The virtual currency , or cryptocurrency, is a term that comes more and more in recent years anywhere, whether on websites selling or trading platforms. This technology quickly gained ground in the space of a decade to impose itself almost in the daily life of everyone.
What is a virtual currency? How does it work and what are the most popular cryptocurrencies in 2021? These are questions to which we will provide detailed answers. You will also learn how to buy it, as well as advice for those who wish to get started in trading this financial asset.
Top 10 Best Virtual Coins For 2021
There are over 4000 different virtual currencies available in the market. With such a panoply, there is something to quickly get lost in your choices. Nevertheless, a handful really stand out from the others for a thousand and one reasons that we will give you later. Here is a list of the best virtual currencies for the year 2021.
Now let's see in detail what these 10 virtual currencies are. We will also see in this article that the online broker eToro is in our opinion the optimal solution for investing in digital currencies.
Which Virtual Currency To Invest In In 2021? List And Top 10
In this section, we will present to you in detail each virtual currency of the previously provided list, with their advantages and disadvantages as well as the reasons which should push you to invest in each of them.
1 - Bitcoin: The Pioneer Of The Cryptocurrency Revolution
The first cryptocurrency that we are going to present is the one that holds the first place in terms of importance and market capitalization: Bitcoin.
The or BTC is a cryptocurrency created in 2008 . It is both a virtual currency enabling peer-to-peer transactions to be carried out, but also a secure and anonymous payment method between individuals.
The Beginnings Of Bitcoin
Bitcoin was released in 2009 as an open source platform. The creation of Bitcoin is mainly based on the mining process designating a set of computer calculations intended to encrypt each operation carried out.
At the time of its creation, the main objective of the Bitcoin project was to allow the sending and receiving of money without going through any intermediary. Virtual currency is accessible to everyone, whether they are traders or individuals, and its use could be in the professional or personal context.
The Basics on this Virtual Currency
Bitcoin has many characteristics. First, it is a digital currency . In other words, its use must go through access to the internet and electronic devices such as a computer or a smartphone.
Second, Bitcoin is a virtual currency . Unlike the Euro and the Dollar, it cannot be represented in the form of banknotes or coins. He does not have a physical existence.
A Peer-to-Peer Device
Third, Bitcoin is represented by a peer-to-peer system . To be more clear, the operations are carried out directly from one electronic device to another without going through an intermediary. The first device sends the change and acts as a server, while the second receives and acts as a client.
A Decentralized Network
Fourth, Bitcoin is a decentralized network , that is, no central system handles transactions, as is the case with banks. In reality, several entities scattered around the world govern and verify transactions.
Speed of Transactions
Finally, Bitcoin is based on blockchain technology . The latter is responsible for carrying out the transactions as quickly as possible.
Why Invest In Bitcoin?
There are several reasons that should push you to invest in Bitcoin. Here are the most important to remember. The first reason lies in the law of supply and demand . Indeed, the number of Bitcoins put into circulation is limited, while the demand is more and more increasing. This will positively impact the value of the cryptocurrency by giving it an uptrend over time.
Second, Bitcoin's decentralized characteristic makes it a great alternative currency. Indeed, its course and its use cannot be manipulated by any third party such as a bank or the government, making the owners entirely free.
Third, Bitcoin is the most important virtual currency to date. As a result, its use is spreading more and more in many areas. For example, Bitcoin is accepted as a method of payment in many world-famous brands.
- Advantages of Bitcoin
- Disadvantages of Bitcoin
- Use fully dependent on internet access
- Converting Bitcoins to Often Expensive Fiat Currency
2 - Ethereum: The Pioneer In The Creation Of Smart Contracts And Dapps
The second virtual currency that we are going to offer you is Ethereum.
The project was born in 2013 thanks to its founder Vitalik Buterin. It was not until 2015 that it was formalized and many people such as Gavin Wood, Anthony Di Lorio, Charles Hoskinson, Mihai Alisie and Joseph Lubin participated in its design and development.
A Successful Blockchain
The main characteristic of Ethereum is its blockchain which contains many DeFi applications. Ether or ETH is the token that makes the Ethereum protocol work.
Ethereum's primary objective is to set up an ecosystem that adapts to the needs of DeFi and is not limited to the use of its virtual currency ETH in order to carry out peer-to-peer transactions.
Good to know: Ethereum is, after Bitcoin, the most important virtual currency in terms of capitalization. Indeed, the currency represents more than 125 million euros with more than a hundred million ETH tokens put into circulation.
Regarding this point, there is no limit to the number of tokens that can circulate, unlike Bitcoin.
Multiple Uses
The Ethereum platform offers a multitude of uses. For example, it makes it possible to design and develop decentralized applications . It also offers the possibility of creating autonomous and decentralized organizations or DAO. These organizations are designed so that a programming code makes them autonomous on the blockchain. The code therefore plays the role of controller and regulator of the structuring of a classic blockchain.
Another use very appreciated by users, Ethereum allows to participate in an ICO and to issue another version of the token. Thus, it is possible to create and become the owner of your own token. The Ethereum platform also offers speed and simplicity in transactions. Indeed, smart contracts are executed automatically, making operations fast and they hardly require any human intervention.
Why Invest In Ethereum?
If you are wondering the reasons that should push you to invest in this virtual currency, here are a few that might be enough to convince you. First, the Ethereum network is constantly developing . On average, the entire system produces around 20 million Ether in a year.
Second, during the Ehtereum embarked on a rising trend since launch. Observers and analysts expect this growth to continue in the short and medium term, the long term being difficult to predict due to the high volatility of the crypto-asset market.
Finally, the Ethereum network is strengthening day by day thanks to the possibility of developing digital tokens from the platform. Indeed, the blockchain is the source of many new crypto-currencies such as Maker, Augur, Brave or VeChain. Thus, its use further arouses the enthusiasm of users wishing to develop their own tokens.
- Benefits of ETH Virtual Currency
- Disadvantages
- Ethereum network scalability concern
- Complexity of the Solidity programming language
3 - Litecoin: The Little Sister Of Bitcoin
The third virtual currency in our selection is Litecoin.
is a cryptocurrency released to the market in 2011 by Charlie Lee. It is, in reality, a fork of Bitcoin , that is to say that Litecoin was developed by modifying the source code of Bitcoin. Moreover, it is considered to be the little sister of Bitcoin.
Instant Transactions
The main feature of Litecoin is that the platform allows for almost instant transactions across the world. Indeed, your financial transactions are validated in less than 3 minutes. However, it is advisable to only carry out small transactions if you want to benefit from this extreme speed.
Good to know: the protocol used by the Litecoin blockchain is the Proof of Word and the cryptocurrency can be obtained through mining. However, the equipment needed to mine Litecoin is much less expensive and sophisticated than for some cryptocurrencies.
The objective during the creation of Litecoin was to create a crypto from Bitcoin which would be able to rectify all the shortcomings of the latter. The main problem was the slowness in the validation of transfer processes. Thus, Litecoin has become a particularly fast payment solution.
Simplified and Fast Transactions
Apart from the speed of fund transfers, Litecoin also has other features that make it an attractive virtual currency. For example, Litecoin is a real network for sending funds between individuals or professionals. Litecoin also allows you to benefit from reduced transaction costs, even internationally.
Thanks to Litecoin, your transactions are secure through the use of encryption technology from your digital wallet, as well as the allocation of unique private keys. Finally, the Litecoin network operates in a decentralized manner . All users can freely use the network independently.
Regarding its use, the Litecoin cryptocurrency makes it possible to make online purchases from sales sites. It is an increasingly used method of payment, like Bitcoin. Litecoin is also used to send money on a personal basis (sending to relatives) or to make purchases.
Good to know: the maximum number of Litecoin tokens that will be put into circulation is 84 million.
Why Invest In Litecoin?
It is not yet too late if you want to invest in Litecoin cryptocurrency. Indeed, there are several reasons that should push you to do so.
First, it is an attractive investment , whether short, medium or long term. Cryptocurrency is among the top 10 in the market, indicating that it is doing particularly well.
Thanks to its notoriety , Litecoin is a safer and less risky investment. Since it is well established on the stock market, it offers more guarantee compared to very young crypto-currencies whose longevity is not guaranteed.
Then, it is a cryptocurrency with multiple uses . Transactions are easy and fast. The users appreciate this kind of solution which makes their life more pleasant.
- Advantages of Litecoin virtual currency
- Inconvenience
- Non-profit organization, mainly based on donations
4 - Ripple: Virtual Currency Dedicated To Banks
Ripple, known by the name of its XRP token, is the next virtual currency that will be the subject of our description.
Ripple is a platform created and developed by the start-up Ripple Labs. Launched on the market in 2012, Ripple is not strictly speaking a cryptocurrency, but, above all, represents an interbank payment network for cross-border transactions. In reality, its cryptocurrency is XRP.
A Virtual Currency For Institutions
The Ripple project generally targets institutions, in particular banks. Its main objective is to reduce costs while accelerating the speed of validation of international transactions.
The Ripple platform is characterized by the speed of transactions . Indeed, it offers a short payment settlement period, up to 3 to 5 seconds to make transfers abroad.
A Simple System
Then, Ripple is not based on mining, but on an iterative consensus system to work. Ripple is also made up of a vast network of financial transactions that optimizes transactions between individuals to banking institutions.
Good to know: There is a fixed number of XRP tokens issued in the market. This number rises to 100 billion and it is the company Ripple Labs which is responsible for controlling their distribution.
Thus, the Ripple platform has a wide range of uses, in particular in the facilitation of financial transactions from one country to another, the possibility of making online payments via the Ripple wallet, as well as the possibility of easily converting currencies. with reduced relative costs.
Why Invest In Ripple?
There are many reasons that could convince you to invest in XRP cryptocurrency. First, Ripple is the third most important virtual currency after Bitcoin and Ethereum. As a result, it represents a safe and accessible value, given that the company Ripple Labs issues around 1 billion tokens per month.
The use of the Ripple platform is also expanding every day. Whether through major banking institutions around the world or through electronic purchasing payment solutions, Ripple is gaining more and more ground and getting better and better known. XRP tokens are also available from all reliable online brokers and trading platforms.
Finally, the Ripple platform allows you to convert currencies, whatever their nature. This saves users from having to go through various costly and time-consuming conversion steps. This arouses more enthusiasm among individuals and businesses.
- Benefits of XRP Virtual Currency
- Disadvantages
- Pre-mined tokens, making the rewards mechanism non-existent
- XRP token still little used
5 - Dogecoin: The Successful Parody Of Bitcoin
The fifth virtual currency that we are going to present to you is Dogecoin
The is a cryptocurrency that was designed by Billy Markus (former engineer at IBM), Oregon and Jackson Palmer in December 2013 . It is a fork based on the Litecoin blockchain and the two cryptocurrencies have many similarities.
A Fully-fledged Virtual Currency
Dogecoin is not a protocol like other platforms such as Ethereum, but it is only a cryptocurrency . Its origin comes from a DeFi on which it was possible to create an easily accessible cryptocurrency, in order to point the finger at Bitcoin. Its immediate and dazzling success has made it one of the most important virtual currencies to date.
Fast Transactions Without Intermediaries
Like Litecoin, Dogecoin allows you to carry out fast , even instantaneous transactions without having to go through any intermediary. The resounding success of Dogecoin, the cryptocurrency owes it in part to its mascot, the dog Shiba Inu who has become a star on the internet thanks to the emoticons and various representations of the dog.
A Decentralized Digital Currency
The main characteristics of Dogecoin are as follows:
First, it is a digital currency. In other words, currency has no physical representation like banknotes or coins. All transactions are carried out electronically via the internet and electronic devices such as computers or smartphones and tablets.
Second, Dogecoin represents a decentralized network . Thus, no intermediary comes into play in the validation and regulation of transactions. The operations are carried out directly from peer to peer.
Extensive Applications
As for its possibilities of use, they are numerous. Thanks to Dogecoin, you can send money to other relatives . Just send your Dogecoin from your digital wallet to someone else's. The latter will only have to convert them into Fiat currency.
Dogecoin is also used to make various purchases . Although its ecosystem is much less developed than that of Bitcoin, the method of payment via Dogecoin is increasingly accepted by brands and online shopping sites.
A Perfect Asset For Daring Traders
Finally, Dogecoin allows for financial speculation . Its price being particularly volatile, it is a real investment product that can allow you to make short, medium or long term gains.
Why Invest In Dogecoin?
If you are hesitant to invest in Dogecoin cryptocurrency, here are some good reasons that should convince you to give it a go.
Firstly, Dogecoin has a decentralized network, which generates low costs during transactions in the absence of intermediaries. This is an important point that makes more and more people choose this option for payments and financial transactions.
Second, the Dogecoin network is well secured . Its blockchain and mining technology are highly secure, making any attempt at fraud and forgery almost impossible. As a result, financial transactions are perfectly secure.
Third, you can conduct your transactions anonymously . It is impossible to trace back to your data when you perform a large financial transaction through the Dogecoin blockchain.
- Benefits of Dogecoin Virtual Currency
- Disadvantages
- Its price still too volatile, compared to other crypto-currencies
6 - Polkadot: The Young And Promising Crypto-Currency
The Polkadot virtual currency will be the subject of our next presentation.
is a cryptocurrency created in 2016 . However, the DOT token didn't start trading publicly until August 2020. Its founder, Dr. Gavin Wood, is also a co-founder of the Ethereum project as well as the Solidity programming language .
Blockchain optimization
The main goal when launching the platform was to allow blockchains to communicate freely with each other in a transparent manner. Polkadot has therefore made some optimizations to the solutions offered by the Ethereum and Cardano platforms on this point.
Thus, Polkadot is not limited only to being a tool for speculation and investment. This is a real project that provides solutions to the problems encountered by blockchains in general.
These problems are focused on scalability , that is to say the adaptation of the performance of blockchains according to the number of transactions to be carried out, and governance , that is to say the way of managing the different changes of protocol. To do this, the platform allows blockchains to collaborate with each other while offering them a certain degree of adaptability.
Sharding and Interoperability
Polkadot has many characteristics that are peculiar to him to achieve his goals.
First, a large number of blockchains can be supported through 'sharding'. This mechanism allows it to efficiently process simultaneous transactions.
Second, it is possible for the different applications within the Polkadot platform to share information and functions thanks to their interoperability . The platform can also be updated more easily, without needing to review the entire network.
Why Invest In The Polkadot?
What are the reasons that should push you to invest in Polkadot cryptocurrency? The first good reason lies in the enormous potential displayed by this virtual currency.
Indeed, despite its youth (market launch in August 2020), it is evolving at a phenomenal speed. The Polkadot has managed to quickly climb into the top 10 of the most important digital currencies.
Then, Polkadot makes interoperability between blockchains possible. Whether it is transactions or data exchange between blockchains, the platform allows them to communicate with each other, which opens up its horizon of possible uses.
Another argument that should convince you is the security that Polkadot offers. Indeed, the platform offers maximum security for user data and their assets. Security is reinforced at the level of individual chains so that any attempt at theft or tampering is almost impossible.
- Benefits of Polkadot Virtual Currency
- Disadvantages
- The youth of cryptocurrency, making investors skeptical of its reliability and longevity.
7 - EOS: The Forerunner Of The Third Generation Blockchain
EOS is the next virtual currency that will be the subject of our description.
is a vast project which aims to allow the creation and development of decentralized applications through smart contracts thanks to a new blockchain architecture. What characterizes EOS is its DPoS consensus protocol which was invented by Daniel Larimer who is the very leader of the project.
A Decentralized Operating System
Thanks to EOS, it is easier to deploy dApps by making them interact like on an operating system. EOS is, then, considered to be a decentralized operating system.
The EOS project wants to be a real competitor to Ethereum by optimizing many points, in particular the completely free use of its blockchain, its high scalability which allows millions of users to use it at the same time without lowering performance, its low latency and the flexibility of the forks .
Fast Transactions
The speed of transactions is also a strong point that can be drawn from the EOS virtual currency. The platform is capable of supporting over 300,000 operations in a second, which is hard to match.
Scalability
Scalability is also a notable feature at EOS. The network quickly rectifies the various operating bugs by providing updates generated by consensus between the validators. Unlike other mined cryptocurrencies, EOS is much less power hungry and requires less efficient and less expensive hardware.
Free use
As mentioned above, the EOS payment network is completely free. Indeed, no fees are charged during transactions, even abroad. Use of the EOS platform is completely free.
Interoperability
Finally, EOS allows interoperability between blockchains while optimizing its computational load in order to be able to support a large volume of operations. The platform deploys many virtual machines that can support it, including Wasm and EVM.
Why Invest In EOS?
EOS virtual currency is an attractive investment for many reasons. It is the precursor of the third generation blockchain that has been launched in the market. Thus, EOS was the first to bring real improvements compared to the crypto-currencies existing until this period.
EOS allows the parallel processing of several hundred transactions in a second, but is also fully scalable. Its ability to create decentralized applications for various companies and institutions makes it a currency with enormous potential for use.
Finally, thanks to EOS, the steps to recover your account in the event of loss of private keys are carried out through the creation of human-readable account names.
- Benefits of EOS Virtual Currency
- Third generation blockchain platform
- Ability to support hundreds of thousands of transactions per second
- High bandwidth for better network responsiveness
- Blockchain scalability
- Extended usage horizon
- Disadvantages
- Little advanced project, creating some uncertainties among users
- Still centralized platform compared to others using the DPoS protocol
8 - Cardano: The Virtual Currency Developed By Scientists
The next virtual currency in our selection is the Cardano.
Cardano is a project created in 2015 , but whose ADA cryptocurrency was only launched on the market in 2017. The project was born from the collaboration between the Cardano Foundation institution, the Input Output Hong Kong IOHK group, and the company Emurgo. Its founder is Charles Hoskinson.
A Third Generation Blockchail
Cardano is a blockchain in the third generation category , with more interesting characteristics. Indeed, the platform displays a scalability, that is to say an ability to support a large volume of transactions in parallel while remaining efficient.
It also allows interoperability between blockchains thanks to the operation of KMZ sidechains. Finally, it displays high durability thanks to complete confidence in the code.
A Clean Algorithm
The Cardano blockchain uses its own Proof of Stake algorithm, the Ouroboros . The consensus mechanism is distributed between the actors, which makes it possible to consume much less energy, unlike the Proof of Work protocol. Ouroboros also accelerates the validation of transactions while increasing the number of transactions carried out in one second.
A Two-Layer Blockchain
The way Cardano works is special. Indeed, the blockchain is made up of 2 very distinct layers, a layer for transactions (Cardano Settlment Layer), and a layer for applications (Cardano Computation Layer).
The first layer makes it possible to carry out transactions in ADA. It is quite similar to how the Bitcoin blockchain works. The second, for its part, offers the possibility of executing smart contracts. It is closer to how Ethereum works. However, the technology used by Cardano offers smart contracts a better level of adaptability according to the laws of the countries.
Good to know: the Proof of Stake protocol has a bad reputation in terms of its security. However, Ouroboros technology is particularly reliable on this point.
Why Invest In Cardano Virtual Currency?
The Cardano project is far from having revealed all its aspects to us. Therefore, if you want to invest in this virtual currency, now is the time to get started for several reasons.
First of all, Cardano is a dynamic project , and in perpetual motion. Many improvements are in development and will allow the cryptocurrency to improve. Its use will also be broadened, which will generate more potential users.
The value of Cardano is also based on supply and demand . In other words, the higher the demand for this cryptocurrency, the more its value will tend to increase. Finally, the ADA can simply be used as a tool for speculation . By using trading platforms, you can trade it and make profits by playing on its fluctuations.