When the Bitcoin protocol was created, no one suspected that this event would herald the beginning of the era of next generation assets. Now there are over 7,000 cryptocurrencies for various purposes, differing in the degree of perspective, usefulness, and acceptance. The capitalization of the modern cryptocurrency market is about $ 1.3 trillion. How to choose the right cryptocurrency to invest in and is it worth considering digital assets as a tool for making a profit at all.
The rapid growth of the cryptocurrency market gives an unambiguous answer to the second part of the question. Yes, crypto is worth investing in. However, the key rule of all markets applies here: only invest the money that you can lose relatively painlessly. Investments are not a bank deposit, which guarantees, if not profit, then at least the safety of your deposit. Here you can hit a big jackpot, but you can also lose all invested funds.
Dozens of lists of the best cryptocurrencies are published on the network every day. Each of them represents the private opinion of an individual or a small group of people, so you shouldn’t blindly follow the first recommendation that comes across. Below we present our take on the best cryptocurrencies to buy.
Table of Contents
Bitcoin (BTC)
The usefulness and prospects of Bitcoin can be argued endlessly. However, it is impossible to dispute the undoubted fact: he still invariably leads the cryptocurrency market and is clearly not going to give up positions. The first successful cryptocurrency is confidently moving towards worldwide recognition as a legitimate means of payment.
Ethereum (ЕТH)
Against the background of Bitcoin’s achievements, its closest competitor looks rather modest. Ethereum accounts for about 18% of the total cryptoasset market, but that’s more than enough to take the honorable second place.
The Ethereum platform was the first to offer network users the ability to create smart contracts that are executed automatically after meeting the conditions set by counterparties.
This happens without the involvement of banks, clearing houses or other financial institutions and the contracting parties can save significant amounts. Further development of decentralized finance will help expand the use of this platform. It is important that new cryptocurrencies and non-fungible tokens are being created on the basis of Ethereum.
Cardano (ADA)
Cardano is another decentralized blockchain platform that enables fast and reliable peer-to-peer transactions. Unlike Ethereum, this platform is more focused on supporting business processes and is less energy intensive. To reduce power consumption, the platform uses the Proof-of-Stake algorithm. For settlements within the platform, its own ADA coin is used, which now ranks fifth in terms of market capitalization.
Dogecoin (DOGE)
Dogecoin was created as a joke and its creators do not hide it. However, the cryptocurrency, named after the popular Shiba Inu dog meme, has just been lucky enough to attract the attention of influential people.
During 2021, it increased in price by 4000% and was ranked eighth in terms of market capitalization. In May 2021, the price peaked and exceeded 70 cents. Then the price of this cryptocurrency plummeted and now it is trading well below the dollar. Dogecoin is a typically speculative asset, but outperforms Bitcoin in some characteristics.
Polkadot (DOT)
Polkadot is a very ambitious project. Its developers set the task of creating a link between ecosystems of different cryptocurrencies. On the basis of Polkadot, you can create applications that will work on both the Bitcoin network and the Ethereum network. In addition, the network design ensures its high scalability and speed.
Bottom line
Cryptocurrency and cryptocurrency market are new phenomena, which are in the stage of formation and development. Choosing the best cryptocurrency for investment is much more difficult than choosing a reliable bytecoin wallet. Actually, the best currency is determined by your resistance to stress, technology awareness and market mechanisms.
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