Diversify your crypto investment portfolio with these ten cryptocurrencies.
Every day the list of nations, industries and businesses of various kinds that accept transactions with cryptocurrencies grows. This, in one way or another, affects the role and future of physical money, and gives a boost to digital money to conquer new worlds.
Diversify your crypto investment portfolio with these ten cryptocurrencies.
Every day the list of nations, industries and businesses of various kinds that accept transactions with cryptocurrencies grows. This, in one way or another, affects the role and future of physical money, and gives a boost to digital money to conquer new worlds.
The facilities provided by cryptocurrencies such as security, privacy, and low costs in sending money, have popularised the use of cryptocurrencies around the world, but undoubtedly one of their most attractive qualities is the great returns they offer to those who have decided to bet on them despite their high volatility.
That is why on this occasion we present ten of the most widely used cryptocurrencies to invest safely.
Bitcoin is the pioneer cryptocurrency in the market, the most valuable and popular globally and the one at the top of the list.
As is well known, it is not controlled by the government and, therefore, nor by the financial system that defines it, which guarantees that its price or movements in the market are not affected by the usual economic standards that sometimes cause sharp falls in some currencies.
It is an extremely safe digital asset for investment. Specialists recommend it because its funds are impossible to trace, allowing those who invest with it to have more security and confidence.
So much so that social media influencers on Twitter claim that in the end most cryptocurrencies could be left behind and that only Bitcoin is worthwhile. They argue that there is no room for many cryptocurrencies in a global financial system that will have to be based on the strongest one, which in this case would be Bitcoin.
Ethereum could not be left out because it is more than a digital currency. It is a platform that allows decentralised applications to be developed.
Ethereum is a project that is mostly recognised for having implemented advanced applications of blockchain technology, three of which stand out.
Smart contracts on a large scale and as time goes by, it is clear that the crypto future will continue to be intertwined with this type of contract.
DeFi – One of the developments that experts believe is set to become the future of global finance and could replace traditional centralised finance. This is what a Harvard study indicates:
“Decentralised finance, or DeFi, poses a challenge to the current system and offers a number of potential solutions to the problems inherent in the traditional financial infrastructure. While there are many Fintech initiatives, we argue that those that embrace the current banking infrastructure are likely to be short-lived. We argue that initiatives that use decentralised methods – in particular blockchain technology – have the best chance of defining the future of finance.”
The NFT market – Built on the Ethereum blockchain, non-fungible tokens based on smart contracts are looking to break new ground to further prove their usefulness by allowing proof of ownership of things.
Tokenisation in the financial sphere is giving Ethereum a boost, as stated by the World Economic Forum (WEF), which predicts that by 2025-2027, 10% of the world’s GDP will be tokenised, i.e. it will operate under blockchain technology transactions.
Founded in 2012, Ripple is defined as the cryptocurrency of banks. It uses a kind of global ledger based on digital portals that institutions use to carry out transactions through fast gateways at a much lower cost, and for this reason and more, it could not go unmentioned.
Although it is a controversial cryptocurrency for many crypto analysts, it is still one of the most influential digital currencies in existence.
It is the first known centralised and corporate cryptocurrency and one of the easiest cryptocurrencies to obtain, whose database allows immediate transfers between any currency, without fees or the intervention of banks or exchanges.
With Ripple everything works very differently compared to Bitcoin’s proof-of-work algorithm. Moreover, it is not blockchain-based, but consensus-oriented.
Developed by former Ethereum co-founder Charles Hoskinson, Cardano is known as the second smart contract platform. ADA is often praised for its high level of security and fast transactions, but has detractors who constantly criticise its performance in the market, because in their opinion it does not have a project that has really worked.
Others comment that Cardano is ideal for this type of user or investor:
Buyers of crypto assets: In a market with marked competitiveness, it is an option for those interested in a stable level of purchase in cryptocurrencies.
Long-term acquirers: Investing in Cardano with long-term expectations is a moderately safe choice.
Buying and selling in short periods: Cardano’s platform has a daily change of even 2 digits. It would be an excellent alternative for those who wish to reap the rewards of their purchase in a short period of time.
Companies interested in blockchain: because it allows them to offer different developers the technology to manage their virtual currency authenticity support, providing a higher degree of security to the transactions made through the cryptocurrency.
Chainlink is one of the main leaders in decentralised finance and one of the most promising in the future as it is easy to access, low risk, has a good level of speed and promises potential rewards.
This project has a strong Reddit community and has been designed to provide interoperability between blockchain-based networks and external data sources, i.e. to be a bridge between the real world we operate in every day and the blockchain where cryptocurrencies operate.
With this cryptocurrency, decentralised exchanges (DEX) can provide users with accurate prices of external assets and use it as an intermediary between external agents such as a bank or the PayPal payment platform, and the blockchain and its cryptocurrencies.
It is also known as the oracle of the new world, and has grown by leaps and bounds, with exchanges, CEFI companies and even wallets including it in their platforms.
Its creator, Sergey Nazarov, had previous experience in the creation of person-to-person markets, and this platform is his first Blockchain project, in which he had the collaboration of Steve Ellis, a software engineer.
Considered one of the most technologically advanced and an important reference for its high level of privacy, a fact that unfortunately is an attraction for hackers.
Monero is the third largest cryptocurrency by number of active developers, surpassed only by Bitcoin and Ethereum, and its operation is based on a protocol known as CryptoNote, a system that does not reveal anything: neither the exact amount of the transaction, nor the identity of the sender, nor that of the receiver.
Fred Thiel, former chairman of Ultimaco, US business executive and current CEO of Thiel Advisors and Marathon Digital Holdings describes it as follows:
“On the Bitcoin blockchain, you can see which wallet address has transacted, how many Bitcoin, where they came from and where they are going. With Monero, [the blockchain] obfuscates the wallet address, the amount of transactions, who the counterparty was, which is pretty much what bad actors want,” he said.
Specialists comment that, in case of selecting Monero for investment, they suggest going for regulated brokers that offer an optimal trading service with a simple and user-friendly platform.
Polkadot is a project defined by an open-source blockchain protocol, recognised in the crypto arena as being highly useful for interoperability. Its presence aims to positively disrupt the current cryptocurrency ecosystem by facilitating intercommunication between different blockchains.
Polkadot was launched in August 2020 by a Swiss investment fund very active in the cryptocurrency sector: Web3, although it had already been in the making since 2016, seeking at launch to present it as an advanced crypto in two main functions: interoperability and scalability. This is how it was born and operates.
It is different from the rest of the cryptocurrencies, as it does not have a single blockchain, but a wide variety called parachains. Its token, called DOT, serves precisely to overcome this limit, offering the possibility for all of them to interact without limitations.
Experts maintain that those who want to buy Polkadot have an extremely secure system because it is based on centrally regulated validations, so that, although it operates on different blockchains, transactions are validated quickly and securely.
Being a cryptocurrency on the rise, it is not easy to find its tokens available and its innovations are still difficult to emulate, which guarantees it a considerable competitive advantage over the rest of its peers in the crypto arena.
This is an innovative blockchain project designed primarily to keep fees low for applications with billions of users. In addition, SOLANA coins cannot be bought directly for Euros, Dollars or other currencies. That is why they must be exchanged for BTC.
Recently, Solana experienced a huge upward rally, which brings the asset to the $80 a unit mark.
According to its official website, Solana can process 50,000 transactions per second and gives developers confidence by offering predictable scaling without compromising security.
It is also defined by the fact that it cannot exist without validators, and by processing transactions, each validator helps to further enhance its network.
Olaf Carlson-Wee, US entrepreneur and investor, founder and CEO of cryptocurrency investment firm Polychain Capital, said Solana is a next-generation blockchain that can meet the high bar and massively scale the DeFi ecosystem.
“In our view, Solana is a compliment to Ethereum, and we are delighted to see strong developer activity and an ever-expanding community growing around the project,” he said.
For some market analysts, owning Polygon is a real opportunity because in the near future it is seen as a very influential and valuable cryptocurrency, or a token that helps integrate other blockchains with the Ethereum blockchain.
Created by developers, for developers, they wanted from its conception to make it an option that provides additional functionality to Ethereum.
It is a digital currency that has played a leading role in 2021. It went from being a little-known asset to being in the top 20 of CoinMarketCap.
It is a very complete project and its Polygon token has a lot of potential, with some of its features being the following:
Advantages of Polygon:
Disadvantages of Polygon:
Launched by XRP co-founder Jed McCaleb, Stellar Lumens does not allow mining and launched its own cryptocurrency in a single issue distributed as follows:
Ranked 21st by market capitalisation, Stellar, a fork of Ripple, has become a project geared towards the exciting concept of financial inclusion.
From a cost point of view, this platform has lower transaction costs than others. Moreover, it has an added value: it allows Bitcoin to be bought with fiat money, specifically with dollars, and thus the interested party can save the commission of the exchange platforms.
Applicable to other cases with cryptocurrencies, listed in this article, it should be borne in mind that it is necessary to differentiate the platform from the digital asset. In this case, Lumens would be the digital asset that is associated with a value transfer tool called Stellar.
Is it profitable to invest in cryptocurrencies?
To answer this question, one must analyse the crypto market and, if one decides to buy or invest, look for the best strategy to be successful, taking into account, for example, that one will have a useful means of payment, charging for goods and services in cyberspace. Go ahead, this world is fascinating.
