With more than 5000 cryptocurrencies, choosing the best cryptocurrencies to invest in is not an easy task. However, we have created a list of some of the cryptocurrencies that may be worth investing in 2021.
This is the most popular cryptocurrency in the world. In fact, the popularity of this digital currency is one of its biggest advantages over other cryptocurrencies on the market. As long as Bitcoin continues to be the number one cryptocurrency in the market, investors will always benefit from high levels of liquidity. Even in times of market uncertainty. Over the years, Bitcoin has shown unstable but steady growth.
Cryptocurrencies, such as Bitcoin, rely on blockchain technology, which stores information about cryptocurrency transactions within a “block” of data, which can contain up to 1 megabyte of data. As the currency became more and more popular, these data blocks filled and slowed down bitcoin transactions while transaction charges were increasing.
Some Bitcoin developers have proposed a solution that would effectively reduce the amount of data required in each block. Still others believed that this would jeopardise the integrity of Bitcoin as a cryptocurrency. So, they created their own version of Bitcoin, in August 2017 and named it Bitcoin Cash. Bitcoin Cash is a blockchain that can store 8 MB of data, thus allowing faster and more frequent transactions, with lower charges. Bitcoin Cash may be relatively new and less popular than Bitcoin, but its growth may mean that it has incredible potential. This makes it one of the best cryptocurrencies on the market for many of its supporters.
Litecoin is another cryptocurrency that you should not ignore. Litecoin is one of the fastest and most affordable cryptocurrencies in terms of payments. Its technological profile has put this cryptocurrency in third place due to its market capitalisation.
Ethereum is on the list of emerging cryptocurrencies. Bitcoin is the most popular cryptocurrency, but Ethereum is by far one of the most powerful. Ethereum’s blockchain chain allows the development of thousands of projects over it. Ethereum and the power of this currency are closely linked to the power of its network. The more decentralised applications and ecosystems are based on the Ethereum network, the more power will be given to it. Although Ethereum is unlikely to reach the price of Bitcoin, analysts are still seeing huge potential for this cryptocurrency in the future.
The project started in 2015 by a group of academics and mechanical computers and the cryptocurrency was “released” in 2017. It offers a unique approach regarding the security of the blockchain network. It is considered a relatively new 3rd generation cryptocurrency. The cryptocurrency that operates through this network is called ADA. Its capitalisation reaches $38 billion, and soon the network will accept smart contracts. In total, up to 45 billion Cardano will be on the market.
It started in 2013 as a joke from the well-known meme “Doge”. Jackson Palmer and Billy Markus turned the meme into a cryptocurrency to “make fun” of the rise of altcoins. However, its great popularity on social media changed its course.
It had not offered much thrill and profit until recently, and became widely known recently due to the tweets of Elon Musk, who claims to be a supporter of DOGE. Its capitalisation has exceeded $7 billion. Dogecoin is faster than other blockchains and there is no limit to currency generation.
The risk in cryptocurrencies is great and will always be here. So, be very careful when choosing a crypto currency to invest in.