Cryptocurrency has been one of the best-performing assets over the past few years. A single Bitcoin, for example, was worth less than $1 in 2011 and now it’s worth about $20,861 USD (as of the time of writing). There are many other cryptocurrencies out there, such as Ethereum and Litecoin, and many of them have also seen impressive gains over the past few years. This article will explain what cryptocurrency is and how it works; plus, we’ll look at whether you should invest in cryptocurrency or not.
What is Cryptocurrency?
For those new to cryptocurrency, you’re probably confused by what a coin is. Simply put, cryptocurrencies are virtual currencies used for financial transactions and operated by an independent group of people called miners. The majority of cryptocurrencies rely on decentralized networks built with blockchain technology. A blockchain is a decentralized public ledger of all cryptocurrency transactions that have ever taken place. In order to be certain of accurate data, system users must be in agreement with their information.
How Does Crypto Work?
It’s important to understand how cryptocurrency works before buying your first coin. This section is all about how cryptocurrency can be mined, why its value is rising and which tokens will give you a headache. Cryptocurrecies generated through a process called mining. Can All Cryptocurrencies Be Mined?: Yes, all cryptocurrencies can be Mined Mining is a long and arduous process. Essentially, people in the mines solve complicated math problems, after which they are rewarded with bitcoins for their work. Like other financial investments, cryptocurrencies trade in markets with variable prices that change depending on the state of demand and supply.
Should I Invest in Crypto?
Is Cryptocurrency a Good Investment? As cryptocurrencies continue to climb in value and popularity, it is important for investors to decide whether or not crypto is right for them. With some crypto markets down over 50% from all-time highs, many would argue that now is a great time to consider buying into cryptocurrencies. Many newcomers don’t have a great understanding of how cryptocurrency investing works.
How to Invest in Crypto?
Cryptocurrency exchanges are a place where buyers and sellers meet to trade coins. Cryptocurrency exchanges usually have low fees, but they tend to have complex interfaces with a wide variety of trading features. All of these features can make it difficult for beginners. best platforms to buy cryptocurrencies are Coinbase, Gemini, and Binance are three of the most well-known cryptocurrency exchanges in the United States. If you are unfamiliar with the world of stock trading, these companies may make you feel lost with their often-complex trading interfaces, but they offer options that make the purchase process easy.
Current best cryptocurrency to invest.
As of July 2022, there are more than 1,000 cryptocurrencies in existence. While that number has since dipped somewhat, it’s still a staggering amount. If you’re looking to invest in cryptocurrency but don’t know which coin is best or how to buy it, our guide will help you decide on one of these 10 best cryptocurrencies.
1. Bitcoin (BTC)
Market cap: $565 billion
In May 2016, you could buy one Bitcoin for about $500. As of June 1, 2022, a single Bitcoin’s price was around $29,700. That’s growth of more than 5,800%.
2. Ethereum (ETH)
Market cap: $219 billion
From April 2016 to the beginning of June 2022, its price went from about $11 to over $1,800, increasing almost 16,300%.
3. Tether (USDT)
Market cap: $72 billion
Unlike other cryptocurrencies, Tether is a stablecoin, meaning it’s backed by conventional currency like US dollars and Euros and, in theory, should be able to maintain a consistent value. This cryptocurrency is popular among investors wary of the fluctuating values of other coins.
4. U.S. Dollar Coin (USDC)
Market cap: $54 billion
USD Coin is like Tether: it’s a stablecoin, which means it’s backed by U.S. dollars and seeks to maintain a 1 USD to 1 USDC ratio. It is also an Ethereum-powered cryptocurrency and is used to conduct global transactions.
5. Binance Coin (BNB)
Market cap: $49 billion
BNB’s price in 2017 was just $0.10. By early June 2022, its price had risen to around $300, a gain of approximately 300,000%.
6. XRP (XRP)
Market cap: $19 billion
At the beginning of 2017, the price of XRP was $0.006. As of June 1, 2022, its price reached $0.40, equal to a rise of more than 6,400%.
7. Cardano (ADA)
Market cap: $18 billion
Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was $0.02. As of June 1, 2022, its price was at $0.55. This is an increase of 2,650%.
8. Binance USD (BUSD)
Market cap: $18 billion
This stablecoin is governed by Paxos and Binance to maintain its value against the U.S. dollar. To do this, Paxos must be sure to always have the amount of U.S. dollars in the world equal to the total amount of BUSD coins in circulation. Essentially, like other stablecoins, BUSD allows traders and crypto-users to engage in transactions involving other cryptocurrencies without as much risk of volatility.
9. Solana (SOL)
Market cap: $14 billion
When it launched in 2020, SOL’s price started at $0.77. By early June 2022, its price was around $40.58, a gain of more than 5,100%.
10. Dogecoin (DOGE)
Market cap: $11 billion
Dogecoin’s price in 2017 was $0.0002. By June 1, 2022, its price was at $0.08, up almost 40,000%.
Pricing sourced from coinmarketcap.com, current as of June 1, 2022.