He world of cryptocurrencies has been on the rise in recent years, with an increasing number of people seeking invest in virtual currency. This growth, while making it more accessible to more people, can help make it seem like a daunting and complicated world to immerse yourself in.
Already there are more than 6,000 cryptocurrencies available with names straight out of a sci-fi novel, along with more complicated technology terms than we were taught in physics class, and flashy news about the volatile nature of one of the world's most famous currencies, Bitcoin (along with characters just as volatile).
In this short guide, we will break down Some of the best known cryptocurrencies and we will give you some tips on where you can investigate what are the best cryptocurrencies to invest, according to your needs. Stay tuned for more easy guides like this one.
Types of cryptocurrencies
Bitcoin and Altcoins
Bitcoin was the first cryptocurrency, created in 2009 by a person who has remained anonymous under the name Satoshi Nakamoto. It is the unofficial symbol of the crypto world, so the other types of currencies are called altcoins (alternative to Bitcoin). It is difficult to say with certainty which is the best cryptocurrency to investHowever, Bitcoin and other popular currencies can be a great option for their functionality and privacy. Here is some information about the best known coins.
The first cryptocurrency decentralized, it uses blockchain technology to carry out payments and digital transactions. The blockchain acts as a public ledger of all transactions in the history of Bitcoin, allowing the owner to prove ownership of the currency, preventing fraud. The fact that it is decentralized allows transfers to be much faster and less expensive than traditional transfers.
Ether, unlike Bitcoin, is a token, not a coin. It is used in transactions on the Ethereum network, a platform that uses blockchain technology, allowing the creation of smart contracts and other decentralized applications.
The cryptocurrency exchange platform Binance has its own coin, Binance Coin. can be used as currency and as token. This means that they can be used to pay fees on the Binance exchange and to power the Binance DEX (decentralized exchange) to build applications.
It started as a joke about cryptocurrencies, but in recent years it has increased in value, thanks in part to the support of Elon Musk. It was created to be used as a digital payment form like Bitcoin, but it's faster and easier to record payments. It has no limit on the number of coins that can be created over time, unlike Bitcoin.
Tether is a stable coin: a currency pegged to a fiat currency, in this case, the US dollar. The Tether combines the advantages of a cryptocurrency, such as not needing financial intermediaries, with the stability of a currency issued by a government.
How to know which are the best cryptocurrencies to invest?
As with all investments, you must first define certain goals and how much time and money are you willing to invest in the process. This will be your map as you investigate the value and the movements of the different cryptocurrencies. There are many web pages that track the performance of each coin and provide clear information about each one. Here, we leave you with Coincodex, an excellent guide to tracking the cryptocurrency market. However, we recommend that you always check with multiple sources. Always make sure to validate the information a web page provides.
These are the most famous cryptocurrencies to invest:
And these, the cryptocurrencies with the most future:
At Fazil we want your relationship with the financial world to be positive, where you can get the most out of your money. Why don't you check out our post how to invest in cryptocurrencies? We promise you that it is very easy.