, but if history is any indicator, investing in BTC right now is not a bad idea (not guaranteed to make money, mind you).
2. Binance Coin (BNB)
Binance Coin (BNB) has several advantages over other cryptocurrencies that make it worth looking into.
Firstly, BNB can be used to pay fees on the Binance exchange, one of China’s most popular cryptocurrency exchanges.
Even better, however, is that holding BNB gives users access to special features and discounts on Binance. Despite its potential rewards, many cryptocurrency investors are still sitting on their hands when it comes to buying up some BNB.
3. Ethereum (ETH)
The only altcoin on our list with a larger market cap than Bitcoin, Ethereum is second to none in terms of public interest. That’s because it offers something unique: smart contracts.
For starters, they’re software that allows two parties to easily exchange money, property, or other value without relying on outside forces like a bank or government to facilitate an agreement.
They’re used for everything from renting storage space on Sia (a decentralized storage platform) to paying someone $200 over an agreed period using Ethereum-based apps.
The main appeal is their ability to carry out transactions without human intervention and record-keeping, resulting in less corruption and fraud and more security for investors against theft and data loss.
4. Cardano (ADA)
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source. Cardano is developing an innovative contract platform that seeks to deliver more advanced features than any protocol previously developed.
It is the first blockchain platform to evolve from a scientific philosophy and a research-first driven approach. The development team comprises a large global collective of expert engineers and researchers.
5. Uniswap (UNI)
Trading cryptocurrency has never been more accessible. Uniswap is a protocol for decentralized token trading (not an exchange).
It takes care of front-end, order-matching, and settlement. All trades are trustless, and execution is instant.
This means traders on different trade sides don’t need to know each other or send funds to an intermediary business that happens behind the scenes through a smart contract.
6. Compound (COMP)
The Compound platform is a decentralized, peer-to-peer marketplace for shorting and leveraging digital assets.
With a built-in intelligent contracts system, Compound lets users automate their lending investments, trade derivatives, and hedge risks across multiple platforms with reduced counterparty risk.
The Compound is currently used by institutions such as P2P lending company Auxmoney and cryptocurrency exchange OKCoin.
The network also allows cross-currency swaps between crypto-assets and other financial instruments.
7. Polygon (MATIC)
Polygon is a cryptocurrency based on Proof of Stake (POS). MATIC stands for Money and Trade Initiative Coin.
MATIC was created to encourage good business practice and ease and security of transactions, making it an ideal currency for crypto-traders.
In addition, there are no transaction fees, so using MATIC is always cost-effective. To further help spur the adoption of Polygon, support is offered to merchants who accept Polygon payments in their businesses (receiving up to 50% back).
Currently, there are over 2500 active masternodes worldwide, with more being set up daily.
While many people have strong opinions on cryptocurrency, there’s no consensus on which is better than others.
However, you can consider what some industry insiders have to say about their preferred coins: Bill Gates mentioned Bitcoin is exciting because it shows how cheap it can be.
Bitcoin is better than currency because you don’t have to be physically in the same place. Of course, money can get pretty inconvenient for large transactions.