Top 5 Cryptocurrencies
In recent years there have been some amazing new inventions and new introductions to society. Right at the top of the list is cryptocurrency. The impact cryptocurrencies had on society was immense, with the long term implications still very much in the making.
There has been a lot of discussion around cryptocurrencies, this article will provide a bit more detail about what they are and the top 5 cryptocurrencies that have been made. Read on to learn more.
What are cryptocurrencies?
Before we go into detail about the best cryptocurrencies out there, it’s important to briefly explain what they are. A cryptocurrency is a new form of currency or money. It’s based solely on the internet and uses a worldwide cryptic network to complete financial transactions.
Cryptocurrencies can be transferred between two parties using public and private keys. This can be done with low processing fees, which is in contrast to traditional institutions that usually charge a lot more for transfers.
The key and most important feature to cryptocurrencies is that they are decentralised and not under the control of one single entity. This is largely due to technology called blockchain, which in theory prevents these currencies from being manipulated in the same way as governments have been able to do to currencies in the past.
The technology behind blockchain is often very confusing for people without technical knowledge. In its simplest form, blockchain is a series of blocks, containing specific pieces of digital information. In this form, it is a series of time stamped records of data. This data is managed by a group of computers called a cluster that isn’t owned by one single entity. It is a way for information to move between points in a completely automated and safe way.
The Top 5 Cryptocurrencies
In digital markets, as with real world markets, rates can change extremely quickly. What once was performing exceptionally well, can soon become a poor performer. In recent years digital currencies have been launched, their value rise exponentially, then plummet catastrophically, and then level off, in a roller coaster for investors. Digital currencies have been launched frequently, with some performing better than others. That’s not to say they will continue to do so into the future so if you are looking to invest make sure you do the proper research first.
Research from CoinMarketCap suggests that there are an estimated 5,266 digital coins available, meaning that there is a huge number of currencies that could be a wasted investment.
Bitcoin was the first cryptocurrency and it is still the leader in the digital space. During the initial coronavirus outbreak, Bitcoin was hit with a drop in price from $10,000 in February to $4,000 in March, since then it has started a recovery and is rising again. As people get over the initial impact of the pandemic, some experts predict the value to continue to rise.
Alongside Bitcoin, Ethereum is one of the best known digital currencies. Amongst investors, it has been able to secure a reputation as a reliable digital investment. From December 18 2018 to February 6 2020 there was an almost 100 percent appreciation in the value of Ethereum.
Ripple emerged onto the market with a slightly different position than other digital currencies. It was created as an alternative way to pay instead of traditional banks and financial institutions. It’s been in circulation since 2012 and in that time has been used by multiple banking institutions.
Despite cryptocurrencies all being relatively new in the grand scheme of things, Tron is one of the newest to the market. It was launched in 2017 and in that time has seen a large amount of appreciation.
This currency is a subsidiary of number one on this list, Bitcoin. It was first brought to market in 2017 and has performed well since then. One of the reasons it is being looked at closely by investors at the moment is because of its potential to improve in the future.
As with most markets and investments, there are ups and downs. This is particularly so with such a new industry as cryptocurrency. Because of this, it is even more important to consider the latest industry news, research and expert opinion when deciding on a cryptocurrency to invest in.