Introduction to top cryptocurrency to invest in 2021
There are thousands of different cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, making it difficult to get started in the world of crypto. These are the top 10 cryptocurrencies by market capitalization, or the total worth of all coins currently in circulation, to help you gain your bearings.
1. Bitcoin (BTC) has a market capitalization of about $641 billion dollars.
Bitcoin (BTC) is the first cryptocurrency, having been created in 2009 under the pseudonym Satoshi Nakamoto. BTC, like most cryptocurrencies, is based on a blockchain, which is a distributed ledger that logs transactions across a network of thousands of computers.
Bitcoin is maintained secure and safe from fraudsters because updates to the distributed ledgers must be confirmed by solving a cryptographic problem, a process known as proof of work.
Bitcoin’s value has soared as it has grown in popularity. Five years ago, a Bitcoin could be purchased for around $500. A single Bitcoin was worth moreover $32,000 in June 2021. This equates to a 6,300 percent increase.
2. Ethereum (ETH) has a market capitalization of over $307 billion.
Ethereum is a favourite of programmers because of its potential applications, such as smart contracts that run automaticallofy when conditions are satisfied and non-fungible tokens. Ethereum is both a cryptocurrency and a blockchain platform (NFTs).
Ethereum has also exploded in popularity. Its price increased by more than 22,000 percent in just five years, from around $11 to over $2,500.
3. Tether (USDT) has a market capitalization of about $62 billion dollars.
Tether is a stablecoin, which means it is backed by fiat currencies such as the US dollar and the Euro and has a value that is theoretically equal to one of those denominations.
Tether’s value is intended to be more consistent than other cryptocurrencies, which is why it’s appreciated by investors who are frightened of other coins’ excessive volatility.
4. Binance Coin (BNB) has a market capitalization of over $56 billion dollars.
Binance Coin is a cryptocurrency that may be used to trade and pay fees on Binance, one of the world’s largest cryptocurrency exchanges.
Binance Coin has grown beyond simply conducting deals on Binance’s exchange platform since its introduction in 2017. It can now be used for trade, payment processing, and even making travel reservations. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.
Its price in 2017 was just $0.10; by June 2021, it had risen to over $350, a gain of almost 350,000%.
5.Cardano (ADA) has a market capitalization of over $51 billion dollars.
Cardano is renowned for being one of the first crypto projects that use proof-of-stake validation. By removing the competitive, problem-solving part of transaction verification found in platforms like Bitcoin, this solution reduces transaction time, energy consumption, and environmental effect.
Cardano functions similarly to Ethereum in that it uses ADA, its native coin, to enable smart contracts and decentralized apps.
In comparison to other prominent crypto coins, Cardano’s ADA token has grown slowly. The price of ADA in 2017 was $0.02. Its current price is $1.50 as of June 2021. This is an increase of 7,400%.
6. Dogecoin (DOGE) has a market capitalization of over $44 billion dollars.
Celebrities and billionaires like Elon Musk have made Dogecoin a popular issue. Dogecoin was famously established as a joke in 2013, but because to a committed community and inventive memes, it quickly became a popular cryptocurrency choice.
Unlike many other cryptos, such as Bitcoin, there is no limit to how many Dogecoins may be issued, making the currency vulnerable to depreciation as supply grows.
In 2017, the price of Dogecoin was $0.0002. Its price had risen to $0.32 by June 2021, a 159,900 percent increase.
7.XRP (XRP) has a market capitalization of about $40 billion.
XRP, a digital technology and payment processing company founded by some of the same people as Ripple, can be used on that network to ease the exchange of many currency kinds, including fiat currencies and other major cryptocurrencies.
The price of XRP was $0.006 at the start of 2017. Its price hit $0.92 in June 2021, an increase of 15,233 per cent.
8.USD Coin (USDC) has a market capitalization of about 23 billion dollars
USD Coin (USDC), like Tether, is a stablecoin, which means it is backed by US dollars and aiming for a 1 USD to 1 USDC ratio. USDC is based on Ethereum, and it may be used to make international transactions.
9.Polkadot (DOT) has a market capitalization of about $21 billion.
Polkadot (and its namesake crypto) intends to unify them by building a cryptocurrency network that connects the multiple blockchains so they may work together.
Since Polkadot’s inception in 2020, this integration has sparked significant growth and may transform how cryptocurrencies are maintained. Its price increased by 615 per cent from $2.93 to $20.95 between September 2020 and June 2021.
10.Uniswap (UNI) has a market capitalization of almost $13 billion.
Uniswap is an Ethereum-based token that runs Uniswap, a decentralized cryptocurrency exchange that trades using an automated liquidity model.
There is no central facilitator, such as a bank or a broker-dealer, in place. Instead, smart contracts and pooled user resources power it. The code for Uniswap’s platform is open source, so anyone can use it to build their own exchanges.
The price of Uniswap began at $0.48 when it was launched in 2020. Its price had risen 5,025 percent to $24.60 by June 2021.
The popularity of cryptocurrencies necessitates extreme prudence while investing in them. Investors must thoroughly evaluate the possibilities of a cryptocurrency before investing.
You can’t deny its remarkable popularity, market dominance, and continuous relevance in the cryptocurrency ecosystem, whether you like it or not.