The cryptocurrency world has grown from obscure to mainstream and popular in no time at all. In 2023, the world has grown exponentially, with many new Initial Coin Offerings and new cryptocurrency exchanges joining the marketplace. A few years ago, most of us were skeptical about this digital currency world, but today it is something we all know about, and many of us invest in. With every coming year, the importance of cryptocurrency will only increase. With more cryptocurrencies on offer than ever before, here are top cryptocurrencies that are the future of finance.
The list below contains some of the most popular and promising cryptocurrencies in the market. Read through them and do your research to find the best coin for you.
Cryptocurrencies that are the Future of Finance
Although there are many theories about Bitcoin’s utility, it is clear that it has been the most dominant player in its field ever since its inception. The growing acceptance of Bitcoin is the currency’s saving grace. Both institutional and retail investors will be eager to get their hands on cryptocurrencies like Bitcoin. The “digital gold” is being embraced by some of the most innovative business minds today. Some have said that they don’t believe there’s anything as exciting as the cryptocurrency markets. Even though Bitcoin’s price fell more than half in two months after hitting its all-time high of $65,000, Tesla Inc. (TSLA), which placed Bitcoin on its balance sheet this year, could lead to more corporate treasury flows over the long term. However, there have been speculations about Tesla looking into Dogecoin instead.
One downside of Bitcoin is its lack of eco-friendliness. However, its popularity in the market makes this fairly redundant at this time and in the future.
Bitcoin Cash (BCH)
Bitcoin, the first cryptocurrency, was a beacon in the mine of digital currencies to come. Many developers and users were frustrated by the limited size of the Bitcoin blockchain’s “blocks,” which are limited to 1 megabyte. This limit started slowing down transaction times and increasing fees. Bitcoin Cash tried to address the issue by “forking” from its parent in 2017. In 2017, it adopted a block size of 8 MBs. Although BCH is not as stable and widely used as Bitcoin, it is still a highly valuable cryptocurrency with a higher potential for scaling. Despite falling steeply from its April 2021 highs at $1,600, BCH’s current price of $500 is still well above the level of $342 where it started the year.
Ethereum is the Scottie Pippen cryptocurrency. For years, it has been playing second fiddle with Bitcoin. Ethereum has a market capitalization of around $276 billion. This is a small percentage of the total crypto market. However, it is more than four times as large as Bitcoin’s 47%. Ethereum, the leading platform for decentralized financial services, allows users to create smart contracts that execute automatically when certain conditions are met.
Ethereum is a money-saving platform that allows you to eliminate third parties like banks, clearinghouses, and brokerages. DeFi’s rising popularity should result in increased usage of the platform. This platform can be used to create new cryptocurrencies and/or exchange non-fungible tokens (known as NFTs). Ethereum has a large commercial use because of this and is predicted to be used more in the future.
Cardano, a decentralized blockchain platform, uses Ada as its native cryptocurrency to allow secure peer-to-peer transactions. Charles Hoskinson (the Ethereum founder) founded it in 2015. He left the largest platform for decentralized finance to create Cardano. Cardano uses a fraction of the energy required by Ethereum and Bitcoin, making it a greener option for eco-conscious investors. Cardano achieves this by using a “proof-of-stake” protocol. This protocol doesn’t encourage high energy consumption and is becoming increasingly popular for blockchains to validate transactions for safety reasons. Cardano, valued at $43 billion, is the fifth most valuable cryptocurrency. It is currently transitioning towards enabling smart contracts, which should be fully operational by fall 2021.
Dogecoin is named after the internet meme “Doge,” a Shiba Inu-dog. It was created to be a humorous take on blockchain. It is now the eighth-largest cryptocurrency in terms of market capital. The cryptocurrency has risen by around 4,000% over the past year. Although its price reached a peak of more than 70 cents in May, it has since fallen. Due to its greater circulation and unlimited ability to mine more, Dogecoin’s prices remain well below $1. Bitcoin’s cap is 21 million coins. However, 130 billion Dogecoins are already in circulation, and new blocks can be mined each year. Although it is highly speculative, Dogecoin has an even faster mining rate (or hash rate) than Bitcoin. This gives it a quantifiable advantage over other cryptocurrencies.
Binance Coin (BNB)
Binance Coin has one of the main advantages; it is limited in its number of tokens, just like Bitcoin. BNB is the fourth most valuable cryptocurrency worldwide, with a limit of 200 million tokens. The Binance coin, which is the native currency, has seen its value rise by more than 700% since 2021. It operates on a different basis than other cryptocurrencies in the market as it destroys or “burns” large amounts of its currency quarterly and uses one-fifth of its profits to do this. Binance Coin has a market capitalization exceeding $50 billion. As long as Binance exchange continues to grow, it will continue to have a bullish outlook.
Contrary to stocks, cryptocurrencies can be debatable and subjectively measured as “fundamentals.” One of these credentials is the person who started the project. Gavin Wood, who is a co-founder of Ethereum, helped DOT become one of the most valuable cryptocurrencies. DOT has the advantage of being able to be used as a bridge between networks, so applications can be built using Polkadot on both the Ethereum and Bitcoin networks. It is one of the first cryptocurrencies to be built after industry pioneers. This makes it more scalable and quicker than the previous ones.
So now that you have read about some of the most futureproof coins in the marketplace, which ones will you invest in? A better question may be, where? Finding a secure and licensed broker is imperative to your success in the cryptocurrency world. Do your research and find the broker and exchange that suits you.