Where Are The Top Five Cryptocurrencies In December 2021: Explained...

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Where Are The Top Five Cryptocurrencies In December 2021: Explained

"Learning how cryptocurrency works is like learning a new language. It's incredibly difficult at the beginning, but once it clicks it will stick with you forever."
( Olawale Daniel)

Multiple cryptocurrencies can easily confuse a greenhorn who wants to invest in the crypto industry.

That's from Bitcoin to Ethereum, Binance Coin to Tether and Solana.

Now, this is a guide to help you identify the best cryptocurrency where you can invest and earn more this Holiday Season but first let us find the market capitalization of the five.

The market capitalization of the top five cryptocurrencies

Cryptocurrency
Market Capitalization Range

Bitcoin
$932.4-1.247 trillion

Ethereum
$554.178-$557 billion

Binance Coin
$104-109.822 billion

Tether
$73-$76.2 billion

Solana
$64-$73.230 billion

"There is one thing you need to know about the negative market movement: the bigger the dip, the bigger the rip"
( Oluwale Daniel)

Let us take a glance at the five cryptos to invest and rip more from what you sore today.

The top five cryptocurrencies
Bitcoin (BTC)

Satoshi Nakamoto was the founder of Bitcoin in 2019.

Bitcoin is the original currency that runs on a blockchain and it's the most popular cryptocurrency.

So, if you want to get into the cryptocurrency market as an investor, this should be your top priority.

Proof work is the process of solving cryptographic puzzles. The BTC is kept secure and out of the hands of fraudsters.

Comparison from 2016- 2021

Five years ago, you could buy bitcoin for around $500, but as of December 1, 2021, a single Bitcoin was worth more than $57,000 an increase of 11,400%.

Anticipations of investing in Bitcoin (BTC)

The value of the BTC fluctuates a lot. Furthermore, the price is high, with a single Bitcoin costing more than $65000 and most people cannot afford to buy the entire package.


Ethereum (Ether)

Ethereum is still one of the best cryptocurrencies available today.

The accomplishment of Ethereum is the creation of a decentralized suite of financial products that anyone in the world, regardless of nationality, Ethnicity, or Faith can freely access.

When it comes to innovation, Ethereum is the best in both cryptocurrency and blockchain technology which has led to its meteoric rise.

Ether is the most widely used in hosting Non-Fungible Tokens and Decentralized Finance (Defi).

Ethereum's price has risen from $11 to over $4700 representing a 42000% increase.

Dangers of investing in Ethereum

Because its network only has one when it's overloaded, the transaction takes longer to process.

Binance Coin (BNB)

Binance Coin (BNB) was launched in 2017 with the primary goal of being used for payment, trading, and even travel booking.

BNB is one of the world's biggest Cryptocurrency exchanges.

According to its performance monetization, Binance Coin has proven to be one of the more stable investment options; however, it is a highly volatile investment.

Comparison of prices from 2017-2021

The price in 2017 was $0.1 and by December 1, 2021, it had increased by $626,00% percent to $65,728.

Dangers of investing in Binance coin rules

Binance Coin differs from others in that it was created by a company rather than a group of tech developers. Despite its commitment, some clients are intimidated to invest due to security concerns.

Tether (USDT)

In 2014, the Blockchain angled platform was launched.

Tether is backed by fiat currencies such as the $ dollars and the Euro.

USDT is appropriate for investors who are concerned about the extreme volatility of other coins.

Tether and other stable coins try to smooth out price fluctuations to attract users who might be otherwise too constrained.

The value is almost $0.9 but keep in mind that you can't buy USDT at a low price and expect to make a lot of money. However, it allows you to keep funds you move out of another crypto without converting them to cash.

Solana (SOL)


Solana (SOL) was officially launched in 2020 where its low price of $213.42, maturing ecosystem, and a promising future in Defi (Decentralized Finance) make it one of the cryptocurrencies to invest in.

According to the Coin Cap market, this places it fifth in terms of Market Capitalization ranging from $68.6 to $73.230 billion. The speed and stability of its network are what make it appealing.

Solana is based on a Unique hybrid of stake and proof of history mechanism, allowing it to process transactions quickly and securely.

Dangers of investing in Solana
Solana's dependability is a major concern given that the company experienced a nearly day-long outage due to resource exhaustion as reported by Bloomberg and confirmed by CNBC.
Its prices dropped quickly as it grew, where it grew up to 12000 percent this year and dropped instantly.

Factors to consider before selecting the best cryptocurrency in 2022

Some Frequently Asked Questions

Is it necessary to pay taxes on cryptocurrencies?

Yes

Any citizen over the recommended age (18years) is required to pay taxes.

Because cryptocurrency is classified as a capital asset, cryptocurrency exchanges such as Coinbase have Cryptocurrency tax rules.

How do you buy cryptocurrency?

Cryptocurrency can be purchased through Crypto Exchanges such as Coinbase, Kraken, or Gemini or from well-known brokers such as Wellbull and Robin Hood.

In Conclusion

Thousands of decentralized apps are currently running on Ethereum and the transition to proof of stake will make it even more useful.

As many memes Coins lose reactions, the cryptocurrency is showing up as a weakness.

Fundamentally focused assets such as SOLANA appear to be well-positioned to drive long-term growth in the future.

 

What is the recommended exchange app or site to use in cryptocurrency business?