Are There Too Many Cryptocurrencies in The World in 2021

Source: coinmarketcap.com

With the introduction of the internet and online financial services, cryptocurrencies exploded in popularity. Bitcoin was one of the first cryptocurrencies to enter the market, and it now has the greatest market capitalization. A blockchain is the foundation of cryptocurrency. This opens up a lot of possibilities for developers to design distinct functions for different coins.

Many cryptocurrencies were built on top of the Bitcoin codebase, with just small modifications. Some cryptocurrencies, such as Bytecoin, were created on their own codebase. There are more cryptocurrencies present in the market than fiat currencies, despite the fact that Bitcoin was only launched 11 years ago. However, over a thousand cryptocurrencies are dead.

The cryptocurrencies had risen to 4,986 by the end of 2019, more than doubling in just nine months. There were 8,153 cryptos on December 31, 2020. Last year’s exponential growth was certainly hampered by the global pandemic. There were 9,045 tokens in circulation at the end of Q1 2021, and it’s safe to assume that by June 30, that number will have surpassed 10,000.

If you are willing to get the latest update regarding all the cryptocurrencies out there in the world, then you can visit coinmarketcal.com. It provides all the latest news on digital currency and which one you should buy in 2021. This site has all updates and news regarding old and new cryptocurrencies present in the market. It even shows the coin rank of each digital currency along with its market price.

You must be thinking that since there are so many cryptocurrencies, then which is the best to buy in 2021. Among this huge number of digital currencies, there are some of the top ones to invest in and make a profit out of it.

The top rated digital currencies to invest in or acquire are as follows:

1. Bitcoin

Source: businesstoday.in

New cryptocurrencies emerge and fade, but Bitcoin remains popular. Bitcoin astonished everyone by reaching a new all-time high of $19,857 before the end of November 2020, boosting its year-to-date gain to 177 percent.

Is the rise likely to continue in 2021? Analysts are unified in their optimism for Bitcoin’s future in the next 12 months and beyond, anticipating prices of $100,000, $170,000, and even $1 million.

Growing institutional demand, rising inflation, and an increasingly unfavorable image of current monetary policy are among the primary Bitcoin price drivers in 2021. All of this forces individual individuals and organizations to look for other ways to protect their capital’s value. Cryptocurrencies, like Bitcoin, appear to be the ideal solution.

2. Ripple

Source: cmcmarkets.com

Ripple was designed as an alternative financial payment system with the goal of transforming and simplifying cross-border payments by making them 100% safe, practically free, and instantaneous. Many financial institutions were interested in Ripple when it first launched in 2013. It was implemented by more than 100 financial institutions after a few years.

Ripple’s prospects appear brighter than ever before, with rising backing from the European Commission, which is supporting the shift to digital finance and outlining plans to create a new regulatory framework for the use of DLT technology and crypto assets in the financial industry.

3. Ethereum

Source: balkans.aljazeera.net

Etherium is the second-largest cryptocurrency and the second-most liquid currency after Bitcoin. If you want to purchase or sell this cryptocurrency, you won’t have any trouble doing so because Ethereum trades happen all the time on the internet! This cryptocurrency is expected to remain in the Top 10 for the foreseeable future, and it will continue to be a viable investment option.

4. Litecoin

Source: holacrypto.com

Litecoin is the only cryptocurrency that can compete with Bitcoin, and 2021 will be an excellent year to invest in it. This cryptocurrency is highly liquid, with a big market cap. The distinction between Litecoin and Bitcoin is that Litecoin has an 84 million coin cap, whereas Bitcoin only has a 24 million coin limit.

The time it takes to mine a block of the Litecoin blockchain is estimated to be roughly 2 minutes, which is significantly faster than most other currencies today. Litecoin is an excellent choice for people who want to avoid major risks and stay in smaller markets, as the prediction for 2021 is that it will be one of the most stable cryptocurrencies on the market.

5. Tron

Source: forbes.com

TRON is a decentralized operating system which is based on blockchain, as per Wikipedia. TRX is the cryptocurrency that is used to represent TRON’s native currency. In the year 2017, TRON was first created on the Ethereum platform. It is currently one of the most affordable cryptocurrencies present in the market.

The TRON ecosystem functions as a platform for content sharing. TRX is awarded to users who generate or share content, and it acts as a more transparent monetization scheme than traditional social media networks. Also, it eliminates the need for a middleman like AppStore or GooglePlay.

Conclusion

So, the simple answer to the question of whether there are too many digital currencies in the world is yes. But it doesn’t mean that all cryptocurrencies are good to invest in or to buy. There may be some scams too. With so many cryptocurrencies to select from, it can be difficult to distinguish between genuine cryptocurrencies and scammers like OneCoin and BitConnect. This is especially true for folks who aren’t well-educated about cryptocurrency and can’t see the difference between a real one and a fraudulent currency.

Maybe for some people, choosing cryptocurrency from that large number is tough. They might see it as a problem. But maybe for others, it’s like an opportunity too. However, It should be noted that the duration of this chance is undetermined. It is unlikely to be long-term, even if it is only a handful of decades. We must keep in mind that not all cryptocurrencies are attempting to accomplish the same goal.

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