There are over 15 million cryptocurrency investors in India, and the daily trading volume is from 350 million to 500 million. With the ever-growing number of cryptocurrencies, this article will cover the top 10 cryptocurrencies that one can look out for as these are the among the best cryptocurrency to invest. However, if you first want to understand the nuances of cryptocurrency and how to buy cryptocurrency in India , please click here.
1. Bitcoin (BTC)
Bitcoin was created to send and transfer money anonymously in a decentralized manner. It has several advantages: firstly, it has the first-mover advantage in this market, and hence, has the highest market capitalization. Secondly, it has a large developer community, where people create more blocks to get rewards. Thirdly, many large multinational corporations support or utilize bitcoin technology, such as Microsoft and Paypal. However, like every coin has two sides, it has some disadvantages: it has high transaction fees as it takes 10 minutes to mine one block of 1 MB, which calls for scalability issues. Two, it also uses a large amount of electrical energy.
2. Ethereum (ETH)
It is just not a cryptocurrency but a lot more than that. It offers smart contract and allows the development of various programmed applications. It aims to create a censorship-resistant. It also has the largest developer community and is highly backed by various large corporations. Ether has excellent potential, and so many developers are working to improve its functionality, scalability and stability. However, there is no fixed supply of Ethereum, unlike Bitcoin, which might devalue it as a cryptocurrency.
It aims to ease the international and domestic banking process by enabling exchange between real-world currencies and cryptocurrencies. It is more frictionless and secure than the traditional banking system. However, one of its disadvantages is that it is owned by Ripple Inc. (real-time global network for payments), which has a 70% stake in its coin XRP (a.k.a. Ripple). Therefore it does not prevent the coin from inflation and is not in a true sense ‘decentralized’.
4. Polygon (Matic)
It is the first Indian cryptocurrency founded in 2017 by 3 engineers. It is based on open source of Ethereum and deals with scalability issues and high transaction fees. However, it does not compromise on decentralizing and leveraging the existing developer community. Moreover, it proposes a great UI for easy usability that is not there for other blockchains.
5. Tether (USDT)
It belongs to the class of cryptocurrencies called stablecoins, backed by fiat currencies (not just by USD as previously claimed). An investor can use this to avoid the high volatility of the cryptocurrency market.
6. Cardano (ADA)
It aims to solve the issues of scalability, bug issues and smart contact codes. It also seeks to improve the layering of cryptocurrencies and make an environment for future updates as other altcoins fail to do so. It is open-source and patent-free and has a powerful team of individuals backing it up, including the co-founder of Ethereum. One drawback is that it has an ample supply of 45 million coins, out of which only 25 million have been mined.
7. Stellar (XLM)
It shares the same objectives as Ripple. It has already taken up a significant share of the market from Ripple though Ripple had the first-mover advantage. Stellar is a non-profit organization, unlike ripple Inc. and takes care of the drawbacks of ripples. It has a speedy inter border transaction, i.e. 2-3 seconds. It is important to note that the founding team owns a large share of the cryptocurrency.
8. ZCash (ZEC)
It uses Zero knowledge Cryptography to secure the privacy of the transaction. It has shielded transactions unlike BTC where anyone can see the transactions details if they know the key.It has a substantial community, though it has been since 2016. There is tax on mining which makes it less attractive.
9. Monero (XMR)
It seeks to be the “most secure” cryptocurrency by using a sophisticated signature, making it impossible for anyone else to trace. In addition, it has no block size limit. Thus, it can be changed in response to the demand. Unfortunately, it is not open source, and the developer does take the opinions of others but might not implement accordingly.
10. Litecoin (LTC)
It is also called the small brother of BTC because it has similar features but has a high speed for transactions, implying that it can be used for daily transactions. Litecoin has a strong management team because it has an ex employee of Google and was also the co-founder of the famous company Coinbase. One can see BTC for huge transactions, whereas LTCs for small transactions such as buying groceries. It does not represent any new ideas as other altcoins do.