Find Out Which Cryptocurrency Is The Most Lucrative to Invest In This Year
Cryptocurrencies are virtual or digital currencies that work on Blockchain technology. They are not formally controlled by any centralised institution or the government. As the investment in cryptocurrencies is on the rise, more and more new ones emerge every single day. Currently, there are more than 5000 cryptocurrencies that are floating around in the market. So, if you have ever tried to Google, “cryptocurrency to invest in 2021” or “top 10 cryptocurrencies,” you must have seen numerous options. There are so many cryptocurrencies in the market that it can get hard to make a choice.
Here is a list of the top cryptocurrencies to invest in to get good returns!
When we think of cryptocurrencies, the first name that comes to our mind is Bitcoins in most cases. Since its invention in 2009, Bitcoin has become a topic of discussion amongst every investor group. It has been in the market for the longest time as compared to other cryptocurrencies. Moreover, it is the leader of all other cryptocurrencies with a much higher market cap, volume and price. Bitcoin represents 43% of the total market cap of cryptocurrencies. Many major businesses have even announced that they accept payments in Bitcoins, so it can be a smart investment option. However, before making an investment, you must keep in mind that there can be a lot of price fluctuations, so you should not concern yourself with it too much and consider it as a long-term investment.
Ethereum is slightly different from Bitcoins because apart from being a cryptocurrency, it also has the Ethereum network where developers are allowed to create their own cryptocurrency using their network. Although it came into the market much after other cryptocurrencies, it is a good investment option. Its unique technology has helped it make a place for itself in the market and its value is way higher than any other cryptocurrency. However, you must note that the transactions in Ethereum might take longer in case of an overloaded network because it uses only one “lane” in Blockchain technology for its transactions. In addition to that, there was a security flaw in Ethereum that led to a hack in 2016. This resulted in a loss of Ether worth over $50 million.
XRP was created by Ripple which is a famous payment processing company. It is a good investment option because Ripple is making a lot of investments in token projects that use the ledger of XRP. So, it is being said that XRP is being positioned as a tough competition for Ethereum. However, you must note that a lawsuit was filed against Ripple in December 2020 by the Securities and Exchange Commission. Two of its executives were allegedly violating the registration provisions stipulated under the Securities Act, 1933. They were accused of raising more than $1 billion using unregistered digital asset securities.
Binance Coin (BNB)
One of the few cryptocurrencies that reached the zenith of success after 2017 is Binance Coin. 2017 saw a bull market in which the prices of cryptocurrencies increased drastically. They reached a high peak before decreasing in value. Binance Coin, unlike other cryptocurrencies, continue a constant albeit slow upward trend after 2017. Thanks to its performance, Binance Coin is now known as a stable investment option that poses fewer risks as compared to other cryptocurrencies.
Cardano has a relatively smaller footprint as compared to other cryptocurrency networks. This appeals to investors as with Cardano, it takes considerably less energy to carry out and complete a transaction as compared to larger networks like Ethereum and Bitcoin. Hence, the transactions are cheaper and faster. Moreover, Cardano is super secure and adaptable.
A facetious meme showing the dog of Shiba Inu marked the beginning of Dogecoin. However, in time, DOGE has become one of the biggest cryptocurrencies around the world. Personalities like Mark Cuban and Elon Musk invest in Dogecoin and Musk even called this cryptocurrency one of the most meaningful assets that he owns.
Ethereum leaders created Polkadot as they were trying to find a better cryptocurrency network. Polkadot uses a number of lanes to complete transactions. This cryptocurrency has been designed to weed out individuals who trade only to get quick money and to reward genuine investors. Investors engaged with this platform even help in making important decisions like network upgrades, fee and much more.
As is evident, cryptocurrencies are undoubtedly here to stay. But which cryptocurrency should you invest in this year? What is the best investment plan for you? The answer is simple. When considering the most lucrative investment for yourself, consider the following things:
- The transaction fee
- The speed of transactions
- Can you use your cryptocurrency to make bank transfers and for regular purchases?
If you strictly seek to invest without making transactions within a cryptocurrency network, keep in mind that cryptocurrency is not really a scheme to get rich quick. Hence, it is important to consider the fact the cryptocurrency is essentially a long-term investment.