In the last ten years, cryptocurrencies have enjoyed great popularity in the world of investing. Many see this as a great opportunity to earn a decent amount of money and provide themselves with an additional source of income. There is not much to say about bitcoin, as a currency that made a real boom a little over ten years ago. Even those who know nothing about digital money and how it all works, have surely heard it exists.
What are cryptocurrencies?
Cryptocurrencies are decentralized money that exists only in digital form. They are based on the blockchain principle, which makes them very secure for transactions, because there is no risk of misuse because there is no third party in the transactions. We have already mentioned that bitcoin stood out as the most valuable currency at the very beginning. When it was released, its value was $ 0.03, and today it is a staggering $ 15,399.70. With the spread of the coronavirus pandemic in the world in early 2020, the value dropped unimaginably, but already in the summer, bitcoin began to recover rapidly and return to the place that always belonged to it – the most valuable cryptocurrency. It is for this reason that many are skeptical of other cryptocurrencies, although it is estimated that there are not several thousand of them. But we assure you that there are many more cryptocurrencies worth your attention and these are just some of them. Check out more about currencies and market changes at www.kryptomoney.com.
1. Ethereum (ETH)
This currency has its software platform based on blockchain technology, and this is what allows developers to create and decentralize applications. Although there are similarities with bitcoin, and that is blockchain technology, there are many more differences. This currency, created in 2013, is not used for mining, but in addition to being traded, developers use this currency to pay for online services. Although Ethereum is considered perfectly safe to invest in, it is also subject to volatility, which is something that bothers all investors. Therefore, many fences themselves off by using settings to protect against volatility, thus reducing the risk of loss.
It is important to point out that this currency has recorded a big increase lately and that the current value is 445.74 dollars. Many share the opinion that Ethereum is more efficient than Bitcoin in online trading because it allows blocks to be created much faster than with bitcoin. As the biggest advantages of the currency, we will single out a wide range of applications and the strongest development community. Currently, many projects are developing services based on this currency because they are faster, better, and more affordable. Experts predict that Ethereum will become faster, more secure, more complex, and more powerful over time, as well as enabling more transactions and interactions. It will also allow for more complicated applications.
2. Ripple (XRP)
A currency whose payment system is designed similar to a blockchain, a currency that works with cryptocurrencies, fiat currencies, and commodities. What goes into Ripple’s revenue is the fact that it allows customers to integrate protocols into their systems. It is currently the third-largest cryptocurrency in the world, right after above-mentioned cryptocurrencies. Ripple has many advantages over other cryptocurrencies – it enables fast transfer of funds to the account, and it is a transaction network that has its digital currency. The disadvantage is that it cannot be mined, although there is no need for that, given the fact that the final number of created Ripples is 100 billion. Like the aforementioned currencies, this one uses blockchain technology. This currency has a bright future and will be a very common partner for many companies.
3. Litecoin (LTC)
The fourth among the most valuable cryptocurrencies is Litecoin and its current value is $ 59.53. Many call it the silver version of bitcoin, and it takes much less time to complete a transaction than a bitcoin transaction. Besides, it stands out by the figure that can be mined – with bitcoin it is 21 million dollars, and in the case of Litecoin, the amount is four times higher! Although similar, Litecoin has different characteristics from the most famous cryptocurrency in the world. In addition to the difference in the transaction, ie the speed of the transaction, there is also a fast generation of blocks, which prevents attacks of double consumption. This currency is also peer-to-peer and represents a very wise choice to invest. Many call it a powerful economic and political weapon.
Don’t be confused if you ever hear someone say “Chinese Ethereum” instead of NEO. Three years ago, its value was $ 7, and now it’s $ 15.13, even though 2017 was worth $ 120.For NEO we can say that it is also a platform for smart contracts, which supports 1000 transactions per second. There are a total of 100,000,000 NEO and they are indivisible. The goal of this currency is to “insert” into the state framework and to get the support of the Government because NEO claims to have a developed KYC (know your customer) and AML (anti-money laundering) system.
5. Monero (XMR)
Monero is one of the most interesting cryptocurrencies on the market. Launched in 2014, it is privacy-oriented and based on the open-source blockchain principle, which means that technology and software have been significantly improved through user collaboration. We prefer this currency over Bitcoin when we talk about privacy because its transactions and addresses are hidden. Monero uses a proof-of-work algorithm and is designed so that it can be used by many processors. Like all other currencies, Monero tasted volatility. In 2014 its value was $ 0.25, then in 2017 the value jumped to $ 475, the current is $ 200.
People are often misled that it is worth investing only in the currencies that have the greatest value, many others can also bring in good profits. What is recommended to investors, especially beginners, is to enter more currencies, because knowing that the market situation is changing from moment to moment, in this way you reduce the chance of an overall loss.