There are about 3000 different cryptocurrencies on the market, and it is tough to choose a worthy currency.
After the encryption winter, hundreds of projects have not been restored. You can witness this fact through the New Economic Coin (NEM), StEEM coin, Statis coin, etc.
When choosing the best cryptocurrency to buy, you should consider the development prospects of the project, the quality of the team behind the asset, and the size and activity of its community.
We decided to choose the most suitable cryptocurrency for you.
All the currencies reviewed below are checked in accordance with the above conditions and have a large transaction volume, so there should be no problems buying them.
Bitcoin (BTC)
Bitcoin is still the number one cryptocurrency. As the first cryptocurrency, it has become akin to digital gold.
The discussion concerning its value will never stop.
Bitcoin is still essential nowadays and has now become the touchstone of all cryptocurrency marketplaces.
The market relies on Bitcoin, and when Bitcoin climbs, practically all altcoins rise with it.
The interest in Bitcoin in the currency circle is still significant, which can be explained by numerous factors:
- The maximum historical value is $20,000, and the total quantity of tokens is limited, which means that the price may only increase when demand increases.
- It is projected that the price of Bitcoin will climb following the 2020 halving.
In the entire brief history, Bitcoin has only suffered two halvings, and each time the price of the currency has risen dramatically.
- The financial infrastructure surrounding Bitcoin is expanding
Previously, the industry focused on retail consumers and offered Bitcoin payment gateways, PoS terminals, etc.
Today, Bitcoin is considered a store of value, attracting many institutional traders-22% of them currently possess digital assets,
while another 40% aim to purchase other cryptocurrencies.
This has driven industry players to develop regulated exchanges (such as Bakkt) to simplify this procedure.
Litecoin (LTC)
If Bitcoin is higher than your salary grade and you want something cheaper, consider Litecoin.
Charlie Lee developed Litecoin to overcome some of the disadvantages of Bitcoin.
The most crucial element determining the price of Litecoin is that Litecoin is a fork of Bitcoin.
Their programming is very similar-making both tokens travel in the same direction; hence, similar, making their price behavior is very comparable. If Bitcoin will grow-Litecoin will follow.
In terms of willingness to adapt and upgrade to emerging technologies, Litecoin is one of the most significant cryptocurrencies.
The development team is the first to merge Segregated Witness (SegWit) with Atomic swap and Lightning Network.
The Lightning Network is a breakthrough system that can significantly boost the speed of microtransactions in the blockchain.
Unlike Bitcoin, Litecoin has now become a payment tool.
The cryptocurrency is widely used by many companies, merchants, and services all around the world.
You can use Litecoin to buy clothes, furnishings, beauty, and health services.
More places that accept Litecoin may also have a favorable impact on the exchange rate of cryptocurrencies.
Ethereum
Vitalik Buterin’s passionate work- Ethereum is today’s second-largest cryptocurrency. Unlike Bitcoin, the production of Ethereum is unlimited, and around 10% of the overall amount is added in the form of newly issued tokens each year. The following are the primary elements for the success of the project:
- Release of Ethereum 2.0: Due to the mining technique in the Proof of Stake (PoS) protocol, miners can participate in the stacking.
This update will reduce the issuance volume to 2.5 and incentivize the removal of Ethereum from free circulation for long-term safekeeping.
- The force behind cryptoeconomics: Remember, Ethereum fosters the decentralized application (DApp) ecosystem.
This means that millions of developers and companies require Ethereum to publish their smart contracts, establish their own decentralized applications and pay commissions.
- Team of experts: Despite being extremely young, Vitalik proved himself to be a true specialist in cryptography.
His professionalism has helped him attract thousands of developers from all around the world.
Today, the Ethereum Foundation has become one of the largest crypto development communities in the world.
Binance Coin (BNB)
Utility tokens are undergoing a second rebirth and are becoming very popular on exchange platforms.
Binance Coin of Binance exchange is one of them. Binance Coin is an altcoin that has been growing steadily since its inception. It is one of the fastest-growing cryptocurrencies in 2021 for the following reasons:
- The main driver of the token growth is the token economics correctly calculated by the Binance platform.
Using this token, users can pay trading commissions on the Binance Exchange, get discounts and participate in the first exchange offering (IEO) (IEO).
- Every quarter, Binance burns a small portion of Binance Coins, which limits the supply of tokens.
As a result, only half of the original total of Binance Coin (100 million tokens) was left.
- Binance Coin is one of the most liquid crypto assets today. The volume of currency transactions continues to grow.
- The trading platform is actively exploring new markets to expand its user base.
They opened new departments in the United States, South Korea, and Russia in 2021 to provide new users with access to their platform and Binance Coin.
TRON
The primary purpose of TRON cryptocurrency is to create an ecosystem for entertainment content on the blockchain. Any user can distribute videos, pictures, music, etc., on the TRON network.
The content will be shared and stored decentralized, without relying on a single server, and users can use TRON to pay content creators.
The public shutdown device behind the TRON project never stops. Justin Sun, the founder of TRON, often attends cryptocurrency conferences and gatherings.
He has always been the headline news in the media and will not miss any opportunity to promote his project.
The project’s focus is the entertainment field, which is one of the largest industries with a market turnover of one trillion US dollars.
Some experts pointed out that the entertainment market is studying decentralized databases and considering moving business processes to the blockchain.
For this, they need ready-made solutions, and TRON may become one of these solutions.
TRON is known for its high volatility.
The current token exchange rate is relatively high. Thanks to the energetic and quirky Justin, we will likely see this token rise and fall several times.
It makes sense to include TRON in your portfolio and then sell it when you return to the top in the future.
Conclusion
Still wondering, How to pick the perfect cryptocurrency?
It should have strong liquidity, sustained price growth, the potential for continued expansion of its ecosystem, and a solid reputation.
Remember that cryptocurrencies are very volatile assets.
Don’t forget to do your own research, and remember not to make a disastrous investment.
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