Currently, cryptocurrencies are seen as a major asset class, even for institutional investors. However, choosing which coin to invest in can be a challenge, especially with so many seemingly good options.
You must choose your assets carefully to avoid losses and regrets later. Therefore, here are 7 of the best cryptocurrencies to consider, as their fundamentals indicate long-term prospects in the cryptocurrency space.
1. Bitcoin (BTC)
Bitcoin is the largest cryptocurrency by market capitalization, currently dominating 41% of the entire market, which includes over 20,000 cryptocurrencies. Bitcoin is also the first cryptocurrency ever created, so most investors see it as an asset, often referred to as digital gold.
Many institutional investors have supported Bitcoin in recent years, primarily due to inflation affecting the US dollar and other global currencies. At the time of writing, we are in a bear market, but people are still buying Bitcoin, proving that investors still believe in Bitcoin's future.
2. Ethereum (ETH)
Ethereum is now a household name as it is the backbone of all decentralized applications (DApps) and smart contracts. The second-largest cryptocurrency by market capitalization after Bitcoin, Ethereum has a lot of potential ahead with its transition to a proof-of-stake (PoS) consensus algorithm.
Ethereum 2.0 is expected to bring significant positive changes such as faster transactions and reduced gas fees. The transition of Ethereum to PoS has been ongoing for a long time, so the cryptocurrency community is likely to increase network usage once it is completed.
3. Dogecoin (DOGE)
If you have been involved in the cryptocurrency market, you may already know what a meme coin is. Dogecoin is the king of meme coins, but that's not the reason it made this list. Dogecoin is transitioning from a meme coin to becoming a cryptocurrency with real utility.
For a long time, Dogecoin was only known as a fun cryptocurrency, riding on the wings of the world's richest billionaire Elon Musk for its price surge. However, Dogecoin developers have begun to bring this cryptocurrency into practical use.
Dogecoin is also currently used as a payment method for AMC theaters and some Tesla merchandise. Dogecoin may secure its position among the top cryptocurrencies, not just through Elon Musk's hype tweets.
4. Binance Coin (BNB)
Binance is the number one cryptocurrency exchange in the world and Binance Coin (BNB) is the native cryptocurrency of the Binance Chain ecosystem. Just that alone has made it a force in the cryptocurrency market, but there is much more. Binance continually develops its ecosystem with new features, including an NFT marketplace.
As the ecosystem grows, its users will primarily use BNB to pay fees and other payments, a situation that naturally increases the value of the cryptocurrency asset. BNB is also the native token on Binance Smart Chain (BSC).
BSC has quickly risen to become a strong competitor to Ethereum due to faster transactions and lower fees. All of this has contributed to the rising value of BNB and its potential future value.
5. XRP
XRP is a coin used to represent the transfer of value on the Ripple network. XRP acts as an intermediary for other transactions including cryptocurrencies and
fiat currency. The XRP coin is built specifically for businesses or financial institutions to facilitate cross-border liquidity transactions.
6. Cardano (ADA)
Cardano is a cryptocurrency that is gaining the interest of many cryptocurrency users. Developed by Ethereum co-founder Charles Hoskinson, ADA has great potential, evolving towards a decentralized future with support for smart contracts, NFTs, etc.
Like Binance, the project has built new features, including an NFT marketplace. Another key feature of Cardano is the Cardano Launchpad, where new cryptocurrency projects are launched.
7. Shiba Inu (SHIB)
Another meme coin in the list is Shiba Inu. This coin based on Ethereum has also received support from Elon Musk, contributing to its meteoric rise in 2021.
Shiba Inu has been and is improving to support real-world use cases. This meme coin is primarily for payment for goods and services. Currently, there are dozens of merchants accepting payments in Shiba Inu.
