The popularity of cryptocurrency is growing nowadays. You must have heard the name of Bitcoin. Bitcoin is a well-known cryptocurrency. The price of bitcoin is growing every day. The price of bitcoin has reached $50000 and is expected to grow further. Many well-known companies including Google, Apple, Samsung, and Facebook have invested money in cryptocurrencies. Due to the increase in the popularity of bitcoin, many people are thinking of investing in other cryptocurrencies. If you are also one of them here is a detail about the Top 5 Cryptocurrency to Invest in 2024. These cryptocurrencies have shown significant growth in the past and likely to grow further in the future.
What is Cryptocurrency?
Cryptocurrency is a word made up of Crypto and Currency. Crypto means secret or concealed and currency means money. This means cryptocurrency is concealed money. It is digital money stored in the wallet. The transaction of this type of money happens via decentralized system. The cryptocurrency is not controlled by the central government. As no centralized control is present these type of currencies is banned for transactions in some countries.
The entire system of cryptocurrency is computerized and stored in ledger format in terms of a database with strong cryptography to ensure the security of transactions. The technology used for cryptocurrency is mining and blockchain.
Top 5 Cryptocurrency to Invest in 2024
Bitcoin
Bitcoin is one of the oldest and most popular cryptocurrency. Bitcoin is largest cryptocurrency in terms of market capitalization. Bitcoin was created in 2008 by anonymous group of people with name Satoshi Nakamoto. Bitcoin works on peer 2 peer technology. It is decentralized cryptocurrency with no central bank. The transactions are done on network node and stored in distributed ledger with blockchain technology.
Bitcoin is leading cryptocurrency market. The price of Bitcoin has grown exponentially in past one year and reached to $44000 and above. Bitcoin is not widely accepted currency in India but in USA and other countries it is legal currency and people make use of Bitcoin regularly.
Ethereum
Ethereum is second largest in terms of market capitalization. Ethereum is open-source blockchain with smart contract functionality. Etherum was created in 2015. Ethereum works on the ethereum virtual machine technology. Ethereum works on distributed applications (DApps) built and run without any downtime, fraud, control or interference from other third party. It is permission less, non-hierarchical network of computers.
The ethereum uses an accounting system where values are debited from one account and credited in another account. The price of Ethereum is above $2200 in 2023.
Litecoin
Litecoin is peer-to-peer cryptocurrency and open source project released under MIT/X11 License. Litecoin is nearly identical to bitcoin. Litecoin is initially launched in 2011. In comparison of bitcoin, Litecoin is processed much faster and provide improved storage efficiency. Litecoin is proven medium of transaction complementary to bitcoin. Litecoin is trading with price of $100 in 2023.
Cardano
Cardano is next in the list of top cryptocurrency. Cardano currency was launched in 2017. It is a cryptocurrency network and open source project with the aim of creating public blockchain platform for smart contracts. The market cap of Cardano is third highest. Cardano make use of Ouroboros proof of stake technology in contrast to proof of work system used by Bitcoin. The price of Cardno is low compared to other cryptocurrencies. Cardano is available at nearly $1.
Tether
Tether is somewhat controversial cryptocurrency. It is token based currency. Tether currency is used by investor to extreme volatility of other cryptocurrencies. This currency is backed by loans to affiliate companies. The price of this currency more or less remain stable. Tether has one of the largest cryptocurrency in the form of market capitalization. Tether is available at very low price in 2023.
Should you Invest in Cryptocurrencies?
Crypto currency investment is risky in nature. You should only surplus money in the cryptocurrencies. Few important points to note before investing in cryptocurrency are given below.
- Cryptocurrency is decentralized currency and not backed by any government.
- Cryptocurrencies are volatile in nature. It is like gambling in dark.
- These type of currencies have no pattern or rise and fall and rate of return is not fixed.
- Cryptocurrency are used for doing fraudulent activities.
- Security is at risk when you invest in these type of currency.
In short, if you are high risk investor with surplus money and capacity to withstand losses you can invest in cryptocurrency. If you are planning to invest in crypto you need to do proper research before investing.
