So far, there are numerous cryptocurrencies available in the market, which may be overwhelming to crypto traders and, more so, to new traders.
One has to put plenty of resources into research to ensure that they get precisely the type of currency that is beneficial to them.
Well, there are numerous digital coins to trade with. For example, various cryptos greatly suit a beginner, and others are relatively suited for skilled traders. Therefore, it is advisable to have a certain basic level of expertise and information before undertaking this trade.
Top five digital coins that will make are a sound investment include:
1. Bitcoin
When you hear cryptocurrency, the first thing that comes to mind is Bitcoin, also termed as the ‘King of Currencies.’ Bitcoin has been able to maintain its leading role due to its high liquidity within the industry. You can easily buy and sell your bitcoins whenever and however frequently you want.
Currently, Bitcoin is considered one of the safest haven for assets against market inflation. Due to the economic changes across the globe, people are holding less cash to adapt to the changes if the market swings quickly. Global companies are also seeing this trend and converting their treasuries into cryptocurrencies.
What sets Bitcoin apart from other cryptocurrencies is its easy accessibility to the public. Many people use it as a mode of exchange, while others prefer to store their values through it. Countries like India have set a precedent for Bitcoin, and so far, a massive surge in its use has been recorded within the country.
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2. Litecoin
Litecoin has high liquidity, which positions it as a great investment for a digital coin. In addition, the block reward for Litecoin is at 12.5 LTC, which so far is among the largest compared to many cryptos, while many miners can find the reward pretty cost-effective.
Litecoin has 84 million units, a greater supply value than the 21 million Bitcoin units. Besides, many experts claim that to mine each Litecoin will take around two minutes, which is quick based on cryptocurrency mining.
Although Litecoin has faced stiff competition, many traders consider this coin among the cryptocurrencies with great potential within the crypto industry. Several price predictions indicate that Litecoin prices appear well, with one Litecoin trading at $202.23 as of this writing. As per Delma Wilson, a contributor in CoinPedia, Litecoin may breach the $360 mark in this year.
To trade Litecoin, including other cryptocurrencies such as Bitcoin, you will need to use reliable platforms such as Kraken.
3. Ethereum
Ethereum makes into the list because of its smart contracts that empower developers to create Decentralised Apps (DAPPs) via robust Blockchain tech.
Ethereum has been recognised among the top digital coins for a couple of years now. The latest market info shows that the currency seems to maintain the trend for the coming years.
Also, Ethereum is considered with a high liquidity level that comes second to Bitcoin. This suggests that you’re likely to experience a significant venture while trading Ethereum.
While you trade Bitcoin, you can as well find an alternative from traders who buy and sell Ethereum.
Another factor to make us consider that Ethereum will position as a substantial investment tool over the coming years is based on its staunch and global user-base.
This shows the potential around the coin, with many analysts expecting Ethereum to remain stable and appreciate at a price on a long-term basis. Ether, a token of the Ethereum network, is trading at $2,172 as the time of writing.
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4. Cardano
Cardano emerged in the crypto industry in 2015 and has made a significant milestone as one of the top cryptocurrencies, with 2021 appearing exceptional for the digital coin.
The Ouroboros Blockchain, which in essence means double Blockchains working closely together, has been instrumental for the Cardano project.
Each Blockchain plays a crucial role, performing basic transactions and the other smart contracts. This move by keeping the two apart assists Cardano to execute speedy transactions.
Many analysts term Cardano as a third-generation asset thriving through its proof of stake algorithm, which Ethereum has attempted to implement over time.
In addition, Cardano makes fair use of ‘epoch,’ also termed as time slots. Here, various transactions are performed based on the set period.
One notable aspect about Cardano is that many people consider it as a ‘Japanese Ethereum’ because over 90 percent of Cardano holders are in Japan.
Market info indicates that Cardano provides an effective alternative as an investment tool. This is echoed from Dare Shonubi, a renowned contributor in CoinPedia. Shonubi claims that Cardano can break the $10 mark during 2021, which would position it among the successful digital currencies to a large extent.
5. Bitcoin Cash
Bitcoin Cash hit the industry back in 2017 and has appeared as a strong competitor for Bitcoin, with the digital coin attracting global institutional investors.
Roger ver, who doubles as a staunch Bitcoin supporter and played a significant role in the Bitcoin Cash project, asserts that the initial Bitcoin has turned into something not as primarily planned.
Many Bitcoin cash enthusiasts draw the attention that SegWit2x and the Lightning network integrated within the Bitcoin network is impressive and a step further away from the initial goal by Satoshi Nakamoto.
However, the developers’ underlying team is at full steam to execute smart contracts within the Bitcoin cash network.
One more aspect that makes Bitcoin Cash appear distinct to Bitcoin is its affordable transaction costs and less expensive for many people to invest in the asset. Bitcoin cash has a large market cap, while each coin is trading at $548.90.
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Conclusion
Digital coins are appearing as the new norm for many global investors who seek to diversify their wealth. However, we recommend trading these coins on reliable and regulated platforms that have demonstrated outstanding potential for traders within the industry.
Alt coins are an exciting option but these 5 cryptocurrencies have the technology behind the name.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by cryptostation.co.uk. Readers should do their own research before investing funds.
Photo by Austin Distel on Unsplash
