Top 5 Cryptocurrencies to Invest In Today.
Bitcoin's 900% return since 2010 is making headlines and attracting mainstream attention. It’s no wonder that more and more people want to know how to cash in on the cryptocurrency boom.
On this list, we’ve compiled our top 5 cryptocurrencies to invest in right now. Find out where Bitcoin ranks, how Ethereum works, and more!
What is a Cryptocurrency?
A cryptocurrency is a digital currency that uses encryption to regulate the production of coins and to verify transactions. Crypto-currencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies.
Bitcoin Explained
Bitcoin is the best-known cryptocurrency on the market. Bitcoin has become increasingly popular, with a 900% return since 2010, making headlines and attracting mainstream attention. Bitcoin works as a digital currency that is used to store and exchange value.
Unlike real money, Bitcoin isn't limited by geographic boundaries or governments. It's also decentralized, meaning it's not overseen by any bank or government agency. Unlike traditional currencies, Bitcoin's value is determined by how much people are willing to pay for it at any given time.
Bitcoin is traded on public exchanges like stocks of other companies are bought and sold on stock markets. When you buy Bitcoin on an exchange, your purchase will be recorded digitally in a bitcoin wallet that you control--you're essentially buying digital cash that can be used anonymously and doesn't flow through banks and credit card processors. The price of Bitcoin fluctuates based on supply and demand: if more people want to buy Bitcoin than sell it, then the price goes up; if more people want to sell than buy it, then the price goes down.
Ethereum Explained
Ethereum is a type of cryptocurrency, similar to Bitcoin. Ethereum's currency is called Ether and it's the second most popular cryptocurrency after Bitcoin. Since Ethereum was created in 2015, it has risen quickly up the ranks of the top 5 cryptocurrencies to invest in due to its flexibility and reliability.
It was created by Vitalik Buterin, an e-commerce developer from Toronto, Canada. Buterin first learned about bitcoin when he was 17 years old before creating Ethereum in response to what he saw as limitations in bitcoin which made it difficult for people to build things on top of it. It came out publicly in 2014 with a crowdsale that raised $18 million dollars worth of Bitcoins (around 40% of all Bitcoins).
Ether can be traded like other cryptocurrencies on exchanges like Poloniex or Kraken.
Other cryptocurrencies worth looking into
Bitcoin - the original cryptocurrency and the most popular
Ethereum - a platform for decentralized, programmable smart contracts
Ripple - a payment protocol designed to enable one-to-one global transactions
NEO - a blockchain for developing digital assets
Litecoin - a peer-to-peer cryptocurrency that was created with an intent to be the silver of Bitcoin’s gold
Conclusion
There are a lot of cryptocurrencies out there, and it can be difficult to know which one to invest in. To make things easier for you, we have created a list of the 5 cryptocurrencies that we think are worth investing in.
Bitcoin
Ethereum
Ripple
Litecoin
Bitcoin cash
Knowing which cryptocurrencies to invest in is an important first step for any potential investor. Once you know that, you can then decide which cryptocurrency suits your needs and your portfolio.