Lester Freeman
Cryptocurrency is having a moment. With thousands of coins to choose from, investing in the volatile world of cryptocurrencies is not for the faint of heart.
Bitcoin and Ether are the two best cryptocurrencies to buy. Four more speculative cryptos are worth a look: Solana, Avalanche, Polygon, and Cardano.
If you're a new entrant in the cryptocurrency space, it's probably best to stick to cryptocurrencies that have been around for longer and have a well-developed ecosystem of resources for users.
If you're trying to invest in crypto for the long term, it's recommended that you only stick to the most established cryptocurrencies such as Bitcoin and Ethereum.
| Characteristics | Values |
|---|---|
| Most popular crypto token on the market | Bitcoin |
| First to introduce smart contract functionality | Ethereum |
| Powers the BNB Chain ecosystem | BNB |
| One of the fastest blockchains on the market | Solana |
| Focused on creating payment solutions for banks and financial institutions | XRP |
| First started as a joke on Bitcoin | Dogecoin |
| A Layer-0 protocol for connecting and securing several blockchains | Polkadot |
| Decentralized blockchain project designed as an open-source platform | Cardano |
| Facilitates thousands of transactions per second in a trustless, decentralized manner | Avalanche |
| Developed to help power decentralized finance (DeFi) uses | Solana |
What You'll Learn
Bitcoin
In terms of downsides, Bitcoin's proof-of-work system consumes a lot of electricity, and transactions can take an excessive amount of time to be confirmed.
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Ethereum
The Ethereum blockchain launched in July 2015, and since then, there have been several network updates, including the recent transition to a proof-of-stake algorithm. This switch has been in the Ethereum roadmap since the network's inception and would see a new consensus mechanism, as well as introduce sharding as a scaling solution.
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Tether
As of September 2024, Tether has a market cap of $118.4 billion, with a year-over-year return of 0%.
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Binance Coin
One of the biggest advantages of Binance is its drive for development. Since its launch, Binance has expanded its services to numerous different spheres and aims to become the infrastructure services provider for the entire blockchain ecosystem. The BNB Chain is a variant of Ethereum that offers significantly lower transaction fees, and it allows developers to deploy EVM-compatible decentralized applications easily.
BNB has a maximum supply of 200 million coins, with 168,137,036 in circulation as of September 2021. Binance conducts quarterly burns of the BNB supply, with the goal of reducing the total supply by half. As of July 2022, Binance had completed 20 BNB coin burn events, burning a total of 38,683,447.66 BNB tokens, or 19.34% of its initial supply.
BNB is up 1.37% in the last 24 hours, with a live market cap of $78,949,520,089 USD. It is currently ranked as the fourth-largest cryptocurrency by market capitalization. BNB can be purchased directly on the Binance exchange, which offers the largest variety of trading pairs and the best trading rates for the coin.
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Solana
The Solana protocol is intended to serve both small-time users and enterprise customers. One of Solana's main promises to customers is that they will not be surprised by increased fees and taxes. The protocol is designed to have low transaction costs while still guaranteeing scalability and fast processing.
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Frequently asked questions
The top three cryptocurrencies to invest in are Bitcoin, Ethereum, and Tether.
Bitcoin is the original cryptocurrency, created in 2009, and has skyrocketed in value. Ethereum is both a cryptocurrency and a blockchain platform, which is favoured by program developers due to its potential applications. Tether is a stablecoin, meaning its value is tied to fiat currencies, making it less volatile than other cryptocurrencies.
Cryptocurrency is a highly volatile and emerging market. It is subject to evolving government regulations and is associated with high energy usage. Scams and fraud are also prevalent in this market.
