Top digital currencies you should invest in right now
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Cryptocurrency has become a concept known by anyone interested in joining the crypto bandwagon and benefiting from all its advantages, including faster transactions and more secure payments. At first, there was only one player in the crypto jungle, the crypto king, Bitcoin. And because it was the only one for a period, people have always been interested in the BTC price prediction. But now things have changed, and plenty of other cryptocurrencies have entered the game. For example, the Binance Coin is one of them, and it has attracted the attention of investors. Exactly like the Binance Coin, other emerging digital coins bring innovations and become preferred options over the traditional and most popular digital coins. In this article, we will explore a few of them.
Bitcoin
Bitcoin is well known as the largest and oldest digital coin by market cap, and it is not only seen as a cryptocurrency but has also become a legal tender for countries, including El Salvador. Bitcoin was launched in 2009, and since then, it has transformed into a sacred digital coin that is securely decentralized, meaning that a central authority, like the government or a bank, does not control it. As Bitcoin has been in the crypto landscape for the longest, it can be seen as an inflation hedge and legitimate store of value that has attracted worldwide attention. Plus, people seem more interested in Bitcoin than ever, which can also be seen from the approval of the Bitcoin exchange-traded funds (ETFs), which shows that major financial institutions have become attracted by this cryptocurrency.
Ethereum
Ethereum is the second-largest cryptocurrency by market cap, and it is also the most used blockchain for developing dApps. Ethereum has also opened the doors to plenty of other innovations, including NFTs, DeFi, smart contracts, metaverse, and Web3 gaming. This is why Ethereum has become the most popular network for developers, as it is where most actions happen in the crypto landscape, including new development advances in DeFi and play-to-earn crypto games. Ethereum is and will remain one of the most popular altcoins anyone can invest in, and as it gets bigger, there will surely be more users that would want to join this space. Plus, at the moment, Ethereum developers and researchers are focusing on Layer-two solutions that will enhance the speed of the blockchain, thus making Ethereum even more popular, with the possibility of knocking down Bitcoin, the crypto king.
BNB
BNB, or the Binance Coin, is the native token of Binance, one of the most important cryptocurrency exchanges worldwide. BNB functions as a normal digital currency, as it can be traded and bought for several goods, but it can also be used to pay the trading fees on the exchange, and it offers access to new crypto launches. Currently, BNB is the 4th-largest cryptocurrency by market cap, which is quite impressive, keeping in mind that it was launched in 2017. As it has numerous use cases, BNB has positioned itself as an important cryptocurrency and one of the best options for anyone who wants to invest in digital currencies.
XRP
XRP is the official digital currency of the Ripple payment network, which was developed to make all international payments cheaper and faster. As such, XRP is a very good option for investors as it has low costs and fast transfers, especially for use-case remittances. Most cryptocurrencies use either a Proof-of-Work consensus mechanism or a Proof-of-Stake one, but XRP is different, as it has an XRP Ledger Consensus Protocol, where every participant can choose their own set of validators whom they trust to validate the transactions.
Solana
Solana is an opponent to Ethereum, as it is a fast and cheap blockchain with a native token that has risen a lot in value in the past. Solana’s unique architecture allows it to process numerous transactions per second at an extremely low cost. This feature is done thanks to the unique Proof-of-History algorithm that works together with a Proof-of-Stake consensus mechanism. One of the best advantages of SOL is that it is the cheapest alternative to transfer on the market, with an average transaction fee of $0.001.
Cardano
Cardano is a popular platform for its scientific approach centered around sustainability. Cardano uses a Proof-of-Stake consensus mechanism that is more energy-efficient than the other alternatives, including Bitcoin, which functions with the help of a Proof-of-Work algorithm. Cardano has slowly started to build its community and infrastructure, emphasizing that it is an interoperable, scalable, and secure blockchain solution. Plus, Cardano has undergone an Alonzo upgrade, which added a successful deployment of smart contracts and made Cardano host a wider range of applications, making it a more popular solution. Additionally, Cardano is committed to creating an environmentally sustainable blockchain that will align with people’s interest in greener technology. This is why Cardano can position itself as a sustainable and long-term digital coin in the blockchain space.
Dogecoin
Dogecoin is a meme coin launched in 2013, but it gathered people’s attention only recently, from 2020 to 2021 because celebrities started to invest in it, including Tesla’s founder, Elon Musk. From that moment, Dogecoin gained explosive popularity and inspired other digital coins, including Shiba Inu. Dogecoin has become a very popular currency, as it represents more than a meme coin. It is also being accepted for crypto payments and is increasing its value in the real world.
Conclusion
Bitcoin and Ethereum might be the first digital coins that come to investors’ minds when building a crypto portfolio, but there are also other options, including those mentioned above. So, suppose you are interested in investing in digital coins. In that case, you must see exactly for what application you want to use the digital coin and add the cryptocurrencies that best suit your preferences to your portfolio. While Bitcoin will forever have the first-mover advantage, other altcoins are also worth considering.
