Crowning a single best cryptocurrency is an impossible task, partly due to the number of different options available, but also because it depends on what you want to use the cryptocurrency for. Someone who wants to buy cryptocurrency as an investment, for example, will have different priorities than those who want to use it to make payments. Others, on the other hand, may want to pick up a small amount to see what it is. Generally speaking, selecting the best cryptocurrency for you will be about maximizing privacy, utility, or speed. However, before you select a cryptocurrency to buy, you'll want to choose the best wallet to store your digital wealth and identify the best cryptocurrency exchange for your needs. It is also important to remember that cryptocurrency is a particularly volatile asset class, prone to large fluctuations in value. For anyone buying cryptocurrency for the first time, a reasonable rule of thumb is to never invest more than you can afford to lose.
- To buy cryptocurrencies, you will need to register with an exchange or trading platform such as Coinbase, eToro, Robinhood, or SoFi.
The best cryptocurrencies in 2021
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Bitcoin
The original cryptocurrency
Reasons to buy
- Well established + Transparent, anonymous + Wide support
Reasons to Avoid -Extremely volatile Bitcoin (BTC) is the world's most famous and valuable first cryptocurrency. It first appeared in 2008 when a person or group known by the pseudonym "Satoshi Nakamoto" published a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Payment System. Bitcoin is the first notable application of blockchain technology, a time-stamped immutable ledger of transactions distributed to all members of a network, which has now been applied to a variety of use cases. The blockchain behind Bitcoin allows holders to send and receive funds without the intervention of a third-party intermediary, such as a bank or payment provider. At the time of writing, Bitcoin was valued at around €60,000 per unit after a furious bull run (or growth period). However, as investors found out the hard way in 2017, Bitcoin's price value has also been known to plummet, wiping out billions of dollars in value.
- Buy Bitcoin through Coinbase here
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2. Ether (Ethereum)
The ``world computer'' cryptocurrency
Reasons to buy
- Extremely versatile + Strong community
Reasons to Avoid -Some Hard to Understand Use Cases Ether (ETH) is the cryptocurrency that underlies the Ethereum network, known colloquially as the "world computer." Launched in 2015, Ethereum took Bitcoin's public blockchain model and added the ability to code automated agreements (called smart contracts) that are automatically executed when a set of parameters are met. This new blockchain network also introduced the concept of decentralized applications, which make use of the distributed nature of the network, and is also the foundation on which the burgeoning DeFi and NFT markets are built. Ether is the fuel that this entire operation runs on, which means it has a huge number of potential use cases. If you want to participate in the Ethereum ecosystem, buying Ether might be a good place to start.
- Buy Ether from Coinbase here
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3. Monero
Cryptocurrency for people concerned about privacy
Reasons to buy
- High levels of confidentiality of transactions + Private by design
Reasons to Avoid -Associated with Criminal Activity Monero (XMR) is a cryptocurrency designed to make transactions completely untraceable, making it a solid choice for anyone who prioritizes privacy. Unlike Bitcoin and Ether, which are based on completely transparent, public blockchains, Monero uses cryptography to mask sending and receiving addresses, as well as the value of transactions. According to the documentation on the website, Monero uses three different privacy technologies to distinguish itself from other coins: ring signatures, confidential ring transactions, and hidden addresses. All you really need to know is that the network is private by design, which means there's no way to accidentally make a traceable transaction. However, due to its privacy-focused architecture, Monero is often associated with cybercriminal activity and the dark web. Many ransomware operators require payment in one or the other Monero, for example, to minimize the chances that an intelligence agency can "trace the money."
- Trade ETH / BTC for Monero on Binance here
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4. Litecoin
The best cryptocurrency for the speed of transactions.
Reasons to buy
- Fast transaction speed + Solid reputation
Reasons to Avoid -Limited support among merchants While Bitcoin is by far the most popular cryptocurrency, the level of traffic on the network and the way it is built comes at a price: slow transaction speeds. Built from a copy of the Bitcoin blockchain, Litecoin (LTC) is uniquely designed to solve this problem, outperforming Bitcoin by almost four times when it comes to transaction performance. The two are architecturally very similar, but Litecoin uses a completely different mining hash algorithm designed to allow a much larger number of transactions to pass through the network in a given period of time. If you are interested in being able to make payments to merchants and send money around the world as quickly as possible, Litecoin might be the cryptocurrency for you.
- Buy Litecoin from Coinbase here
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5. Tie
The best cryptocurrency for payments
THE BEST DEALS OF THE DAY Reasons to buy
- Stable price + Ideal for payments
Reasons to Avoid -Reserve Stock Questions Tether (USDT) differs from other cryptocurrencies on this list in that it is not subject to the same levels of market volatility. As a stablecoin (particularly a fiat-collateralized stablecoin), Tether is indexed to a stable asset. In this case, for every unit of Tether in circulation, there is one US dollar in reserve, which means that the price of the cryptocurrency matches the exact price of the fiat currency. This consistency of value allows users to transact using Tether, knowing that purchases made with the currency will have the equivalent dollar value the next day or month. While there are many more in circulation, Tether is currently the largest stablecoin on the market, as well as the fifth largest cryptocurrency in the world by market capitalization. Beware though, there are those who believe that the amount of Tether in circulation is not fully backed by dollars in the bank, despite what the issuer and their Bahamian bank have to say. If this is ever proven, the USDT price will not be stable for long.