Best Cryptocurrencies to Invest
Innovation in the global financial market has been the major topic of discussion for the last couple of years. Since the world has embraced Internet technology, payments have become much faster. This evolution suggests that the globalized economy will continue to rise, generating new markets and new opportunities for growth. However, technology has to move hand in hand with the growing demands of the world’s economy. Otherwise, it will fail to deliver the much-needed change.
June 4, 2021
Mary Ann Callahan
The views and opinions expressed in this article are those of the author and do not necessarily reflect CryptoEvents’ position.
Cryptocurrencies emerged as the answer to many questions that arise in terms of security and speed of transactions. They have also opened a whole new world of open, decentralized finance systems. Along with that, cryptocurrencies have become mainstream, meaning that, unlike many other financial instruments like stocks or bonds, you don’t have to be a certified investor to buy crypto. You can buy it anytime and use it as your individual investment. This concept gives much more freedom. Yet also, it brings the risks inherent to the highly volatile markets. Namely, the risk of losing your investment due to its price volatility.
Financial analysts keep making predictions about these fairly new crypto markets. Opinions may differ but there is a number of cryptocurrencies loved by the absolute majority of investors and experts. They actively trade it in exchanges like CEX.IO Canada and alike. Read on to find out what are the hottest cryptos to invest in right now.
After the sixth consecutive month in the bull run, Bitcoin secured its reputation as the king of crypto by reaching the $1 trillion market cap. This number accounts for nearly 45% of the entire crypto market. That’s why most investors prefer to keep the long-term holdings of the oldest crypto coin hoping that it will appreciate in value as years go by. That’s a fair statement because Bitcoin has a relatively low supply limit of 21 million. In the future, this fact makes for high demand and low supply, which naturally will affect the price growth.
Ethereum is considered a step forward in technology after Bitcoin. Since Ethereum is conceptually new and moreover, a pioneer in the DeFi industry, it has gained a fair share of popularity. Most smart contracts are executed particularly on this network despite the ability to do it on the other blockchains as well. Consequently, the Ether network suffered consistent outages and the commissions (i.e. gas fees) have been rising. As a result, Ethereum developers proposed a series of system architecture transformations which will be performed in a sequence of “hard forks”. Each hard fork is followed by a price spike of ETH, that’s why this cryptocurrency attracts many investors.
This one is a controversial cryptocurrency that is risky but also potentially lucrative. Ripple corporation is known for providing services to institutions like banks. They have also introduced their payment network RippleNet and native cryptocurrency, XRP. RippleNet doesn’t function on the proof-of-work or proof-of-stake algorithm, unlike other coins and tokens. Instead, they use a consensus protocol. Ripple is also famous for the lawsuit with the SEC. The regulators argue that XRP is a form of security while the founders claim that it’s a utility token. Time will tell what will be the results of the court proceedings. Yet, an interesting fact is that the community support of the Ripple holders is quite obvious because even in such tough times the price of XRP shows a considerable bullish trend.
Stellar is the closest rival of Ripple. Their native coin is Stellar Lumens or XLM. This blockchain is known for signing numerous collaborations which give them quite good opportunities for further development. For example, Stellar has contracts with Samsung and IBM denoting the assistance in introducing new financial products to the market. Close connections with trusted institutions make this crypto a fairly stable option for diversifying your portfolio along with some more risky assets.
A meme-inspired crypto coin doesn’t look like a joke anymore since the mid-year 14,000% surge in price. Some investors are buying it hoping that they can make a fortune on Dogecoin overnight, others are warning to stay away from it. The truth is, as usual, somewhere in between. Dogecoin is indeed a risky asset and if you’re considering your portfolio to be able to stand some risk, then this investment is for you.
On the flip, Dogecoin is a bit of a dark horse. It’s hard to define when it’s overpriced or not because it has no supply cap. There can be a limitless amount of such “puppies” in the world! This coin is very sensitive to the hype and public sentiment, that’s why it’s highly volatile. Anyway, what you can be confident of is that if you invest in DOGE, you’ll have a lot of fun. Of course, if you don’t put all your savings in it.
This cryptocurrency also has an interesting story. The blockchain was originally developed by the brother of Pavel Durov, founder of a popular messenger mobile app. TON project has organized a private ICO for accumulating funds needed for blockchain development. However, the SEC viewed it as a future contract for unregulated securities. After the court proceedings, the decision was negative for TON.
After that, the project was restructured and came to the market as a community-driven network. The technology that they use stands out in terms of speed – if the XRP transaction settles in 4 seconds, the TON transaction settles in 0.2 seconds. Due to the uniqueness of this token itself, it might be a good investment for diversification as well. The network is fairly predictable since the community governs pretty much all the decisions. So you can understand where it stands and where it goes if you casually drop in their forum or Telegram channel and see what’s popping in the community.
This list is just a small picture of the whole crypto market. If you continue with your own research, you might find a lot of other cryptocurrencies worthy of investing.