Cryptocurrency Market, the rapid growth have attracted a lots of investors. Cryptocurrency prices depend on market demand and supply. Many investors and financial institutions have identified cryptocurrencies as dangerous assets because the market is constantly volatile. Some investors focus on huge profits because of high risk and high return.
Features of cryptocurrencies are worth investing in.
Normally, investors should take a look on cryptocurrencies that have large market caps because the market price of cryptocurrency depends on demand and supply.
Here are 5 cryptocurrencies that might gain high ceiling.
1. Ethereum (ETH)
Ethereum is the second-largest cryptocurrency in the world after Bitcoin. Although Bitcoin outperforms Ethereum, investors think Ethereum has a platform that can be used with Smart Contract technology to make it run by the blockchain mechanism.
There are a number of Metaverse projects change that will result in a 99.5% reduction in energy consumption and increased safety. Ethereum is currently experiencing a loss of more than 50% in value similar to that of other cryptocurrencies. Analysts commented that this is a great opportunity for investors to keep an eye on cryptocurrency trends.
2.Binance (BNB)
Binance is the most successful coin in terms of trading volume like Bitcoin. Binance coins have a limit on the number of tokens in circulation. Limiting the number of Tokens has increased in price because Binance can be profitable.
Binance has two blockchains, thereby reducing system slowdowns and scaling the coin size. Binance is currently in the process of making its platform more moderator-friendly.
Also, Binance plans to launch Bifinity, a platform that allows crypto payments. Fiat-to-cryptocurrency will make merchants more prepared to accept cryptocurrencies. Binance works better than Bitcoin and Ethereum. Currently, Binance already expanding to Europe and is ready to launch soon.
3.Tether (USDT)
Tether is a stable coin. Recently, Terra has been falling in price, which has raised concerns about whether Tether will go down as well.
Tether is the third largest coin and the most traded stable coin. Investors use Tether to hold funds or transact using the funds they need to protect them from the risky price of Bitcoin, Ethereum and other risky cryptocurrencies.
4.Decentraland (MANA)
Decentraland is a virtual game on the Ethereum Blockchain with Token MANA as the in-game currency. Users can purchase goods and services as well as generating their own income. MANA is considered the largest digital gaming currency in terms of market capitalization.
5. Algorand (ALGO)
Algorand was founded as a competitor to Ethereum blockchain with widespread adoption in 2021. Venture capital firm Borderless Capital has launched a $500 million fund to invest in digital assets powered by decentralized applications on Algorand.
The central bank digital currency of the Marshall Islands Sovereign (SOV) is also based on Algorand, and the International Football Federation recently selected Algorand as its official blockchain.
According to the data, Algorand offers a high level of security and scalability and consumes less electricity than Bitcoin.
How to decide to invest in Cryptocurrency
Before determining whether cryptocurrency will be the next best cryptocurrency. It’s important to understand why many investors need to invest in cryptocurrency. Much of it has to do with a fundamental change in how digital assets are perceived, said Jeff Dorman, chief investment officer at Arca, a financial services firm that specializes in digital assets.
“I believe we are in the early phases of a multi-decade secular shift towards digital assets, since COVID-19 has irrevocably changed the evolution from an analog to digital world.”
Jeff Dorman told GOBankingRates in an email.
He claims that this asset class has “developed far beyond cryptocurrencies” to include decentralized finance, non-financial tokens (NFTs), and other investment vehicles.
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Source: Investopedia