Choosing the best cryptocurrency can be difficult, partly because of the range of options available, but also because it depends on how you want to use it.
Someone who wants to buy cryptocurrency as an investment, for example, will have different priorities than someone who wants to use it to make payments. Others, on the other hand, may want to pick up a small amount to see what it is.
Generally speaking, selecting the best cryptocurrency for you will be about maximizing privacy, utility, or speed.
Before selecting a cryptocurrency to buy, however, you'll want to choose the best wallet to store your digital wealth and identify the best crypto exchange for your needs.
It is also important to remember that this cryptocurrency is a particularly volatile class of assets, subject to huge fluctuations in value. For anyone buying cryptocurrency for the first time, a good rule of thumb is to never invest more than what you can afford to lose.
Best crypto-currencies in 2021
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The cryptocurrency original
Reasons to buy + Well established + Transparent, anonymous + Support large rt
Reasons to avoid - Extremely volatile
Bitcoin (BTC ) is the world's first, most famous and most valuable cryptocurrency. It first appeared in 2008 when a person or group known by the pseudonym "Satoshi Nakamoto" published a white paper titled Bitcoin: A Peer-to-Peer Electronic Payment System.
Bitcoin is the first notable application of blockchain technology - an immutable, time-stamped transaction ledger, distributed to all members of a network - which has now been applied to a whole range of cases of 'use.
The blockchain that underlies Bitcoin allows holders to send and receive funds without the intervention of a third-party intermediary, such as a bank or a p rovider payment, and while remaining completely anonymous.
At the time of writing this article, Bitcoin is sitting at a valuation of around 50 0$ 00 per unit after a furious three month bull run (or period of growth). However, as investors discovered the hard way in 2017, the value of Bitcoin's price is also known to plummet to the ground, wiping out billions of dollars in value.
- Buy Bitcoin via Coinbase here
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2. Ether (Ethereum)
The world's computer cryptocurrency '
Reasons to buy + Extremely versatile + Strong community
Reasons to avoid - Some difficult to understand use cases
Ether (ETH) is the cryptocurrency that underlies Ethereum network, known colloquially as the "world computer".
Launched in 2015, Ethereum has taken over the public model of Bitcoin's blockchain and added the ability to encode automated agreements(called smart contracts ) which are executed automatically when a set of parameters are satisfied.
This new blockchain network also introduced the concept of decentralized applications, which use the distributed nature of the network, and this is also the basis on which the DeFi and the NFT markets ar e built.
Ether is the fuel that this whole operation takes place on, which means it has a huge pool of potential use cases. If you want to participate in the Ethereum ecosystem, buying Ether could be a good place to start.
- Buy Ether from Coinbase here
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The cryptocurrency for the privacy conscious
Reasons to buy + High levels of transaction confidentiality + Private by design
Reasons to avoid - Associated with criminal activity
Monero (XMR) is a cryptocurrency designed to make transactions completely untraceable, making it a solid option for anyone who puts privacy first.
Unlike Bitcoin and Ether, which rely on public and fully transparent blockchains, Monero uses cryptography to mask send and receive addresses. receipt, as well as the value of transactions.
According to the documentation on the website, Monero uses three different privacy technologies to distinguish itself from other coins: ring signatures, confidential ring transactions and stealthy addresses.
All you really need to know is that the network is private by design.ption, which means there is no way to accidentally make a traceable transaction.
Due to its privacy-centric architecture, however, Monero is often associated with cybercriminal activity and the dark web. Many ransomware operators require payment in one or the other Monero, for example, to minimize the chances that the telligence agency can 'track the money'.
- Buy Monero at Coinbase here
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The best cryptocurrency for transaction speed
Reasons to buy + Fast transaction speed + Strong reputation
Reasons to avoid - Limited support among merchants
While Bitcoin is undeniably the most popular cryptocurrency, the level of traffic on the network and the way it is built comes at a price: slow transaction speeds.
Created from un ac opy of the Bitcoin blockchain, Litecoin (LTC) is uniquely designed to solve this problem, outperforming Bitcoin by almost four times in transaction throughput.
The two are architecturally very similar, but Litecoin uses an entirely different mining hash algorithm designed to allow a much larger number of transactions to go through the network in a period of time. given time.
If you are interested in being able to make payments to merchants and ping money around the world as quickly as possible, Litecoin could be the cryptocurrency of yours. 'you need.
- Buy Litecoin on Coinbase here
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The best cryptocurrency for payments
Reasons for buy + Stable price + Ideal for payments
Reasons to avoid - ThatStions on Reserve Stock
Tether (USDT) differs from other cryptocurrencies on this list in that it is not subject to the same levels of market volatility.
As stablecoin (in particular, a stablecoin guaranteed by fiat), Tether is indexed to a stable asset. In this case, for every unit of Tether in circulation, there is one US dollar in reserve, which means that the price of the cryptocurrency matches the exact price of the fiat currency.
This consistency of value allows users to transact with Tether, knowing that purchases made with the currency will have an equivalent dollar value the next day or month.
Although there are many more in circulation, Tether is currently the largest stablecoin on the market, as well as the fifth largest crypto-coin.currency in the world in terms of market capitalization.
Beware, however, there are those who believe that the amount of Tether in circulation is not fully backed by dollars in the bank, despite what the issuer and its Bahamanian bank have to say. say. If ever this is proven, the price of USDT will not stay stable for long.
- Buy Tether from Binance here