Crowning a single best cryptocurrency is an impossible task, partly because of the number of different options available, but also because it depends on what you want to use the cryptocurrency for. Someone who wants to buy encryption as an investment, for example, will have different priorities than someone who wants to use it to make payments. Others, in turn, may just want to take a small amount to see what all the fuss is about.
In general terms, selecting the best cryptocurrency for you means optimizing privacy, usability or speed. But here, we will try to help you by showing you the best cryptocurrencies to invest. Before I show you the best cryptocurrencies to invest 2021 and you select a cryptocurrency to buy, however, you must choose the one to store your digital wealth and identify the best Bitcoin exchanges for your purposes.
It is also important to remember that cryptocurrency is a particularly volatile asset class, subject to large swings in value. For first-time cryptocurrency buyers, a sensible rule of thumb is never to invest more than you can afford to lose. To buy cryptocurrencies, you need to subscribe to an exchange or trading platform such as Coinbase, eToro, Robinhood or SoFi.
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Best cryptocurrencies to invest
- Reasons to buy: Well established, transparent and anonymous, broad support.
- Reasons to avoid: Extremely volatile.
We couldn't start a list of the best cryptocurrencies to invest 2021 without the original cryptocurrency. Bitcoin (BTC) is the first, most famous and most valuable cryptocurrency in the world. It first emerged in 2008, when a person or group known by the pseudonym “Satoshi Nakamoto” published a white paper titled “Bitcoin: A peer-to-peer electronic cash system”. Most importantly, Bitcoin is not owned or controlled by any individual, company or government. It uses encryption extensively and relies on a peer-to-peer network.
Bitcoin is the first notable application of blockchain technology – an immutable, time-stamped book of transactions distributed across all members of a network – which has now been applied to a wide range of use cases. The blockchain that underpins Bitcoin allows cardholders to send and receive funds without the intervention of any third party intermediary, such as a bank or payment provider.
At the time of this writing, Bitcoin was valued at around $55.646,40 (BRL 308.631,63) per unit after a furious bullfight (or boom period). However, as investors found out the hard way in 2017, Bitcoin's price value also dropped, wiping out billions of dollars in value. Buy Bitcoin via Coinbase.
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- Reasons to buy: Extremely versatile, strong community.
- Reasons to avoid: Some use cases hard to understand.
Ether (ETH) is the cryptocurrency that supports the Ethereum network, colloquially known as the “world computer”. Launched in 2015, Ethereum took Bitcoin's public blockchain model and added the ability to encode automated agreements (called smart contracts) that run automatically when a set of parameters is met. This new blockchain network also introduced the concept of decentralized applications, which make use of the distributed nature of the network, and is also the foundation on which the burgeoning DeFi and NFT markets are built.
The biggest difference to Bitcoin is that while Bitcoin aims to become a globally adopted currency that could replace conventional money, Ethereum is a worldwide computer in which smart contracts (digital contracts that run automatically when their terms are met) and decentralized applications can run. Ether is the fuel on which this whole operation is performed, which means there are a large number of potential use cases. If you want to participate in the Ethereum ecosystem, buying ether might be a good place to start. Buy Ether at Coinbase.
Check out: The Best Bitcoin Wallets of 2021
- Reasons to buy: High levels of transaction privacy, private by design.
- reasons to avoid: Associated with criminal activity.
Monero (XMR) is a cryptocurrency designed to make transactions completely untraceable, making it a solid choice for anyone who prioritizes privacy above all else. Unlike Bitcoin and Ether, which sit on top of public and fully transparent blockchains, Monero uses encryption to hide the sending and receiving addresses, as well as the transaction amount. According to documentation on the site, Monero uses three different privacy technologies to distinguish itself from other currencies: ring signatures, confidential ring transactions and stealth addresses.
However, all you really need to know is that the network is private by design, which means there's no way to accidentally perform a traceable transaction. As a result of its privacy-centric architecture, however, Monero is often associated with cybercriminal activity and the dark web. Many ransomware operators demand payment on any Monero, for example, to minimize the chances of an intelligence agency “following the money”. Change ETH / BTC to Monero at Binance.
- Reasons to buy: Fast transaction speeds, solid reputation.
- reasons to avoid: Limited support among merchants.
While Bitcoin is undeniably the most popular cryptocurrency, the level of traffic to the network and the way it's built comes at a price: low transaction speeds. However, despite the obvious comparisons to Bitcoin, Litecoin is a cheaper and faster alternative, thanks to the fact that it can process payments four times faster. Its goal is to process a block (which contains batches of valid transactions) every two and a half minutes, compared to Bitcoin's 10 minutes.
Created from a copy of the Bitcoin blockchain, Litecoin (LTC) was specifically designed to solve this problem, outperforming Bitcoin by nearly four times in transaction throughput. Both are very similar from an architectural perspective, but Litecoin uses an entirely different mining hashing algorithm designed to allow a much larger number of transactions to pass through the network in a given amount of time.
If you are interested in the ability to make payments to merchants and send money around the world as quickly as possible, Litecoin could be the cryptocurrency for you. You can buy Litecoin at Coinbase.
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- Reasons to buy: Stable price, great for payments.
- reasons to avoid: Questions about reserve stock.
Tether (USDT) differs from the other cryptocurrencies on this list in that it is not subject to the same levels of market volatility. Tether is pegged to a stable asset. In this case, for every unit of Tether in circulation, there is one US dollar in reserve, which means that the cryptocurrency price maps to the exact price of the fiat currency. This consistency of value allows users to transact using Tether, with the knowledge that purchases made with the currency will have the equivalent dollar value the next day or month.
While there are many others in circulation, Tether is currently the largest stablecoin on the market, as well as the fifth largest cryptocurrency in the world by market capitalization. Be warned, however, there are those who believe the amount of Tether in circulation is not entirely dollar-backed at the bank, despite what the issuer and its Bahamian bank have to say. If this is proven, the USDT price will not remain stable for long. You can buy Tether at Binance.
Reasons to buy: Stable price and fast growth.
Reasons to avoid: market distrust
Binance Coin is one of the few cryptocurrencies to peak after 2017. During that year, there was a bull market and the price of all cryptocurrencies rose, reaching a peak before leveling off and falling in value. Unlike other cryptocurrencies, Binance Coin continued a slow but consistent upward trend after 2017. It has soared more recently, gaining 1.637% since January. Due to its performance, Binance Coin has proven to be one of the most stable investment options, but it is still a highly volatile investment.
What sets Binance Coin apart from its competitors is that it was created by a company, not a group of technology developers. While Binance Coin's commitment to keeping a blockchain strong has won many skeptics, some investors remain leery of this cryptocurrency and its possible security issues. Buy Binance at Binance.
Reasons to buy: Faster and cheaper transactions
Reasons to avoid: few users
The Cardano chain has a smaller footprint, which attracts investors for several reasons. It takes less energy to complete a transaction with Cardano than with a larger network like Bitcoin. This means transactions are faster and cheaper. Cardano also claims to be more adaptable and safer. It consistently improves its development to stay ahead of hackers.
Even with a better network, Cardano may not be able to compete with larger cryptocurrencies. Fewer adopters means fewer developers. This is not attractive to most investors who want to see a high rate of adoption. The platform has big plans, but it is doubtful whether it will be able to live up to that potential. Buy Cardano on your official site.
Reasons to buy: Ease of creating applications based on it
Reasons to avoid: Volatility
Solana has conquered the world of assault cryptocurrencies, starting in 2021 with 0,01% of the market and climbing to a crypto top 10 by market capitalization in September, giving its main competitor, Ethereum, a drag to earn its money . Solana currently ranks fifth in terms of market share, with a market capitalization of $68,63 billion, according to CoinMarketCap. Its appeal lies in the speed and scalability of its network and the ease with which it can be used to create decentralized applications that run on a blockchain,
Solana has gained a surprising 12.000% this year, according to CNBC, and prices could fall as quickly as they rise. Reliability can also be an issue, considering Solana suffered a nearly day-long outage due to “resource exhaustion,” according to Bloomberg, as reported by CNBC. shop at CoinMarketCap.
What is a cryptographic token?
A cryptographic token is a virtual currency token or a denomination of a cryptocurrency. It represents a tradable or utilitarian asset that resides in its own blockchain and allows its holder to use it for investment or economic purposes.
What is the purpose of tokens?
Cryptographic tokens can be used to represent an investor's participation in the company or for economic purposes such as local currency. This means that token holders can use them to make purchases or trade tokens like other securities for profit.
Is Bitcoin a token or a currency?
Bitcoin is a cryptocurrency, which has tokens or virtual currencies that can be used to trade or make purchases.
What is the difference between a crypto currency and a token?
Cryptographic coins allow individuals to make payments using their digital currency. People can use tokens, however, for many other reasons. They can use them for trading, to retain and store value and, of course, to use as a form of currency.
What are the different types of tokens in Blockchain?
Tokens that reside in blockchains include reward tokens, currency tokens, utility tokens, security tokens, and asset tokens.
Now, talk to us and let us know if you invest in any of these currencies. If you want to know more about Bitcoin in particular, we have an excellent article on our website that you can read here. If you have any questions, you can leave them in the comments. Also take the time to read more about criptomoedas on our website.