The first thing that comes to mind when you hear the word “cryptocurrency” is probably the volatility of its price. With the meteoric rise of Bitcoin and the altcoins in the last year, it’s easy to forget that cryptocurrencies are still in their infancy.
Even though this is a well-known fact that the crypto world is still in its infancy, it doesn’t mean that you should immediately invest your life savings in one cryptocurrency. It’s also true that you shouldn’t invest in any cryptocurrency until you know enough about them. In this article, you will get to know which cryptocurrencies offer the highest profits in the long run.
We all know that Bitcoin is the king of cryptocurrencies. The first ever cryptocurrency and most popular digital asset in the world, Bitcoin has been on an upward trend for the past few years. While Bitcoin’s price has increased exponentially in the last year, it has also experienced extreme volatility. Therefore, the best time to invest in Bitcoin would be when its price is low.
Second on the list of top 10 cryptocurrencies to trade in Binance is Ethereum. Like Bitcoin, Ethereum is also a decentralized virtual currency. However, unlike Bitcoin, Ethereum uses a blockchain technology that enables developers to create decentralized applications (DApps) that run on the blockchain. Like Bitcoin, the Ethereum blockchain network was mostly used for storing cryptocurrency. However, in the last year, developers have begun to use the Ethereum blockchain to store land titles and even fiat money.
Ripple is often referred to as the “digital asset for banks”. This is because the blockchain technology that underlies it is particularly useful for banks to conduct international transfers. Unlike other cryptocurrencies that are used primarily to buy goods and services, Ripple is primarily used by banks to conduct international transfers. Therefore, the best time to invest in Ripple would be when its price is low.
Similar to Ethereum, NEO is also a cryptocurrency that uses blockchain technology to store digital assets. Unlike Ethereum, though, NEO’s blockchain supports only digital assets. Therefore, the best time to invest in NEO is when its value is low.
With a market capitalization of over $10 billion, IOTA is currently the fifth largest cryptocurrency in the world. Unlike most cryptocurrencies, IOTA does not use blockchain technology. Instead, it uses a “blockless” architecture that enables it to perform several functions such as payments and data transfers that other cryptocurrencies find difficult. Therefore, the best time to invest in IOTA would be when its price is low.
Due to its high level of adoption, Litecoin is often referred to as “digital gold”. This is because like gold, litecoin can be used as a store of value. However, like most other cryptocurrencies, its price is extremely volatile. Therefore, the best time to invest in Litecoin is when its price is low.
Cardano is a new cryptocurrency that is currently being developed by the team behind Ethereum. Unlike most existing cryptocurrencies, Cardano does not use blockchain technology. Instead, it uses a technology called “blockchain-based smart contracts”. Therefore, the best time to invest in Cardano is when its price is low.
Similar to Cardano, TRON is another cryptocurrency that is developed by the same team that created Ethereum. However, while Cardano uses blockchain-based smart contracts, TRON uses blockchain-based distributed applications. Therefore, the best time to invest in TRON is when its price is low.
Although not a cryptocurrency per se, Binance Coin is a cryptocurrency exchange token that is used to pay for fees on the Binance exchange. Therefore, the best time to invest in Binance Coin is when its price is low.
As you can see, most of the top 10 cryptocurrencies to trade in Binance are either Ethereum- or Bitcoin-based. This is because these two cryptocurrencies account for the vast majority of the entire crypto market cap. Therefore, if you want to make the most money in the crypto market, you should invest primarily in these two cryptocurrencies.
However, it’s important to remember that investing greatly increases your risk of losing a significant portion of your invested capital. Therefore, you should invest only as much money as you can afford to lose. Additionally, you should never invest money that you cannot afford to loose.
With these things in mind, it’s time to discuss the pros and cons of trading in each of these top 10 cryptocurrencies.