10 Best Cryptocurrencies to Invest and Hold for Long-Term
Are you looking for the best crypto to invest in? As we all know that cryptocurrency has garnered substantial traction in the past couple of years. Following a dramatic rise in many coin stocks market prices, retail investors perceive cryptocurrency stock as the high-yielding investment instrument.
From the technical standpoint, cryptocurrency is digital money that doesn't exist physically and isn't governed by any regulatory or a third-party intermediary. It solely relies on blockchain technology, with bitcoin being the most prominent crypto coin.
With a steep rise in crypto prices and strong institutional and government support, cryptocurrency is gaining tremendous traction on Wall Street. Nowadays, more cryptocurrency stocks are available to investors. Therefore, crypto investors can diversify their investment portfolios with different coin stocks having varying levels of volatility.
Currently, there are around 5,000 cryptocurrencies available in the market. Although you can use cryptocurrency as a medium of exchange, a vast majority of people treat it as a financial instrument, just like equities, bonds, CFDs, or commodities.
However, selecting the best cryptocurrency to invest in can be a bit tricky process as it requires a lot of research and industry knowledge. By doing adequate research, you are unlikely to earn any decent profit. Now let's dig deeper into Marketspaace suggestion on high-yielding cryptocurrencies.
Best Cryptocurrencies to Invest In 2021
While we are discussing investment-worthy coin stocks; bitcoin deserves the topmost position in our list. It has been around for a while. You can easily evaluate its worth based on its past track record, market cap, and volume that is considerably higher than any other crypto coin.
Although thousands of crypto coins exist today, bitcoin still has a 40% stake in the cryptocurrency market. With the widespread popularity of bitcoin, many businesses readily accept it as a default medium of payment that makes it the most viable investment option.
Automobile industry conglomerate Elon Musk has heavily invested in bitcoin. Apart from that, many large banks and asset management companies like JP Morgan and Morgan Stanley have included bitcoin in their portfolio.
Associated with Investing in Bitcoin
The value of bitcoin fluctuates too often. You might have seen clear evidence of price volatility in the recent past. If bitcoin price volatility disappoints you, you should look for another cryptocurrency stock less susceptible to market volatility. Conversely, if you deem bitcoin a long-term investment option like equities or real estate, I bet bitcoin price fluctuation won't hurt you.
2. Ethereum (ETH)
What differentiates Ethereum from other leading cryptocurrencies is it allows developers to develop their cryptocurrency using the Ethereum network. Furthermore, it paves the way for many blockchain-centred innovative features like a smart contract or decentralized finance.
Even though Ethereum is miles ahead of many other crypto coins, it hasn't emulated bitcoin yet. As of today, it is the second-largest cryptocurrency by market capitalization.
Risk of Investing in Ethereum
Although Ethereum harnesses blockchain technology, it has only one 'lane' for processing, leading to a longer than expected time for processing transactions when the network is congested.
In 2016, a malware attack on the Ethereum network had led to a loss of $60 million because of a security loophole in an Ethereum wallet. Since then, Ethereum developers have made strides of reforms to improve the network's security, but even a small loophole in the network makes it prone to cyberattacks.
3. Binance Coin
Binance is amongst those coin stocks that reached an all-time high in 2017. In that year, bullish sentiments dominate the market and prices of all the cryptocurrencies went up dramatically. Unlike other cryptocurrency stocks, Binance Coin hasn't plummeted significantly after 2017. It somehow manages to maintain its market value. Because of its spectacular performance and steady growth, Binance Coin has been deemed a reliable investment option with minimal risk.
Risk of Investing in Binance Coin
What sets it apart from other crypto coins is that a well-established company developed it instead of a consortium of tech developers. Even though Binance commitment to building a strong blockchain community has convinced many crypto analysts, the scepticism amongst the investors persists due to its security loopholes.
4. Tether (USDT)
Tether coin is deemed the most secure and reliable investment option because it is pegged with the US dollar. Each coin of Tether is tied to one US dollar in the Federal Reserve Bank. This feature of Tether makes it appealing to those investors who want to use it as a medium of payment apart from just investment instruments.
Risk of Investing in Tethe
Investors are sceptical regarding the actual reserve stock. There are doubts amongst the crypto community that there is a US dollar in the Federal Reserve Bank for each coin of Tether. If this fact is proved a mere marketing technique, then the entire Tether coin will collapse immediately.
The Cardano network has a relatively smaller footprint that appeals to crypto investors for many reasons. Unlike bitcoin, it consumers considerably low energy to compute transactions. Cardano consistently integrates new features in its network to remain immune to hackers.
Risk of Investing in Cardano
If Cardano improves its network in the foreseeable future, still it won't be able to compete with the world's leading cryptocurrencies. Few adapters limit the number of developers working on the Cardano network. Consequently, it is unlikely to observe a high adoption rate in an upcoming feature.
6. Polkadot (DOT)
Polkadot was developed by Ethereum developers who coalesced to lay down the foundation of their cryptocurrency with a better network. What differentiates it from Ethereum is that it has multiple layers to process the transaction.
Risk of Investing in Polkadot
Polkadot creator Gavin Wood first introduced its crypto project in 2016 via its whitepaper. At the end of 2020, Polkadot was listed on the stock market. Polkadot doesn't have a wide track record for comparison that makes it risky.
Ripple is the company that introduced the XRP token. What makes it quite appealing to investors is its ability to support international transactions. With banks, international transactions can take up to 10 days, but the same transaction can be completed in a matter of seconds with XRP.
Moreover, Ripple has some long-term contracts with some big banks across the world. The more contract it does, the more accessible it will become for ordinary people.
Risk of Investing in Ripple
Ripple demonstrated promising growth when its price soared 36,000%. It is worth mentioning here that while researching cryptocurrencies, don't just look at an unprecedented price growth; pay special attention to real numbers.
Litecoin was created in 2011; it was designed to address the shortcomings of bitcoin. Litecoin can process transactions four times faster than bitcoin. It was the first-ever cryptocurrency that has completely implemented Lightning Network Transactions.
Risk of Investing in Litecoin
Since Litecoin is very closely related to bitcoin, it always remains susceptible to price fluctuation like bitcoin. This means its value will go up or down, corresponding to bitcoin price albeit at a low rate. If Bitcoin's volatility disappoints you, Litecoin might not be a viable option for you to invest.
What distinguishes Chainlink from other coin stocks is its attractive price. Even though its share is affordable for ordinary investors, they cannot be categorized as penny shares. It is readily available for trade on Coinbase, one of the world's largest cryptocurrency app. its widespread accessibility makes it more investment-worthy.
Risk of Investing in Chainlink
Although Chainlink is miles ahead of many leading cryptocurrencies, it has a relatively lower volume and market capitalization than many. That's why Chainlink doesn't lie in the category of investment-friendly cryptocurrency stock.
10. Safemoon Coin
Safemoon isn't a household name, but it has garnered substantial traction from investors seeking the next big altcoin. Since bitcoin and other leading crypto coins have risen exponentially, they are no longer affordable for small investors. In this situation, investors are desperately looking for an alternative coin with a low price and the potential to yield great returns.
Safe moon addresses the investors' requirements. It is currently available at a fraction of a cent. Thus, you can purchase millions of Safemoon coins with just a few dollars.
What is more special about it is that it charges fees from anyone who sells it and distributes those fees uniformly to all the Safemoon holders. This feature tends to benefit both buyers and sellers.
Risk of Investing in Safemoon
The Safemoon is delicately designed in such a way that it benefits its holders. The developers want to jack up safemoon coin price with this strategy. What disappoints investors from pouring money into it is it doesn't do anything. Its entire working methodology is centred towards luring people into buying it, hoping that its price will skyrocket one day.
The key takeaway here is that cryptocurrencies have turned into a lucrative investment vehicle. Therein the question arises, which is the best cryptocurrency to invest in? Here are some factors that should be taken into account while selecting a cryptocurrency for investment.
- The number of transactions it can process per second.
- Transaction processing fees
- Its ability to use as a regular payment option and bank transfers.
If you are passionate about investing in cryptocurrency, you should keep in mind that it won't make you rich overnight. Instead, a long-term investment approach is the best strategy to compound your wealth here.