- Bitcoin and Ethereum Investments: Does It Make Sense?
- 1. EOS: Ethereum's Number One Rival
- 2. Ripple: 2nd Coin After BTC
- 3. Stellar Lumens: Makes the Perks of Ripple Available to a Wide Audience
- 4. Tron
- 5. Litecoin
- 6. IOTA
- 7. BAT
- 8. Zcash
- 9. Monero
- 10. Skycoin
- The Strategy of Choosing a Cryptocurrency to Invest in
- Bottom Line
Just like 2018, the next year promises to be full of ups and downs for all cryptocurrencies. That means there's still an opportunity to get rich — you just need to make the right bets. Due to recent Bitcoin fluctuations, traders' stakes turn the tables in favor of the altcoins with a strong technical backup. What are the best cryptocurrencies to invest in 2019? Here are the most promising blockchains and companies behind them.
Bitcoin and Ethereum Investments: Does It Make Sense?
The chances that Bitcoin will make its previous 1,000% rise are minor: the cryptocurrency community admits there are more technologically advanced alternatives. New altcoins pop up every day, and their developers keep surprising audiences with innovative features and the technological supremacy of their solutions. Although the bearish tendency of the market seems to subside a little, no one can guarantee that the Bitcoin price can break its previous records and hit $20,000 again.
What about Ethereum? It is still potent and promising, but there are many competitors coming up with more agile and sophisticated blockchains. Some companies are already shifting from Ethereum to Neo and platforms alike.
1. EOS: Ethereum's Number One Rival
Of all Ethereum's competitors, EOS seems to be the most technologically advanced platform. Why? First and foremost, it removes the main barrier for developers — the Solidity language (it's the only means of programming in Ethereum). Instead of it, EOS users have access to databases and instruments along with other numerous services, which means no knowledge of programming languages is required at all.
To top it off, EOS is more flexible than many other similar platforms: no gas fees are charged because 21 gatekeepers process the transactions. The coin isn't mined; it's produced by certain users elected by the community.
EOS has all the chances to become an advanced, popular blockchain platform, so don't miss your opportunity to buy it for $1.68.
2. Ripple: 2nd Coin After BTC
Slowly but steadily, Ripple has made its way to the second largest cryptocurrency by market cap after Bitcoin. However, it works with completely different principles. Ripple was created for large financial institutions rather than individual users: this cryptocurrency serves to facilitate cross-border payments, making them strikingly fast and cheap (a transaction costs a fraction of cent). Ripple Labs received huge support from corporate investors (such as Google), and now this cryptocurrency is being introduced by Asian banks and financial institutions around the world. We have already discussed that Ripple is unlikely to reach $100, but it is expected to reach the $1 threshold in the nearest future — its price is $0.29.
3. Stellar Lumens: Makes the Perks of Ripple Available to a Wide Audience
Unlike Ripple, Stellar is designed to facilitate cross-border payments for individual users. While such payment processing giants as PayPal charge 5% fees for transactions, Stellar has only a $0.01 fee for 600,000 transactions! The processing speed is 5 seconds per transaction, which is quite agreeable. Moreover, the platform solves the issue of energy consumption that plagues Bitcoin and a few other blockchains. The proprietary Stellar Consensus Protocol is used to process operations instead of Proof of Work. The Stellar team has already partnered up with a few tech top dogs, such as IBM, so it enjoys enormous support from corporate investors.
Why consider TRX? TRON recently acquired BitTorrent, which allows for developing safe decentralized torrenting methods in the future. For example, such innovations can help us to distribute files across a network and re-assemble them for user downloading.
Another one of TRON’s advantage is that it’s one of a few ERC20 tokens that have made it to MainNet. Although TRON’s growth isn’t as rapid as Ethereum’s, it has 300,000 accounts so far. At the moment, 1 TRX is worth $0.013, so it’s a good investment for traders with a shoestring budget.
One of Bitcoin’s main alternatives, Litecoin has made it to the Top-10 cryptocurrencies by market cap: it has reached a $1.45 bln capitalization and now is the 9th coin on the list. LTC has the average block mining time of 2.5 minutes against Bitcoin’s 10 minutes. Besides, it’s one of the big four on Coinbase.
While Bitcoin requires 95% of miners to signal that they support SegWit for activation, Litecoin requires only 75%. The lowering of the consensus threshold makes it easier for Litecoin to attract active investors. At the moment, Litecoin costs $26.15 — it’s been through ups and downs, but the cryptocurrency community believes in its potential.
IOTA cryptocurrency was designed for the Internet of Things. It has four key advantages over other coins:
It’s fully decentralized.
Users aren’t charged fees.
The technological secret underlying IOTA’s success is the Tangle. While Bitcoin uses a blockchain environment to maintain the ledger, IOTA’s Tangle is a directed acyclic graph (DAG). Such a system solves the problems of scalability and transaction fees. The sender performs some kind of proof of work and approves two transactions. Thus, the higher the number of users is, the faster transaction speed they can enjoy. To top it off, IOTA has a lot of applications.
Considering the fact that the number of Internet-driven devices is expected to reach 30 bln gadgets by 2020, and the market cap will be around $7.1 trillion, IOTA has a lot of potential, even though there’s a serious competitor – the IOTW startup.
Basic Attention Token (BAT) was founded by tech specialists from all over the world. This token is designed for content creators, publishers, their audience, and advertisers. For example, users can donate to content creators in BAT currency, or get BAT rewards for watching advertisements. BAT is supposed to be used in the Brave browser, which repels malware and protects users’ privacy while surfing the web. With this browser, users will enjoy the content they like without annoying ads and ISPs selling their personal information.
At the moment, BAT is worth $0.14. The cryptocurrency is expected to start growing in a year or so.
Even those who don’t use the darknet for making purchases will definitely like the idea behind Zcash: this blockchain is created for people who want their transactions to remain private. That adds the value to the coin from an investment standpoint, and it will only grow as the darknet continues evolving. Recently, the Zcash team has introduced technical improvements that will reduce the memory consumption of transaction privacy by 98%.
Add to that such facts as:
Coinbase recently called Zcash one of the coins with great potential.
Users’ transaction data can be revealed selectively.
Due to some similarities with Bitcoin, Zcash can become a store of value down the road.
At the moment, Zcash costs $59.5 and is the 19th cryptocurrency in the global rating.
A great alternative to Zcash, Monero is also used in the darknet market (for this reason, Coinbase isn’t likely to add it soon). The Monero blockchain boasts thought-through transaction schemes that involve ring signatures and stealth addresses that keep transactions private. Like Bitcoin, Monero also has the proof of work verification standard: it means there’s always value behind XMR. Aside from that, Monero has strong community support because it’s based on the principles of decentralization and privacy — those are the key values for investors and traders.
Monero’s key advantages are as follows:
It has a superior mining algorithm. It’s designed so that ASICs wouldn’t have much technological superiority over usual computers owned by average users. It means that mining Monero would be simple for any user. Due to the absence of an entry barrier, Monero attracts more participants to fuel its development.
Adaptive block size limit. Monero blocks are produced every 2 minutes, and the adaptive block size limit means that users will be automatically able to handle the future increase of transactions by expanding the block size automatically.
I2P protects users from passive network monitoring, so nobody can say whether you use Monero at all.
The 12th cryptocurrency by market cap, Monero (XMR) costs $46.6. There are over 180 contributors supporting this blockchain, so it has all the chances to grow in value.
The blockchain behind Skycoin was designed to replace Bitcoin and Ethereum altogether. It has a well-developed infrastructure that serves the following purpose:
Skycoin will replace Bitcoin.
Fiber – a scalable and highly customizable parallel peer-chain platform – will replace Ethereum.
Skywire – the new decentralized Internet, a wireless mesh network where users are rewarded for exploiting it. It is meant to replace MPLS, IPv4/IPv6, OpenFlow, Tor, I2P.
Skyminer – the hardware that drives a decentralized Internet. Participants are paid for providing bandwidth, storage, and CPU power.
CXO – P2P cloud storage service that serves the distributed network of Skywire. It will replace IPFS, FileCoin, BitTorrent, Mega, Dropbox, and Google Drive.
Aside from it, the Sky-Messenger will be an analog of Telegram, Skype, Wechat, and WhatsApp, while BBS is meant to replace Twitter, Facebook, and Steemit.
All in all, the Skycoin project can become a great alternative to the traditional Internet. At the moment, Skycoin costs $0.92, and it might become one of your wisest investments in 2019.
The Strategy of Choosing a Cryptocurrency to Invest in
How to choose reliable and promising coins for investment? Here are a few recommendations for making smart investments:
Opt for ICOs. This is one of the easiest ways to multiply your riches. For example, had you invested in Neo’s crowdsale, your return would currently be 160,000%, or 5,000% for Populous, or 4,000% for OmiseGo — well, you see that ROI may be astronomic. However, the majority of ICOs fail, so you should research thoroughly.
Check out less popular exchanges. If you missed your chance to invest in an ICO, you can invest once the coin hits the market. During this time, there’s usually a short spike followed by a dump once investors seek short-term gains. This is a great opportunity to buy coins you’re interested in for a low price. Cryptopia and IDEX are perfect places to search for such types of coins.
Track and time important events. This is a short-term strategy and should mostly be used by experienced traders. It’s not a secret that the price of a cryptocurrency rises after some partnership announcements or tech introductions. You can buy cryptocurrency cheaper and sell it for a higher price.
Be in the know. There are thousands of cryptocurrencies that have already hit the market and thousands coming soon. You never know which gems you can stumble upon. Keep tabs on cryptocurrency news, research new projects, follow cryptocurrency Twitter accounts – knowledge is power.
There’s still a myriad of opportunities to invest in cryptocurrencies that can potentially make you 10-100x returns. However, as you know, cryptocurrencies are very volatile. So before making a move, do your homework: research the cryptocurrency, blockchain, and development team behind it. If you really believe in the fundamentals of the token, the timeframe doesn’t matter. Once you buy the cryptocurrency, get all your patience and wait for when it gets listed on a major exchange.