There are more than a thousand cryptocurrencies in the market, at the moment. The ones that seldom make headlines are Bitcoin, Dogecoin, Baby Doge, and Polkadot to name a few. With frequent market volatility, choosing the right cryptocurrency for investment becomes an overwhelming task. To help you make smart investments, here are the best cryptocurrencies with the most growth potential.
Created in 2009, Bitcoin was the first and now the largest cryptocurrency. Like other cryptocurrencies, Bitcoin runs on a blockchain network that acts as a ledger to log transactions. This network uses a proof of work system, which verifies every logged transaction by solving a cryptographic puzzle, to keep Bitcoin transactions secure and safe from hackers. Five years ago, Bitcoin was priced at approximately US$500, and now it is trading for US$32,657 at the time of writing.
Ethereum is the network that powers the token Ether. Ethereum is a developer's favorite platform as it supports smart contracts that allow them to create apps based on the network. Ethereum has also seen massive growth over the years. Second to Bitcoin in market cap, it now trades at US$2077.
Tether is a unique cryptocurrency as it is a stable coin. Stable coins are backed by fiat currencies like the US dollar or the Euro, which means anyone who buys 1 Tether coin will be guaranteed the value of one fiat currency. Theoretically, this means Tether's value will be more stable than other cryptocurrencies amidst market volatility. This makes Tether a low risk-cryptocurrency.
Binance Coin is a crypto token that is used to trade other cryptocurrencies and pay fees on Binance, one of the biggest cryptocurrency exchanges in the world. It was launched in 2017 and can now be used for many functions like even booking travel arrangements. If you want to invest in other cryptocurrencies like Bitcoin and Ether securely, it's best to invest in Binance first and then trade it for other cryptocurrencies. In 2017, Binance Coin was trading for US$0.10 approximately, and now its priced at US$297.98
Cardano is touted for its proof-of-stake validation, which reduces transaction time and uses less energy. Because environmentally friendly coins have become the latest frenzy, Cardano fits perfectly into the picture. It also serves many use cases as it enables smart contracts and decentralized applications. Compared to other cryptos of its kind, Cardano sees less market volatility. As of June 2021, Cardano was trading at US$1.50, which is a 7,400% increase.
Dogecoin never fails to surround itself with hype, which is one of the reasons for its price growth. Cryptocurrencies like Bitcoin come with a limited coin supply, but Dogecoin has no limit. What was started as a joke in 2013 is now seeing a myriad of supporters, from billionaires to celebrities? After dodging many highs and lows, Dogecoin now trades at US$0.1954.
Ripple is a digital technology and payments processing company and XRP is a token created by them. To facilitate the exchange of other cryptocurrencies on the network, XRP can be traded for traditional currencies as well. XRP has seen massive growth over the years and now trades at US$0.601, making this one of the most affordable cryptos to invest in.
USD Coin is also a stable coin with its value pegged to the US dollar. For every USD Coin bought, the investor will be assured the value of US$1. This coin is powered by Ethereum which means it can complete transactions on a global scale.
There are more than 7000 cryptocurrencies in the market and they use various blockchain networks. Polkadot's aim is to integrate them all by creating a cryptocurrency network that connects all the blockchains to work in sync. This ambitious mission has attracted many experienced investors, booming Polkadot's growth. Launched in 2020, Polkadot grew rapidly and now trades at US$13.17 as the 9th largest cryptocurrency.
Uniswap runs on the Ethereum network and powers Uniswap crypto exchange. This exchange works on an automated liquidity model for trading, with no involvement of a bank or a broker. Uniswap is also an open-source platform, so anyone can use the code to create new exchange platforms. This token was launched in 2020, and in one year grew to become the 10th largest cryptocurrency.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
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.