Cryptocurrencies have become the hottest buzzword. It has managed to attract attention, especially after COVID-19, with increased interest from big corporations such as Apple, Google, Tesla, and more. After the recent growth, it is difficult to ignore cryptocurrencies. It is not at all a bad idea to consider investing in cryptocurrency to enhance the growth potential of your portfolio. So, if you plan to invest in cryptocurrencies, here is a list of the top five cryptocurrencies you can invest in, in December 2021. These tokens are well-established market players based on their market capitalization and also hold good growth potential.
Top Cryptocurrencies To Invest In
You can never go wrong with the top crypto token in the world. Launched in 2009, Bitcoin was and been the market leader since then. Bitcoin has seen tremendous growth in the last two years, with prices reaching an all-time high of $69,000 per coin in November 2021. In the past five years, investors have enjoyed a return of over 120x, and a solid investor base makes it one of the top cryptocurrencies to invest in. In December 2021, you can add or increase Bitcoin holdings in your portfolio.
Another mainstream cryptocurrency, Ethereum, is widely popular and is the second-largest cryptocurrency and blockchain platform. It offers smart contracts, non-fungible tokens, and decentralized finance. It has given a tremendous growth of around 40,000% in just five years and may even be more robust in the times to come. Ethereum is one of the earliest cryptos that has broad ownership and acceptability. The capital appreciation offered by this crypto in the past is extremely rare. There are still many reasons to believe that it can provide potential upside to investors through its historic runs. Additionally, it plans to switch to a proof-of-stake model very soon, which will reduce the energy used. With its robust and most enormous ecosystem, it is an attractive investment option and one of the top cryptocurrencies to invest in.
Tether is not only the third-largest crypto in terms of market capitalization; it is also the most traded cryptocurrency. It is a stablecoin and is designed to be worth $1. Tether has price stability because it is backed by fiat currencies such as the US dollar and the euro. It is more consistent than any other crypto because investors prefer assets that shy away from volatility. While it may not be the best option to invest in Tether for the long run, it still offers stability to the portfolio and can be used for transactions due to its speed and lower fees than traditional financial institutions
This altcoin, launched in 2017, offers peer-to-peer transactions through its internal cryptocurrency ADA. Its programmable blockchain platform allows developers to create sophisticated smart contracts. It has several decentralized applications under development that will likely boost their value in December when launched. Another competitive advantage of Cardano is its proof-of-stake consensus mechanism. This mechanism expedites transactions, reducing energy usage as well as environmental impact. The ADA coins have exhibited a modest growth of 10,000% since their launch. It holds a strong growth potential in December as it embraces various promising applications. Cardano is an excellent long-term investment option with its robust blockchain architecture and controlled volatility.
5. Solana (SOL)
SOL is a relatively new altcoin with growth of 26000% since its launch in 2020. It is a potential challenger to Ethereum with its growth potential. One of the fastest public blockchain platforms supports decentralized finance uses, smart contracts, and decentralized apps. It claims to support 50,000 transactions per second with a combination of a proof-of-stake consensus mechanism and proof-of-history mechanism. One of the important reasons to select this coin is its high speed and low congestion, resulting in lower fees. Therefore, you can invest in Solana in December 2021 and keep it as a long-term investment.
The Bottom Line
Cryptocurrencies have become attractive investment options offering multiple benefits with a wide range of features to ensure portfolio growth. Investing in cryptocurrencies with massive profit opportunities, increased transaction speed, and safety features seems to be the only viable option for high returns. However, before investing in cryptocurrency, investors must carefully understand and assess its risks and prospects.
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