Governments and banks are still coming to terms with the enormity of digital assets. Bitcoin is still 60.40% above other assets including gold and real estate. There are over 16,000 digital assets in existence, with an ever-expanding field of offerings. It can be difficult navigating through so many options. Given below are the best cryptocurrencies to consider.
Bitcoin is expected to maintain its value in the future. Bitcoin’s history as an asset has been turbulent. It has gone through several cycles of rise and fall over its relatively short lifespan. It has inspired a host of other currencies in its wake. The impact of this cryptocurrency is stronger than ever before. It has outperformed assets like gold, and is regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.
Ethereum is actually an infrastructure for people to buy apps through. It brings limitless possibilities, as other cryptocurrencies were issued on it. It comes after Bitcoin in terms of market capitalization. Ethereum 2.0 is going to be launched, which will deal with the biggest problem that Ethereum currently faces: its transaction speed. Investors have a lot of faith in this cryptocurrency. It has gained widespread adoption in the fast-growing and still emerging area of Defi or decentralized finance, where Ethereum is the default blockchain and clear market leader.
Shiba Inu was the most popular cryptocurrency in 2021, with 43 million more views than Bitcoin. It is a meme coin that features the Japanese dog breed Shiba Inu as its mascot. It became a household name in 2021. As it grew in popularity and market capitalization, more crypto exchanges began to accept it for listing. It doesn’t have its own blockchain, as it is a token built on Ethereum blockchain. It supports smart contracts, allowing users to lend and stake them, earning passive income in the form of recurring fees.
The Binance exchange launched the Binance coin in 2017 as a token on the Ethereum blockchain. Binance quickly became one of the largest crypto trading platforms in the world, with its extensive list of trading pairs and relatively low fees compared to competitors. Its initial lack of KYC restrictions were also appealing to some, though it has since added many KYC measures. The coin is used as a utility token for the Binance exchange and allows users to pay for transactions and trading fees at a lower rate than they would with other tokens.
Stablecoin is a less volatile asset with cryptocurrency. The largest stablecoin by market capitalization is Tether. It is backed by the US dollar and the Euro. It hypothetically keeps a value equal to one of those denominations. Stablecoins, as the name suggests, are expected to stay stable as they aim to avoid volatility and allow cryptocurrency to be a store of value rather than a risky investment.