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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
Fiat money is legal tender whose value is tied to a government-issued currency, such as the U.S. dollar, while cryptocurrency is a digital asset that derives its value from its native blockchain. Investors buy cryptocurrencies like Bitcoin, Ethereum, and more through exchange platforms for normal or fiat currencies. Many crypto investors claim that cryptocurrencies are much more beneficial than fiat currencies. These claims can be true since cryptocurrencies provide more perks whereas fiat currencies are just beneficial when you own them. This article features top 10 cryptocurrencies with the potential to outperform fiat currencies.
Once you own Bitcoin, you can transfer it anytime, anywhere, reducing the time and potential expense of the transaction. Bitcoin transactions don't contain personal information like a name or credit card number, which eliminates the risk of consumer information being stolen for fraudulent purchases or identity theft. Crypto investors always think that Bitcoin is one of the best cryptocurrencies with the potential to outperform fiat currencies.
The Ethereum blockchain can be used by developers to create applications, known as decentralized applications (aka DApps). In order to access that network, developers need to buy Ethereum's associated token, Ether (ETH). Similarly, if users wish to interact with a decentralized application, they must pay in Ether.
Binance Coin has a lot of things going around it. Not only is it the token for a popular cryptocurrency exchange, but is also programmable crypto. So a number of applications and other cryptocurrencies are built on its network. Crypto investors who pay transaction fees with Binance Coin receive discounts. It is one of the best cryptocurrencies with the potential to outperform fiat currencies.
Tether is useful for crypto investors because it offers a way to avoid the extreme volatility of other cryptocurrencies. Furthermore, having USDT (as opposed to the U.S. dollar) removes transaction costs and delays that impair trade execution within the crypto market.
Solana is a public, open-source blockchain that supports smart contracts, including non-fungible tokens (NFTs) and a variety of decentralized applications (dApps). Native to Solana's blockchain is the SOL token which provides network security through staking as well as through a means of transferring value. Many investors have flocked to Solana as an alternative to Ethereum. Both blockchains support smart contracts. However, Solana offers much faster processing speeds and lower transaction fees than Ethereum. It is one of the best cryptocurrencies with the potential to outperform fiat currencies.
Avalanche is one of the few blockchains that can scale without sacrificing decentralization. Its potential for interoperability with many blockchains is limitless. Avalanche blockchains alter consensus algorithms based on the use case, and the network has more validators than other networks.
Many crypto experts find Terra (LUNA) a very attractive cryptocurrency because Terra (LUNA) has great potential and ambition as a medium of exchange and payment. Another reason, Terra (LUNA) has entered the top 10 leading cryptocurrencies by market cap, is that it is one of the best cryptocurrencies with the potential to outperform fiat currencies.
Based on historical price action, Cardano has been a great investment. The digital asset received a ton of hype in 2021, and many fans hail it as the Ethereum-killer. Cardano is a blockchain project with over 70% of the total currency which ADA staked for network validation (a really impressive rate). Part of the reason that so much ADA is staked is, that this cryptocurrency lacks the availability of decentralized applications (dApps) on its blockchain.
XRP is able to process transactions in seconds at a low cost and with minimal energy. This makes it one of the more environmentally friendly cryptocurrencies. Bitcoin transactions, on the other hand, aren't efficient. It does not discriminate between any fiat/cryptocurrency, which makes it easy for any currency to be exchanged for another. It is one of the best cryptocurrencies with the potential to outperform fiat currencies.
USDC is a great option for traditional investors looking for a low-beta investment that can generate returns better than CDs. This low-beta investment can also reduce the portfolio's overall risk which can help match the portfolio's risk profile with the investor's risk appetite.
Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.
