Cryptocurrency is growing unbelievably nowadays. The popularity of cryptocurrencies is increasing day by day. many of you may hear the name Bitcoin. It is a well-established cryptocurrency. The price of bitcoin is massively hiking within a short span. The price of bitcoin touches the $50000 mark and is expecting to grow more. this massive hike in bitcoin price is influencing investor’s thoughts, and many people are ready to invest in cryptocurrencies. Many well-known multinational companies including Tesla, Google, Apple, Samsung, Facebook have invested money in cryptocurrencies. you may notice the news of the TESLA CEO approving the transaction of bitcoin for buying their electric cars, you may notice the news, that Australian cricket player brett lee donated 1Bitcoin for India,s covid fight. There are many more examples of the improving popularity of cryptocurrencies. .in this post we will discuss the Top 5 Cryptocurrencies to Invest in in 2021.
What is Cryptocurrency?
Cryptocurrency derived from the words Crypto and Currency. Crypto stands for concealed or secret and currency stands for money. This means cryptocurrency is conceal/secret money. It is a digital/program currency storing in a digital online wallet. The transaction of this kind of currency happens through a decentralized system. In India, cryptocurrencies are not controlling by the central government. many countries are banning the transaction of cryptocurrencies since there are no centralized controls. The entire cryptocurrency systems are computerizing, digitalizing, and it is storing in ledger format in terms of a database with strong cryptography to ensuring high security for the transactions. The technology using for cryptocurrency is mining and blockchain.
Before investing in cryptocurrencies note that.
- Cryptocurrency is a decentralized currency and not backed by any government.
- Cryptocurrencies are volatile in nature. It is like gambling in dark.
- These types of currencies have no pattern or rise and fall and the rate of return is not fix.
- Cryptocurrency is using for doing fraudulent activities.
- Security is at risk when you invest in this type of currency.
Top 5 Cryptocurrencies to Invest in 2021
Bitcoin is considering as the largest cryptocurrency in terms of market capitalization. it is one of the oldest and most popular cryptocurrencies. It was created in 2008 by an anonymous group of people name Satoshi Nakamoto. Bitcoin works on peer 2 peer technology. It is a decentralized cryptocurrency with no central bank. The transactions are happening on a network node and they will be storing in a distributing ledger with blockchain technology.
Bitcoin is the leading cryptocurrency market. The price of bitcoin has grown exponentially in past one year and reached $50000 and above. It is not a widely accepting currency in India but in the USA and other countries it is legal currency and people make use of bitcoin regularly. it is in the first position out of the Top 5 Cryptocurrencies in the world.
Ethereum is the second-largest in terms of market capitalization. It is an open-source blockchain with smart contract functionality. Etherum was created in 2015. Ethereum works on the ethereum virtual machine technology. Ethereum works on distributed applications (DApps) built and run without any downtime, fraud, control, or interference from another third party. It is a permissionless, non-hierarchical network of computers.
The ethereum uses an accounting system where values are debited from one account and credited to another account. The price of ethereum is above $2000 in 2021.
Litecoin is a peer-to-peer cryptocurrency and open source project released under MIT/X11 License. It is nearly identical to bitcoin. Litecoin is initially launch in 2011. In comparison to bitcoin, Litecoin is processing much faster and provides improve storage efficiency. Litecoin is a proven medium of transaction complementary to bitcoin. Litecoin is trading with a price of $200 in 2021.
Cardano is another top cryptocurrency in trading. This currency was launched in 2017. It is a cryptocurrency network and open source project with the aim of creating a public blockchain platform for smart contracts. The market cap of Cardano is the third highest. Cardano makes use of Ouroboros proof of stake technology in contrast to the proof of work system used by Bitcoin. Cardno,s price is low when comparing to other cryptocurrencies.
Tether is commonly term as a controversial cryptocurrency. It is a token-base currency. it is using by investors to the extreme volatility of other cryptocurrencies. Tether is backing by loans to affiliate companies. The price of this currency more or less remains stable. Tether has one of the largest cryptocurrencies in the form of market capitalization. Tether is available at a very low price in 2021.
As we discussed, the popularity and importance of cryptocurrencies are increasing day by day. if you are looking to diversify your portfolio, cryptocurrencies are one of the best options. make a detailed study before you make an investment in crypto. in this post, we discussed the Top 5 Cryptocurrencies. I hope this post will give a base idea about cryptocurrencies.