Fewer digital currencies
Digital currencies are in limited supply, and once the limited supply becomes equal to the circulating supply, people will start to appreciate their scarcity. In this guide, we will discover the least numerous digital currencies, which you can benefit from their scarcity in later stages.
What are the least numerous digital currencies?
Limited supply cryptocurrencies refer to the maximum number of cryptocurrencies issued or available in the market. There are some cryptocurrencies that have already reached the cap, such as Litecoin, and others that are still far from the cap supply, such as Bitcoin.
Don’t think that you will be dealing with lower volatility in cryptocurrencies if you want to invest in cryptocurrencies with limited supply, they are also volatile, just like their finite supply counterparts.
Bitcoin is one of the most famous and largest digital currencies, and it has begun to take steps to replace fiat currencies, as it has become legal tender in El Salvador.
According to many reports, Bitcoin can only have a maximum of 21 million coins in the market. The circulating supply was 18,835,118 coins on October 5, 2021, and is expected not to peak until 2140. According to one estimate, the last 3 percent of bitcoins will be mined after 2100, which lowers the reward per block over time, making Mining it gets more complicated with each time.
It is easy to buy Bitcoin because it is the most popular digital currency and it is available on all trading platforms. Some people may want to buy Bitcoin anonymously, but this is difficult because most exchanges require KYC identification.
Binance
Binance is the leading cryptocurrency trading platform at the moment. The total supply of this digital currency was 20,000,000 coins in 2017 at its initial offering and is declining.
Currently, Binance aims to become the best solution provider for all needs with distributed ledgers, as it includes the Binance Smart Chain, and includes many decentralized applications.
In the first week of October 2021, Binance was trading at around $420 and has a market capitalization of around $72 billion.
The digital currency exchange has also faced some strict measures by various regulators, and the currency has also faced some strict regulatory measures from major global economies such as China, so think carefully and do the necessary research before you make your final investment decision.
Cardano is one of the best cryptocurrencies of 2021, which operates on the basis of the concepts of proof of stake which has a lower power protocol than other mechanisms.
Cardano’s total market supply is 45 billion coins, while the current circulating supply of these coins in the market is over 33 billion, and their total market capitalization is around $70 billion.
This digital currency runs on a single platform called RippleNet, which belongs to the Ripple blockchain payment network.
Ripple is focusing on international payments and making them cheaper and faster. The maximum supply of coins is 100 billion, which makes their limited supply interesting.
Ripple coin comes with unique blockchain features, and has a market capitalization of just over $48 billion USD.
This cryptocurrency trading platform also allows decentralized applications to build on their own blockchain platform.
The maximum supply of this coin is 720 million, and more than 391 million were offered in the first week of October 2021.
Avalanche is a strong competitor to Ethereum, and many people find it an interesting alternative with a total market capitalization of around $14.3 billion.
The market capitalization of this currency is huge, and its blockchain technology serves as an alternative to Bitcoin due to the low percentage of electricity it consumes.
The supply of this digital currency can reach a maximum of 10 billion coins, and more than 6.6 billion coins have already been offered in the first week of October 2021. This digital currency was trading at 1.9 USD per piece at that time, and its market capitalization was 12 billion US dollars.
This coin was created back in 2011 as a competitor to Bitcoin, and is often described as a lighter version due to its lower fees.
The maximum supply is 84 million coins, and it has already been achieved. It was trading in October 2021 at around $167 apiece, with a total market capitalization of $11.4 billion.
Summary
Limited supply is not a feature of all cryptocurrencies operating today. Although Ether is the second largest cryptocurrency by market capitalization, it does not have a cap on the maximum number of coins. But that doesn’t hide the fact that limited supply is an attraction for some investors.
Apart from the digital currencies mentioned above, there are many other digital currencies as well that may be included in the list of the least numerous digital currencies such as Filecoin, Tron, Theta, and others, which you can review before making your final decision.
Frequently Asked Questions
Why invest in digital currencies? You might be someone who has heard about the world of cryptocurrencies at this point, but you haven’t even dipped your toe in yet. Maybe because you feel a bit pessimistic about it because it is a new field, you don’t know much about it, or you think it won’t last long. However, we believe the opposite is true. Digital currencies are here to stay, and they will become a very important part of the global currency in the future.
Why invest in the smallest number of digital currencies? Similar to traditional currencies and gold, the thing that makes the least numerous cryptocurrencies attractive is the fact that there is a huge demand for them. When something is in limited supply, this of course increases the demand for it, which naturally increases its value.
How do you trade digital currencies? We believe that the best way to trade cryptocurrencies is to register on a platform where you can buy, sell and trade your cryptocurrencies. We also recommend that you look for the platform that will help you store your assets in complete security, so that you do not have to work with more than one platform at the same time.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.