In 2017, the cryptocurrencies literally blew up the market. Now, everyone but the laziest seems to talk about new digital currency that emerged in 2009.
We have selected the best cryptocurrencies of 1300 in accordance with their capitalization. Many of them showed a significant increase in price in the first half of 2017. Basically, that is the reason behind their overwhelming popularity among the members of the global community. Together we will find out, which cryptocurrency provides the best investment opportunities in 2018.
- Top cryptocurrencies for mining and investment.
- Choosing cryptocurrencies for your investment portfolio.
Top cryptocurrencies for mining and investment
The first cryptocurrency appeared in 2009. Back then, the crypto money was not very popular, that’s why Bitcoin didn’t attract any significant attention. On the lapse of a few years, this coin gets listed on various online exchanges, which leads to the appearance of new altcoins and forks of older coins (forks means network bifurcation, with Bitcoin Cash (BCC) and Ethereum Classic being the best examples).
As of today, there are more than 2500 cryptocurrencies.
Not all cryptographic currencies are popular, that is why some of them are worthless and unsuitable for investment. In order to get good returns on your investments, we offer you to get acquainted with the list of top cryptocurrencies in 2018.
Name/ Date of issue/ Price as of (date)/ Total amount of coins in circulation
Bitcoin/ January 3, 2009.
Ethereum. July 30, 2015.
Litecoin. October 7, 2011.
NEM. March 31, 2015.
Dash. January 18, 2014.
Monero. April 18, 2014.
Stratis June 20, 2016.
Data from coinmarketcap.com
No wonder that Bitcoin and Ethereum occupy the top two positions and it’s highly unlikely that some coin will replace them in the near future. That’s why we would like to review the coins that were placed in the positions from 3rd to 12th. That will be our TOP 10 cryptocurrencies in terms of capitalization.
You must have heard about some of these altcoins: Ripple, Litecoin, Dash, Monero, while the rest is almost unknown (Stratis, Waves). As of now, these currencies have the highest capitalization, which means that they are relevant and sought-after. Besides, the probability of them being scammed (it could happen, though) is extremely low.
Currently, the altcoins are actively taking over the market. That’s why many financial players give them more consideration and start switching over from Bitcoin that has a negative effect on BTC’s share in the total market capitalization.
The graph below (for the year 2017) shows that altcoins are confidently stripping Bitcoin off its market share. Ethereum obviously does the best job, though other altcoins are keeping up with it: the graph features 6 coins from our Top 10. For example, Ripple is fearlessly biting Bitcoin’s butt. The other five are still staggering behind, though nobody knows what could happen in a month time, or even tomorrow.
Choosing cryptocurrencies for your investment portfolio
When choosing good and relatively reliable forks, it is necessary to base your decision on concrete facts about vital indicators.
That’s why I have compiled the list the best cryptocurrencies for mining and exchange on the basis of the following indicators: market capitalization, liquidity, promotion, price, volatility, and prospect for development.
- Market capitalization. This is the total volume of the asset released on the market multiplied by the current market (exchange) price. This financial indicator is used to estimate the aggregate value of market instruments, entities, and markets. The greater the capitalization of altcoins the less likely it is to “die out” and leave the crypto market.
- Liquidity is an economic term that is defined as the ability of assets to be sold quickly at a price close to the market one. In other words, it signifies the existence of the high level of supply and demand for an asset. Liquidity is very important for traders and money changers. The combination of high liquidity and volatility provides the opportunity of making good money on the exchange. The higher it is, the more stable the crypto coin.
- Promotion is the process of distribution of financial instruments in a modern form that is accessible to the general population. There are no specific indicators for this kind of data. One can judge about promotion levels and popularity on the basis of the sum of the indicators of capitalization and liquidity.
- Price of altcoins is the monetary value of altcoins which is expressed in fiat money (dollar, euro, ruble, yuan), Bitcoin and other forks. The more expensive the asset, the more valuable it is for the end user, the less likely it is to depreciate, especially in the short term. Most cryptocurrencies have an indirect value. In other words, their value is not derived from the cost of fiat money, but from the price ratio to other cryptocurrencies. For example, Execoin costs 0.0004 Bitcoin, it forms the EXE / BTC pair that is traded on the crypto exchanges. At the same time, BTC has the value in fiat money.
- Volatility is a statistical financial indicator that characterizes the volatility of a price over time. It is the most important financial indicator in the management of financial risks, where it represents the degree of risk of using a financial instrument for a certain period of time. High volatility means greater opportunities for making profit but it also presents greater risks.
- Prospect for development is a valuable factor which determines whether a crypto coin will ‘go to the Moon” or fall into oblivion. Most forks do not have prospects for development, they are created only for the purpose of bringing money to their developers. Usually, they spark some interest among users, then grow in price, get listed on exchanges but eventually become completely depreciated.
Bitcoin is the first cryptocurrency in the world, which appeared on January 3, 2009. Satoshi Nakamoto is considered to be the father of new digital money. However, some users are sure that this is the nickname of a group of talented programmers.
Bitcoin still dominates in the crypto world
Bitcoin changed the way people think about the nature of money in general. Now, financial resources do not need regulatory bodies. The authenticity of coins is confirmed through complex mathematical algorithms, and the emission of funds is carried out by the users themselves.
What you should know about Bitcoin
- Decentralized system. All users have equal rights and opportunities;
- Full transparency of payments. Each participant can view all transactions;
- No official control. No state or organization can control operations inside the system;
- Anonymity. The system does not require user verification;
- Limited emission of coins. 21 million BTC will be issued in total.
As a result, people get the ideal tool for financial operations. You can send money anywhere in the world and the sender does not have to pay a huge commission.
Bitcoin has an open source code which allows other programmers to create new cryptocurrencies. Therefore, their number is constantly growing. Despite this, Bitcoin retains the status of the best cryptocurrency in the world and it will be able to hold the first place on our list for a long time.
Ethereum is a relatively new cryptocurrency which appeared on July 30, 2015. Vitalik Buterin, a Canadian programmer of Russian origin, was the founder of Ethereum. He developed this system back in 2013. It took him about two years to develop the cryptocurrency. This system is also based on the blockchain technology.
The Ether has several key features, thanks to which this cryptocurrency has quickly gained large traction and occupied the second place in the rating.
- First, the smart contracts that form the Ethereum system have a wide range of application and can be used in different areas of life.
- Secondly, Ethereum is an open platform, which means that the implementation of the blockchain technology can be carried out much easier.
Thanks to these features, the Ethereum blockchain has caught the attention of large companies:
- Sberbank and others.
Ripple is a fully-fledged system for payments, currency exchange, and money transfers. The system was launched in 2012. Its main objective is to ensure the maximum security of monetary transactions of any size without refund. Currently, it holds the third position in our ratings in terms of capitalization.
The popularity of Ripple is underpinned by its extensive use. This system was successfully implemented by the following well-known organizations:
- Fidor and others.
The Ripple protocol is used by banks and payment networks more and more often.
Some experts believe that this system can become a worthy replacement for Bitcoin. American Banker claims that Ripple’s distribution ledgers have a number of important advantages over Bitcoin, particularly, much higher level of security. However, in term of price, this digital currency is still significantly inferior to BTC.
Litecoin is the fork of Bitcoin, which appeared on October 7, 2011. As of June 28, 2017, Litecoin holds the 4th place in our ranking in terms of total market capitalization. It is worth noting that Litecoin came out after Namecoin. However, the previous fork didn’t gain any popularity as a payment system. Now, NMC is on the 73rd place in the overall cryptocurrency rank.
Charles Lee is the creator of Litecoin. He used the Bitcoin code as a basis for his system. Charles Lee created Litecoin as an alternative to Bitcoin, but so far this fork is substantially inferior to BTC. News that LTC can replace BTC resulted only in partial raise of the price of this currency.
Increased emission of coins. The maximum amount is 84 million LTC;
Accelerated transactions. The formation of a block takes 2.5 minutes on average, which is 4 times faster than Bitcoin’s operations.
Ethereum Classic is a blockchain platform for the development of decentralized applications using “smart contracts”. It is a cryptocurrency, which is also called “ether”, but at the same time, it has another abbreviation “ETC” on crypto exchanges.
Ethereum Classic is a hard-fork of Ethereum. There was The DAO platform that was developed on the basis of Ethereum for managing investment capital. This program contained an error which hackers used to their advantage. They have successfully attacked The DAO and transferred the third of all Ethereum assets to the ChildDAO account. $50 million was stolen in total.
Since Ethereum is decentralized, there is no governing body that can cancel the transactions and return the money back. Eventually, the developers decided to separate part of the blocks. That is how the new cryptocurrency named Ethereum Classic has emerged. Now, it is developing independently from the usual Ethereum.
NEM is a Japanese cryptocurrency, which has firmly entrenched in the Top 10. It is mostly traded in the Japanese market, though it gradually attracts the attention of users from other countries. The private Mijin network was developed on the basis of NEM. It is focused on banking transactions and has already caught the interest of SBI Sumishin Net Bank, Japan’s largest bank, which tested Mijin and its capabilities for the period of three months.
This system can carry out 3 million transactions in a second.
Investors should pay very close attention to this currency. NEM managed to consolidate strong positions in Japan but, at the same time, the price of this coin is still rather low. Cryptocurrency rates can grow significantly after the successful expansion to other Asian countries. The developers have repeatedly stated that they will eventually enter new markets.
The Dash cryptocurrency appeared on January 18, 2014. It was previously known under other names: Darkcoin and XCoin. Evan Duffield is the founder of the system. He said that he became interested in Bitcoin in 2010, and after some time, he began developing his own cryptocurrency. The main task which he pursued was to increase the anonymity within the network.
Main differences between Dash and Bitcoin
- Higher anonymity level;
- Emission requires less energy consumption;
- The system of decentralized management allows all participants in the system to participate in the further development of this cryptocurrency;
- It uses not one but several cryptographic algorithms.
Higher anonymity is achieved by mixing coins that is done by means of the special PrivateSend service. All transactions are combined into one, the coins are mixed and simultaneously split into equal parts. After the mixing, the amount is sent to the owner. Thus, it is impossible to track the amount of individual transaction even within the system.
IOTA is a relatively new cryptocurrency which appeared on January 18, 2014. Now, it occupies the 8th spot in the overall rating of market capitalization. It gained high popularity due to its uniqueness. It does not have anything in common with the above-mentioned cryptocurrency; therefore, it has vast potential.
It is based on the consensus called Tangle. Despite the fact that this coin appeared in 2014, it became available on exchanges only in 2017. Bitfinex was the first platform to list IOTA.
The distinguishing feature of this cryptocurrency is that it doesn’t have miners of transaction fees. All network nodes are mutually confirmed. Despite this, the developers plan to issue a huge amount of coins – 2.7 quadrillion IOTAs. It is explained by the possibility to conduct the commission-fee microtransactions within the network.
Monero is yet another cryptocurrency, which appeared in 2014. It has quickly entered the top 10 and settled on the 9th spot. Monero has an open source code, whichthe hackers decided to compromise in 2014. A group of perpetrators planned an attack but they failed to destroy this cryptocurrency. After this event, the experts noted that the attackers had good knowledge of the Monero and Merkle Trees codes.
18.4 million XMR were produced during the initial coin offering. After that, the reward for forming a block was reduced to 0.6, so that the miners could maintain the system’s efficiency.
The emission of Monero is unlimited. However, this cryptocurrency is mined on x86 processors, so it is less profitable to mine XMR on GPU than it is with Bitcoin.
Monero has been widely used for payments in online casinos. In addition, it is often used in online games. It poses interesting to users who want to maintain the anonymity online.
Stratis is the 10th most popular cryptocurrency in our rating. This currency appeared on August 9, 2016. Stratis is a fairly powerful and flexible platform, developed on the basis of the blockchain. It also has the ambition to become be the world’s leading cryptocurrency, and the developers claim that they can revolutionize the concept of storing funds in electronic wallets.
Stratis is the youngest cryptocurrency in our rating.
The system is written in C #, which allows the implementation of a variety of applications. The mass utilization is what gives the developers hope that Stratis will prove to be one of the most popular cryptocurrencies in the future. To some extent, Stratis can be compared to the Ethereum. Currently, there is a rivalry in the market between these two coins.
It should be noted that the capitalization of cryptocurrencies can vary greatly, depending on the behavior of traders in the market. That’s why you could see shuffles in this rating even on the lapse of one or two months. Keep track of the charts on exchanges and keep informed of all the changes
Ways of entering the cryptocurrency market
In 2017, after the prices of cryptocurrencies began to rise at a rapid pace, this topic began to attract more attention from the general public, the media and investors. Those who invested in Bitcoin in 2010, could have earned millions in just 7 years. Now, many people are tormented by the question, which cryptocurrency is best for investing in? Here are several ways of doing that:
You can invest in the mining equipment which issues crypto coins. Since Bitcoin mining is no longer profitable, due to its increased difficulty (it is done on the large farms in China), you should pay attention to other cryptocurrencies from out list.
This year, Ethereum was the cryptocurrency that gained huge traction. The price of this cryptocurrency has risen rapidly which formed the so-called hype. Rookie miners are buying graphics cards in dozens which will eventually lead to the increase of difficulty. That’s why you should choose some other currency, Ethereum Classic being a good alternative. By giving preference to the popular currency, you can easily find the suitable mining pool.
The purchase of equipment will require several thousand dollars, and you can start trading with only a few hundred dollars. To do this, it would be sufficient to find a broker or exchange that supports the currency pair of your choosing.
The prices of all cryptocurrencies are fluctuating quite strongly, so even a small investment can be multiplied rather quickly. This is one of the simplest and most profitable ways to earn money on cryptographic currency.
There are websites that offer small rewards in cryptocurrencies for performing easy tasks. The reward is usually paid in the most popular currencies, though its amount remains very small.