Cryptocurrencies are hot, and they’re trending
up all the time. You might feel tempted to invest in them, but how do you know
which ones to choose? As with any investment, it’s important to do your
research before making decisions on where you want to put your money.
CoinMarketCap has been around since 2013 and provides all the information you
need to make informed cryptocurrency investing decisions.
Cryptocurrencies Based on Algorithms
If you’re looking for a cryptocurrency that is
based on algorithms, then you may want to start with Ethereum. Launched in
2015, Ethereum has established itself as a trusted brand that promotes and
supports smart contracts. Developers who work with Ethereum will find it easier
to launch other projects on its platform since they can rely on what they’ve
learned from their past experience. For example, developers who want to create
an app designed for Internet of Things (IoT) devices can create their product
on top of Ethereum. This means that creating a blockchain-based IoT application
is as simple as writing normal code in JavaScript or Solidity and launching it
through Ethereum's platform!
Cryptocurrencies Based on Blockchain Technology
1. Bitcoin (BTC) - The first cryptocurrency
ever created, Bitcoin has already grown tremendously popular and is currently
valued at over $12,000 per BTC. 2. Ethereum (ETH) - This platform-specific
cryptocurrency allows developers to build and deploy decentralized
applications. 3. Litecoin (LTC) - This cryptocurrency is often touted as a
digital silver because it's used primarily for transactions and not with
developing dApps like Ethereum is 4. Ripple (XRP) - This currency isn't mined;
rather, it's created through a process called minting, where transactions on
its network get verified by nodes 5. Dash (DASH) - More than just a digital
currency, Dash also offers instant transactions for both small and large
purchases 6.
Cryptocurrencies with an Enterprise Model
By investing in a cryptocurrency that has an
enterprise model, you’re betting on one of two things: That people will keep
buying into blockchain technologies, or that there’s something else driving
demand for a particular coin (like its decentralized nature). Either way, if
you find a cryptocurrency that fits both of these criteria and has active
development behind it, then you could be looking at a good investment—one with
less risk than most other coins. Examples of projects that meet these
requirements include Dash (backed by an Masternode network and DarkSend) and
Zcash (which features privacy features and optional anonymization). Of course,
there are also lots of examples of coins without an underlying model or
long-term development goals.
Coins That Are Changing The FinTech World
Some coins have skyrocketed 10,000% in less
than a year—and they’re now being used as legal tender. This is great news for
investors but not so much for FinTech companies trying to break into the crypto
market. The crypto industry is vast and still rapidly changing. There’s no
single way to get into it, but these coins are some of its top performers right
now: Litecoin (LTC), Stellar Lumens (XLM), TRON (TRX) and Ripple (XRP). Make
sure you do your research before investing! As with any investment, there’s
always risk involved. It's also important to remember that cryptocurrencies
aren't actually currencies; they're assets like gold or silver. If you're
thinking about buying cryptocurrency because you want an alternative form of payment,
think again; they're mainly used as speculative investments and aren't accepted
by most merchants at all. They're more similar to commodities like gold or oil
than actual currency in that sense—if anything, their value lies in their
utility rather than their function as money itself. With that said, if you
believe a coin will go up in value long-term due to widespread adoption, it may
be worth buying on speculation alone regardless of whether or not it's accepted
anywhere yet...but buyer beware!
Coins Focused on Privacy or Anonymity
Anonymity is an area of cryptocurrency that’s
gained lots of attention recently. Bitcoins aren’t anonymous, despite what many
people seem to think. While they offer some privacy, it’s not enough for many
people looking for greater anonymity when using crypto. There are many coins
focused on privacy or anonymity and here are a few: Zcash, Monero, PIVX, Verge.
They offer features like mixing transactions and private blockchain keys that
make it difficult (but not impossible) for others to track transactions sent
from your wallets. If you're focused on investing in a coin based on its
potential privacy/anonymity features and you don't mind losing your money if it
fails miserably at that endeavor, these could be interesting choices for you.
Market Prediction Altcoins
Predicting which altcoins will do well is an
impossible task—they’re all so different, and what worked before might not work
again. If you believe in a coin and it does exceptionally well, that’s
fantastic, but try not to get caught up in its drama or envy those who made it
big. Even though one crypto might be surging while another could drop overnight
(for any number of reasons), we encourage you to stick with your convictions
and pay attention only to coins that interest you personally. We wouldn’t
advise trading out of boredom or day-trading without any real understanding of
technical analysis. On a more positive note, if you find yourself getting
attached to certain altcoins—don’t be afraid! Go wild!