Be aware that there are those who are unaware that there are cryptocurrencies that could swallow their money no matter how well they choose their coins and do their research in the end, and all the money will eventually go to these institutions and companies that always support the projects they have invested in based on their teams' research to choose the best currencies with market value, starting with this list that will swallow your money.
1. Bitcoin (BTC)
Reason:
Bitcoin is the first and largest digital currency by market capitalization, and it has shown extraordinary resilience in the face of economic crises. It is considered the "digital gold" due to its properties as a hedge against inflation and the volatility of traditional markets.
Key Investors:
MicroStrategy: Invested heavily in Bitcoin as a reserve asset, buying hundreds of thousands of bitcoins.
Tesla: Tesla bought about $1.5 billion of Bitcoin as part of its asset diversification strategy.
Grayscale: Grayscale is considered one of the largest investment funds focusing on Bitcoin, enhancing its ability to attract liquidity.
Reason for liquidity flow:
Bitcoin remains the preferred choice for major institutions as a hedge against inflation, allowing it to maintain its market position, driving more liquidity to invest in it. Significant institutional support enhances its credibility and attracts more funds.
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2. Ethereum (ETH)
Reason:
Ethereum is not just a digital currency, but a technology platform for building smart contracts and decentralized applications. With the upcoming upgrade Ethereum 2.0, the network will become more scalable and more efficient in processing transactions.
Key Investors:
Grayscale: Invests heavily in Ethereum, making it one of the largest digital investment funds.
ConsenSys: One of the companies focusing on developing technologies on the Ethereum platform.
Vitalik Buterin: Founder of Ethereum, famous for developing this network.
Reason for liquidity flow:
Ethereum is the main driver of the DeFi and NFTs revolution, with applications in various fields from decentralized finance to entertainment. With improvements in Ethereum 2.0, many investors expect a significant increase in its uses, making it a preferred destination for liquidity investments.
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3. Binance Coin (BNB)
Reason:
BNB is the native currency of one of the largest cryptocurrency exchanges in the world, Binance. It is used to reduce transaction fees within the platform, making it an attractive option for traders.
Key Investors:
Binance: Of course, Binance is the biggest supporter of BNB, as it is used daily on the platform.
Paxos: Supports Binance Coin in its systems, helping to expand its use.
Reason for liquidity flow:
With the increasing use of the Binance platform and fee reduction incentives, BNB attracts investors from all over the world. The support for Binance Coin from other platforms and companies helps attract liquidity and enhances its market position.
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4. Cardano (ADA)
Reason:
Cardano uses a Proof of Stake system that is more energy-efficient compared to the Proof of Work used in Bitcoin.
Key Investors:
IOHK: The research and development institution founded by Charles Hoskinson, one of the founders of Ethereum.
Grayscale: Grayscale adds ADA to its cryptocurrency investment portfolio.
Reason for liquidity flow:
With a focus on scientific research and improving the network through academic reviews, Cardano emerges as a sustainable solution for the future. These factors attract investors interested in investing in scientifically sound projects.
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5. Polkadot (DOT)
Reason:
Polkadot allows different blockchains to run together, increasing its ability to integrate various networks effectively.
Key Investors:
Web3 Foundation: The foundation established by Gavin Wood, one of the founders of Ethereum, to develop Polkadot.
Parity Technologies: Contributes to the development of the supporting software for the Polkadot network.
Reason for liquidity flow:
Due to its uniqueness in connecting different blockchains, Polkadot has unlimited potential for scalability, making it a focal point for many investors looking for long-term investment in a versatile project.
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6. Solana (SOL)
Reason:
Solana features a Proof of History (PoH) algorithm, making it one of the fastest networks in processing transactions, ideal for developing decentralized applications and video games.
Key Investors:
FTX: One of the largest cryptocurrency exchanges promoting the use of Solana.
Alameda Research: A research and investment firm focusing on cryptocurrencies.
Reason for liquidity flow:
Thanks to its high speed in processing transactions and its efficiency in supporting decentralized applications, Solana continues to attract liquidity from investors looking for speed of execution and low cost.
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7. XRP (XRP)
Reason:
XRP aims to accelerate cross-border payments in a more cost-effective and time-efficient manner than traditional currencies.
Key Investors:
Ripple Labs: The company managing the XRP network, which partners with major financial institutions like Santander and American Express.
Reason for liquidity flow:
Due to numerous partnerships with major financial institutions aimed at reducing money transfer costs, XRP becomes the first choice for financial institutions that need efficient solutions for cross-border transactions.
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8. Dogecoin (DOGE)
Reason:
Despite its start as a joke currency, Dogecoin has become one of the most popular cryptocurrencies thanks to significant support from Elon Musk, and it is now used as a payment tool in some companies.
Key Investors:
Elon Musk: Elon Musk's influence on Dogecoin's price through his tweets has driven massive liquidity into the currency.
Mark Cuban: Mark Cuban's support for Dogecoin at the Dallas Mavericks store.
Reason for liquidity flow:
Celebrity support like Elon Musk and Mark Cuban significantly contributes to its popularity, attracting liquidity from traders and investors looking to benefit from 'meme coins'.
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9. Chainlink (LINK)
Reason:
Chainlink works to connect smart contracts with real-world data through oracle technology, making it one of the essential parts of the decentralized ecosystem.
Key Investors:
Google: Collaboration with Google Cloud to integrate real-time data into decentralized applications via Chainlink.
Intel: Intel's support for Chainlink's technological projects.
Reason for liquidity flow:
Chainlink continues to attract liquidity thanks to its innovative technologies and collaborations with giant companies such as Google and Intel, making it the preferred choice for investors looking for a bridge between real-world data and smart applications.
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10. Litecoin (LTC)
Reason:
Litecoin offers faster and cheaper transactions than Bitcoin thanks to the Scrypt algorithm.
Key Investors:
Charlie Lee: The founder of Litecoin, who continues to support and promote its use in everyday transactions.
Coinbase: Litecoin is considered one of the currencies supported by the famous Coinbase platform.
Reason for liquidity flow:
Being one of the oldest cryptocurrencies and the least costly in transactions, Litecoin continues to attract liquidity from users and investors looking for fast and efficient solutions.
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Summary:
Major cryptocurrencies remain the primary destination for liquidity due to their technological strength, institutional stability, and strategic partnerships connecting them to many large funds and investors. As blockchain and smart contract technologies evolve, major institutional investors, celebrities, and nations will continue to drive liquidity in these currencies, enhancing their stability and market proliferation.
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