People tend to invest in bitcoin only because it is the most popular crypto in the world. But, to reduce your risk and diversify your portfolio, you can invest in different types of crypto engine and tokens. It may surprise you but the market has five thousand cryptocurrencies available. Along with that, you can also choose stablecoins and Altcoin for your investment. Here, you can find top five crypto currencies available in the crypto ecosystem:
Bitcoin is the most popular digital currency in the world. Satoshi Nakamoto, the founder of this coin, is a mysterious person because people do not know who Satoshi Nakamoto is. However, Satoshi introduced this coin in 2009 as an alternative of fiat currency, and now it is considered as one of the best investment options. It is based on a blockchain network that records all the transactions in it which is why it is also called a public ledger. Miners can mine bitcoin by adding a new block to its network and they have to solve complex mathematical problems to verify a transaction with bitcoin. It is based on proof of work where miners can get a reward by validating a transaction with bitcoin. In 2016, the price of bitcoin was $500, and now you have to pay more than $22,000 for one coin. So, it has gained a huge popularity in the last few years.
- Ethereum: It is the second largest crypto currency after bitcoin. It is represented as a vehicle moving on the various crypto exchanges, and you can invest in ETH to earn a high return. It was launched in 2015 and it has the largest community of developers. It is known as smart contracts where new contracts can automatically be added when all pre-set criteria are met. It is also known as a non-fungible token. RTH has gained a huge popularity. It was priced around $11 and now it is available at $3000.
- Litecoin: Launched in 2011, Litecoin is similar to bitcoin and it is known as an alternative of bitcoin. The only difference between bitcoin and Litecoin is the transaction time. You need to wait for hours to validate a transaction with bitcoin. On the other hand, Litecoin transactions can take a minimum amount of time. Charlie Lee introduced this coin in the market once he graduated from MIT. Liteoin has a huge network of merchants and it is accepted by many businesses as a valid payment mode. According to the market report, it was seen that Litecoin had a complete market capitalization of around 7.5 billion dollars, and this gave it the status of the 21st largest cryptocurrency in the entire world.
- Cardano: It is a unique crypto currency that is based onOuroboros proof-of-stake. It was launched by Charles Hoskinson. He is the person who has spread the crypto in the world and his team has done great research before introducing this crypto in the market. According to the investors, Cardano can kill Ethereum in the future because it is using the latest blockchain technology which is faster and more secure than Ethereum. It is considered as the 8th largest crypto currency in the world.
- Polkadot:Polkadot is using parachains of bitcoin where all transactions are recorded in a blockchain network linked with bitcoin network. It is the only crypto where developers can use their own blockchain to create their currency and they can add more security features to their blockchain to keep their funds secured. The price of Polkadot was $6.30 in 2020 and it was priced at $55.11 at the end of the same year. It was launched in 2016, known as DOT.
- Solana (SOL): SOL was launched in 2020 as a decentralised finance. It was launched as an app called DApps. This app has a unique hybrid setting which is why it is called the smart contract. It is known for the fastest transactions, and it is a native token that can provide a good return on your investment.
So, now you can invest in these digital assets to earn a high return. Make sure, you must choose the best platform to invest your funds and you can use the Bitcoin Era in this regard.