A cryptocurrency is a decentralized asset that can be traded on an exchange or used to pay for goods and services. The first-ever cryptocurrency to be introduced to the world was Bitcoin in 2009.
Since then, several new cryptocurrencies have been created like Ethereum, Binance Coin, Solana, Dogecoin, and more. A fair chunk of these cryptocurrencies has gone on to gain tremendous value.
But the reality is, many other cryptocurrencies have faltered due to various reasons like the rampant volatility and uncertainty associated with the asset.
The volatility is in fact one of the reasons why you should be extremely careful when asking questions like “in which cryptocurrency should I invest” and “which is the best cryptocurrency to buy now”.
That said, knowledge is the best tool that any investor can have up their sleeve. In this blog, we’ll help you gain a better understanding of the best cryptocurrencies to invest in based on two important factors - market cap and recent gains. You can consult a Cube Wealth coach or download a Cube Wealth app.
Market capitalization is a spillover term from the world of stocks. In the world of crypto, it indicates the value of the current price of crypto multiplied by the number of coins in circulation.
Regardless of whether you’re speaking of crypto or stocks, market capitalization is considered to be a true indicator of the true value, worth, and potential of the asset in question.
Thus, the market cap becomes one of the best ways to categorize which crypto is best to invest in. Without further ado, here are the top cryptocurrencies by market cap.
Bitcoin was introduced in 2009 by Satoshi Nakamoto, a person whose identity still remains a mystery to this day. It was the first-ever cryptocurrency introduced to the world.
Bitcoin was invented to fix the inefficiencies of banks who had been the gatekeepers of financial trust. The growth of Bitcoin has been nothing short of stellar, having gone from $324 in 2014 to over $60,000 in 2021.
Fun fact: Bitcoin has a bigger market cap than all but 5 of the biggest US publicly traded companies. Thus, many include it in the list of best cryptocurrencies to invest in.
Ethereum went live in 2015. It was developed by Vitalik Buterin. The protocol can be used to deploy decentralized applications, a feature that several companies, cryptos, and tokens have benefited from.
Ether is the native cryptocurrency of the protocol and has grown from less than $8 in 2016 to over $4,000 in 2021. Many consider ETH and BTC to be rivals, adding fuel to the question of which cryptocurrency is best.
As of writing this blog, Ethereum has a bigger market cap than companies like Visa, Johnson & Johnson, Walmart, Adobe, Netflix, Walt Disney, and others.
Binance is the largest crypto exchange in the world and Binance Coin (BNB) is the crypto native to the platform. Binance Coin was initially built on the Ethereum network.
However, BNB moved to the Binance Chain, which is Binance’s own blockchain, in February 2019. BNB has grown from $0.10 back in 2017 to over $560 in 2021.
Tether is a stablecoin that is pegged to the value of 1 USD. Stablecoins look to avoid the volatility of cryptocurrency by staying pegged to a traditional fiat currency.
Solana is a decentralized blockchain that allows applications to be deployed to it with benefits like quick scaling and low transaction costs. SOL is the native cryptocurrency of Solana.
SOL was priced under $1 in early 2020. But since then, it has gained more than $200 and is currently trading at $212.17 with 13,796.80% growth since the start of 2021.
Cardano is a blockchain platform that allows for easy P2P transactions using its native cryptocurrency ADA, which was trading at $0.02 in 2017. ADA briefly inched above $3 in 2021 and is currently at $1.83.
XRP Ledger is a blockchain platform that was built to facilitate transactions. XRP is its native cryptocurrency with benefits like low fees and lightning-quick transactions.
Polkadot is a decentralized blockchain platform that allows others to build blockchains on top of it. These are known as parachains. Polkadot’s native crypto has gained more than $35 over the past year.
USD Coin is a stablecoin that’s pegged to the value of 1 USD just like USDT. Just like other stablecoins, it looks to avoid the general volatility associated with cryptocurrencies.
Dogecoin is a cryptocurrency that was propelled into the limelight by high profile individuals like Elon Musk. It falls under the category of meme cryptos and has become one of the top-performing cryptos.
Dogecoin’s utility has been enhanced by brands like Dallas Mavericks who became one of the early adopters of cryptocurrency to let their fans buy tickets and merchandise using Dogecoin in March 2021.
Fun fact: Dogecoin has a bigger market cap than companies like Pinterest, Titan Company, Axis Bank, Tata Motors, and others. You can consult a Cube Wealth coach or download a Cube Wealth app.
The following list includes cryptocurrencies that have gained the most in 2021. You’ll notice that the list includes a few relatively unknown names that have recently gained attention.
That shouldn’t be surprising considering the nature of the crypto market. Blockchain has revolutionized the way assets are viewed and invested in.
Even lesser-known cryptocurrencies have shown the potential to hit it big. For example, KokoSwap (KOKO). It gained more than 70,000% in the span of just 24 hours.
While the gains might seem tempting, it’s important to bear in mind that cryptocurrencies are volatile and unregulated assets. Thus, it’s best to assess your risk profile and exercise caution when investing in crypto.
Ans. Gold can serve both as a long-term and short-term investment. Some investors use it to preserve wealth over time, while others may trade it more actively based on short-term market conditions.
Ans. Before investing in gold, you should consider your financial goals, risk tolerance, and the economic environment. Assess factors like inflation expectations, interest rates, and geopolitical events to make an informed decision.
Ans. You can track the performance of your gold investments by checking the current market price of gold, reviewing the performance of your gold ETFs or mining stocks, and staying updated on economic news and trends that could impact the price of gold.
Ans. Consulting with a financial advisor is recommended before making any investment decision, including investing in gold. An advisor can help you evaluate how gold fits into your overall investment strategy and whether it aligns with your financial goals. You can consult a Cube Wealth coach or download a Cube Wealth app.
Deciding whether to invest in gold in 2023 is a matter of individual financial circumstances and preferences. Gold has historically been a popular choice for preserving wealth and hedging against economic uncertainty. However, its performance can be influenced by various economic and market factors. Before investing in gold, it's essential to carefully assess your financial objectives, risk tolerance, and the current economic environment. Consulting with a financial advisor can provide valuable insights to help you determine whether gold aligns with your investment strategy in 2023.
Note: Facts & figures are true as of 17-11-2021. None of the information shared here is to be construed as investment advice. Exercise caution when investing in unregulated assets like cryptocurrency.
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