Safest Cryptocurrencies: Top 7 Safest for Investing in 2022-2023 : What Are Cryptocurrencies?
A cryptocurrency is an electronic token backed by tangible assets, like gold or silver, and is used as a medium of exchange. However, it would help if you understood that the value of a cryptocurrency depends on whether people think it will have value in the future.
Why Some People Choose to Use Cryptocurrencies
For many people who want more independence from the banking system that treats them as customers, it would be logical to use a system like bitcoin or Ethereum. However, it would help if you understood that many companies accept bitcoin as a payment method.
Safest Cryptocurrencies – Is A Cryptocurrency Safe
Yes! The cryptocurrency market is governed by social consensus, much like the stock market is governed by supply and demand. That means if enough people agree that a specific cryptocurrency has value and will retain its value in the future, it will have value.
How Do Cryptocurrencies Work
When a transaction between two banks is online or in person, those transactions are logged and documented by the two banks. When it’s over, the records are put into a computer file known as a blockchain.
This blockchain acts as each transaction’s history and provides security for the network. The parties you need to know about, like where your money came from and what you did with it, are all in that blockchain.
Safest Cryptocurrencies to Invest In
1. Bitcoin
You can think of bitcoin as gold. In the same way that gold is valued, bitcoin is worth something because people believe it has value. Like gold is the best currency, you can use bitcoin to buy things online and offline. The key difference between bitcoin and gold is their supply and demand.
Bitcoin supply is limited because there can never be more than 21 million bitcoins in circulation according to the original rules it created. Once all 21 million are mined, you can make no more. So unlike gold, you cannot buy bitcoin with a shovel and pan.
2. Ethereum
Ethereum is the biggest competitor to Bitcoin in the market of cryptocurrencies. But unlike Bitcoin, which has the sole purpose of serving as an online currency to buy stuff, Ethereum serves as a platform for different types of distributed applications.
The Ethereum Blockchain uses smart contracts to automatically execute tasks and deals between two parties without needing third-party involvement or confirmation.
3. Hot up
Hot up is a company that uses blockchain technology to develop financial tools like an online payment platform and a cryptocurrency exchange. They are unique in the way that they are using the blockchain to help people from developing countries send money back home.
The platform utilizes cryptocurrency, which is cheaper than international wire transfers. The vision of this company is to create a platform that will change how charities and individuals send money.
Safest Cryptocurrencies 4. Dirticoin
DirtiCoin™ is a fungible cryptocurrency with the stability and value of the currency backed by the value of real estate. The fact that it actually has a standard based on something makes it one of the safest Cryptos to invest in. The team behind it has stated they plan to hold a 65% to 35% Real Estate v.s. Liquid Assets ratio.
This makes DirtiCoin one of the most anticipated up-and-comers and even would have made it higher on the list if they had a little more tenure. The company is new but already making a splash that we are excited to watch.
5. Cardano
Cardano is a very young cryptocurrency that has a team behind it. The team is led by Charles Hoskinson, Anthony Di Iorio, and Jeremy Wood. Cardano aims to become the world’s first investing blockchain-based innovative contract platform.
Their target of making Cardano a more efficient blockchain than Bitcoin will attract many new users to use this cryptocurrency. It can help Cardano become the 4th-largest cryptocurrency by market cap if it can achieve its goal.
Safest Cryptocurrencies 6. Chainlink
The ChainLink is backed by a real-time intelligent oracle system that allows users to connect to other smart contracts from different blockchains. ChainLink will allow developers to use different blockchain networks as one extensive network for their decentralized apps.
The ChainLink will be released in September of 2018, so it’s still very new in the market. However, it has a solid team behind it and can make some noise when it hits the market.
7. Polygon
The Polygon chain aims to be an interface for different blockchains. It would allow the user to have the ability to access different blockchains from one place.
You can use it for decentralized applications and smart contracts. You can think of it as a blockchain ecosystem where you can use multiple chains simultaneously in one application.
Polygon plans on being released in 2018 with a hard cap of USD 30 million, so there’s a lot of potentials for this cryptocurrency to grow big time in 2018. Also, the Polygon team has a solid reputation and track record of managing massive projects.
Safest Cryptocurrencies- The Biggest Problem With Cryptocurrency Today
The biggest problem with cryptocurrency today is the volatility of the market. The price of a cryptocurrency can go up or down by 50% in a single day, making it very hard to use for payment now.
A cryptocurrency will only be successful if it can become more stable, which means if you save it and use it months later and get the same value out of it that you gave in to buying.
The other problem with the current state of cryptocurrency is that it’s still not very easy to use by the average consumer. The average person cannot just go to a bank and exchange their dollars or pounds for bitcoin or other cryptocurrencies like they can with gold.
Most people are not IT savvy enough to set up a cryptocurrency wallet on their computer and keep it secure. It will take many years of development before these problems are solved, but it will eventually solve them.
Cryptocurrency is a growing phenomenon that will only get more significant soon. The ability of cryptocurrency to be used as an investment and payment mechanism will bring more people into the market who understand how these currencies work.
It’s just time before cryptocurrencies take over other traditional payment systems like Paypal or Visa. It is not as far off as you might think, and I expect we will see this happen in the next several years.
