Before investment check which cryptocurrency is the best cryptocurrency to invest in 2021 for long term.
Top five cryptocurrencies that you can actually invest in right now
- Before I take you through the five coins which have the huge potential I would want to make you first understand on what basis. These coins have actually been selected so all the coins have actually been selected on basis of their fundamental sand on basis of popularity so when I’m saying fundamentals it means going through the white paper. Now every single coin has something called white paper. Which is actually created by the founder of the developer of that particular coin.
- Second, going through the website to understand what is the scope of this particular coin. Does it actually have a proper project is it trying to solve something.
- Third try to understand what is the overall market cap of this particular coin.
- Fourth trying to understand what is the maximum supply of this coin does it have a limited supply or is it completely unlimited.
So these are the four criteria on which these coins have been selected also i try to stay away from meme coins like Shiba Inu, Akai etc.
You will have a basic idea in terms of which are the top five coins which you should be investing in right now and also why you should be actually investing in them.
1. Now the very first coin which you need to invest is bitcoin.
Bitcoin is a virtual currency now I know a lot of you will be asking is it even worth investing in bitcoin right now is it too expensive or with the recent news of Tesla and Elon Musk actually selling bitcoin. Is it even worth investing in a does it have a future scope so I personally think yes bitcoin does have a future scope. Bitcoin was one of the earliest cryptocurrencies which were ever created and hence it became the brand phase of crypto. It has a total supply of 21 million out of which 18.9 million bitcoins are currently in circulation as of today hence it’s a currency which cannot be inflated as of today. It did have a market cap of 1 trillion but with the recent news there was a drop in the prices but even then bitcoin is actually one of the most popular cryptocurrencies out there and over the last one to two years multiple different institutions have started adopting bitcoin as well. In the last one year bitcoin has actually gone up in prices from nine thousand dollars all the way to sixty-four thousand dollars is peak and then currently trending at forty-eight thousand dollars right now. If you’re not sure how bitcoin is transferred from one person to another or how to invest in bitcoin I would highly recommend go there where I explain bitcoin for beginners.
2. The second coin being Ethereum
This is the second-largest crypto out there with a market cap of 450 billion dollars. So this is a coin which you need to have in your portfolio now for all of you who are not sure what Ethereum is let me actually explain it to you. Now for creating a blockchain or for creating a crypto, you need to have a strong knowledge in terms of coding mathematics you need to have the time and resources. Ethereum is actually offering a platform where developers can create these blockchains or they can create the decentralized applications. They can create crypto so Ethereum is actually reducing barriers to entry. In the crypto world think of it in this way bitcoin is like an application in your phone that can be used to transfer money from one person to another person. Ethereum, on the other hand, is like your app store or play store which is a collection of different applications now Ethereum and Ethereum classic are two different coins so be careful on that also if you see the price of Ethereum. Over the last one year, the price has actually gone from two hundred dollars all the way to four thousand dollars. Ethereum unlike bitcoin does not have a maximum supply but it actually has an annual supply of 18 million.
3. The third coin is Cardano
Cardano has recently started getting quite a lot of popularity Cardano is a third-generation crypto which actually tries to solve all the disadvantages of both bitcoin and Ethereum. It actually works on peer-reviewed papers which basically means that instead of anyone actually creating a white paper and then leading to creating a crypto the Cardano team actually believes that it needs to be first verified by the experts around the globe and only once they approve it then the crypto is actually created also another reason why cardinal has been getting quite a lot of popularity is because Cardano actually works on proof of stake instead of proof of work. So if I have to explain to you the difference between proof of work and proof of stake it’s a very simple way bitcoin actually works on proof of work so anyone including me you or your neighbor can actually mine bitcoin today. If we had the software and hardware for it due to this the consumption of electricity is really high in terms of bitcoin also the overall process in terms of mining of bitcoin is really slow there are multiple different articles which actually show how much electricity is being consumed for mining one block of bitcoin. Now in the case of Cardano because it works on proof of stake not everyone can actually mine Cardano. So we have to be a part of the system and then the system decides who can mine Cardano at a particular time interval due to this the overall consumption of electricity in the case of Cardano is much lesser and also the overall time period for mining a particular block of Cardano is much faster. So it’s a coin which is much more stable and sustainable also with the recent news that Tesla has been looking for a new crypto this has led to an increase in the price of Cardano. Cardano is the fourth largest crypto with a market cap of 65 billion dollars in just the last one year the price of Cardano has actually gone from 0.05 to two dollars. Cardano has a maximum supply of 45 billion coins out of which 31 billion is currently in circulation today.
4. The fourth coin on the list is Polkadot
Polkadot it aims to connect different blockchains as the name suggests it means the connecting the dots now this particular coin is a relatively new coin and it actually works on proof of stake similar to how cardinal operates. So the Polkadot network actually brings all the different blockchains under one single offer for the users to actually create any project that they wish on polkadot. You are able to scale and upgrade your blockchain as and when newer technologies become available also because Polkadot actually works on proof of stake and not on proof of work the overall consumption in terms of electricity in case of polka dot as well is quite less. It is currently the eighth largest crypto with a market cap of 37 billion dollars. Over the last one-year polka dot has actually gone from two dollars all the way to forty-four dollars Polkadot does not have a maximum supply limit.
5. The next crypto is chain link
Let me give an example let’s say you’re running a business now in any business having a cash flow is quite important. Let’s say that you want to transfer money today you will either transfer through PayPal or maybe through a bank or maybe through a checking any of these cases the problem is that. The payment is not very transparent and it has its own disadvantages and this is what a chain link is trying to solve. So chain link is the first platform which is able to transfer real-life data or money using a blockchain. So chain link is a decentralized network of oracles and these oracles actually form a bridge between the real world and the digital world and they’re able to transfer data from the real world to digital world and vice versa. So in summary chain link as a platform is able to transfer data from a real world to a blockchain now chain link is the 13th largest crypto with a market cap of 16 billion dollars over the last one-year chain link has actually gone up in price from three dollars all the way to 41 dollars now. Chain link does have a maximum supply of 1 billion after which 420 million is currently in circulation.
Now before you actually invest in any of these coins make sure that you’re doing your own research cryptocurrency is a great way of diversifying your portfolio by the same time you need to understand the risk the market is so volatile that it can actually go up or down by 20 25 in a particular day so make sure you do your own research.