Considering the rapid development of cryptocurrencies in recent years, it is hard to believe that Bitcoin didn’t exist a decade ago. As a direct result of the devastating financial crisis of 2008, these valuable digital assets were created.
As a result, the desire and motivation to create alternative currencies grew on fertile ground, and today there are over 4,000 different cryptocurrencies in existence. How do you decide which cryptocurrency to invest in if you intend to invest in crypto?
Most of these wallets also accept other currencies in addition to Bitcoin, as you may have already created an anonymous Bitcoin wallet. The following are five of the most popular digital assets at the moment.
The Bitcoin Currency (BTC)
Many believe that Bitcoin has passed its prime, while others are adamant that it remains the only value-preserving digital currency.
From the moment Bitcoin entered the scene in 2009, it has been a dominant force. Mainly due to the adoption rate, this digital coin cannot be ignored.
Many people consider Bitcoin and cryptocurrency to be synonymous. Bitcoin is therefore even more powerful than before, and for that reason, it remains the number one cryptocurrency to invest in.
The Bitcoin market capitalization of £619 billion speaks for itself. Throughout the last five years, Bitcoin’s value has increased by nearly 9,000%.
Furthermore, Bitcoin is a fantastic choice since many hot and cold wallets cater to it first and foremost. In just a few minutes, you can open an anonymous Bitcoin wallet and begin purchasing coins.
The Ethereum Network (ETH)
Whenever Bitcoin is discussed, Ethereum is mentioned shortly after. It has occupied this position for many years.
The market capitalization of Ethereum is approximately £256 billion, which is certainly impressive. However, Ethereum is much more than simply a digital currency.
There is no doubt that it is a popular blockchain platform among the developer community. This has enormous potential for decentralized applications (dApps) and non-fungible tokens (NFTs).
The value of Ethereum has increased over 27,000% in the past five years, surpassing even Bitcoin in terms of growth. Another characteristic of Ethereum that provides its excitement is its potential to eliminate third parties such as banks and brokerages and turn it into a real money-saving platform.
The Cardano (ADA)
Similarly to Ethereum, Cardano operates on a decentralized blockchain system and has its own native digital currency. Investing in Cardano is safe and secure due to its peer-to-peer nature.
It began operating in 2015 and was founded by one of Ethereum’s founders. In contrast to Bitcoin, Cardano does not implement a proof-of-work protocol that utilizes high energy consumption.
Rather, it relies on proof-of-stake, which does not result in enormous energy expenditures. Cardano has a market cap of approximately £50 billion, and it has experienced a 10,000% increase in value in less than four years.
The Binance Coin (BNB)
This cryptocurrency is associated with Binance, one of the largest cryptocurrency exchanges in the world. The BNB can be used on Binance to pay for transactions.
In 2017, it launched, which was relatively late in terms of the crypto market, but it has shown considerable growth since then. With a market capitalization of over £50 billion, Binance Coin is firmly positioned in the top five cryptocurrencies.
After starting at a price of £0.08, it has risen to a price of £303 in less than four years. With Binance Coin, you can make online purchases, trade, and even plan trips. Additionally, you can exchange it for other cryptocurrencies, such as Bitcoin or Ethereum.
The Polkadot (DOT)
Using cryptocurrency as a measure of value is often associated with subjective factors, such as who started it. A distinguishing feature of Polkadot is that it was created by the co-founder of Ethereum.
Polkadot has the advantage of being able to act as a network connector. A Polkadot-based application will operate on Bitcoin, Ethereum, and many other networks.
Polkadot currently has a market capitalization of £18 billion, and its price has increased by 775 percent in one year.
Make an investment in what you feel is right
At the moment, digital currencies are dominating the market, but things are never certain in crypto. In spite of the fact that Bitcoin remains the most popular currency, its value fluctuates constantly, and it is highly volatile.
In spite of this, it is so large that even Ethereum cannot surpass it. In addition to Bitcoin, there are several other options available.
As we’ve seen with the other digital coins we’ve mentioned, they have exponential growth potential. Crypto enthusiasts would be wise to take them into consideration.