Monday, August 8, 2022
Monday, August 8, 2022
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5 Digital Currencies to Invest in This Year

by Betty Mrunde
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More than a decade has passed since the mysterious Satoshi Nakamoto invented Bitcoin as the pioneer cryptocurrency. Soon after its inception, several other digital currencies followed its pursuit.

Here we have identified 5 of the best cryptocurrency options for you to invest in, this year, in order to make best gains:

  1. Bitcoin (BTC)

The cryptocurrency market has been dominated by bitcoin ever since the crypto began. Several hundreds of other digital currencies have come, stayed and left in the meanwhile, yet none surpassed BTC. However, despite this market leadership, the journey of bitcoin has not been all smooth. We can demonstrate this by the example of how Bitcoin prices skyrocketed up to $20,000 during the end of 2017, before falling down by more than $15000, to $3,234 in 2018. It is, however, noteworthy that the BTC has been seen more on the upside ever since then. This can be seen from the very recent price hike of up to $40,000 for BTC during the start of this year, accounting for a market capitalization of beyond $1 trillion. This shows that BTC comprised greater than 69% of the digital currency market. Learn more about trading in Bitcoin on Bitcoin Evolution Review.

  1. Bitcoin Cash (BCH)

In the market of digital currencies, these crypto are based on the system of blockchain to store data and information about the transactions inside blocks of data which comprise 1 MB of data. With the passage of time, following the increasing popularity of the BTC, the developers and strategists at Bitcoin Network offered an idea which would resolve some of the problems. However, some people criticized these steps, believing that this would harm the integrity and secureness of the system. This caused the creation of a new version of bitcoin itself, known as the Bitcoin Cash. This digital currency comprises blocks which have the capacity of storing 8 MB of transaction information, enabling quicker and increased number of transactions, which are also relatively cheaper.

  1. Litecoin (LTC)

What Litecoin has done differently in the world of crypto is that it has resolved one of the major problems of the crypto market. For a lot of users and people in general, the system of crypto can be confusing and hard to understand, owing to the intricacies and peculiarities of the system. The founder of this crypto, Charlie Lee first thought of creating a lite version of BTC, in order to create a smaller or vice version of bitcoin itself. He did so during 2011, when he created a digital currency known as Litecoin. This currency mainly carried several features of the bitcoin, however altering a few of them. This can be seen by the fact that while BTC transactions take up to 10 minutes, litecoin transactions happen faster by up to 7 minutes. Also, as compared to bitcoin’s mining which requires a powerful combination of hardware and software, Litecoin can be mined simply through ordinary computer systems as well. Therefore, traders and investors identify this digital currency as quicker and convenient.

  1. Ethereum (ETH)

The concept behind the digital currencies is making the currency system decentralized. The philosophy of Ether is not only based on this concept, but rather Ether takes a step further in this concept by making the whole internet decentralized, substituting servers with a global mechanism of nodes, forming a single computer system for the whole globe. On the platform of Ether, the users utilize the blockchain technology to trade for the crypto known as ether. Over the course of time, Ether has evolved into a very strong and globally acknowledged, and well accepted cryptocurrency. This can be seen by the fact that it has a market capitalization of $139 billion in the digital currency market, which makes it standing right after the BTC in crypto rankings. However, they feature these currencies in the fact that its platform has become host to several other digital currencies. This signifies that the traders and investors gain from one of the best and most well accepted digital currencies in the crypto market, but also from the greater range of uses of Ether itself.

  1. Binance Coin (BNB)

In order to comprehend what binance coin is and how it works, we first need to understand that similar to ether, this also provides a function more than just a crypto. Initially Ether hosted Binance Coin, but soon after binance decentralized exchange during 2017. Binance coin, in many ways, is similar to another crypto, Ethereum, although it has a different objective. This platform not only allows its users to purchase, sell and trade Binance Coins, but also enables them to convert several different digital currencies from one to the other. Due to these reasons, and some others, Binance DEX is considered to be the highest volume crypto exchange platform, also causing an increase in the awareness and popularity of the crypto BNB itself.

One key characteristic of the Binance DEX is that in order to keep their own cryptocurrency maintained, accepted and growing, they offer a discount to their users on paying transaction fees via BNB. This strategy keeps the BNB growing sustainably as well.

 

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