Are you looking for a list of the top cryptocurrencies in circulation, with a simple explanation of why they have been successful and what differentiates them from the others? Or maybe only the best cryptocurrency to invest in?
Then welcome to our top 6 of the best cryptocurrency to invest in today.
In this post you will find:
- The list of the 6 best cryptovalutes to trade or to invest with
- A simple explanation of their characteristics and the main uses
- Why they have been successful
Top Cryptocurrency List 2017
Since the launch of Bitcoin in 2009, several projects have been launched to develop new virtual coins. Many of these have miserably failed, others have, in turn, established themselves and are growing steadily.
The cryptocurrency market is surely one of the new frontiers of investment, but also a new way of thinking about exchanges:
- Without intermediaries
- With reduced or no brokerage costs at all
- Very fast
Cryptocurrencies are interesting because they offer the most speculative traders a very volatile asset, therefore potentially very profitable even on a daily basis (in this regard, cryptocurrency charts can be very useful). However, they are also equally interesting for long-term investors whose purpose is not to exploit the large short-term fluctuations, but rather to allocate their capital on a good that is likely to appreciate a lot in the future.
On the web, we can find so many interesting success stories related to this type of investment. In some ways, we are witnessing a new gold rush.
How to invest in the best cryptocurrencies and digital coins
Traditionally, to invest in a cryptocurrency, you’d need to buy it physically, as you would if you wanted to invest in gold or any other conventional currency.
Normally, you would buy gold, physically, or you’d exchange your Euros or Dollars to buy another currency in which you would like to invest.
As you can imagine, this approach can be quite awkward, particularly when it comes to cryptocurrency, as buying and maintaining this asset requires several steps and a good technology know-how.
For anyone wishing to physically own the good, this is the only way. Basically, you need to go to the official website of each individual criptocurrency, and follow the instructions to buy and preserve it, usually through a digital wallet.
However, if you simply wish to invest on the highs (and lows) of the intrinsic value of the cryptocurrency, there are far easier and more comfortable ways.
Here’s what we think works best.
The best way to invest in top criptocurrencies
The most convenient and simplest way to invest in criptocurrencies is through CFDs.
CFDs (Contracts For Difference) are derivative contracts, managed by financial brokers.
This means you’ll be able to invest or speculate on the cryptocurrency’s value, without having to physically own it.
The CFD will reflect the actual price of the good (in this case Bitcoin, Ethereum, and all other criptocurrencies), and you’ll be able to sell or purchase the contract, just as you would with any other stock, with all the benefits of the case.
Here are some interesting features:
- Since financial brokers manage CFD, you’ll probably be allowed to use a financial leverage. If used properly, the financial leverage allows investors to open positions on goods with significantly higher values, than those which could otherwise affordable with the capital of many investors;
- CFD contracts can be bought and sold short. This means, for instance, that you could speculate and bet on a fall in criptocurrency values, such as the boom of speculative bubbles (the bitcoin one being the most famous);
- There are several trading tools that can increase security and convenience, such as pending purchase and sale orders, which become active automatically, only under certain conditions; or the Stop Loss and Take Profit orders, to automatically manage losses and profits.
The best broker to invest in the major criptocurrencies today
In our opinion, the best broker to invest in the most important criptocurrencies through CFD is certainly eToro.
Click here to open a demo account on eToro and test what we are saying first-hand, with virtual money.
eToro doesn’t just offer all of the above-mentioned benefits, but so much more.
On eToro, you can take advantage of their Social Trading Network, i.e. the network of thousands of traders who share ideas, thoughts, and strategies on markets and trading, daily.
Furthermore, you can actively employ this network manually copying or even automatically replicating these trader’s operations on cryptocurrencies.
That’s not all.
eToro has always been renowned for its spirit of innovation and for the creation of new investment products.
One of their latest, and most successful, is certainly the Copy Fund. While there are several of these funds, eToro has created one which is entirely devoted to cryptocurrencies, named eToro CryptoFund.
To keep it short, the most important cryptocurrencies are grouped in one fund, where you can easily invest, purchasing a share, just as you would for the CFDs we described earlier.
Investing in a fund you can benefit from diversification and minimize risk, purchasing the product just once, a convenient and favourable solution for anyone wishing to invest in cryptocurrencies with a long-term perspective.
Click and Invest with eToro
So, let’s take a detailed look at the cryptocurrencies on eToro which have established themselves in the international scenery, and which distinctive features have gained them their supremacy over the others.
- Intro: Bitcoin is the most famous and most widely used of all the cryptocurrencies. The reason for its success is due to being the first to officially appear on the free market. Thanks to bitcoin, also a new technology called “blockchain” (the technology behind the functioning of the bitcoin itself) was born, a technology that has opened up a new world of possibilities and where many companies and startups are investing.
- History: The creation of the bitcoin dates back to January 2009, when the first version of the open source client was released. The creator is Satoshi Nakamoto, a mysterious figure, with secret identity, famous in the cryptography online community. Bitcoin’s rise has been incredible since. In April 2016, Australian entrepreneur Craig Wright came out and declared he was the true identity behind Satoshi Nakamoto, and provided several supporting evidences, although there are still many doubts about the matter. Here you can find a full bitcoin history.
- Features: Bitcoin is a peer-to-peer implementation of Nick-Szabo’s b-money project and Wei Dai’s Bitgold. The principles of the Bitcoin system are described in the “white book” written by Satoshi Nakamoto in 2008. The official client, Bitcoin Core, is a free software that comes directly from the code written by Satoshi Nakamoto to implement the communication protocol and its peer to peer network. When talking about “bitcoin” (with lowercase b) it’s about the actual currency; when talking about “Bitcoin” (with uppercase B) then it’s the open source system.
- Main Use: Being a currency in all respects, bitcoin can be used for any type of virtual transaction. The first uses were simple exchanges of money between people (with the advantage of having tiny commissions). With time, more and more entities began to accept payments in bitcoin. The anonymity allowed by bitcoin also makes it the preferred coin for criminal activities of various kinds. Today, bitcoin is arriving everywhere, from ATMs, to even (almost) ETF funds.
- Opinion: Bitcoin is definitely one of the most exciting innovation of our times, and the potential it has created is endless (especially thinking of blockchain technology). Some pros and cons? Among the pros there are: protection of transactions, anonymity, accessible from anyone anywhere in the world, low commissions. On the cons’ side: the immoral or criminal activities that can be carried out more easily, the risks of physically losing bitcoins (since they can be lost like cash), the high volatility the price is still subject to.
- Market capitalization: $69,468,675,598
- Performance last year: 628.87%
- Intro: The second top cryptocurrency for notoriety is definitely Ethereum. To be precise though, Ethereum is not simply a cryptocurrency, but a decentralized smart contract platform, within which the Ether digital coin is used.
- History: The Ethereum platform concept was born from Vitalik Buterin, an experienced cryptography programmer initially involved in the Bitcoin project, where he supported the need to create a new programming language for creating new application. In the end, he decided to create his own separate project, which was named Ethereum Project, initiated and supported by a crowdfunding collection that totalled 31,591 Bitcoins, about $ 18.4 million (2 of September 2014).
- Features: Ethereum is a decentralized blockchain platform, created in turing complete programming language, through which anyone can create and manage Smart Contracts. To run into this network, contracts “pay” the use of the computational power of the platform through a cryptocurrency called Ether, which indeed is used both as cryptocurrency and fuel.
- Main Use: Ether is not designed to function as a normal digital currency, such as bitcoins. In fact, Ether is spendable and can be earned only within the Ethereum network, and is used to execute specific actions, such as paying for using the computational power of the network to run an application.
- Opinion: Despite Bitcoin and Ethereum are often compared, the path that these two realities have taken is different. In particular, Ethereum is laying the foundations for becoming an infrastructure with endless possibilities, and this certainly makes it very interesting, especially for investment purposes. To get an idea of the scope of this platform, here are some of the things you can “build” with Ethereum: electoral systems, domain names registration, financial markets, crowdfunding platforms, intellectual property management, all of which, obviously, without the need of lawyers, notaries, and other similar figures.
- Market capitalization: $31,543,672,168
- Performance last year: 2,872.65%
- Intro: Ripple (XRP) is the third digital currency for capitalization and trading volume. But unlike Bitcoin, which was born with the aim of completely bypassing banks and any kind of financial institution for any kind of transaction, Ripple is born with the precise purpose, as stated by them, of “working with banks to change the way they send money to the world. “
- History: The Ripple protocol is born from Chris Larsen and Jed McCaleb, founder of the OpenCoin company, and known faces in the open source communities.
- Features: Unlike previous ones, the Ripple name represents both network and currency. Through the Ripple network you can send not only the corresponding cryptocurrency, but also other normal currencies. In addition, you can send money and exchange them directly. In other words, you can transfer euro to a recipient who will automatically receive dollars. The exchange will take place by buying and selling ripple at the respective ripple exchange rate between the two currencies.
- Main Use: Ripple is defined as a “Global Settlement Network”, its end users are the banks, and it tries to be a good alternative to Clearing Houses and the Swift Network. The main focus of the Ripple project is international payments. With the implementation of the blockchain logic, it has been possible to eliminate a whole series of intermediaries, thereby reducing costs and reducing execution times to a few seconds compared to the average 10 minutes of bitcoins, and to the several days needed instead by banks.
- Opinion: The Ripple project, among today’s top cryptocurrency, is the most integrated into the current banking and financial infrastructure. So far it has received the interest of several famous banks, such as the Bank of England and the Bank of Japan.
- Market capitalization: $8,288,980,019
- Performance last year: 3,459.62%
- Intro: Litecoin (LTC) was the second criptwant to appear to the public in the world scenario, and in a short time has gained the reputation of Bitcoin’s main rival.
- History: Litecon was launched on October 13, 2011 by Charles Lee, about two and a half years after the creation of Bitcoin, and in short time 20 million tokens were mined. The trend of Litecoin has always followed the one of the most popular Bitcoin, occupying for long periods the first positions among the top cryptovalutes. In 2016 it went from second to fourth currency in terms of capitalization, surrendering to Ethereum and Ripple. However, it is still the second most accepted currency in websites that accept virtual currency payments.
- Features: In some respects, this is a copy of the Bitcoin cryptovalue, but with some technical improvements, including the use of the Segregated Witness and Lightning Network. These features allow the Litecoin network to process more than one transaction in the same amount of time, reducing the bottleneck effect. It is about 2.5 minutes average for transactions in Litecoin, against the average 10 minutes for Bitcoin. This is in fact one of the main reasons that Litecoin has known for. In short, the Litecoin network has virtually zero commissions and allows you to send and receive payments at a rate 5 times faster than Bitcoin.
- Main use: Like the cryptovalue from which it took inspiration, ie Bitcoin, Litecoin is used as a common currency, and can therefore be used for any type of transaction.
- Opinion: Litecoin grew over time being considered the “silver” in comparison to the “gold” represented by Bitcoins. Over time, however, he has lost ground in the race for growth and expansion, and at the moment his creators are working to give a shock to this cryptocurrency, which still remains one of the most accepted after Bitcoin. Despite a general skepticism, many believe that the value of Litecoin is very underestimated.
- Market capitalization: $2,717,695,773
- Performance last year: 1,241.41%
- Intro: Dash is another top cryptocurrency born on the wave of the most famous Bitcoin, but trying to differentiate it from the latter with features to make it better and more functional.
- History: Launched in January 2014, the Dash platform has been rebranded over time. Initially he was called XCoin, then in February of the same year he was renamed DarkCoin, finally in March 2015 he was definitively called Dash.
- Features: The logic of the Dash network is the same as the other top cryptocurrencies, however some improvements have been implemented on the side of privacy, speed and security. PrivateSend technology allows to send private transactions and a decentralized DGBB governance. InstantSend technology makes transactions much faster than Bitcoin. The two-level architecture allows the Dash to achieve excellent levels of security and reliability. The first level consists of miners, which allow the network to write all transactions within the blockchain network. The second level of the structure allows the dash, through the main nodes, to perform the advanced features.
- Main Use: Dash Coins can be used as a coin in all respects, although at the moment most retailers still do not accept it.
- Opinion: The Dash project is very ambitious. In addition to expanding its own digital coin, the goal is to create a kind of PayPal of the cryptocurrencies, called Wallet Dash Evolution, a very interesting project.
- Market capitalization: $2,364,293,791
- Performance last year: 2,349.81%
- Intro: As you can imagine, the official version (if we want to call it) is Ethereum, maintained by its original developers. Ethereum classic, instead, is the “alternative” blockchain maintained by a different team.
- History: Both platforms offer the same technology. Ethereum Classic was born due to a problem occurred in the original Ethereum project. Following the intervention of the Foundation, the Ethereum project was divided into two parts: Ethereum on the one hand, working on the platform with the problem solved, and Ethereum Classic on the other, working on a platform based on the original blockchain, and thus maintaining the initial problem embedded. This project is followed by a new team and is supported by all those purists with a strong and determined position on the blockchain’s immutability.
- Features: Ethereum Classic is essentially a Ethereum clone, so features and usage are the same.
- Main use: as above.
- Opinion: Ethereum Classic (ETC), to date, seems to be a dead end. The question of what Ether Classic (ETC) is worth is still open. In any case, this platform and its currency still have value because people believe in the project and people interested in supporting it can invest on it, buying and selling ETC on the exchange.
- Market capitalization: $1,457,784,388
- Performance last year: 1,015.94%