After observing the incredible and remarkable growth of cryptocurrencies in 2021, there is no doubt that digital currencies are the new future. The underlying technology used in popular cryptocurrencies like Bitcoin, Ethereum, etc., is a blockchain-based technology that can revolutionize many industries like healthcare, banking, supply chains, etc. For people who believe that digital currency is the new future, investing in such cryptocurrencies can go a long way in the future and yield good returns. Given below are the top 6 cryptocurrencies to invest in the year 2021, according to the Forbes Advisor:
1. Bitcoin
Bitcoin (BTC) is the original cryptocurrency created in 2009 by someone under the pseudonym Satoshi Nakamoto. Like other popular cryptocurrencies, Bitcoin also runs on a blockchain or a ledger logging transaction distributed across a network of thousands of computers. Since any addition to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from any fraud or security leak. Bitcoin has become a household name since its price started rocketing.
2. Ethereum
Program developers prefer Ethereum because of its potential applications, such as smart contracts that automatically execute under programmed conditions and non-fungible tokens (NFTs). It is both a cryptocurrency and a blockchain platform. Like Bitcoin, the value of a single Ethereum has skyrocketed and has shown tremendous growth.
3. Tether
Tether is the first cryptocurrency to be backed by the US dollar. It is blockchain-based, usually supported by an equal value of conventional currencies like the US dollar, the Euro, or the Japanese yen. As a result, it maintains a value almost identical to one of these currencies. Tether is a stable coin instead of Bitcoin and Ethereum, whose prices see large and frequent fluctuations from time to time. Therefore, investors favor investors who do not want to risk investing in other highly fluctuating and volatile cryptocurrencies.
4. Binance Coin
The Binance Coin is an Ethereum-based token form of cryptocurrency that you can use to trade and pay fees on Binance, one of the most prominent crypto exchanges in the world. It can also be traded and exchanged for other forms of cryptocurrency, such as Ethereum and Bitcoin. It had been launched in 2017 specifically for facilitating trades on Binance’s exchange platform, which has now expanded its reach for even payment processing, etc.
5. Cardano
Cardano was developed by Charles Hoskinson, co-founder of Ethereum and BitShares, in 2017. It is a cryptocurrency network that expedites transaction time and decreases energy usage by removing the aspect of transaction verification that is present in other cryptocurrency platforms like Bitcoin. It is similar to Ethereum since it works to enable smart contracts and decentralized applications powered by ADA, which is the internal cryptocurrency of Cardano.
6. Dogecoin
Dogecoin is a cryptocurrency that was initially developed as a meme/joke by two software programmers Billy Markus and Jackson Palmer, to make fun of the rising cryptocurrency popularity during the time. Coincidently, it was the humor based on dogecoin shared in the community as memes, which helped its rapid progress. There is no upper limit to check how many Dogecoins can be created, unlike other cryptocurrencies such as Bitcoin, etc. Dogecoin has remained popular because of endorsement by famous personalities such as Elon Musk. On May 9, 2021, Elon Musk’s SpaceX announced a Dogecoin-funded journey to the Moon, making it the first cryptocurrency-funded space trip in the history of humanity.
Edited by Aishwarya Ingle
See also: Top 5 World Economies 2021