At this point, there isn't anyone who has not heard of cryptocurrencies. From this year's biggest cryptocurrency crash due to China's ban to Elon Musk's controversial tweets and companies accepting Bitcoin as payments, as each day passes, we are seeing the hype around cryptocurrencies grow in real-time.
While Bitcoin continues to dominate the crypto sector, other promising altcoins are also making headlines as they are becoming investor favorites. So obviously, Bitcoin is not the only crypto option to invest in. So if you are planning on buying cryptocurrencies this weekend, to start off your crypto journey, here are the 10 best stocks you should consider.
In the cryptocurrency market, Bitcoin is equivalent to gold. From retail investors to prominent businessmen, everyone is putting their trust in Bitcoins. After the massive market crash in April 2021 that led to Bitcoin trading at US$30,000, the digital coin has bounced back to trade at US$50,000. The main reason behind the value is scarcity. Only 21 million Bitcoins exist and out of that, about 19 million have already been mined.
Second to Bitcoin, Ethereum is the silver of the cryptocurrency market. Thanks to Ethereum's network that supports DeFi, a lot of cryptocurrencies have innovated the "smart contract" concept. This utility feature has made Etherum the second-highest valued cryptocurrency in the market according to its market cap US$441.13 billion.
There's something about Cardano that attracts several experienced investors. Cardano was created as a "third-generation cryptocurrency" that can solve common crypto problems like scalability and security. While other cryptos borrowed codes from existing projects, Cardano was built from code by code. Its network can handle smart contracts, DeFi, NFTs, and anything else that exists in the crypto world.
Polkadot is a recently-launched cryptocurrency that got famous quickly. Polkadot was created with an intention to use the "proof of stake" network verification system which is touted as a better system than the "proof of work" that Bitcoin and Etherum uses. Polkadot can process multiple transactions which makes it scalable. The versatility of this network allows it to be used for smart contracts, file storage chains, and IoT chains to allow device-to-device communication.
XRP, made by Ripple Labs, aims to create a fast and secure payment system that works globally. One of the most reliable cryptocurrencies, it has a huge loyal investor base. According to the company, many financial institutions prefer this cryptos RippleNet service which uses the XRP crypto coins. XRP's payment system has the capability to compete with legacy systems like SWIFT and convert crypto to any fiat currency.
Uniswap is a platform that has its own reward token called the UNI that works on the Ethereum network. The USP of these tokens is the fact that they can be exchanged among crypto users without trading them on centralized crypto exchanges like Binance. The USP is a hit as traders have been using the tokens, making it the best DeFi token by market cap.
Chainlink has a loft ambition for itself in the cryptocurrency market. Its purpose is to make a decentralized oracle network that can serve as a middleman between smart contracts and data sources. Basically, it makes smart contracts trustworthy by providing a secure, reliable link. It's also a core part of the DeFi system. Due to its utility, The World Economic Forum named Chainlink one of the 100 most promising tech pioneers of 2020.
The idea of cryptocurrencies is to simplify payments and Stellar's mission aligns with that, to simplify cross-currency transfers. For that, this crypto network has partnered with International Business Machine Inc to create IBM World Wire. This collaboration enables fast currency transfer services to financial institutions across the world.
Elon Musk's tweets revived this meme coin that was supposed to be forgotten by the world. Dogecoin didn't have any purpose until billionaire Mark Cuban, owner of Dallas Mavericks, decided that the NBA team would accept Dogecoin as payment. Such celebrity incidents now made Dogecoin one of the most anticipated cryptos.
Aave's purpose is to complete the lack of borrowing and lending applications on Ether's network. For this utility, Aave has now become a DeFi pioneer. This crypto has nearly US$5 billion worth of locked assets, which amounts to a third of the total market.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.