The cryptocurrency world has been a volatile space for investors to operate in over the past year. While some coins have fallen by more than 90% from their peak, many have also seen their value increase by similar amounts. The cryptocurrency market is a constantly changing and evolving one, meaning there are plenty of promising opportunities out there for savvy investors. If you’re looking to invest in cryptocurrencies, it’s important to take note of which ones could see the highest potential for upside growth in the future. There are thousands of different digital currencies you can invest in, but only a select few have the potential to become long-term winners. In this article, we will take a look at some of the top potential cryptocurrency investments that could give you substantial upside if you get in early enough.
Ripple (XRP)
XRP has been making headlines in the crypto space in recent weeks, thanks to some high-profile partnerships that have been announced. The first of these is a tie-up with a global payment giant that goes by the name of MoneyGram. The second is a partnership with the world’s largest exchange, Coinbase. While the buzz around these developments is good for the price, long-term investors are likely to be more interested in the technology behind XRP. XRP has a lot in common with Bitcoin. It’s a decentralised blockchain that is used as a digital currency and as a method of payment between financial institutions. XRP is also used outside of the financial sector, with companies like Facebook and Toyota experimenting with the underlying technology. The main difference between Ripple and Bitcoin is that XRP doesn’t use a Proof-of-Work algorithm like Bitcoin. Instead, it uses a consensus protocol that is based on a majority of validators. XRP is also designed to be used for cross-border money transfers. One of the main features of XRP is that it allows for money transfers that take just a few seconds. This is in stark contrast to the hours or days that other cryptocurrencies would require for the same transaction.
Ethereum (ETH)
Ethereum has been one of the top cryptocurrencies since it first launched in 2015. It’s a decentralized blockchain that acts as a platform for running smart contracts and decentralized applications (dApps). Ethereum has seen a massive surge in value over the past year, with its price jumping from just over $10 at the start of 2018 to an all-time high of around $1,500. Ethereum’s value is mainly driven by the ICO (Initial Coin Offering) market, with many businesses choosing to launch their tokens and coins on the ETH blockchain. A few months back, ETH’s price was driven by speculation that it would be listed by Coinbase. While this didn’t happen, the coin is still a good investment thanks to its strong fundamentals. In terms of the technology behind ETH, it’s designed to be a decentralized network that enables anyone to send money and run smart contracts without the need for a middleman. The main differentiator between ETH and other cryptocurrencies is its scalability. ETH has the potential to process thousands of transactions per second, which is vastly more than some of the other major cryptocurrencies can handle. This scalability has been tested successfully in the past by companies like CryptoKitties, which demonstrated the network’s strength.
Bitcoin (BTC)
Bitcoin is widely recognized as the first and most valuable cryptocurrency in existence. It’s also the one that everybody seems to be talking about at any given time. The price of Bitcoin has increased significantly over the past two years and is currently hovering at around $4000. Although this is a significant increase, it’s still below the price of $20,000 that Bitcoin reached in 2017. However, there are a number of reasons why Bitcoin is likely to remain a strong investment. These include the fact
that it has the strongest brand name in the sector and it’s been around for almost a decade. This long-term track record means that BTC is unlikely to disappear anytime soon. It also has the highest level of liquidity in the market, making it easy to buy or sell at any time. Another reason that Bitcoin is a strong investment is the fact that it’s the base layer of most other cryptocurrencies. This means that you can invest in other tokens by purchasing them with BTC.
Litecoin (LTC)
Litecoin is often referred to as the silver to Bitcoin’s gold. It was created in 2011 as a simpler and faster alternative to Bitcoin. Litecoin has also grown significantly in value over the past few years and currently sits at around $100. Like other cryptocurrencies, the price of LTC is extremely volatile and will likely experience significant changes over the coming months. Litecoin is used as a digital currency that can be used to send value between two parties. It also has a larger supply and lower fees than Bitcoin, which could make it a better alternative for smaller transactions. Litecoin is also a great investment because it’s easier to acquire than Bitcoin. If you want to buy $5000 worth of BTC, you’ll need to go through a rigorous verification process and look for a trusted exchange. With LTC, however, you can buy it with a credit card from anywhere in the world.
Stellar Lumens (XLM)
XLM is one of the newest and most promising cryptocurrencies on the market. It was created in 2014 as a fork of the Ripple network. XLM provides a decentralized network for quick and secure cross-border money transfers. XLM is currently the eighth highest coin in terms of market cap, with a value of just over $1 billion. XLM has been predicted to rise in value significantly in the next few years. The current circulating supply of 28.9 billion XLM tokens is expected to increase significantly in the next few years as well. XLM is similar to Ripple in the sense that it’s used by financial institutions to facilitate money transfers between each other. As more financial institutions hop onto this network, its value is likely to increase significantly.
NEO
As its name suggests, NEO is a Chinese blockchain that is designed to digitize real-world assets. These assets can be anything from cars, real estate, and stocks, to commodities like oil and gas. NEO is used to digitize these assets and then record them on a distributed ledger. NEO’s decentralized blockchain also generates digital tokens for each asset, allowing it to be traded between people without an intermediary. NEO is currently the eighth largest cryptocurrency by market cap and is one of the most promising coins to watch in the near future.
Ardor and NXT: Two Tokens in One?
Ardor is a blockchain that was created by the team behind the NXT token. Both of these cryptocurrencies were designed as platforms for creating and managing decentralized apps. Although NXT and Ardor have both gained strong reputations over the years, some investors have been unsure about which one to choose. The main difference between these two platforms is that Ardor is designed to be the parent blockchain of multiple child chains. This means that each child chain is limited to just one application. The features of Ardor and NXT are almost the same, but it’s important to know that NXT is primarily used for trading.
Cardano (ADA)
Cardano is another blockchain that is used as a platform for decentralized apps. It’s also different from many other coins in that it’s built on a unique code that was designed by a team of engineers and academics. Cardano is currently the tenth largest coin in terms of market cap, with a value of around $0.15. This places it directly behind Stellar Lumens, and well ahead of both NEO and Ardor. Cardano’s unique and carefully developed code means that it’s particularly suitable for managing financial transactions. However, it can also be used to create decentralized apps, and is expected to grow significantly in the next few years.
IOTA
IOTA is a blockchain that is designed for the Internet of Things (IoT). It enables machines to trade resources with each other without the need for human intervention. IOTA is currently the tenth largest cryptocurrency by market cap. However, it has a strong team behind it and has reached significant milestones in the past. The general sentiment behind IOTA and the cryptocurrency world is that this coin will go from strength to strength in the next few years.