What is the next cryptocurrency?

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The introduction of various cryptocurrencies in modern times has left many traders perplexed as to which one to choose for earning higher returns. Keep scrolling below to find out which is the best cryptocurrency to invest in 2021.

The radical rise in the bitcoin price has placed cryptocurrency on the map in the investment expanse. Since its conception a few years back, bitcoin has transcended commanding heights in terms of value. It is the most influential cryptocurrency across the globe, with a $1 trillion economy. While bitcoin is the world’s largest cryptocurrency, many individuals are still oblivious of the fact that over 5000 cryptocurrencies are presently circulating in the market.

What is the next cryptocurrency?

Apart from this, numerous digital currencies have presented investors with exceptional returns than bitcoin. Also, ethereum, the next most influential cryptocurrency, has expanded by 750% since 2020, surpassing bitcoin’s 600% gains during the corresponding term. This is the reason cryptocurrencies other than bitcoin have now come into the limelight. And various modern-day investors have now started wondering, ‘what is the next cryptocurrency in 2021’.

About Unocoin

Unocoin is one of the leading cryptocurrency trading platforms in India. It is one of the most comprehensive ecosystems of traders that help investors trade effortlessly in bitcoin, ethereum, and various other digital currencies and perform crypto trading with ease.

What are the different types of cryptocurrencies available?

Cryptocurrency gets extensively used by investors in present times. The name cryptocurrency implies that crypto is the cryptography that retains the data highly secure from hackers. Moreover, this cryptography enables the formulation and processing of online currency and its trade on a decentralized system.

With the help of cryptography, traders can transfer and get information securely, and no one can decipher or steal the confidential data when it gets passed from the sender to the receiver. Also, cryptocurrency is the electronic funds generated using blockchain technology to carry out transactions while maintaining the secrecy of the senders and receivers intact.

Mentioned hereunder are some of the famous cryptocurrencies in the present times.

  • Ethereum

Ethereum is one of the most prevalent cryptocurrencies taking the industry by storm. It is a decentralized platform that facilitates decentralized applications (DAPPS) and smart contracts to be developed and driven without fraud, downtime, administration, or restraint from a third party.

The primary purpose behind creating Ethereum is to build a decentralized set of financial outputs that any person across the globe can unobstructedly access, regardless of ethnicity, nationality, or creed. The applications on Ethereum get driven on ether which is its platform-specific cryptographic token.

Ether is like a medium for running around on the Ethereum blockchain and mostly get explored by developers looking to generate and control applications inside Ethereum, or now, by investors looking to make investments of other cryptocurrencies using ether. Ether, on the ethereum blockchain launched in 2015, is the second-largest cryptocurrency in terms of market capitalization after bitcoin.

However, ethereum lags behind bitcoin by a significant margin, and in January 2021, the ethereum market capitalisation was approximately 19% of bitcoin’s size. Moreover, Ethereum started a presale for ether in 2014, which gained a remarkable response. However, after the decentralised autonomous organisation (DAO) attack, Ethereum got divided into Ethereum Classic (ETC) and Ethereum (ETH).

Furthermore, ethereum developers now plan to improve their consent algorithm to proof-of-stake from proof-of-work. This transit will enable Ethereum’s interface to operate itself with considerably less energy and enhanced transaction pace. It would further secure the network to prevent data theft and perform trading with ease.

  • Ripple

Ripple is a blockchain technology that serves as both a digital payment network and cryptocurrency for commercial transactions. Popularly known by its crypto symbol, XRP is the primary cryptocurrency for products produced by Ripple Labs. Its outputs get utilized for asset exchange, payment settlement, and transmittal methods that operate more like SWIFT, a service for global funds and security transfers used by banks and financial institutions networks.

XRP (Ripple) is a pre-mined cryptocurrency and employs a less complex mining process than bitcoin. It runs on a peer-to-peer and open-source, decentralized platform that provides an effortless transfer of funds in any form, whether in dollars, euros, Yen, Yuan, or cryptocurrencies, like ethereum, litecoin, or bitcoin to promote quick exchange between various currencies.

Also, this cryptocurrency, Ripple or XRP, employs a mechanism identified as a Gateway. This gateway serves as the link in the trust chain between two parties aspiring to execute a transaction. Moreover, it functions as the credit intermediary that helps collect and transfer currencies to public locations over the Ripple (XRP) network.

Any person or company can register and start a gateway, which entitles the registrant to work as the representative for swapping currencies, controlling liquidity, and conveying payments on the XRP network.

  • Litecoin

Litecoin (LTC), founded in 2011, was among the foremost cryptocurrencies to follow in the treads of bitcoin and has usually been known as the silver to bitcoin’s gold. This famous cryptocurrency got devised by Charlie Lee, a former Google engineer.

Litecoin works on an open-source universal payment interface that does not get regulated by any bank or central authority and employs “scrypt” as proof of work (PoW), which can further get decoded with the assistance of high-grade CPUs.

Even though litecoin, in many forms, is similar to bitcoin, it holds a more agile block creation speed and therefore presents a faster transaction validation time. Other than developers, there is an increasing number of global merchants that allow litecoin as a payment mode.

When speaking of market cap, litecoin held a market capitalisation of $10.1 billion in January 2021 and a per token worth of $153.88, presenting it as the sixth-largest cryptocurrency globally.

  • Tether

Tether (USDT) is the premier and most successful stablecoin, a cryptocurrency that intends to secure its market rate to a currency or additional external source point to abbreviate volatility. Since various digital currencies, including Bitcoin and Ethereum, have encountered several periods of extreme volatility, Tether (USDT) and numerous other stablecoins endeavours to level out price variations to draw traders who may otherwise be wary.

Tether’s rate is attached undeviatingly to the value of the U.S. dollar and, this system enables people to make transfers from other digital currency back to U.S. dollars quickly and effortlessly than switching to standard currency.

Founded in 2014, Tether (USDT) portrays itself as a blockchain-facilitated platform intended to expedite the use of fiat currencies digitally. Conclusively, this cryptocurrency empowers people to use a blockchain interface and associated technologies to negotiate in conventional currencies while reducing the complexity and volatility usually correlated with digital currencies.

In 2021, Tether emerged as the third-largest cryptocurrency universally, in t
erms of market capitalization, with a total market cap of $24.4 billion and a per token worth of $1.

  • Bitcoin Cash

BCH (Bitcoin Cash) maintains an influential position in the cryptocurrency realm as it is one of the pioneers and most thriving hard forks of bitcoin. In the cryptocurrency market, a fork occurs as the outcome of discussions and disputes between crypto miners and developers.

Because of the decentralized quality of digital currencies, significant modifications to the code holding the token or coin must get initiated due to consensus, as the mechanism for this method differs as per the specific cryptocurrency. Also, when different parties cannot agree, the digital currency sometimes gets split.

However, the original chain remains stuck to its primary code, and the new chain becomes a brand-new version with an entirely different cryptogram. BCH (Bitcoin Cash) came into existence in August 2017 due to the ongoing debates concerning bitcoin scalability.

Another issue that led to the creation of bitcoin cash was the limited block size of the bitcoin. However, with the advent of bitcoin cash, the block size increased from 1 MB to 8 MB to hold more transactions and further boosted the transaction speeds.

It further advances several modifications, including the Segregated Witness (SegWit) protocol elimination that influences the block space. Hence, we can say that with a market cap of $8.9 billion BCH is another best cryptocurrency to invest in 2021.

  • Libra

Libra is yet another popular cryptocurrency designed by Facebook. This cryptocurrency intends to get employed as a simplistic, low-fee universal currency. It will primarily be a digital currency on smartphones, which people can use to make payments where cryptocurrency payment is supported. Libra gets upheld by an asset basket that carries all the principal currencies and state debt instruments.

Libra, primarily designed to get adopted as an uncomplicated means of exchange across the globe. Also, the support that it gets from the asset basket provides it with the much-needed price stability and further promotes the effectiveness of the currency to get employed for daily transactions.

Another appealing determinant is that this cryptocurrency is upheld by several influential institutions that build up the Libra Association. This Libra Association functions as a governing body for this cryptocurrency and will not get governed solely by Facebook.

Instead, this association comprises 28 founding associates, including Visa, Mastercard, eBay, and various other corporations. In addition to this, the Libra cryptocurrency uses not-so decentralised blockchain technology, and just the Libra association members hold access to the ledger of transactions.

  • Monero

Monero (XMR) is a guarded, untraceable, and private open-source cryptocurrency founded in April 2014. Right after its creation, this cryptocurrency soon amassed high interest among investors and crypto enthusiasts. The evolution of this cryptocurrency is entirely for community-driven and donation-based purposes.

  • EOS

EOS is another prevalent cryptocurrency in modern times. Developed in 2014, EOS got built by Block One, a company that created an open-source software known as EOS.IO. EOS cryptocurrency tokens get utilized as a payment method on the interface. This cryptocurrency promotes core functionality that enables corporations and people to build blockchain-based apps in a process similar to web-based apps.

Furthermore, EOS presents protected authentication and access, permits, data hosting, usage administration, and interaction between the internet and DAPPS. This digital currency gets backed by a web toolkit repository that strives for hassle-free application development.

Also, EOS is perceived as a close contender to Ethereum, with aspirations to be more influential, reliable, and agile. The EOS makers are further focusing more on increasing their transaction speed. While ethereum approximately manages 15 transactions in a second, EOS attempts to perform millions of transactions in one second.

However, you must note that this is not the actuality and just a future goal. In addition, with the size of the DAPPS ecosystem rising each day on the blockchain interfaces, the inadequate availability of supplies is a significant issue. This is why EOS strives to approach these difficulties by extending more flexibility, scalability, and usability through its advanced mechanism.

How to identify the next big cryptocurrency?

Finding answers to what is the next cryptocurrency requires a lot of time and effort as hundreds and thousands of cryptocurrencies are now flooding the market. Since not all of these digital currencies will be successful, you should learn how to pick the right one, so you do not end up losing everything. Mentioned hereunder are some of the factors to consider when finding the best cryptocurrency to invest

  • Price

One of the most crucial factors to remember when looking for the next superstar in the crypto market is the token price. Also, if you are a beginner in the crypto market or do not have a large pool of funds to invest in the crypto market, you must invest in low-priced currencies as they can offer the best value for your funds.

  • Currency Adaptation

When finding out the next best cryptocurrency, you need to determine which coins will get widely adopted. This is because choosing a widely adopted cryptocurrency will help you find out the inherent value of the cryptocurrency when it reaches mainstream adoption.

  • Price and Volume

Current data concerning cryptocurrency trading is readily available online. You must refer to this information before choosing the next best cryptocurrency and see if the currency you wish to invest in has increasing prices or not.

Those cryptocurrencies with rising rates and amount of trades are likely to be those that hold impulse going ahead. While there is no assurance that this impulse will remain maintained, it is a beneficial way of understanding which cryptocurrencies draw the investor’s attention for the time being.

  • Supply

All the digital currencies hold a restriction to which they can get supplied through mining. For example, simply 21 million bitcoin can be generated through mining and utilized. Once this limit gets reached, new tokens will not get created again.

Hence, before investing in any cryptocurrency, you must examine the cumulative supply and the present circulation. This is because when the supply is fixed and interest remains sustained, there is a high likelihood that the currency’s value would move up. This way, you will understand that investing in such a cryptocurrency will generate better yields.

The Bottom Line

To sum up, we can say that investing in cryptocurrency is a high-risk investment. Even when so many prominent players are operating in the market, it is hard to predict the next best cryptocurrency, given the high volatility. This is why it is always a prudent choice to spread risks as the best investment strategy.

Frequently Asked Questions (FAQs)

1. Is cryptocurrency better than stocks?

While both stocks and cryptocurrency are popular forms of investment in modern times, both of them hold some benefits and limitations. When speaking in terms of returns, cryptocurrency always offers much higher yields than stocks, making it far better than stocks.

However, when speaking in terms of volatility and security, stocks are less volatile and more secured than cryptocurrencies as they are highly regulated. Hence, there cannot be a definite answer to whether cryptocurrency is better than stocks as it dep
ends on individual investors and their risk-taking capacity.

Unocoin is India’s first and the most secure bitcoin trading app. This exchange app was founded in 2013. You can buy and sell bitcoin instantly using the Instant Buy and Sell feature. Not just this, you can also buy ETH and Sell ETH in no time. With more than eighty-seven coins listed on this best cryptocurrency exchange in India, you can also accept bitcoin from your friends from any location. You can also know which cryptocurrency works best for you with the price ticker and notifications. The most popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), USDT (Tether), BNB, Ripple (XRP), Cardano (ADA), Solana (SOL), Binance USD (BUSD), Dogecoin (DOGE), Polkadot (DOT) and other popular altcoins can be traded on the go. The new Android and iOS applications make Unocoin the best cryptocurrency app. With the unique feature of the Systematic Buying Plan, you can buy and sell bitcoin and Ether periodically. What more? You can start your crypto journey using SBP for as little as INR 10. With another exciting feature called Crypto Basket, you can diversify your crypto portfolio based on market capitalisation (Market Cap) or Volume. These two excellent features make Unocoin the best cryptocurrency platform.

Love Crypto Coins. Love Unocoin.

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Disclaimer:

Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).

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