Cryptocurrency Investment Guide For Indians: Best Coins To Buy

Cryptocurrency is a digital currency that exists solely in digital form and can be used to pay for purchases online or held as an investment. In India, the cryptocurrency industry is still in its early stages and crypto assets are subject to massive market volatility. With the entry of mega stars like Amitabh Bachchan and Salman Khan, the craze for cryptos is likely to take a leap. Here is a list of the top cryptocurrencies that are popular in India:

- Bitcoin (BTC)

- Ethereum (ETH)

- Tether (USDT)

- Cardano (ADA)

- Binance Coin (BNB)

- XRP

- Solana (SOL)

- USD Coin (USDC)

- Dogecoin (DOGE)

- Tron (TRX)

Bitcoin's popularity and value

Bitcoin is the most popular cryptocurrency in India, and its popularity is also reflected on a global scale. Bitcoin's value has skyrocketed as it has become a household name, with its price increasing by 11,280% since May 2016. In September 2024, a single bitcoin was priced at around $56,902.

Bitcoin's popularity stems from its position as the original cryptocurrency, having been created in 2009 by Satoshi Nakamoto. It is a decentralised peer-to-peer currency that allows transactions to occur directly between network participants without the need for intermediaries. This means that Bitcoin cannot be inflated or manipulated by any individual, company, government, or central bank.

The key innovation of Bitcoin is blockchain technology. Blockchain acts as a digital ledger, logging every transaction ever made using Bitcoin. This ledger is distributed and verified across a network of computers, meaning no single entity has control over it. The process of mining Bitcoin involves solving computationally difficult puzzles to discover new blocks, which are then added to the blockchain. As a reward, miners receive a certain number of bitcoins.

Bitcoin's value is influenced by its limited supply, with a maximum of 21 million BTC ever to be created. The divisibility of Bitcoin is another factor contributing to its value. It can be divided into smaller units known as satoshis, with each satoshi worth 0.00000001 bitcoin.

The popularity of Bitcoin has led to its acceptance as a medium of exchange, a store of value, and a unit of account. Its value is driven by supply, demand, fear, and greed. The fear of missing out on large returns and the greed for higher returns have contributed to the price volatility of Bitcoin.

Bitcoin's recognition and trust, coupled with its limited supply and increasing demand, make it a valuable cryptocurrency. Its popularity and value are expected to remain stable as long as it maintains its attributes as a currency and there is continued demand.

Ethereum's blockchain and smart contracts

India's cryptocurrency industry is still in its early stages, with crypto-assets subject to massive market volatility. Bitcoin is the most popular cryptocurrency in India today, with its underlying technology inspiring development and its value spurring investment into similar altcoins. However, Ethereum, the second-largest blockchain network, is also a popular choice.

Ethereum is both a cryptocurrency and a blockchain platform. It is a favourite of program developers because of its potential applications, like smart contracts and non-fungible tokens (NFTs). Smart contracts are self-executing contracts where the conditions of the buyer-seller agreement are directly encoded into lines of code. They are written in Solidity, a computer language comparable to JavaScript, and are stored on the blockchain.

Smart contracts are one of the most prominent uses of blockchain technology. They increase efficiency and security, eliminating the need for intermediaries and reducing the risk of human mistakes. They are ideal for a variety of industries, including banking, real estate, and supply chain management. For example, a smart contract can be used to transfer ownership of a digital asset from one party to another when specific criteria are met.

Ethereum has introduced various innovations to blockchain security and usage, and experts predict that it might even overtake Bitcoin in the future.

Tether's stability

Tether (USDT) is a stablecoin, meaning it is designed to be less volatile than other cryptocurrencies. It is pegged to fiat currencies like the US dollar and the Euro, with a value supposedly kept equal to one of those denominations. This means that Tether's value is meant to be more consistent than other cryptocurrencies, making it attractive to investors who are wary of the extreme volatility of other coins.

However, Tether has also faced scrutiny and skepticism, with some arguing that it could be a vulnerability in the crypto market. Tether is the dominant issuer of stablecoins, and its namesake currency is a linchpin of crypto trading worldwide. If Tether were to fail, some argue that it could bring down the entire crypto ecosystem.

Despite these concerns, Tether has maintained its stability, even amidst market turmoil. Its ability to do so suggests that it may have a chance at long-term success, though some developers remain cautious, pointing to Tether's history of FUD and redemption issues.

Shiba Inu's meme appeal

Shiba Inu is a decentralised, community-building cryptocurrency developed within the Shiba Inu Ecosystem as an experiment. It is a meme coin that was created as a competitor to Dogecoin, or Doge-Killer.

Shiba Inu, the Japanese dog breed, gained popularity online due to the Doge meme, which features a Shiba Inu dog looking at the camera. The Shiba Inu was originally bred in the 19th century for hunting purposes. However, during the mid-20th century, the breed nearly went extinct, before being bred with other dogs. The earliest appearance of Shiba Inus online dates back to the early 2000s on pet care and dog breed information websites. The breed grew to prominence in memes in 2010 with the emergence of Doge, which began thanks to a photograph of a Shiba Inu looking at the camera.

The Shiba Inu community has grown in India, with people eager to buy it to profit handsomely. Shiba Inu has generated speculative returns since its beginning and is currently trading at ₹0.00115. The value of any cryptocurrency is derived from two factors: the hype and fundamental value that it provides; Shiba Inu possesses both.

Cardano's environmental benefits

Cardano is a blockchain platform that enables peer-to-peer transactions and allows Ethereum-like smart contracts and decentralised applications on its network. It is one of the few cryptocurrencies that uses a proof-of-stake consensus algorithm, which is far more energy-efficient than the proof-of-work system used by Bitcoin.

Energy Efficiency

Cardano's proof-of-stake consensus mechanism is inherently more energy-efficient than Bitcoin's proof-of-work system. Cardano's founder claims that the cryptocurrency network consumes only 6 GWh of power, which is a staggering energy saving compared to Bitcoin.

Horizontal Scalability

Cardano's proof-of-stake system allows for horizontal scalability, meaning it can scale up by adding new stake pools, rather than requiring more hashing power like proof-of-work blockchains. This makes Cardano more environmentally sustainable as it grows.

Low Power Requirements

Cardano's Ouroboros protocol is so energy-efficient that it can run a node on a simple Raspberry Pi micro-computer, which has a power consumption of just 15-18 watts. This makes it possible for anyone to run a node without using a lot of energy.

Positive Environmental Impact

Cardano's ecosystem partners, IOHK, have recently announced their participation in a hackathon challenge with the United Nations to explore how Marlowe financial contracts can advance the UN's sustainable development goals. The Cardano Foundation also works towards environmental custodianship and social empowerment through its work with nations in Africa and industry partnerships.

Encouraging Eco-Friendly Projects

Cardano's blockchain technology can be used for various environmental protection initiatives, such as provenance and origin tracking of raw materials, carbon credit issuance, and more. This encourages and enables projects that have a positive impact on the environment.

Frequently asked questions