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A little more than a decade ago, most people didn’t even hear of Bitcoin.It was the first cryptocurrency.As such, it was all under the radar, except for the few pioneer investors and early adopters of the new crypto technology.But within just a few years since its inception, Bitcoin’s use and mainstream acceptance have gained traction.
Thus, it’s not surprising that as the popularity of decentralized digital cash started to surge, new cryptocurrencies have begun to emerge.
If you want to dip your toes in crypto investing, you probably will be overwhelmed by the types of cryptos available in the market.There are roughly 5,000 different cryptocurrencies in circulation as of the end of 2020.That number is expected to keep on rising.If you want to be adventurous and don’t mind losing some money, picking cryptocurrency at random may be an option for you.
Who knows, buying Kin coin might give you some beer money in the next couple of months?
But if you are serious about investing, then you should do a bit more research.Before spending a dime in any of the best cryptocurrencies to trade , it is prudent of you to equip yourself with knowledge about what they are and how they work.If you’re clueless about these new digital assets, don’t join the bandwagon blindly.Having deep pockets will not guarantee success in crypto markets.
Starting with a modest-sized investment can help you test the waters and get to know how to buy and sell cryptos.
Now, if you have already done your due diligence and you are a newly minted digital currency investor who plans to be more active in the market, here are the eight top crypto coins that should be on your investment radar.1.Bitcoin
When it comes to crypto investing, you can never go wrong with the one that started it all.
Bitcoin continues to be popular crypto for both seasoned and neophyte investors in digital assets.
Bitcoin’s price can rise and fall like a rollercoaster.It also remains to be the most expensive in the market.But many investors are still confident that they can make big money from this cryptocurrency because only a limited number of Bitcoin remains to be mined.Since this coin is a pioneer digital currency, it will not be hard to find a bitcoin guide that helps you understand the intricacies of investing in it.2.Ethereum
Ethereum is another frontrunner in the field of crypto.Technically, the name of the coin is Ether.The term Ethereum refers to the blockchain platform behind the coin.
Why is it popular? Firstly, it has smart contract software that enables decentralized applications.
Secondly, many are excited about the planned Ethereum algorithm upgrade from proof of work to proof of stakes.This upgrade is expected to boost the speed of transactions while requiring lesser energy for the blockchain to run.3.
Litecoin
Litecoin is one of the early altcoins that followed the path of Bitcoin.Although they have many similarities, Litecoin became popular among developers because it has a faster transaction speed than Bitcoin.It also has lower transaction fees.Many are optimistic about the future of this crypto because it’s attracting other investors besides developers.
4.Polkadot
Polkadot, or DOT in crypto trading platforms, is an exciting altcoin that follows the footsteps of Ethereum.It’s creating a buzz in the digital asset field because of its proof-of-stake platform.
In short, Polkadot has the strengths of Ethereum but none of the latter’s perceived weaknesses.Ethereum has higher fees and limited scalability compared to Polkadot.5.Chainlink
As the name implies, Chainlink altcoin is created to link smart contracts and real-world data through the decentralized oracle platform, something that Ethereum cannot do yet.As a result of this technology, transactions are faster and a lot more secure.
6.Bitcoin Cash
Bitcoin Cash continues to attract investors mainly because of its historical significance in the crypto world.
To date, this coin remains to be the most successful split or hard fork from the original Bitcoin.In cryptocurrency , a hard fork occurs when developers and miners cannot agree on certain essential matters.
The main issue that brought about Bitcoin Cash is the scalability problems of Bitcoin.Proponents of the new coin wanted to increase the block size of Bitcoin to accommodate more transactions, while hard-core Bitcoin supporters wanted to keep its code in its original form.Due to the code changes, Bitcoin Cash has a much better transaction speed and more scalability than its predecessor.7.Cardano
Although Cardano is still a relatively new altcoin, it’s gaining a lot of support because of its Ouroboros technology, a proof of stake blockchain that makes this coin sustainable, secure, and a lot more scalable compared to other crypto frontrunners.It’s not surprising because Cardano developers are made up mostly of cryptography specialists, mathematicians, and engineers.
They made sure that this coin underwent rigorous experimentation and that the technology research was peer-reviewed.
Cardano is fast becoming a darling of crypto investors because of the large capacity of its blockchain technology.Its founders believe that various applications can use the platform, including contact tracing, preventing voter fraud, and other financial uses.However, it still has a lot of growth potential when it comes to its decentralized applications.8.Tether
You would love Tether if you want to dabble in cryptocurrency but want something with less volatility.Again, this altcoin is aptly named because its value is literally tethered to the U.S.dollar.
This coin aims to enable its users to take advantage of blockchain technology without worrying about the dizzying vacillation of digital currency prices.Since it’s the first type of stable coin in the market, it remains to be the most sought after by cautious cryptocurrency investors.Conclusion
Just like investing in any asset or securities, putting your money in any of the top crypto coins has risks.Unlike other investments, though, cryptocurrencies are volatile assets.
Sure, you stand to gain a lot of money if the crypto market moves in your favor.But the opposite is also true.If the price of your cryptocurrency falls, you can lose a fortune.It goes without saying, you need to do your research and get to know your chosen crypto coin.
Better yet, talk with experienced crypto investors.It’s a smart move to be conservative when investing in cryptocurrencies if you are starting.
Don’t bet the farm just yet..