If you haven’t noticed it yet, cryptocurrencies are taking over the financial industry. The digital assets have grown tremendously in value and popularity over the past several years.
The technology used to power crypto is being used in several useful projects that can improve security and allow more individuals to access a payment system. However, there are thousands of cryptocurrencies to choose from. How do you know which one to invest in?
If you are looking for crypto investing opportunities, keep reading this guide to learn the five hottest cryptocurrencies of 2021.
You can’t have a top cryptocurrency list and not include the king of crypto’s – bitcoin. Bitcoin’s rise to fame has been a bumpy one, to say the least.
Bitcoin has been carrying the crypto community since it first came on the scene and still accounts for over 50% of the total cryptocurrency value today. The price of bitcoin rose to over $60,000 in April and currently sits around $30,000 at the time of this writing.
You can even pay cash to buy bitcoin now using bitcoin ATMs, such as those available at https://www.bytefederal.com/.
Another popular cryptocurrency that is often talked about alongside Bitcoin is Ethereum. The two digital currencies are similar in many ways but also have a few significant differences between them.
First of all, Ethereum’s software allows developers to build applications and deploy them for others to see and use. Bitcoin was designed as a payment system, where Ethereum is more valuable as a network to develop and deploy applications.
What started as a joke modeled after a dog meme turned out to become one of the world’s most popular digital assets. The so-called “meme coin” reached a value of over $70 billion after attracting an unlikely sponsor in Elon Musk, founder of Tesla and SpaceX.
A significant difference between dogecoin and bitcoin is that dogecoin has an infinite supply, where bitcoin is limited. Having a specific number of coins can allow the value to remain elevated by supply and demand.
Tether is the third-largest cryptocurrency in terms of market cap. Unlike the other digital currencies on this list, Tether is known as a “stablecoin.”
The value of the stablecoin is based on an underlying asset, such as the U.S Dollar or Euro. At first, Tether was created to reflect the value of one U.S Dollar. However, since then, the company has revised that idea.
5. Binance Coin
Binance Coin is a newer cryptocurrency, being created in 2017 by the crypto exchange, Binance. Just like Bitcoin, Binance Coin also has a maximum number of tokens that can be issued.
And just like other cryptocurrencies, you can buy and sell them for other digital currencies. Binance Coin is unique because it’s used to pay fees on the Binance Exchange, the world’s largest crypto exchange.
Making Your First Investment With Cryptocurrencies
These five cryptocurrencies are making a name for themselves as they are becoming more popular with investors. The crypto market is down overall, which may present a good investment opportunity for those looking to get involved. Getting started investing in cryptocurrency is as easy as signing up for an account and funding it.
If you are interested in learning more about popular cryptocurrencies and other investing opportunities, head over to our blog for more information!