Safest Crypto To Invest: Top Secure Cryptocurrencies

The cryptocurrency market is a risky and volatile one, with currencies plummeting as quickly as they rise in value. However, there are ways to make safe investments in this market. One of the most prominent cryptocurrencies is Bitcoin, which has been around since 2009. Erik Finman, a 19-year-old bitcoin millionaire, recommends investing 10% of your income into the top cryptocurrencies, especially bitcoin. He cites its longevity and widespread recognition as reasons for its stability. Other cryptocurrencies that have been recommended as safe investments include Binance Coin, Monero, NEO, and Ethereum.

Bitcoin: the first cryptocurrency, with the largest market cap and strong liquidity

Bitcoin is the first and most well-known cryptocurrency, with a market cap of around $1 trillion as of September 2024. It was created in 2009 by Satoshi Nakamoto and runs on a blockchain, a distributed ledger that logs transactions across thousands of computers.

Bitcoin has the most mainstream acceptance of any cryptocurrency, with businesses such as Visa, Stripe, and major banks transacting with it. It also has the backing of exchange-traded funds (ETFs), which allow mainstream investors to track its performance without directly owning Bitcoin.

The price of Bitcoin has skyrocketed as it has become a household name. In May 2016, one Bitcoin was worth about $500. As of September 10, 2024, a single Bitcoin was worth around $56,902, a growth of 11,280%.

Bitcoin's value is highly volatile. At its peak in November 2021, the crypto market was worth over $2.9 trillion. By mid-2022, it was worth less than $900 billion due to rising inflation and an aggressive rate-hiking cycle. However, by June 2024, cryptocurrencies collectively were worth more than $2.5 trillion.

Bitcoin's price is influenced by various factors, such as the approval of spot Bitcoin ETFs, which allow investors to track its performance, and the Bitcoin halving event, where rewards for mining Bitcoin are cut in half, increasing its scarcity.

As the first cryptocurrency with the largest market cap and strong liquidity, Bitcoin is a relatively safer investment option in the crypto space. However, it is still subject to extreme volatility, and investors should carefully consider their risk tolerance before investing.

Ethereum: a leading blockchain for smart contracts and decentralised applications

Ethereum: A Leading Blockchain for Smart Contracts and Decentralized Applications

Ethereum is a leading blockchain for smart contracts and decentralized applications, offering a range of unique features that have contributed to its popularity and success.

History and Overview

Ethereum was one of the first altcoins, debuting in 2015 as an alternative to bitcoin. It is both a cryptocurrency and a blockchain platform, with its native cryptocurrency called Ether (ETH). Ethereum's blockchain is widely used by developers due to its potential applications, including smart contracts and non-fungible tokens (NFTs).

The Ethereum blockchain has experienced tremendous growth. From April 2016 to September 2024, its price surged from about $11 to around $2,343, representing a staggering increase of 21,196%. As of September 2024, Ethereum's market capitalization stood at approximately $281.9 billion, making it the second-largest cryptocurrency by market cap, after Bitcoin.

Key Features and Benefits

One of the key features that sets Ethereum apart is its introduction of smart contracts. These are self-executing contracts that are automatically enacted when certain predefined conditions are met. The Ethereum blockchain now supports a vast array of decentralized applications (dApps) and developer tools, with over 4,400 dApps currently running on the platform.

Ethereum's blockchain is also highly customizable, allowing developers to create their own cryptocurrencies and decentralized applications. This flexibility has made it a popular choice for those seeking to build and deploy smart contracts and dApps.

In addition, Ethereum's switch from the energy-intensive proof-of-work protocol to the more efficient proof-of-stake system has enhanced its environmental credentials. This transition has positioned Ethereum as a more sustainable and eco-conscious option compared to Bitcoin.

Risks and Challenges

While Ethereum offers numerous advantages, there are also some risks and challenges to consider. One of the main drawbacks is the high transaction fees associated with the platform. The Ethereum network has also faced issues with slow transaction speeds, particularly when the network is overloaded.

Additionally, as with any cryptocurrency investment, there is a degree of volatility and regulatory uncertainty inherent in the Ethereum ecosystem. The value of Ether can fluctuate significantly, and investors need to be aware of the potential for regulatory changes that could impact the broader cryptocurrency market.

Ethereum has established itself as a leading blockchain for smart contracts and decentralized applications. Its unique features, wide adoption, and active development community have contributed to its success. However, investors should carefully consider the risks and volatility associated with the cryptocurrency market before making any investment decisions.

Binance Coin: a utility token with a variety of use cases and strong liquidity

Binance Coin (BNB) is the native cryptocurrency of the Binance ecosystem, which includes the Binance Chain and the Binance Smart Chain. BNB has a variety of use cases and strong liquidity, making it a relatively safe crypto investment.

Use Cases

Binance Coin was initially launched as a utility token for the Binance exchange, allowing users to receive discounts on trading fees when paying with BNB. Over time, Binance has expanded the use cases of BNB to include:

• Paying for transaction fees on the Binance exchange, Binance Decentralized Exchange, Binance Chain, and Binance Smart Chain
• Paying for goods and services for both online and in-store purchases using the Binance Credit Card or Binance Pay
• Booking travel accommodations on sites such as TravelbyBit, Trip.io, and Travala.com
• Entertainment purposes, such as buying music and game rewards
• Paying for online services such as BitTorrent, Canva, and Storm
• Financial purposes, such as taking out loans at ETHLend or making investments at Moeda
• Participating in token sales hosted on the Binance Launchpad

Liquidity

Binance is the world's leading cryptocurrency exchange, catering to 169 million registered users in over 180 countries. With low fees and over 350 cryptocurrencies to trade, Binance provides strong liquidity for BNB. As of May 2024, BNB had a 24-hour trading volume of $1.45 billion and a market cap of more than $87 billion, ranking behind only Bitcoin, Ethereum, and USD Tether.

Binance Coin (BNB) is a utility token with a wide range of use cases within the Binance ecosystem and beyond. The strong liquidity of the Binance exchange and the diverse applications of BNB contribute to its safety as a crypto investment. However, it is important to remember that the cryptocurrency market is subject to extreme volatility, and investors should carefully consider their risk tolerance before investing.

Tether: a stablecoin pegged to the US dollar, with high liquidity

Tether (USDT) is a stablecoin, which means it is a type of cryptocurrency that is pegged to a fiat currency—in this case, the US dollar. Unlike other cryptocurrencies, Tether is designed to have a stable value, with each token being 100% backed by Tether's reserves. This makes it less susceptible to the extreme volatility that is common in the crypto markets, where prices can fluctuate by 10-20% in a single day.

Tether was launched in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. It is a blockchain-enabled platform that facilitates the use of fiat currencies in a digital manner. Tether tokens exist as digital tokens built on several leading blockchains, including Ethereum, Bitcoin Cash, and Tron. As a stablecoin, Tether is favoured by investors who are wary of the extreme volatility of other cryptocurrencies. Its value is supposed to remain consistent, providing a robust and decentralised method of exchanging value while using a familiar accounting unit.

Tether has a market cap of $118.4 billion as of September 2024, and its year-over-year return is 0%. While Tether has been touted as a safe haven for crypto investors, there have been controversies regarding the validity of its claims about USD reserves. Concerns have been raised as Tether's reserves have never been fully audited by an independent third party, and its price has been affected by these controversies in the past.

Litecoin: faster and cheaper than Bitcoin, with high liquidity

Litecoin (LTC) is one of the oldest cryptocurrencies in the market, having been launched in October 2011. It is also one of the most popular altcoins, consistently ranking in the top 15 cryptocurrencies by market cap. As of June 2021, it was the 14th largest coin by market capitalization, with a total value of more than $12.3 billion.

Litecoin was created by ex-Google computer scientist Charlie Lee as a lighter version of Bitcoin, with transactions four times faster and fees as low as 5 cents. It takes 2.5 minutes to mine a block of Litecoin, compared to the 10 minutes it takes to mine Bitcoin. This makes it possible to handle more transactions in Litecoin, which is important for customers and merchants if cryptocurrency is to become a widely accepted form of currency.

Litecoin also has a far larger supply limit of 84 million LTC compared to Bitcoin's 21 million, leading to comparisons of Litecoin being the silver to Bitcoin's gold.

Litecoin is considered one of the more stable cryptocurrencies and is likely to outlast most altcoins of a similar age. It has multiple real-world use cases and its blockchain technology is still relevant today. It also has an active development team and a clear roadmap, making it a safer investment than meme currencies such as Dogecoin or Shiba Inu.

However, some experts have criticised Litecoin's blockchain as outdated, arguing that it cannot keep up with newer, faster networks that have more use cases, from DeFi to NFTs, and are on the verge of interoperability.

Risks of Investing in Litecoin

Litecoin has suffered from a soiled reputation due to Charlie Lee selling most of his LTC coins during the 2017 peak and then leaving the LTC project to work for Coinbase. This led to a massive loss of investor confidence. There have also been a series of blunders, including a recent tweet about a partnership with Walmart that was exposed as fake news.

Like all cryptocurrencies, Litecoin is subject to extreme price volatility. Investor wallets and crypto exchanges holding Litecoins have also been attacked by hackers.

How to Keep Your Litecoin Safe

To keep your Litecoin safe, it is recommended to invest in a reliable hardware wallet to store your LTC tokens offline and out of reach of online hackers. You should also use strong and unique passwords for your crypto exchange and wallets, and only whitelist the URLs for your trusted crypto exchanges and digital wallets.

It is also important to be vigilant for online scams and fake websites, and to avoid clicking on suspicious and unsolicited links. A proper antivirus for all your internet-enabled devices is also recommended.

Frequently asked questions