Cryptocurrency’s attention and interests are remarkably growing in 202. Over the past months, we have seen a Dogecoin Joke becoming the hotter and quirkier cryptocurrency than Bitcoin, we have seen Tesla accepting bitcoin payment vehicles and PayPal (PYPL) allowing users to buy crypto on Venmo.
Mainstream adoption of crypto has been gaining steam for years and was accelerated by the pandemic. Cryptocurrencies, especially bitcoin, are increasingly seen as investments to hedge against inflation during times of economic uncertainty, much like to gold. And Covid-19 stimulus checks meant some Americans had extra funds to invest.
Cryptocurrencies have seen their biggest boom since late 2017 that has attracted a lot of eyeballs. Investors are eyeing the top cryptocurrencies to add a mix to their portfolios. Bitcoin, the most popular cryptocurrency, recently hit a record high of $63,000 before seeing high sales, giving investors a window to buy bitcoins before the price spikes again. Today, one bitcoin is valued at $56,000.
from big cryptocurrencies to affordable ones, here’s a guide to finding the right investment.
Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.
Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”
Some concepts for a similar type of decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.
Bitcoin uniqueness: Bitcoin’s most unique advantage comes from the fact that it was the very first cryptocurrency to appear on the market.
How to buy Bitcoin: Bitcoin can be purchased on crypto exchanges such as Coinbase, Binance, and Kraken; at Bitcoin ATMs; on PayPal; and on Robinhood. Don’t be put off by the high price of a coin: you can invest as little as $25 in Bitcoin on Coinbase.
Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.
Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014 and officially launched the blockchain on July 30, 2015.
Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime, and fraud.
Ethereum uniqueness: Ethereum has pioneered the concept of a blockchain smart contract platform. Smart contracts are computer programs that automatically execute the actions necessary to fulfill an agreement between several parties on the internet. They were designed to reduce the need for trusted intermediates between contractors, thus reducing transaction costs while also increasing transaction reliability.
How to buy Ethereum: You can buy ETH on the major crypto exchanges, Robinhood, and PayPal.
Launched in July 2017, Binance is one of the biggest cryptocurrency exchanges globally. By aiming to bring cryptocurrency exchanges to the forefront of financial activity globally. The idea behind Binance’s name is to show this new paradigm in global finance — Binary Finance, or Binance.
Aside from being the largest cryptocurrency exchange globally, Binance has launched a whole ecosystem of functionalities for its users. The Binance network includes the Binance Chain, Academy, Trusted Wallet, and Research projects, which all employ the powers of blockchain technology to bring new-age finance to the world. Binance Coin is an integral part of the successful functioning of many of the Binance sub-projects.
Binance Coin uniqueness: Binance is a unique ecosystem of decentralized, blockchain-based networks. The company has grown to be the leading crypto exchange in a number of countries, and their side organizations are attracting significant interest as well.
How to buy BinanceCoin: The best place to buy, sell, trade, and hold BinanceCoin is… Binance!
Like all cryptocurrencies, dogecoin is a digital currency that can be bought and sold like an investment and spent like money.
This is the cheapest cryptocurrency to buy in 2021. Thanks to Elon Musk calling himself the ‘Dodgemaster’, this coin has seen the spotlight after a dodgy history. Created in 2013 as a meme coin, nobody expected this coin to become legit, let alone be included in the top list of cryptocurrencies. The price spiked from $0.007635 to an all-time high of $0.074398 in less than two weeks. All this came after the GameStop incident and Elon Musk’s tweets.
Dogecoin’s current value in USD – $0.5673
What Can Dogecoin Be Used For?
Dogecoin has been used primarily as a tipping system on Reddit and Twitter to reward the creation or sharing of quality content. You can get tipped Dogecoin by participating in a community that uses the digital currency, or you can get your Dogecoin from a Dogecoin faucet. A Dogecoin faucet is a website that will give you a small amount of Dogecoin for free as an introduction to the currency, so that you can begin interacting in Dogecoin communities.
How to buy Dogecoin: You can buy Dogecoin on Robinhood and many of the major crypto exchanges like Binance and Kraken, but it's not available on Coinbase.
What is XRP?
To begin with, it’s important to understand the difference between XRP, Ripple, and RippleNet. XRP is the currency that runs on a digital payment platform called RippleNet, which is on top of a distributed ledger database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and is not based on blockchain, but rather the previously mentioned distributed ledger database.
The RippleNet payment platform is a real-time gross settlement (RTGS) system that aims to enable instant monetary transactions globally. While XRP is the cryptocurrency native to the XRP Ledger, you can actually use any currency to transact on the platform.
How to buy XRP: The easiest way to purchase XRP is on one of the big crypto exchanges such as Coinbase, Binance, or Kraken.