Tuesday, June 28, 2022

What Are The Ideal Cryptocurrencies To Invest In And Why: A Useful Guide

As cryptocurrencies continue to grow in popularity, more and more people flock to the market. This surge creates new opportunities for investors, but it also comes with new challenges. The cryptocurrency market is highly volatile. That means investors are faced with the arduous task of sorting through cryptocurrencies out there to find those with potentially high value. That’s why it’s important to know what type of cryptocurrencies will likely perform best in the future. This guide contains the ideal cryptocurrencies to invest in and their benefits.

A Brief Overview of The Current Crypto Market

There are a total of 1,350+ cryptocurrencies available to investors today. That might seem like a lot, but not all cryptocurrencies have equally good odds of performing well in the future. Thanks to the cryptocurrency market’s volatility, it can be difficult for an investor to predict how specific coins or tokens will perform based on their release date or where they were developed. Some sites attempt to make lists of these factors and rank which ones are likely to do best, but those lists can change from week to week as new information comes out about these cryptocurrencies.

Three factors fuel these currencies’ secular bull trends: transaction use, transaction speed, and privacy. The transaction uses include things like payment transfers or remittances. Meanwhile, transaction speeds refer to the rate at which the blockchains can process transactions after being added. And lastly, privacy refers to how easily users can hide their identities while performing cryptocurrency transactions.

The Ideal Cryptocurrencies To Invest In

This is where CoinB steps into the picture. This information will help you decide which is suitable for you—taking away some of the guesswork involved with starting an investment portfolio on this type of asset class.

Ripple (XRP)

This cryptocurrency has been around for a while, but it didn’t become more popular until 2017. Ripple is an ambitious project that aims to make worldwide bank transactions more accessible and faster. Today, international payments are conducted through SWIFT, which can take up to five days to be processed because of multiple parties involved in the transaction. Meanwhile, Ripple can instantly process all transactions by acting as a global settlement network. It’s currently the third-largest cryptocurrency globally, with its market cap valued at USD 8 billion. This cryptocurrency comes with many benefits, including lower fees than other cryptocurrencies available today. For instance, current banks often charge high fees when making international money transfers. That means you could lose 10% or more of your money in transfer fees when sending to other countries. In comparison, Ripple only charges a fraction of that amount.

 

Image source: https://pixabay.com/photos/cryptocurrency-money-ripple-digital-3424779/

Ethereum (ETH)

Just as Ripple was built with global settlement networks in mind, Ethereum also came into existence, with its guiding principle being smart contracts. ETH is one of the best cryptocurrencies to invest in and some investors feel that it is a better option for cryptocurrency trading. It has a more diverse base of users and operates in a broader network than other cryptocurrencies. That means it’s able to process transactions faster and more efficiently than some of its counterparts. There are currently close to 90 million ETH in circulation today, but the total supply is much higher at 18 million coins per year (close to 14 million are currently in circulation).

Bitcoin Cash (BCH)

This is one of the newer cryptocurrencies on the market. It was created through a hard fork from Bitcoin Core in August 2017. One of this cryptocurrency’s most significant selling points is how quickly it can process transactions. Like Ripple, Bitcoin Cash has been built with global settlement networks in mind. This means for investors that BCH offers an exciting opportunity for international trade and commerce by making cross-border payments much easier and faster than standard bank transfers.

Dash (DASH)

This isn’t the first time Dash has been on the list of cryptocurrencies to watch for. If you recall, back in December 2016, it was listed as one of the top 5 cryptocurrencies for investors to keep their eye on that year. Dash offers users several features that make it quite different from other cryptocurrencies. For instance, this cryptocurrency is self-funding and self-governing. That means the Dash network has a budget that allows investors to vote on where money should be spent. It also helps minimize transaction fees by allowing you to remain anonymous while you perform transactions.

Litecoin (LTC)

This cryptocurrency has been around since 2011. It was created by Charlie Lee, who wanted to bring the same attributes of decentralization that Bitcoin offers, but with faster transaction times and lower fees. Litecoin has made quite a name for itself in recent years as it climbed up the market cap rankings to become the fifth-largest cryptocurrency globally. As mentioned earlier, one of the benefits for investors is that Litecoin has faster transaction times than Bitcoin. In addition to that, Litecoin also has a larger supply of coins available compared to its counterparts. There’s a total supply of 84 million LTC, and close to 50 million are currently in circulation today.

Monero (XMR)

This was another cryptocurrency that had made our list back in December 2016. It doesn’t have the same global appeal that Bitcoin has, but it has a dedicated user base and a large market cap. Monero focuses on privacy and decentralization, which is why this currency made our list of ideal cryptocurrencies to invest in. Of course, one of the biggest attractions for investors is reduced costs and increased security and anonymity.

NEO (NEO)

NEO is a relatively new cryptocurrency that has quickly gained momentum. It’s designed to create digital assets, smart contracts, and decentralized applications. It can be appealing from an investor standpoint because you can earn GAS for owning NEO coins, which means your holdings’ value will likely increase as more people join the platform. Also, this cryptocurrency is known for its fast transaction times and low operational costs.

While it might be difficult for some investors to determine which cryptocurrencies are ideal based on these factors alone, this guide should help get you started on your journey towards choosing an investment that will give you solid returns in 2018. These are just some of the more popular cryptocurrencies available today, with many benefits over traditional bank transfers. To learn about more cryptocurrencies, visit our site for daily updates.

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