Cryptocurrencies are attracting new investors. However, more than 2,000 cryptocurrencies are available in the market. Choosing the best cryptocurrency is tricky, especially for beginners. At first, We will discuss, What is a cryptocurrency? and other questions related to it. A cryptocurrency is a digital medium of exchange.
Bitcoin is considered the original cryptocurrency. In 2013, Bitcoin got into recognization. Some people think that the cryptocurrency phase will end soon, while others believe it will be around forever. Predicting the future of crypto is difficult.
But, the fact is that the value of Cryptocurrencies is increasing. There is not only Bitcoin in the market but also many other cryptocurrencies. In 2017, the crypto market blew up and grew by 4000%. Cryptocurrencies use blockchain technology. Bitcoin first used it.
Each coin buying or selling noted in a ledger. It uses strong cryptography to:
- Secure transaction records
- Prevent the creation of additional coins
- Verify the transfer of coin ownership.
Scroll down and see the list of the best cryptocurrencies in 2021.
6 Most Popular And Best Cryptocurrencies
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Ethereum (ETH)
- Ripple (XRP)
- Binance Coin (BNB)
- Tron (TRX)
1/Bitcoin Cash (BCH)
Bitcoin was the first and original cryptocurrency. It was the first that uses blockchain technology. In Blockchain Technology, information stores within blocks about the crypto transaction. This block contains data of 1 megabyte of data. But these data blocks increases transaction fees and slow down transactions. So, Bitcoin developers find a solution that reduces the amount of data needed.
As we know, Satoshi Nakamoto creates Bitcoin, but Satoshi Nakamoto never disclosed his real identity. Bitcoin solved many problems, such as inflation caused by money printing. Bitcoin is still the most popular cryptocurrency.
- In August 2017, they created their version of Bitcoin and named it Bitcoin Cash. Bitcoin Cash has blocks that can store 8MB of data. Bitcoin Cash allows fast and more frequent transactions with lower fees.
2/Litecoin (LTC) – One of the Best Cryptocurrencies
Litecoin – “silver to Bitcoin’s gold” and the best alternative to Bitcoin. Charlie Lee is the founder of Litecoin. He is an MIT graduate and former Google engineer. Cryptocurrencies were confusing and complicated for some people to understand the underlying technology. So, to fix the problem, Litecoin was introduced by Lee in 2011. Litecoin is an open-source global payment network. It is a”lite” version of Bitcoin with some twists. For instance:
- Bitcoin takes about 10 minutes to confirm a transaction; Litecoin takes about three minutes.
- Bitcoin takes specific hardware and impressive raw computing power; Litecoin needs lower system requirements.
- Ordinary PCs can mine Litecoin easier and faster compare to Bitcoin.
In the future, Litecoin may use to pay for everyday services and goods. Litecoin uses a P2P network for transactions that is quicker than Bitcoin transactions.
Ethereum is a software platform launched in 2015. It is based on blockchain technology and is used to exchanges a cryptocurrency called Ether.
- Ethereum – blockchain platform
- Ether – Cryptocurrency
It allows Decentralized Applications (DApps) and Smart Contracts to be built and run without any:
- Interference from a third party
Ethereum’s goal: Decentralize the internet by replacing servers with a worldwide node system.
If you want to use the Ethereum platform, then you have to pay Ether. Ether is like a vehicle for moving around on the Ethereum platform. Ethereum is different from Bitcoin; however, Ether is the second most popular cryptocurrency.
Chris Larsen launched Ripple in 2012. It helps banks to settle cross-border payments in real-time. Or in other words, Ripple is a real-time global settlement network. Ripple offers low cost, specific, and instant international payments with end-to-end transparency.
All of Ripple’s XRP tokens were pre-mined before launch, so it doesn’t require mining. Also, there is no creation of XRP over time, only introducing and removing XRP from the market supply according to the network’s guidelines. It is closely connected and supported by several banks from the beginning.
It is the third-largest cryptocurrency. The benefits of Ripple are as following:-
- It doesn’t require mining
- Reduces computing power usage
- It minimizes network latency.
5/Binance Coin (BNB) – One of the Best Cryptocurrencies
Ethereum initially hosted Binance Coin until the Binance decentralized exchange went online in 2017. The Binance DEX is a platform much like Ethereum with different goals.
The Binance DEX is a decentralized platform that offers its users the following:
- Buy and sell Binance coins
- Convert other cryptocurrencies from one to another.
- Discount to those who pay transaction fees on the exchange with BNB.
That’s why Binance DEX has become the biggest cryptocurrency exchange.
Tron is a blockchain-based platform for sharing content. Justin Sun is the founder of Tron. The year 2020 is an outbreak year for the entertainment industry. The pandemic becomes an opportunity for the founders of Tron. The platform has gained fame over the last few years. The world’s biggest entertainment companies also using Torn. Tron provides many services, such as:
- Allows creators to monetize their content
- Profit from gathering and selling data
Final Thoughts about Best Cryptocurrency…
Always remember what expect advice. The expert cryptocurrency investors’ advice – Only invest money that you are not afraid to lose. Investing in Cryptocurrencies is a little bit risky. If it can give you huge profits, then you can also lose your money.
If you want to start trading cryptos, then:
- First, choose a suitable wallet.
- Then, choose a reliable exchange.
- Choose a cryptocurrency.
- Check everything, such as correct public key, proper amounts of cryptocurrency, etc.
- Make the payment.
And BOOM!!! You will receive your new cryptos. The transaction may take 10 minutes up to a few days. The transaction depends upon the payment method.
Also Read: 7 Best PaaS Companies (Platform as a Service) in 2020
Note: This article is a personal opinion. You should always consult with a professional before making any investment decisions.
So, what are your thoughts about these best cryptocurrencies? Have you invested in any one of them? How did you learn about cryptocurrency? What’s stopping you from investing in cryptocurrency? Let us know in the comments below…