Cryptocurrency has revolutionized the way in which society views and approaches money. They have changed the financial landscape irrevocably, and truthfully, they are still an emerging technology, and as such, they haven’t even fully realized their potential. Investing in cryptocurrencies is a great way to make a passive income and diversify your existing investment portfolio – if you have one. There are a huge number of cryptocurrencies to choose from which can be a little overwhelming for a beginner. This is why we have devised a ranking of the top ten most popular options available to you this year, so read on to learn more.
Number 10: USDC
At the top of the list, coming in at number 10, is USDC which operates within the Ethereum blockchain. It is a stablecoin which is linked to the US dollar, meaning that its value is never less than a single dollar. It was designed to make cryptocurrency transactions easier, quicker, and cheaper. This is why it is such a popular option, especially for beginners, because it carries less risk than other forms of cryptocurrency.
Number 9: Dogecoin
Dogecoin has had unprecedented success considering it was named after a meme and created as a joke designed to mock Bitcoin. It caught on in a big way with a few celebrity fans like Snoop Dogg, Kevin Jonas and even Elon Musk. Today, it is a reputable cryptocurrency. Like most other forms, it relies on blockchains for the transaction. However, it does not have a cap which has both benefits and drawbacks. Since it isn’t in short supply, there are more investment opportunities, but this does also mean that the price fluctuations are more measured.
Number 8: XRP
XRP was created by Ripple Labs, which is a global financial business specializing in money transfers, so developing their own cryptocurrency simply made sense for them. It was created to be used on their network and operates in much the same way as any other cryptocurrency, except it can only be accessed using their platform. XRP cannot be mined; unlike many other forms of crypto, the transactions are instead verified using the internal system set up by Ripple. It does, however, have a cap.
Number 7: Solana
Solana, like most others on this list, also uses a blockchain. However, it is also one of the more volatile cryptocurrencies that you can invest in. This, of course, does mean more risk, but it also could mean higher returns which is why it is at number seven. The biggest thing to consider here is whether Solana has already reached its peak in terms of value or whether it has more to offer. Their popularity is due in part to their approach to cryptocurrency, which includes smart contract technology detailing their decentralized processes designed to cut out unnecessary involvement from third parties.
Number 6: Binance Coin
Binance, like USDC, began life operating within Ethereum’s blockchain; however, it has since moved to its own platform with its own blockchain. Binance was originally developed to allow investors and traders to access a number of different benefits, like discounts. It was what was known as a utility token. However, its use has since diversified and grown. There is a cap, and in order to ensure that the value doesn’t tank, Binance has developed a buy-back scheme whereby they purchase and destroy their coins. This helps to ensure that their value holds pretty steady, which again makes it a solid investment opportunity for beginners.
Number 5: Tether
At the midway point, in at number five, is Tether which was a feat of innovation for cryptocurrency. It was the first example of stablecoins which was explained above. Tether, like USDC, is tied to the US dollar, and it is also less volatile too, which means less risk. The creators of Tether wanted to develop a cryptocurrency that was more stable and transparent for the benefit of its users. Tether also offers lower transaction fees than a lot of other cryptocurrency options.
Number 4: Cardano
Cardano has been around for over a decade; however, during its lifespan, it has undergone a series of refinements and developments to transform it into the cryptocurrency that it is today. During these refinements, Cardano has officially become a third-generation platform. It now boasts better trackability and safe, secure transactions. This is done by their effective data collection processes, which verify transactions and help to prevent fraudulent activity. The version of this platform has not been around that long, which does mean that it isn’t really clear at this point whether the improvements have really worked or not.
Number 3: Polkadot
To begin the top three, we have Polkadot. It was created by one of the founders of Ethereum, who wanted to improve upon its original creation by elevating what a blockchain can do. Polkadot has two blockchains: a primary chain which acts as a relay for the network and stores the transactions, and a secondary chain which is comprised of user-created chains which run parallel to the primary chain. Even though it is all relative, considering cryptocurrencies haven’t been around that long in general anyway, Polkadot itself is a relatively new option. Thanks to sites like CryptoEQ, you can learn about Polkadot among a number of other cryptocurrencies also featured on this list.
Number 2: Ethereum
In at number two is Ethereum. Originally, Ethereum’s blockchain wasn’t designed with a view to support a cryptocurrency; it was merely meant to be a programmable blockchain. The currency aspect was introduced later and was meant to be used solely within the platform. Ethereum, unlike other entries on this list, does not have a cap. This does mean that there are more investment opportunities. However, it could also indicate that a huge price boon is unlikely because the coins are not necessarily scarce or rare like other forms of crypto that do have a cap.
Number 1: Bitcoin
Was there any doubt that number one on this list was going to be Bitcoin? It was and remains the first form of cryptocurrency to gain any real traction in society as a whole; most people, regardless of whether or not they have any interest in cryptocurrencies, have heard of bitcoin. There is a cap to the number of bitcoins that are available, which has, in part, been behind the increase in value. Bitcoin was the first cryptocurrency to use a peer-to-peer verification system, although this has since been adopted by a number of other cryptos.
Cryptocurrency is an incredibly popular investment choice because it is pretty easy to get into, and it can be lucrative when approached correctly. There is the opportunity to make huge profits, but if you aren’t careful, you could also lose your investment too. Obviously, as always when it comes to investing, there are a number of outside factors that can affect the market and therefore influence the price of the assets; for the most part, these will be out of your control. One of the things that will always remain within your control is the form of cryptocurrency that you choose to invest in. The 10 cryptocurrencies listed above are the most popular and perhaps some of the safest options for you to consider.