The Top Cryptocurrencies to Watch and Trade in 2021
Cryptocurrencies have been making waves in the financial world over the past few years. They have revolutionized the way we think about money, offering a more decentralized and secure form of value exchange. As cryptocurrencies continue to gain popularity, it’s important to stay up-to-date with the latest developments in the market. In this article, we’ll take a look at the top cryptocurrencies to watch and trade in 2021.
Bitcoin (BTC)
Bitcoin is the original cryptocurrency and the one that started it all. It was created in 2009 by an unknown person using the name Satoshi Nakamoto. Bitcoin is decentralized, meaning it’s not controlled by any central authority or government. It uses a public ledger, called a blockchain, to record transactions and keep track of ownership.
In 2020, Bitcoin experienced a significant increase in value, reaching an all-time high of over $60,000 in March 2021. This surge can be attributed to various factors, including the growing mainstream adoption of cryptocurrencies, institutional investors buying into BTC, and the increasing interest in Bitcoin as a hedge against inflation.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market capitalization, and it’s often referred to as the “smart contract platform.” It was created in 2015 by Vitalik Buterin and has since become one of the most popular and widely used cryptocurrencies.
Ethereum enables developers to build decentralized applications and smart contracts on top of its blockchain. These applications can be used for a wide range of purposes, including governance, finance, and asset management.
In addition to its functionality, Ethereum has also experienced significant value growth over the past year. Its price surged from around $100 in January 2020 to an all-time high of over $4,000 in May 2021.
Tether (USDT)
Tether is a stablecoin that is pegged to the value of the US dollar. This means that for every USDT token issued, it’s backed by one US dollar in reserve. Tether was created in 2014 as a way to provide stability to the cryptocurrency market.
As the name suggests, stablecoins aim to provide stability in a market that is notoriously volatile. They are a popular choice for traders who want to move funds quickly between different exchanges without having to worry about the fluctuating value of other cryptocurrencies.
Tether is currently the largest stablecoin by market capitalization, with a value of over $62 billion.
Binance Coin (BNB)
Binance Coin is the native cryptocurrency of the Binance cryptocurrency exchange. Binance, which was founded in 2017, has quickly become one of the largest and most popular exchanges in the world.
BNB can be used to pay for trading fees on the Binance exchange, as well as for other services such as travel bookings, gift cards, and more. As the Binance exchange continues to grow, so does the value of BNB.
In 2021, BNB reached an all-time high of over $600, making it one of the top-performing cryptocurrencies of the year so far.
Cardano (ADA)
Cardano is a decentralized platform that aims to provide a more secure and scalable blockchain solution. It was created in 2017 by Charles Hoskinson, one of the co-founders of Ethereum.
Cardano uses a proof-of-stake consensus mechanism, which is said to be more energy-efficient and secure than Bitcoin’s proof-of-work mechanism. It also allows for smart contracts and decentralized applications to be built on top of its blockchain.
In 2021, Cardano has seen significant value growth, reaching an all-time high of over $2 in May. The platform has also gained popularity among developers and investors, making it one of the top cryptocurrencies to watch in the coming year.
Frequently Asked Questions
What is cryptocurrency?
Cryptocurrency is a type of digital currency that uses cryptography to secure and verify transactions and to control the creation of new units. Cryptocurrencies are decentralized and operate independently of a central bank or government.
How do I buy cryptocurrency?
You can buy cryptocurrency on a cryptocurrency exchange or through a broker. To buy cryptocurrency, you’ll need to register for an account, verify your identity, and choose a payment method. You can then place an order to buy the cryptocurrency of your choice.
Is it safe to invest in cryptocurrency?
Investing in cryptocurrency carries risks, just like any other investment. The cryptocurrency market is notoriously volatile, and the value of cryptocurrencies can fluctuate rapidly. It’s important to do your own research and to only invest what you can afford to lose.
What is a blockchain?
A blockchain is a decentralized ledger that is used to record transactions and to keep track of ownership. It’s made up of a network of computers that work together to validate and record transactions. Once a transaction is recorded on the blockchain, it cannot be altered or deleted.
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