Cryptocurrency’s popularity has surely gone over the roof over the past few years, and many people have been going crazy about it. Cryptocurrency has already been around for quite a long time. Although it has drawbacks like its volatility and its cyber security, many investors still took the risk and started investing in them. Some investors ended up being quite successful, and some were not. Suppose you are looking for an extra source of income and want to start investing in cryptocurrencies. In that case, this article can help you choose which crypto to invest in.
In this article
Cardano (ADA)
Cofounded by Charles Hoskinson, Cardano was created by crypto experts, mathematicians, and engineers. The creators behind Cardano took a different approach. They had created Cardano’s blockchain through extensive research and experimentation. One of the notable characteristics of Cardano is its proof-of-stake validation. Proof-of-stake is a validation method that significantly reduces energy usage and lessens the transaction time by removing the problem-solving factor that is present in other cryptocurrencies such as Bitcoin.
Cardano works similar to Ethereum, where it enables decentralised applications and smart contractors, which are also powered by its token, ADA. However, if you frequently observe the crypto market, Cardano’s ADA had relatively good growth if you compare it to other cryptocurrencies.
Binance Coin (BNB)
Binance Coin was launched back in 2017. Since then, it has expanded from facilitating trades on Binance’s exchange to payment processing, booking travel tickets, and trading. In addition, Binance Coin also allows the exchange of other cryptocurrencies such as Ethereum. Binance Exchange was founded by Changpeng Zhao, and fast forward today, based on the trading volume, it is now one of the most widely used exchanges.
Binance Coin can be categorised as a utility cryptocurrency since it operates as a form of payment method for the fees with trading on Binance Exchange. Back in 2017, Binance Coin’s price value was only at around $10, and by August 2021, its price rose to over $419, making it one of the most notable cryptocurrencies you can invest in today.
Tether (USDT)
Tether is one of the first stablecoin that was introduced to the market and is also one of the most popular. Tether was launched back in 2014, and it’s a type of cryptocurrency backed by fiat currencies such as Euro and U.S. dollars. Tether aims to maintain its market value to smooth out its price fluctuations to reduce volatility, unlike other cryptocurrencies that experienced major volatility.
Tether can also be described as a platform designed to accommodate the use of fiat currencies on the digital market. This also allows other users to use the blockchain network to transact with other cryptocurrencies while lowering the volatility and other factors related to digital currencies. In January 2021, Tether gained a total market cap of $24 billion, making it one of the most notable cryptocurrencies by market capitalisation.
Litecoin (LTC)
Litecoin was created by Charlie Lee back in 2011, and it is one of the first cryptocurrencies that followed Bitcoin. Many people categorise Litecoin as similar to Bitcoin, but Litecoin has a faster block generation rate which enables a faster confirmation time on the transaction. Litecoin is also based on a decentralised open-source payment network that also utilises a ‘scrypt’ as proof of work for validating transactions. In January 2021, Litecoin achieved a market capitalisation value of $10 billion, making it the sixth-largest cryptocurrency worldwide.
Polkadot (DOT)
Created by Gavin Wood, Polkadot is classified as a unique proof-of-stake cryptocurrency that aims to deliver interoperability amongst other blockchains. Polkadot may share some similarities in terms of creating new blockchains. Still, the difference is that developers can create their own blockchain on Polkadot’s chain, making it more secured and less vulnerable to attacks. As of January 2021, based on market capitalisation, Polkadot’s value reached $11 billion.
Conclusion
Investing and trading in cryptocurrency is one of the best ways you can do to earn an extra income. The cryptocurrencies you can invest in are not limited to the ones mentioned above. There are still many types of cryptocurrencies in the market. As always, when you start an investment, make sure that you have sufficient knowledge about it so you don’t end up wasting your hard-earned money.
