Cryptocurrency is a digital currency or a virtual currency, it hasn’t been around for long but after its release it grew massively in popularity very quickly. Digital currency may seem unsafe as if it’s digital it is more hackable but cryptocurrencies are actually pretty safe as they’re secured by cryptography which makes it virtually impossible for counterfeit cryptocurrency to be created or for people to double spend. The way most cryptocurrencies work is on a decentralized network and these networks are based on blockchain technology, the defining feature of a cryptocurrency is that they’re not issued or controlled by any central authority, this means that unlike many other investments that you can make, they can’t be controlled or interfered with by governments. Bitcoin was the first ever cryptocurrency, it was beginning to be created back in 2008 and in 2009 the first ever bitcoin transaction of 10 bitcoin took place. Since the creation of bitcoin more and more types of cryptocurrency are starting to reach the mainstream. Many celebrities including the likes of Elon Musk are very involved with cryptocurrency. If you want to get involved with cryptocurrency and start making some smart investments but are overwhelmed and don’t know where to start, then lucky for you we’ve found the cryptos that we think are the best investments.
As stated, bitcoin was the first ever cryptocurrency. It’s invention in 2009 was revolutionary and it was only able to be created thanks to the development in technology since the technological boom. Over the last few years bitcoin has started to become a common form of payment, in various companies in different countries worldwide, people can use bitcoin to pay for things such as holidays, their groceries or their weekly takeaway pizza. Two huge milestones for bitcoin are El Salvador wanting to make bitcoin legal tender and Tesla, owned by Elon Musk, adding bitcoin to their balance sheets. Bitcoin is the most successful cryptocurrency and is valued at over $1 trillion.
Ethereum is the second most successful type of cryptocurrency. It is unlikely to ever be worth as much as bitcoin as it was only introduced in 2015, but it is still a very successful cryptocurrency. Whilst some other cryptos are worth investing in, this is the only other crypto that could make it to the same level as bitcoin. Bitcoin dominated 70% of the crypto market but with Ethereum growing in popularity it has forced bitcoin down to 45%. This is our top pick for a crypto investment as it still has so much potential, if you’re wondering how to go about buying ethereum then you’re lucky as it is very easy and there are plenty of helpful guides online.
Solana is a fairly new cryptocurrency, it was only introduced at the start of 2021. When it entered the market it only had a 0.01% market share, but now it is being rated in the top 10 cryptocurrencies. The thing that makes Solana stand out is because the programming language that it runs off – rust – is extremely user friendly which makes it appealing. Solana also has the edge over Ethereum for 2 reasons, first of all it has much faster transaction speeds and the cost of transactions are also much lower. These things have led to Solana rising in price from around $1.51 all the way up to $160.
Cardano has the third highest market share in crypto currency, it isn’t close to the level of Bitcoin or Ethereum but it is still a worthy investment. It was created by one of the co-founders of Ethereum so when it entered the market in 2017 it already had a lot of credibility. This is one of the cryptos that has a cap on how many coins are available and can exist, they’ve capped it at 45 billion. The main advantage that Cardano has over various other cryptos is that the protocol for people to create new blocks is twenty times more energy efficient than Bitcoins.
Dogecoin is another popular cryptocurrency, it was created back in 2013 and when it was created it was made as a joke, it was a meme coin. However, it ended up being one of the highest trading cryptocurrency’s thanks to a bunch of reddit users. A group of people on reddit saw dogecoin as an opportunity to make a lot of money and to take money from the big hedge funds on Wall Street. Users were encouraging other users to buy into dogecoin, this increased the price of dogecoin meaning that hedge funds were unable to buy it back. This cost one hedge fund almost 13 billion dollars and it caused them to go into administration due to bankruptcy. Another thing that helped to increase the value of dogecoin was Elon Musk. Elon Musk has a lot of influence over cryptocurrency, just recently he tweeted a picture of a Shibu dog and this caused Shib coin to increase in value as his fans flocked to invest. This happened with dogecoin but on a bigger level, he tweeted 3 separate tweets about the meme dog doge and every time this led to people investing in the currency and making it stronger. It is now the 6th most successful cryptocurrency so another great one to invest in.