With blockchain being the latest technology, the idea of selecting the best types of cryptocurrency is fundamental for crypto users in making money rather than losing money.
Despite new technology, there are potential rewards as well as risks. Unlike in the past, it is possible to count the number and types of cryptocurrency in existence, but it is no longer possible today.
Currently, there is over 3000 crypto, in reality, that fall into three main categories, namely Altcoins, Bitcoin, and tokens.
However, even as an expert or a pro at using digital currency anywhere around the world, selecting the best currency can be a daunting and overwhelming task, but several available guidelines and procedures could help. According to recent research, Bitcoin, Ethereum, Dash, Monero, Ripple, and Litecoin are among the most the largest and most widely used cryptocurrencies.
What to Look For in a Cryptocurrency?
In any discussion about finance and money, it is imperative to conduct some analyses.
Investigation of the critical features of existing cryptocurrency is essential.
In doing so, there are three crucial areas to look at:
The size of currency is vital in determining the adoption rate of any cryptocurrency. This is done by evaluating the market cap, which indicates the relative size. For example, the market cap can be calculated by multiplying the circulating supply by the current price.
Today, Bitcoin has the largest market cap. The larger the market cap of the digital currency, the easier it is to trade. As of April 2020, the following represent the highest market cap and the most popular industry projects;
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Binance Coin (BNB)
- Ethereum (ETH)
- Litecoin (LTC)
- Ripple (XRP)
- Tether (USDT)
- Stellar (XLM)
When purchasing cryptocurrency, it is vital to research the market caps because it keeps changing and fluctuating.
Also, the next is to examine the performance of the cryptocurrency as a whole across the globe.
With the recent trends in the crypto landscape despite its infancy stage, blockchain and cryptocurrency would disrupt the financial sector of the economy as businesses around the world are now accepting it as a means of payment.
The state treasurer of Ohio in the United States in 2018 began accepting Bitcoin for state tax payment. More than 13,000 restaurants across the globe, especially the largest food platform in Germany, have started accepting Bitcoin as one of the means of payment.
With close to 11.7 million active wallets globally, it is better to look at the number of wallet addresses to know better about the size and adoption rate.
Although this would reveal more about the size but, it is not accurate enough in determining the number of users a currency has due to users having multiple addresses.
Bitcoin has the highest adoption rate. Common traits to identify widely adopted cryptocurrency are;
- Decentralized networks
- Ease of use
- Privacy and anonymity features
- Increased usage by companies and retail stores
- Being accepted by major wallet platforms such as Coinbase
New Cryptocurrency Technology
The world is continuously evolving. Consequently, a cryptocurrency is chosen for the sake of new technology it has. Ripple, Qtum, and Aelf, to mention a few, have introduced their xRapid solution- a payment platform that works to lessen liquidity costs for international transactions.
Cryptocurrency security features
In any financial transaction, the issue of security is a big concern. Both parties at each end must be secured in order not to lose money and other valuable assets.
The online and digital currency is gaining more momentum due to its attributed security features such as public ledger, decentralized system, anonymity features, and rules that govern transactions, to mention a few.
These are the features exhibited by the leading cryptocurrency projects. For example, Monero is using untraceable and unlinkable transaction functionality.
Why Do Experts Like Cryptocurrency?
Experts most time express how crypto potential can be used in addressing the daily shortcomings of the current financial system. The digital currency is capable of handling issues like identity theft, high fees, and extreme economic inequality, which are an unfortunate part of the current financial system.
It is said to be the cheapest, most comfortable, safest, fastest, and most widely accepted way of exchanging values that the world has ever seen. And if that’s not exciting enough, it provides equality of opportunity regardless of locations and nationality.
With just an ordinary Smartphone and other internet-connected devices, everyone has equal access to cryptocurrency.
Which is the Best Crypto to Invest in?
The best part of it, crypto, is the future of money. Nevertheless, making use or investing in the best types of cryptocurrency is not easy at all. Plenty number (more than 2000) of currently available cryptocurrencies made it very difficult for investors and traders to know the best type to bet money on.
It is even harder for new market entrants to choose the top crypto coins to invest in only because the market keeps fluctuating and changing. Different cryptocurrencies can peak at any time in the market.
Recently, the highest court in Indian has lift ban on cryptocurrencies put in place by the RBI (Reserve Bank of India) in the year 2018. This has paved the way for millions of crypto lovers.
Other countries of the world, like the USA, Russia, England, and others, are currently researching the use of blockchain technology to develop respective digital currency.
It gets harder to choose the best types of digital currency to invest in, with so many things affecting the crypto landscape.
However, in answering the question, “which is the best crypto to invest in?” the answer is Bitcoin, followed by Ethereum. Bitcoin is the first digital currency ever developed and has the largest market cap.
The two (BTC and ETH) remains the first option when looking to venture in crypto space.
Ethereum played second fiddle to Bitcoin in terms of market cap and perhaps the most widely accepted Altcoin. The price of Ethereum has spiked due to upcoming changes to the Ethereum network. It then follows by Ripple, Dash, and Litecoin.
When looking to invest in or expand the financial scope into cryptocurrencies, research is essential. Critical analysis of security, anonymity, and adoption rate is a crucial guide in the crypto space.