The Top 5 Cryptocurrencies to Know in 2021 – Other Than Bitcoin
There are more than 9,600 cryptocurrencies in the market, each having its own distinguishing feature. Cryptocurrencies are also termed digital money or virtual coins, and work as an absolute alternative to fiat currencies. The cryptocurrency market is growing rapidly, and the total crypto market cap is estimated at $2.5 trillion.
Let us have a look at the top 5 cryptocurrencies of 2021:
Ether is a cryptocurrency of the Ethereum blockchain and is the second-largest cryptocurrency after Bitcoin. It was established in 2015 and works on smart contracts – a self-executing and automated business application that runs on a decentralized network. This feature allows a higher number of blockchain transactions and allows developers to create their own cryptocurrency. Even though it is far behind Bitcoin in value, its technological superiority, widespread usage, faster execution, and relative safety (compared to new coins) make it far more superior in terms of investment.
Current Price – $3,511.42
XRP was founded by Ripple labs and is a centralized cryptocurrency that is mined, controlled, and administered by Ripple. In 2021, it is estimated to have 10x times more potency than any other cryptocurrency. For investors, it is an enticing investment because it offers international transactions. It takes up to 10 business days to send money aboard with a bank, but with XRP it can be done within seconds. Ripple works with big banks around the world and provides them with financial-based settlement services to make direct transactions across the borders. This feature makes it more accessible to adopters. Undoubtedly XRP will continue to grow in 2021 because it is backed by support from banks and financial institutions and is also safe from SEC regulations.
Current Price – $1.45
Bitcoin Cash (BCH)
Bitcoin cash was launched in 2017 and is a spin-off or altcoin of Bitcoin, known as a “fork” in the crypto world. It was created to solve some of Bitcoin’s issues, for example, it runs on a decentralized ledger that can process a limited number of transactions per second, but with Bitcoin cash, the number of transactions has increased. Bitcoin cash has garnered the attention of investors due to its global adoption, decentralized network, unrestricted growth, and permissionless innovation.
Current Price – $1,104.06
Litecoin was initially released in 2011 and hit the market at the same time as Bitcoin. Litecoin processes transactions four times quicker than Bitcoin. In 2017, Litecoin was the first cryptocurrency to complete the Lightning Network transaction – the transfer was completed within one second. It also features peer-to-peer (P2P) technology and provides instant zero-cost payment throughout the globe. Comparatively, Litecoin is highly liquid, which is one reason investors put money into this digital coin.
Current Price – $285.39
ADA runs on the Cardano network which is the third-largest generation of cryptocurrency. It is one of the most technologically advanced cryptocurrencies to date. ADA works on a proof-of-stake system, meaning it can operate on the standard proof-of-work more efficiently. It also uses smart contracts, meaning it can keep a track of transactions like Bitcoin while processing payments like Ethereum. With Cardano it also takes less energy to complete a transaction as compared to Bitcoin, making transactions much faster and cheaper.
Current Price – $2.20
The Bottom Line – Best cryptocurrency to invest in 2021
There is no doubt about it: Cryptocurrencies are here to stay. The real question is, which is the best cryptocurrency to invest your money in?
Before you decide which cryptocurrency is the best investment for you, here are few tips you must keep in mind:
- Speed of transactions
- Fees of transaction
- Use of cryptocurrency
Also, remember cryptocurrencies are not a “get rich quick” scheme. It should be considered a long-term investment.
The prices are mentioned in USD as of 17th May 2021. Source: Coinmarketcap