Cryptocurrencies are trending all over the world as the internet payments have been accepted by many companies. Cryptocurrency is trending payment and investment asset just like how people invest in gold, silver, market shares, real estate, mutual funds nowadays. More investors are interested in investing their money on these cryptocurrencies in 2017. The increased demand for cryptocurrency has increased its prices a lot. Here, I have shortlisted Top 5 Cryptocurrencies which might have better scope in future.
What Is Cryptocurrency & Why Use Cryptocurrencies?
Cryptocurrencies are a form of money designed specifically to take advantage of the architecture of the internet. Instead of relying on a standard financial institution to guarantee and verify transactions, cryptocurrency transactions are checked, or “confirmed,” by the computers of the users on the currency’s network. The computers that verify the transactions usually receive a small amount of currency as a reward. The process of receiving rewards in exchange for verifying transactions is called “mining” and it is the main way how a new currency is produced here. Mining works differently for different currencies.
Cryptocurrencies are a completely digital form of money, they can be used in ways that ordinary currencies can’t. There are more than 5000 cryptocurrencies in the world right now but I am going to shortlist the some of the Top Cryptocurrency according to me and market cap, demand, future scope and value investment asset.
What to Look For Before Buying or Investing In Cryptocurrencies:
Cryptocurrencies use a number of different algorithms and are traded in different ways. Below are the main characteristics that you must consider before buying or investing in Cryptocurrencies.
Market Capitalization and Daily Trading Volume: A cryptocurrency’s market capitalization is the total worth of all coins currently in circulation. High market capitalization can indicate a high value per coin and more important than market capitalization is the daily trading volume of currencies.
Verification Method: One of the main differences between cryptocurrencies is their verification method. The oldest and most common method is called proof of work (POW). To gain the right to verify a transaction, a computer has to spend time and energy solving a difficult math problem. The trouble with this method is that it requires a massive amount of energy to operate. Proof-of-stake (POS) systems attempt to solve this problem by letting the users with the largest share of the currency verify the transactions. These systems require less processing power to operate and claim faster transaction speeds, but concern over security means that few coins use an entirely proof-of-stake-based system.
Retailer Acceptance: A cryptocurrency is ain’t much of use if you can’t buy anything with it. That’s why it’s important to know who and where it accepted before you invest in it. Some of the popular cryptocurrencies are widely accepted just like Bitcoin. Some cryptocurrencies can only be exchanged for other cryptocurrencies. Some coins simply aren’t designed to be exchanged for goods and are built for other purposes.
Top Cryptocurrencies To Invest In 2017 – 2018
Below I have shared a list of Best Cryptocurrencies which is worth buying, investment and for good returns. These cryptocurrencies might have better scope in future.
As expected, the Bitcoin is in the top of the list. It was invented by Satoshi Nakamoto at the time, it was the only virtual currency available in the market. You can buy 1 BTC by paying 2464.00 US Dollar (01 July 2017) as its the costliest virtual currency in the market accepted and legalized in many countries. Investors can also buy Satoshi which is the smallest part of bitcoin. The Bitcoin miners are the key to Bitcoin security and miners are responsible for the creation of new bitcoins. But keeping your Bitcoin safe is the most important thing to do after buying bitcoin.