Bitcoin has been the talk of the market in recent years. It has become the de facto standard for cryptocurrencies. With the recent rise in cryptocurrencies, it is sure to attract the attention of many retail investors outside of the traditional space. While Bitcoin is an obvious choice for investors preparing to get into the game, others are looking for cheaper but promising altcoins to add to their portfolio. For those unfamiliar, an altcoin simply means an alternative cryptocurrency to Bitcoin. And each of them operates according to its own rules.
However, before we start asking ourselves “What cryptocurrency should I buy today?” Let’s take a step back and ask a simple question like what are cryptocurrencies, and that may be a better place to start. For those unfamiliar, a cryptocurrency is a virtual money that takes the form of tokens or “coins ” that can be used to purchase goods and services. But it uses blockchain technology to secure online transactions through decentralized systems.
More institutional investors jump on the cryptocurrency train
Cryptocurrency has been one of the biggest financial stories of the year so far. Prices appear to rise to exorbitant levels amid strong institutional buy-in. Institutional investors are increasingly looking at cryptocurrencies as an alternative asset class. After all, they seek to maximize their returns in the difficult investment climate we are facing in the stock market today. We saw various companies like Tesla (NASDAQ: TSLA), PayPal (NASDAQ: PYPL), and Square (NYSE: SQ) making moves to accept cryptocurrencies for transactions. This certainly bodes well for the industry.
Early adopters of Bitcoin would have made a huge profit, assuming they held on. Ask any investor today, they would want to get a share if it weren’t so expensive. With all the buzz around cryptocurrencies, there seems to be a high probability that these digital assets could potentially be the future of financial transactions.
With the increasing participation of institutional players, could now be a good time to allocate cryptocurrencies to your portfolio? If you’re wondering what are the top cryptocurrencies to buy [or sell] right now, let’s take a look at some of the hottest names on the market today.
Top cryptocurrencies to watch in May 2021
- Ethereum (ETH)
- Cardano (ADA)
- DogeCoin (DOGE)
- Binance Coin (BNB)
What is sending the second-largest crypto by market cap, Ethereum to the moon right now? Is it an exaggeration or is there something else? Sure, the non-fungible token (NFT) speculative fever and upcoming blockchain updates have previously fueled parabolic movements in Ethereum. Another catalyst behind the recent surge is the growing use of this altcoin’s platform in decentralized finance (DeFi) applications.
Right now, although there are some competing blockchains that claim they can process transactions faster and with lower fees, Ethereum is still the largest and preferred blockchain for DeFi. And as more applications are added to the blockchain, there is a good chance that Ethereum will be the main platform. And it appears that this is a key reason that it is making a bullish case for ETH for both short-term and long-term investors.
Next, one of the best performing cryptocurrencies on the market is Cardano. For starters, the company’s business platform describes how Cardano is building a platform to suit use in education, retail, finance, and healthcare. These industries face a common thread that runs away from operating efficiently. And it is that they have a high degree of centralization. We know one of the main reasons why some cryptocurrencies lack mass adoption. It is because the real-world applications are low or nil.
On April 29, IOHK, the company behind Cardano, announced that Cardano’s blockchain technology will be used to revamp Ethiopia’s education system. One of the main benefits of using Cardano’s technology is that the system will create a tamper-proof system to record information related to five million students in 3,500 schools. If you’re like many, you might be excited about Cardano’s strong prospects and real-world application. Would you agree that you will play a major role in the DeFi movement?
While the above list are hot names in the crypto space, Dogecoin is hotter. In fact, one could have gotten rich if he had invested in the meme coin since the beginning of the year. After all, DOGE has risen more than 12,000% to date. Dogecoin holders can use Dogecoin to buy goods and services or exchange them for other currencies. Headlines also use Dogecoin to “tip” other internet users who create or share great content.
The latest rally came before Tesla CEO Elon Musk hosted NBC’s “Saturday Night Live” this weekend. Musk has long praised the digital token to his 52 million followers on Twitter. So it’s no wonder that many are expecting me to mention cryptocurrency live on television. It’s worth noting that before you buy dogecoin in hopes of capitalizing on its monstrous profits, popularity and reliability don’t necessarily go hand in hand. Buying dogecoin at current levels is an extremely risky endeavor. My conservative opinion is that you do not invest money that you are not willing to lose completely.
Binance Coin was launched in 2017 by the world’s largest cryptocurrency exchange by volume, Binance. The currency can be used to pay transaction fees on the Binance exchange or simply to exchange other cryptocurrencies. Bitcoin is proving to be an excellent store of value, despite comments to the contrary from the Federal Reserve. But the BNB coin has a purpose beyond its value. We all know that Ethereum has played a major role in fueling the NFT craze. But ETH is not the only crypto being played on NFT. BNB is looking to play a role here as well.
The crypto exchange revealed that it will introduce its own marketplace where users can create, buy and sell NFT on its platform. The trading platform would operate in two markets: a premium venue for the best auctions and exhibitions and a standard trading market that anyone can use to mint new tokens. The exchange makes money by taking a share of the auction proceeds. It also charges a processing fee for any business activity. If the crypto exchange could execute NFT’s plan well, it would very well open up a new source of revenue for the company.