Cryptocurrency is a digital currency that works as a medium of exchange where one can store their data using strong cryptography to secure the transaction records. It also helps in controlling the creation of additional coins and also helps in verifying the transfer of coins.
Cryptocurrencies are the decentralized network which completely works on blockchain technology. This technology spread across many computers that manage and record transactions.
The major factor that multiple people invest in cryptocurrency is that it has no centralized authority or any government interference So that there is no scope of manipulation.
Types of Cryptocurrency
The first blockchain-based cryptocurrency was Bitcoin. It still is the most popular and most valuable.
Bitcoin was launched in 2009 by a coder with the name of Satoshi Nakamoto.
Although it is the first and most popular form of cryptocurrency. But despite its fame, Bitcoin is not only the option for people to go for. There are almost more than 7000 cryptocurrencies on market today.
Some of these Cryptocurrencies are clones of Bitcoin but some are new currencies that were built from scratch.
The total value of all cryptocurrencies by February 2021, was more than $1.6 trillion, according to CoinMarketCap, and the total value of all bitcoins was about $969.6billion.
We all know investing in the right Cryptocurrency can make us rich. Today we have a wide range of cryptocurrencies where we can choose any one as per our convenience and knowledge.
But at the same time, we should also know which are the best cryptocurrencies to invest in for multibagger returns.
So here are the seven best cryptocurrencies to invest in 2021 for tremendous growth in future
BITCOIN BTC
It is the most famous & accepted cryptocurrency worldwide. It has dominated the market since its inception. It has experienced the volatility of the market, once it hits the $20000 in 2017 & then got collapsed to $3234 by the end of next year.
Then after it has continuously raised its market capitalization & value which is near about $55000 & market capitalization reached $1 trillion in Feb 2021. Since it has immense market growth, it became popular and in high demand among investors.
BITCOIN CASH
Bitcoin mainly works on blockchain technology. It stores information within blocks of data which contains approx 1 megabyte of data. As the currency grew more popular, these data blocks filled up. It started slowing down bitcoin transactions and increased transaction fees.
To allow more transactions into a single block, Bitcoin cash was then created in August 2017 through Bitcoin itself to maintain the integrity of cryptocurrency.
Bitcoin cash increased the size of blocks between 8MB to 32MB which allowed more transactions per block with lower fees.
Initially, the transaction in Bitcoin cash was $1000 to $1500 when it was proposed by Bitcoin.
Whereas during the stress test in September 2018, the number of transactions on Bitcoin cash’s blockchain Surged to 25000 per block.
Bitcoin cash may be new and less popular in the market, but it has great potential to grow in the market as it has incredible scalability.
LITECOIN (LTC)
Litecoin is digital money that uses blockchain to maintain a public ledger of all transactions. It is used to transfer funds between individuals or businesses without the need for an intermediary such as a bank or payment processing service.
To make it easier to understand the underlying technology of cryptocurrency, Litecoin was created by Charlie lee in 2011.
Litecoin transactions are way faster as it only takes up to 3 minutes for any transaction. Whereas Bitcoin used to take approx. 10 minutes for any transaction.
Also, despite Bitcoin’s heavy specialized hardware, Litecoin has much lower system requirements. In fact, a normal computer can work really well for Litecoin transactions.
ETHEREUM (ETH)
Ethereum is an open-source computing platform and operating system. It was launched in 2015.
As we have known that Cryptocurrencies are decentralized networks. But Ethereum works a step ahead. Instead of decentralizing money, it decentralizes the internet by replacing the server with a worldwide system of nodes. It basically creates one computer for the entire world.
Ether has become one of the most popular cryptocurrencies in the world, with a market value of around $40 billion. Investors take profit not only from one of the best popular cryptocurrencies on the market but also from the wider use of Ethereum itself.
One of the big projects from Ethereum is Microsoft’s partnership with ConsenSys which offers “Ethereum Blockchain as a Service (DBaaS) on Microsoft Azure so Enterprise clients and developers can have a single click cloud-based blockchain developer environment.”
BINANCE COIN (BNB)
Binance Coin can be used to trade & pay the fee on the Binance cryptocurrency exchange. Initially, in 2017 it worked on the Ethereum blockchain. As of 2018, it was the largest cryptocurrency exchange in the world. BNB can also be exchanged or can be traded with other cryptocurrencies.
The important aspect of this BNB is that it offers an incentive in transaction fees on the Binance Exchange. It has many uses such as trade, credit card payments, payment processing, etc.
TRON (TRX)
Tron was founded in September 2017 by a Singapore-based non-profit organization called the Tron Foundation.
It is a blockchain-based decentralized platform that aims to build a free, global digital content entertainment system with distributed storage technology, and allows easy and cost-effective sharing of digital content.
Tron is a platform that removes the gap between content creators and content consumers by eliminating the middleman.
It overall reduces the cost for the consumer and improves the collection through direct receipts for the content producer.
It also replicates the business model on a public blockchain network and acts as a distributed, decentralized storage facility which makes it more cost-effective.
Tron also allows creators to monetize their content directly via Tronix which is a form of cryptocurrency.
CHAINLINK (LINK)
Chainlink oracles are designed to connect a blockchain with any external data feed or API, such as financial market data, or weather reports. Chainlink was founded by current CEO Sergey Nazarov and current CTO Steve Ellis. Chainlink oracles can be used by smart contracts for various purposes: from digital securities to supply chain to asset management. Chainlink also facilitates the connection between blockchains and payment systems, such as SWIFT or PayPal.
It has come up with a well-designed system that makes sure that data is accurate. It also ensures the validity of a smart contract.
Chainlink’s native token – LINK – has been trading since 2017 and has demonstrated significant growth in Q2-Q3 2020. At the time of writing, it is the number 5 cryptocurrency by market capitalization (with more than a $5B market cap).
Pros and Cons of Cryptocurrency
PROS
Cryptocurrencies are highly secured and safe. It also makes it easier to transfer funds between two parties as it does not require any mediator or a third party like a bank or credit card company to do the process.
These transfers are secured by public keys and private keys and different forms of incentive systems, like proof of work or proof of stake.
Funds are easily transferred with minimal processing fees. This helps users to avoid major fees charged by banks and financial institutions for wire transfers.
In today’s cryptocurrency system, a user’s account address has a public key while the owner has the private key and it can only be used to sign transactions.
CONS
Cryptocurrency has an issue of scalability as the user group is very limited. Generally, tech-savvy users can trade.
There is also a challenge of cybersecurity and has a high risk of cyber breach and hacking as it is fully dependent on Information technology & blockchain system.
Since the privacy and security of cryptocurrency transactions are high, it’s hard for the government to track down any user by their wallet address or keep tabs on their data.
As it is free of any government regulation till now, it has a high risk of volatility.
If someone mistakenly sends funds to the wrong wallet address, the coin cannot be retrieved by the sender. This can be used by many people to cheat others out of their money. Since there are no refunds, one can easily be created for a transaction whose product or services they never received.
CONCLUSION
To become a successful trader one needs to know about it. Also one has to expertise how crypto trading works, by learning from expert traders-like Burwell Coleman, Vincente Sanz, Bryant Miller, Ethan McKenzie, and founder of Priming Trade, Thomas Fuller.
