Top 7 most popular crypto to invest in
Crypto is a decentralised digital currency that operates independently without a third-party authority. Anyone can use this decentralised payment system to send and receive funds. Payments made using crypto do not include physical bills that can be carried around.
Rather, crypto transactions are recorded in a public ledger accessible to all parties involved. Due to its benefits and unique features, crypto is a growing industry that is becoming more successful daily. Since the first coin was released in the market, many investors have shown interest and are actively engaging in crypto investments.
Despite the benefits of investing in digital currencies, many are still sceptical about it. If you are new to crypto, here’s a guide on how crypto works and some of the best coins to invest in:
How does crypto work?
Before investing, it’s important to understand how crypto works. Crypto functions with the help of blockchain technology. Blockchain is a distributed public ledger wherein all crypto transactions are recorded.
On the other hand, mining is leveraging computing power to solve complex equations to create coins. Users can purchase currencies from exchanges and then use crypto wallets to store and spend their funds.
Top crypto to invest in
Bitcoin (BTC) is the most popular crypto with thousands of users. Aside from BTC, there are more coins that you can invest in with different uses while also promising secure and reliable transactions.
Some of the top coins you should consider investing in are:
When you invest in Ethereum (ETH), smart contracts and decentralised apps (dApps) can be developed and deployed without the risk of downtime. This also limits risks of fraud, centralised control, or external interference.
ETH’s mission is to build a decentralised ecosystem of financial services that anyone can use without prejudice on their location, race, or religion. One of the main reasons you should consider investing in ETH is its vast ecosystem.
This ecosystem improves the coin’s prospects of developing practical apps and gaining widespread acceptance. Many consider the Merge to be the single most pivotal moment in the evolution of crypto. Thanks to Merge, Ethereum’s network is now easier to use when creating dApps.
Stablecoins like Tether (USDT) are pegged to fiat currency to reduce price fluctuations. USDT and other stablecoins aim to control price fluctuations to win over users who are wary of digital currencies. This includes BTC and other market leaders. When you invest in USDT, remember that its value is pegged to the U.S. dollar.
USD Coin (USDC)
USD Coin is another stablecoin that uses fiat-collateralised reserves to maintain a stable value against the U.S. dollar. This implies that the same value in fiat currency is held in reserve for every USD Coin in circulation.
One of the reasons investors purchase USD Coin (USDC) is the chance to earn interest on loans made using the currency. Sending and receiving USDC is instantaneous and can take place at any time. It also removes the need to move fiat cash in and out of exchanges when buying and selling other coins.
Binance Coin (BNB)
Trading fees on the Binance Exchange are deducted from Binance Coin (BNB), a utility coin. According to the value of its market cap, it is the third largest crypto. In addition to BTC and ETH, BNB can be bought and sold for other coins. As an added perk, BNB users get a reduction in the standard transaction fees while using the Binance Exchange.
One of the top benefits of investing in BNB is that Binance Coin can be traded for other coins using various exchanges. Users can also get a discount when they use BNB to buy and sell on the Binance Exchange.
The ecosystem uses XRP as its native token, created as a real-time gross settlement payment system in 2012. Many investors choose XRP because it is the only crypto directly interlinked with the banking community.
The ledger servers receive transactions signed by client apps. The servers then determine whether or not the compared transactions merit inclusion in the ledger. After the first steps, the ledger forwards the potential transactions to the validators.
These validators then verify the accuracy of the data and update the ledger. Some investors prefer investing in XRP thanks to its network’s ability to validate transactions quickly and reliably over BTC and similar coins.
Cardano (ADA) was developed by a team of researchers composed of engineers and cryptography experts. Charles Hoskinson, one of ETH’s original five founders, is credited with starting the project.
When he found out that ETH was going in a different direction, he decided to leave and joined the creators of ADA. Compared to other proof-of-stake (PoS) coins and leading digital tokens, ADA stands out because of its strict verification method. ADA has been called an ‘Ethereum killer’ due to the belief that its blockchain has greater potential.
Some people consider Dogecoin (DOGE) to be the first ‘meme coin’ following its price surge in 2021 that made headlines. The coin features an image of a Shiba Inu. Due to its success, many top companies accept the coin, making it a valuable investment.
In 2013, software developers Billy Markus and Jackson Palmer came up with the idea of DOGE. According to rumours, Markus and Palmer invented the coin to poke fun at the irrational behaviour of the crypto market.
In the same way that BTC can be used to convey value to everyone in the world fast and securely, DOGE can do the same. More and more businesses began to accept the coin as payment during the past several years to expand their network.
Benefits of investing in crypto
As mentioned, crypto has become successful over the years and has received praise from various investors since then. Despite its success and fame, some are still unsure about investing in it. If you are new to crypto and are curious about its benefits, here are the top perks of investing in crypto that you can take advantage of:
Easy and fast transactions
When you invest in crypto, expect fast and easy transactions. Once your chosen crypto has been acquired through an exchange and kept in a crypto wallet, you can make transactions with simple clicks.
Crypto transactions are processed quickly and do not require you to wait for 3 to 5 business days for the transaction to complete. Although crypto transactions are known to be faster and easier, it still depends on the operator and the number of existing transactions on the network.
The cost of crypto transactions is relatively low compared to other financial services. Although crypto transactions are less expensive, note that demand on the blockchain can increase transaction costs. Even so, transaction fees remain lower than wire transfer fees even on the most congested blockchains.
No one but you can make transactions or use your funds unless someone has your private key. The decentralised blockchain system and the network of computers that validate transactions further ensure the safety of all financial transactions.
How to safely store your crypto
Once you have chosen crypto to invest in, securing your funds is next. To do so, you must find the best wallet to store your crypto safely. You can find various crypto wallets to store your crypto assets safely. These wallets come with different functions and unique features.
Choose the best wallet that offers what you need to store your crypto effectively. The two types of wallets that you can consider are:
- Hot wallet → Web-based, mobile, and desktop wallets are all under the hot wallet category. Hot wallets are convenient because they can easily send or receive funds online.
- Cold wallet → Investors of crypto often use cold wallets to protect their assets from hackers who use the internet to gain access to people’s assets. Since your funds are saved offline, hackers will have difficulty accessing your wallet. You need to provide a private key or password to access your funds.
When investing in crypto to use in online betting sites like Bitcasino and claiming a Bitcasino bonus or becoming a Bitcasino VIP, you need to choose one that best suits your needs. It’s also important to understand how each type of crypto works to maximise its uses.