In which cryptocurrencies is it good to invest?

This year, the value of Bitcoin has skyrocketed, even beyond an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising as it brings the value of cryptocurrencies to more than one hundred billion. On the other hand, the long-term outlook for cryptocurrencies is somewhat blurred. There are disputes about the lack of progress among its main developers that make it less attractive as a long-term investment and as a payment system.

Bitcoin

Even though it is the most popular, Bitcoin is the cryptocurrency that started it all. It is currently the largest market capitalization at around $ 41 billion and has been around for the last 8 years. All over the world, Bitcoin has been widely used and so far it is not easy to exploit the weakness in the method by which it works. Both as a payment system and as a stored value, Bitcoin allows users to easily receive and send bitcoins. The concept of blockchain is the foundation on which Bitcoin is built. You need to understand the concept of blockchain to get an idea of ​​what cryptocurrencies are all about.

Simply put, blockchain is a database distribution that stores each network transaction as a piece of data called a “block.” Every user has copies of the blockchain, so when Alice sends 1 bitcoin to Mark, everyone on the network knows about it.

Litecoin

An alternative to Bitcoin, Litecoin attempts to solve many of the problems that hold Bitcoin back. It is not as resilient as Ethereum and its value stems primarily from strong user adoption. It’s worth noting that former Googler Charlie Lee leads Litecoin. He is also practicing transparency with what he is doing with Litecoin and is quite active on Twitter.

Litecoin was Bitcoin’s second fiddle for quite some time, but things started to change in early 2017. First, Coinbase adopted Litecoin alongside Ethereum and Bitcoin. Next, Litecoin solved the Bitcoin problem by adopting the technology of Segregated Witness. This gave you the ability to lower transaction fees and get more done. However, the deciding factor was when Charlie Lee decided to focus exclusively on Litecoin and even left Coinbase, where the Director of Engineering was, only for Litecoin. Due to this, the price of Litecoin has risen in recent months, its strongest factor being the fact that it could be a true alternative to Bitcoin.

Ethereum

Vitalik Buterin, the superstar programmer came up with Ethereum, which can do everything that Bitcoin can do. However, its purpose, primarily, is to be a platform for building decentralized applications. Blockchains are where the differences between the two lie. Basically, the Bitcoin blockchain records a type of contract, one that establishes whether funds have been moved from one digital address to another. However, there is a significant expansion with Ethereum as it has a more advanced scripting language and has a more complex and broader scope of applications.

Projects started to sprout up on Ethereum when developers began to notice its best qualities. Through collective token sales, some have even raised millions of dollars and this remains an ongoing trend even to this day. The fact that you can build wonderful things on the Ethereum platform makes it almost like the internet itself. This caused the price to skyrocket, so if you bought Ethereum worth a hundred dollars earlier this year, it wouldn’t be valued at nearly $ 3,000.

Monero

Monero aims to solve the problem of anonymous transactions. Even if this coin was perceived as a money laundering method, Monero aims to change this. Basically the difference between Monero and Bitcoin is that Bitcoin features a transparent blockchain with every public and recorded transaction. With Bitcoin, anyone can see how and where the money moved. However, there is some imperfect anonymity in Bitcoin. In contrast, Monero has an opaque transaction method rather than transparent. Nobody is very convinced of this method, but since some people love privacy for any purpose, Monero is here to stay.

Zcash

Like Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not all people love to show how much money they spent on Star Wars memorabilia. So the bottom line is that these types of cryptocurrencies really do have an audience and a demand, although it is difficult to pinpoint which cryptocurrency that focuses on privacy will eventually top the heap.

Bancor

Also known as “smart token”, Bancor is the next generation cryptocurrency standard that can hold more than one token in reserve. Basically, Bancor tries to facilitate the trading, management and creation of tokens by increasing their level of liquidity and allowing them to have an automated market price. At the moment, Bancor has a product on the front-end that includes a wallet and the creation of a smart token. There are also features in the community like stats, profiles, and discussions. Simply put, Bancor’s protocol enables the discovery of a built-in price, as well as a liquidity mechanism for smart contractual tokens through an innovative reservation mechanism. Through a smart contract, you can instantly settle or buy any of the tokens within the Bancor pool. With Bancor, you can create new cryptocurrencies with ease. Now who wouldn’t want that?

EOS

Another competitor to Ethereum, EOS promises to solve Ethereum’s scaling problem by providing a set of tools that are more robust for running and building applications on the platform.

Tezos

An alternative to Ethereum, Tezos can be upgraded on a consensual basis without too much effort. This new blockchain is decentralized in the sense that it is self-governing by establishing a true digital commonwealth. It facilitates the mathematical technique called formal verification and has features that increase the security of the most sensitive and financially weighted smart contract. Definitely a great investment in the coming months.

Verdict

It is incredibly difficult to predict which Bitcoin on the list will become the next superstar. However, user adoption has always been a key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this and even if there is a lot of early adopter support for all of the cryptocurrencies on the list, some have yet to prove their staying power. However, these are the ones to invest in and watch out for in the coming months.