Virtual currency, also known as cryptocurrency, has recently been gaining in popularity as payment and investment asset. More and more people today are getting interested in investing in cryptocurrencies. The sudden increase in demand has driven the prices upwards. Still, many investors prefer virtual currencies over traditional investment vehicles like mutual funds, retirement plans, and penny stocks, among others.
Today, there are over 5000 types of cryptocurrencies in existence. The sheer number makes choosing the best cryptocurrency to invest in a bit difficult. To make your selection process easier, here is a short list of the top cryptocurrencies to invest in based on market demand, future scope, and value as an investment asset.
Not surprisingly, with its market capitalization of over $128 billion, Bitcoin emerges as number one on the list. Satoshi Nakamoto is credited to have invented Bitcoin, though many people believe that Nakamoto is not a single person but a group made up of banking and IT specialists.
When it was first used in 2009, it required 10,000 bitcoins to buy two boxes of Papa John’s Pizza. Today, one Bitcoin is worth $7,692, making it the most expensive and probably the best cryptocurrency to invest in on the market.
It is legal in many countries, and accepted by more than 100,000 merchants all over the world. However, not too many investors have enough funds to invest in bitcoins. The good news is, you can buy a satoshi instead. It is the smallest portion of a bitcoin.
Bitcoin miners are crucial to bitcoin security, and they are tasked to create new bitcoins. Next to buying bitcoins, the next most important thing to consider is how to keep your bitcoins safe, primarily because of its high value.
Next on the list is Ethereum. The Ethereum platform is designed to cater to small contracts. It recently figured in a controversy because of its hard fork that triggered diverging blockchains. The cryptocurrency’s market cap is estimated at over $32.1 billion. Ethereum is currently priced at $366.66 apiece.
A Bitcoin breakaway part, Bitcoin Cash (BCH) has now become a distinct cryptocurrency itself. Bitcoin supporters see it as a new rival. Currently, it has a market cap of almost $21.9 billion. One Bitcoin Cash is now worth $1,303. The rise in value of BCH gained ground particularly after the failed Bitcoin for in November 2017.
Introduced back in 2012, Ripple has gained a spot as one of the top cryptocurrencies to invest. Ripple, the virtual currency, bears the same name as the real-time payment system, remittance, and currency exchange network. Current market cap is pegged at almost $8.7 billion. One unit of the currency sells at around $0.2265 on the market.
Next on the list is Litecoin, another peer-to-peer open source virtual currency similar to Bitcoin. Its market cap is around $3.6 billion. You can buy a Litecoin for more or less $67.60.
An open peer-to-peer cryptocurrency, Dash used to be called Xcoin and Darkcoin. It was first introduced in 2013 as Xcoin before it was renamed Darkcoin the following year. The cryptocurrency was rebranded as Dash in 2015. Its market cap is around 3.4 billion. A unit of Dash is priced at $446.86.
A community-based non-profit blockchain project, NEO aims to:
- Use digital identity and blockchain technology in digitizing assets
- Automate digital asset management using smart contracts
- Set up a distributed network for a smart economy
Market cap of the virtual currency is $3.1 billion, and one NEO costs $48.09.
IOTA features an innovation known as Tangle. As a blockless distributed ledger, Tangle is lightweight and scalable. It facilitates value transfers without any charges or fees. In contrast to Blockchains, consensus is now an intrinsic system component. This leads to a self-regulating and decentralized peer-to-peer network. IOTA has a market capitalization of $2.1 billion. One IOTA sells for $0.7677.
An open-source digital currency, Monero was introduced in 2014. It focuses on decentralization and privacy. It currently has a market capitalization of $1.9 billion, and one unit is valued at about $129.22.
Introduced in 2015, NEM is currently showing a strong performance. Thus, it deserves a spot on the best cryptocurrencies for investment. NEM runs on the JAVA platform. Its market cap is $1.7 billion. You can buy a unit of NEM for $0.1936.
The final spot on our list belongs to Ethereum Classic. While it may not be very popular, it has a solid market cap of $1.7 billion. One unit is valued at $17.79.
If you are looking to invest in non-traditional assets instead of the traditional retirement funds, penny stocks, and mutual funds, you should consider investing in virtual currencies. After all, cryptocurrencies are a growing trend today.
Bitcoin is by far the best cryptocurrency to invest in this year with its solid market cap and steadily growing demand. The virtual currency offers good opportunities for investment success. Likewise, any of the other virtual currencies featured in this post are good investment picks.