Theories on Bitcoin’s utility differ, but there’s no denying that it’s been the dominant player in its field since its creation. Bitcoin’s growing adoption is its saving grace; both retail and institutional investors are primed to dip their toes into cryptocurrencies with Bitcoin first. Plus, some of today’s smartest business minds are increasingly gravitating toward the “digital gold.” Although Bitcoin’s price lost more than half within two months of hitting all-time highs of about $65,000. Bitcoin on its balance sheet earlier this year could serve to usher in more corporate treasury inflows over time.
Next to Bitcoin, Ethereum is the second-largest cryptocurrency. It was launched in 2015 with just a supply of 72 million coins. Since last year, Ethereum has seen a 946.8% increase, and the new launches on its network are exciting market experts and experienced investors.
Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins.
Litecoin is one of the most valuable cryptos in the industry, with a market cap of over $9.2 billion. It was created through a fork in the Bitcoin blockchain and is one of the oldest cryptos in the market. It has gained an incredible 215% in the past 12 months. However, it has stumbled quite a bit of late. In the past week, though, LTC has shown signs of a rebound, which indicates a reversal of its fortunes.
Similar to BTC, LTC is open-sourced and highly decentralized. Additionally, it is also quicker than BTC, as it takes only 2.5 minutes per transaction, rather than nine minutes. Its transactions are also at least 40% cheaper than Bitcoin.
Binance Coin (BNB)
Binance Coin is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. Those who use the token as a means of payment for the exchange can trade at a discount. Binance Coin’s blockchain is also the platform that Binance’s decentralized exchange operates on.
Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually had its own main net launch. The network uses a proof-of-stake consensus model. As of January 2021, Binance has a $6.8 billion market capitalization with one BNB having a value of $44.26.
For any cryptocurrency to survive over the long run, it needs to have a real-world purpose. Dogecoin, though, doesn’t have much of competitive advantage in the industry.
The vast majority of merchants do not currently accept Dogecoin as a form of payment, and there are several other cryptocurrencies with lower transaction fees than Dogecoin. The primary reason its price has exploded over the past several months is that it gained a large fan following. But once those investors inevitably move on to something new, Dogecoin’s price will plummet.
Because of its flexible network and fast transactions, Cardano is expected to remain one of the most popular cryptocurrencies. Scalability, interoperability, and sustainability are among its chief selling points. The recent update finally brought the ability to build smart contracts on Cardano’s network. Cardano has always been a venture that takes its time and accomplishes things gradually.
If you’re looking for a cheap digital coin to invest in, then VeChain may be the best answer for you. The VeChain currency is based on the VeChain Thor Blockchain. It’s a blockchain specifically designed for handling supply chain management and various business processes with the help of distributed ledgers.