After a break, the cryptocurrency market is growing rapidly, and many experts believe that Bitcoin can set a new record. However, suppose you are one of those who do not yet invest portfolio in this market and are looking for suitable currencies to invest in. In that case, this article has been prepared for those who intend to invest.
Before we introduce the best cryptocurrencies for investment, we first need to talk a little about the reasons for choosing these currencies.
What were the unique features of the upcoming currencies compared to the other Altcoins (An Altcoin is an alternative digital currency to Bitcoin) that could be included in our list?
To answer the above question, we must say that the first factor is when that digital currency was created. Therefore, the cryptocurrencies introduced in this list are among the currencies that have been presented in the market for a long time.
Many digital currencies are local tokens for a specific project. Ether, for instance, powers all projects operating on the Ethereum blockchain platform. Therefore, no matter how advanced and secure the technology used in a project and its specific digital currency is, a bright future can be imagined for those cryptocurrencies. Moreover, the higher the transaction speed of a project, the more valuable its cryptocurrencies will be.
Another critical factor is the acceptance rate of that currency. In other words, what do people and public investors think about it? Are there many people who buy and sell it every day, or are only a tiny part of this community eager to trade it?
Keep in mind that the higher the liquidity of a currency, the easier it will be to buy and sell in the future. However, there may be some significant cryptocurrencies to invest in that we have not listed because of their limitations. Also, do a simple search in this regard. You will see that no two lists have introduced the same currencies, which shows that the market of cryptocurrencies is very diverse.
Table of Contents
Bitcoin – Ready Money – THE KING
It is not a surprise to start the list of the best currencies to invest in with “Bitcoin”. This digital currency is the first and best currency that you should always have in your portfolio. This is because the price, market share, and trading volume of Bitcoin are much higher than other cryptocurrencies.
Even with thousands of other altcoins, Bitcoin still accounts for more than 40% of this market. Therefore, it is challenging for another digital currency to take over this ranking from Bitcoin.
In addition, of all the currencies, bitcoin has the highest liquidity. High liquidity means that whenever you decide to sell your bitcoins, there will always be someone else who wants them.
Ethereum – Smart Contract (This means they have a balance and they can send transactions over the network)
Ethereum, or ETH for short, is one of the best digital currencies for future investment, raising the issue of “Smart Contracts” as the first project in the world of blockchain and cryptocurrencies. Thanks to intelligent contracts introduced by Ethereum, blockchain and digital currencies have gone beyond a new financial system, allowing various developers to create a variety of “decentralized applications” (dApps) for PCs and smartphones.
Ethereum has since established itself as the first Bitcoin alternative and will likely remain so for years to come. It is also the second Crypto in terms of liquidity. This means that you will not have a problem buying and selling this currency, and there is always someone who will buy your Ethereum’s.
Litecoin – Lightning Network (Instant Payments)
The Cryptocurrency “Litecoin” (LTC) was launched in 2011 at about the same time as Bitcoin. Litecoin claimed that its transaction speed was four times faster than Bitcoin but could not replicate the success of the cryptocurrency.
However, Litecoin has always been one of the top digital currencies on the market over the years. In 2017, Litecoin became the first Crypto to make a transaction on the Lightning Network.
If Litecoin can take full advantage of this network, the value of these cryptocurrencies will surely grow well. In addition, do not forget that Litecoin is one of the digital currencies that is highly correlated with Bitcoin. Therefore, any change in the value of Bitcoin will directly impact Litecoin.
Binance Coin – the Largest Digital Currency Exchange
Binance Coin, also known as BNB for short, is another excellent Cryptocurrency for those who have significant currencies such as Bitcoin and Ethereum and want to increase the variety of their shopping cart.
The company behind these cryptocurrencies, as its name implies, is Binance, which is known as one of the largest digital currency exchanges in the world. The company has a brilliant track record so far. It seems to have a specific goal in mind for its digital currency, Binance Coin. Binance wants to encrypt its application token in its ecosystem.
Moreover, its value is determined by the demand of the people to buy it. Having said that, by having Binance Coin in your account in Binance Exchange, you will get a discount on your transaction fee; there is no problem in terms of demand for these cryptocurrencies, and it also happens to increase its demand.
Cardano – Proof of Stake
Cardano is one of the Cryptos that uses the Proof of Stake algorithm to verify transactions. This means that, like Bitcoin, you no longer need robust hardware and high-power consumption to verify transactions. That is why Cardano is known as one of the most environmentally friendly cryptocurrencies, which has made it popular among investors. It is currently the fifth most valuable digital currency and has a bright future.
It goes without saying that when we talk about Cardano, we mean the same “ADA” token that is used in Cardano’s project. Therefore, both Cardano and ADA can be used to describe these cryptocurrencies.
Other popular and top cryptocurrencies are worthwhile investing like Solana, XRP, Polkadot and Tron.
To sum up, as said before, the currencies listed here are for reference only, and you must do the necessary research yourself before investing in them. For example, suppose there is another digital currency that you believe can grow well in 2021. In that case, you can invest in them as well, but make sure you are confident enough about the credibility of that Crypto before investing.