In this article, we discuss the 5 best cryptocurrencies to buy for early retirement. If you want to read our detailed analysis of these currencies, go directly to the 10 Best Cryptocurrencies to Buy for Early Retirement.
5. Tether
Tether is ranked fifth on our list of 10 best cryptocurrencies to buy for early retirement. It is one of the most popular stablecoins, types of coin that are backed by the US dollar. It has issued tokens on several different blockchain platforms, including Bitcoin, Ethereum, and others. Tether is incorporated in Hong Kong but has offices in Europe as well. Tether is an open source, peer-to-peer blockchain-based cryptocurrency.
Stablecoins like Tether exist because of crypto mining operations led by technology companies like Marathon Digital Holdings, Inc. (NASDAQ: MARA), the Nevada-based firm with a wide array of digital assets under possession. Marathon Digital Holdings, Inc. (NASDAQ: MARA) recently announced a 40% month-on-month increase in Bitcoin production.
At the end of the first quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $197 million in Marathon Digital Holdings, Inc. (NASDAQ: MARA), up from 8 the preceding quarter worth $5.9 million.
4. Litecoin
Litecoin is one of the earliest Bitcoin spin-offs. It was launched in 2011 and is placed fourth on our list of 10 best cryptocurrencies to buy for early retirement. It is very similar to Bitcoin in many respects except transaction speeds, which are four times faster on the Litecoin network. Other differentiations from the parent coin include block generation time, hashing algorithm, and the maximum number of coins. Litecoin is also among the top cryptocurrencies in the world in terms of market capitalization.
Litecoin was founded by Charlie Lee, a former employee at Alphabet Inc. (NASDAQ: GOOG), the California-based technology company. Alphabet Inc. (NASDAQ: GOOG) recently allowed cryptocurrency wallets to run advertisements through the Google platform in a major concession for crypto firms otherwise barred from marketing by top tech giants.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ: GOOG) with 2.9 million shares worth more than $6 billion.
3. Stellar
Stellar is a payments network that uses the Stellar cryptocurrency to convert digital coins into fiat currency and move them across borders at low fees. It is ranked third on our list of 10 best cryptocurrencies to buy for early retirement. It was initially released in 2014 and developed by Jed McCaleb and Joyce Kim. Stellar is marketing itself as the digital currency of choice for those who do not want to go through banks to move their money around. Stellar is one of the best altcoins available on the market today.
Stellar is mined by firms like Riot Blockchain, Inc. (NASDAQ: RIOT), the Colorado-based crypto mining company with a fleet of over 7,000 miners at its disposal. Riot Blockchain, Inc. (NASDAQ: RIOT) stock has surged over the past few hours on the back of media reports revealing the 900% jump in crypto trading in India, one of the largest internet markets in the world, over the past year.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Riot Blockchain, Inc. (NASDAQ: RIOT) with 2.2 million shares worth more than $120 million.
2. Ethereum
Ethereum is the second most popular and the second most expensive cryptocurrency on the market. It is placed second on our list of 10 best cryptocurrencies to buy for early retirement. It is a decentralized, open source blockchain initially released in 2015. It was developed by Vitalik Buterin, a Russian-Canadian computer programmer. Ethereum is often marketed as a more secure and environmentally-viable alternative to Bitcoin in the crypto world and several market analysts expect it to overtake Bitcoin in popularity in the coming years.
Cryptocurrencies like Ethereum have exploded in value over the past few years as digital payment mechanisms, like those offered by Square, Inc. (NYSE: SQ), become more popular. Square, Inc. (NYSE: SQ) has invested over $400 million in crypto-related assets.
At the end of the first quarter of 2021, 92 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Square, Inc. (NYSE: SQ) , up from 89 the preceding quarter worth $8.8 billion.
1. Bitcoin
Bitcoin is placed first on our list of 10 best cryptocurrencies to buy for early retirement. It is the largest cryptocurrency in the world in terms of market capitalization. It is a cryptocurrency that operates on a blockchain network through which transactions can be made via verified network nodes. The coin was launched in 2008 and climbed to a record high of around $64,000 in April this year before taking a breather since then. Bitcoin was made by Satoshi Nakamoto, although not much else is known about the identity of the original author.
One of the largest institutional holders of Bitcoin is Tesla, Inc. (NASDAQ: TSLA), the California-based EV maker that bought more than $1 billion in Bitcoin earlier this year. Tesla, Inc. (NASDAQ: TSLA) has since suspended Bitcoin payments for vehicle sales on the back of environmental concerns over crypto mining operations.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Tesla, Inc. (NASDAQ: TSLA) with 24.4 million shares worth more than $16.3 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 10 Best Nickel Stocks to Buy Now.
