Top 5 Cryptocurrencies to Buy and Hold for Future
In 2009, when Bitcoin was created in response to the economic chaos inflicted by the financial crisis, no one thought it would give rise to a new currency of the future. Since then, thousands of cryptocurrencies, with varying specialties and differing degrees of utility have been created. While some have got extremely famous, others have lost in time. When a cryptocurrency investor gets so many choices then how can investors decide which are the top 5 cryptocurrency to invest in?
Here’s a look at the best cryptocurrencies to buy and hold for the future.
1. Bitcoin (BTC)
No one can deny that since its creation in 2009, Bitcoin has become the dominant player in its field. It’s growing popularity with both retail and institutional investors has led to an increase in its market value. Just like most cryptocurrencies, Bitcoin also runs on a blockchain, or a ledger logging transactions distributed across a network of computers across the globe.
Bitcoin has recently been seen as a way for poor countries to guard against currency depreciation and for faster, cheaper funds transfers across borders. Also some of today’s genius business minds are increasingly gravitating toward it. What’s more is that Bitcoin is secure and safe from fraudsters as the additions to the distributed ledgers must be verified through a process called proof of work. All these facts make Bitcoin the best cryptocurrency to buy and hold for the future.
Market cap: Over $641 billion
2. Ethereum (ETH)
Ethereum has seen tremendous growth in the past five years as its price went from about $11 to over $2,500 in these years. Its share of the overall crypto market is about 18%. Though it is far from Bitcoin’s 47%, Ethereum can hold its own as it has been emerging fast as a cryptocurrency and a blockchain platform.
Contrary to popular belief, the native currency on the platform is not called Ethereum but ether. As a leading platform for decentralized finance, or DeFi, Ethereum allows users to create smart contracts that automatically execute when conditions are met. The potential to do away with third parties such as brokerages, banks, and clearinghouses makes Ethereum an exciting, money-saving platform. Other than that, Ethereum is now becoming a favorite of program developers because of non-fungible tokens (NFTs), which are going to gain huge popularity in the coming few years.
Market cap: Over $307 billion
3. Tether (USDT)
Unlike some other forms of cryptocurrency that are volatile, Tether is stable. It means that Tether has the backing of fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. Thus, in theory, we can say that Tether’s value is supposed to be more consistent than other cryptocurrencies. That is why many investors who are wary of the extreme volatility of other coins favor Tether.
Market cap: Over $62 billion
4. Binance Coin (BNB)
The Binance Coin is one of the many kinds of cryptocurrency that one can use to trade and pay fees on one of the largest crypto exchanges in the world, Binance. Since its launch in 2017, it has become much more than just merely facilitating trades on Binance’s exchange platform. Now, one can use it for payment processing, trading, or even booking travel arrangements.
Just like Bitcoin, Binance Coin has put a strict limit of $200 million on the number of tokens in circulation. It is a big reason that has made Binance Coin the fourth-most valuable cryptocurrency worldwide. The native currency of the popular Binance exchange, the coin is up more than 700% in 2021 alone. It has a different model than many of the other cryptocurrencies in the market. It destroys or burns much of its currency on a quarterly basis using one-fifth of its profits. With a market capitalization of more than $50 billion, Binance Coin is no longer the instrument of pure speculation that it once was, and as long as the wildly popular Binance platform continues to grow, the BNB crypto has a bullish outlook.
Market cap: Over $56 billion
5. Cardano (ADA)
Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson who left it to Cardano. Though, somewhat later to the crypto scene, Cardano is known for embracing proof-of-stake validation early on. The method quickens transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification present in platforms like Bitcoin. It is becoming an increasingly popular way for blockchains to validate transactions for security reasons. Just like Ethereum, Cardano is a decentralized blockchain platform that uses a native cryptocurrency (Ada), to allow secure peer-to-peer transactions.
Currently, Cardano is the fifth-most valuable cryptocurrency worldwide and it is working towards enabling smart contracts that should be fully operational by fall 2021.
Market cap: Over $51 billion
Just as in the stock market, investors should wager only with money they’re willing to lose because even the most stable cryptocurrency can be extremely volatile. So, before you buy cryptocurrency with the hopes that it’s value will increase in the future, always be prepared for the worst or invest only that much that you are willing to lose.
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