Over 17 percent of adults in the U.S have added cryptocurrencies to their investment portfolios. The two main cryptocurrencies that people usually invest in are Bitcoin and Ethereum, as they are the most popular ones.
However, even though Bitcoin and Ethereum are great cryptocurrencies to invest in, plenty of other types of cryptocurrencies are good investments as well.
If you ever asked yourself: how many kinds of cryptocurrency are there to invest in? The answer is too many to count. That’s why we’ve selected six cryptocurrencies out of all of them that we believe should be in your portfolio.
- Cardano (ADA)
Charles Hoskinson, one of the first members of Ethereum, created ADA as an alternative to ETH (Ethereum). Charles and a team of engineers, mathematicians, and cryptography experts have worked extensively in Cardano’s blockchain mechanism. As of today, they’ve written over 90 papers on blockchain technology.
That makes ADA one of the best types of cryptocurrency to invest in since it has ample proof-of-stake. ADA has a market capitalization of $9.8 billion, and one Cardano trades for $0.31.
- Stellar (XLM)
Any guide to cryptocurrencies will suggest XLM as a safe investment. The main reason is that Stellar provides enterprises solutions for large transactions by connecting financial institutions. With this connection, businesses can now do large transactions between banks and investment firms instantaneously.
- Monero (XMR)
Most people believe that all cryptocurrencies are secure and private, but that’s not the case. Most cryptocurrencies transactions can be easily tracked and offer little to no privacy. Monero is one of the very few that offers untraceable currency, giving users complete privacy.
So if privacy is your main concern, XMR is the way to go.
- Polkadot (DOT)
Gavin Wood, another ETH founding member, created Polkadot to connect permission-heavy and permissionless blockchains. That means that any of the many types of cryptocurrencies could easily connect, no matter the blockchain. As of June 2021, one DOT is worth $12.54.
- Binance Coin (BNB)
If you’ve ever searched what are the different types of cryptocurrency, BNB would have popped up. However, Binance Coin works quite differently than other cryptocurrencies since the usage is limited to the Binance Exchange network. Whenever someone makes a transaction, a certain percentage of the crypto coin is taken, but if you use the Binance Exchange Network, you can pay that gas fee with BNB.
- Tether (USDT)
Tether is considered a stable coin (a coin that maintains the same price no matter the market situation), making it one of the most popular cryptocurrencies out in the market. Furthermore, as the name implies, USDT is tied to the U.S dollar, another reason why many people are investing heavily in this crypto coin.
In Which of These Six Cryptocurrencies Will You Invest?
Even though there are many cryptocurrencies to choose from, only a few of them will come out successful and make you a decent profit. So be sure to always do your research and avoid falling into FOMO. Then, once you pick the cryptocurrency you want to invest in, start HODL’ling!
Did you find this post informative? If so, check out our other crypto articles, as we have plenty of other useful guides to cryptocurrencies.