Which Crypto Has the Most Potential? Ethereum? Ripple? Or Bitcoin?
Technology has changed the way people work and these days both companies and consumers don’t always prefer cash anymore. With the quick wave of smart devices, consumers can pay for items using digital currency. When we talk about a cashless system, cryptocurrency is an emerging payment system.
If you’re looking for an alternative to stock investments, cryptocurrencies can be an acceptable option. However, it is important to learn about digital currencies before investing as it may have certain risks involved. This guide will help you understand which crypto has the most potential and worth adding to your portfolio.
How to Identify and Invest in Profitable Cryptocurrencies?
Cryptocurrency is one of the fastest-growing digital assets but it’s important to identify and invest in the right coins to enjoy maximum returns. If you’re looking for ways to make profits by investing in coins, the following tips might help:
- Do Your Homework: Investors with the foresight are in a good position to make profits out of their investment. Try to know different types of coins, their market capitalization, currency market value, etc to understand them better.
- Price and Volume: You can easily get up-to-date information about cryptocurrency online and check their price and volume. Coins with increasing price and volume of trades are likely to have momentum going forward.
- Staking: The process of investing your funds in a crypto-coin and earning new coins in the form of interest is staking and it is one of the best ways to make profits. You enjoy benefits like price appreciation by holding coins and some best options include PIVX, DASH, WISE, etc.
- Buying & Holding: The process of buying some powerful cryptocurrencies and holding them for quite some time is buying and holding. You have good chances of making profits once the coin price is high enough to earn good returns.
- Crypto Trading: It’s like stock trading where you buy/sell coins at a profit and several exchanges are offering a choice of digital currencies. All you need to do is buy coins of your choice, hold them for some time, and sell as soon as the price goes up.
- Bonus Coins: It is another great way to make profits where you need to join the airdrop or bounty program of a cryptocurrency and perform asked tasks. You can earn a bonus by investing during ICO for the token sale phase.
- Investing: A popular way to make profits where you can earn in numerous ways such as via direct investment or partnership, Initial Coin offering (ICO), or exchanges. You earn profits through price appreciation of the coin or token.
- Crypto Referral Program: Participating in referral programs can also be a good way to make profits and you don’t even need to invest anything. All you need to do is register on the website, get a unique referral link, and start earning.
5 Factors to Look Out for When Investing in a Cryptocurrency
With so many options available to choose from, it can be a bit challenging to identify profitable cryptocurrencies. The good news is that you don’t need to be an expert to invest in cryptocurrencies as the industry is still in its infancy stage. However, the following checklist can help you make a knowledgeable decision…
1. Cryptocurrency Selection: To address any liquidity issues for the overall portfolio, selecting a blend of the cryptos is recommended. You can choose some best performing cryptocurrencies and mix them with some undervalued ones.
2. Identify the Coin’s Core Features: To make sure to invest in a profitable cryptocurrency, identify the core features of a project. The general idea is to make sure that the coin has an actual use case and the use case is logical.
3. Pick a Competent & Transparent Developer: To make sure that you’re in safe hands, pick the developers and team members that have their real name, picture, and credentials. A credible development team can be held accountable for the project’s success or failure.
4. Gather Reviews & Insights: To make an informed decision, be a part of message boards and forums where people interested in the technical details come together to form opinions. This will help you research a coin and gather genuine responses.
5. Buy and Hold: To make profits out of your investment, don’t keep a watch on the price every day, instead consider buying and holding coins. You can check events and development updates to determines a coin’s future value.
5 Red Flags for Cryptocurrencies
Cryptocurrencies are all the craze but nothing comes without risk especially when we talk about investment. Though cryptocurrency is a popular world, don’t invest if you see these signals…
1. Returns that are too good to be true: There is no such thing as guaranteed returns and if a company is promising like 500% returns, something is fishy.
6. Anonymous or unclear ownership of coins: If you notice that a coin has vague ownership with no valid names, there might be a problem.
7. Coins need referrals to gain value: If you find that you’re being asked for many sign-ups, it can be a red flag.
8. First invest, rest later: If you’re asked to first invest and know about the returns and other details later, there is surely something wrong.
9. Lack of Transparency: Closed source codes that aren’t visible to the public means no transparency and shady companies often hide their codebase.
8 Best Cryptocurrencies with Most Potential (Buy Undervalued Crypto)
If you are interested in cryptocurrencies and want to know the most potential ones, the following list might help…
1. Bitcoin (BTC): One of the best cryptocurrencies to invest in and Bitcoin has been the best performing for over 10 years. It was the first digital currency with a market cap of more than $150 billion and a current market value of 2030 billion US dollars. Bitcoin is the most liquid cryptocurrency and many businesses around the world accept it as a method of payment.
10. Ripple (XRP): Made by Ripple Labs, this cryptocurrency comes with a unique selling point and a good choice for high-speed, low-cost money transfers. It is one of the digital currencies around the world that have a real use in the offline world. The market capitalization of Ripple is around $10 billion while the current market is $13 billion.
11. Ethereum (ETH): A cryptocurrency that changed the cashless world with its launch of ‘Smart Contracts’, ETH has gained huge significance in a shorter period. It lacks behind Bitcoin only in terms of adoption and market capitalization but the technology that powers this crypto was a deal-changer. It enjoys the current market value of 204 USD while the supply is unlimited.
12. Bitcoin Cash (BCH): The fourth-largest cryptocurrency in terms of market capitalization, BCH was designed to address the slow transaction speeds of Bitcoin. Although Bitcoin remains in the first position, Bitcoin Cash continues to grow by allowing larger blocks, ensuring faster transactions. The market value of BCH is more than $5 billion with its popularity growing.
13. Litecoin (LTC): One of the most traded cryptocurrencies with the largest market cap, LTC is a payment option on some major platforms. This digital currency features a unique algorithm to ensure faster transaction times as compared to other cryptos. The current market value of this currency is $4.6 billion and has grown a lot over the years.
14. EOS (EOS): This undervalued cryptocurrency comes with Ethereum’s smart contracts feature and has some unheard technology behind it. Also, the transactions are free on the network while using EOS which makes it a considerable option. Though it hasn’t started generating the returns, it has a market cap of over $3.5 billion.
15. Tron (TRX): A blockchain-based operating system that allows developers to build futuristic decentralized applications, TRX aims to develop a new kind of ecosystem. The coin has great potential as it doubles as a global, decentralized content management system based on blockchain. Also, the coin value has grown around 400% since its launch.
16. Icon (ICX): One of the first concerns of blockchain interoperability that allows users to connect and transact with each other. This kind of system expands the reach and use cases of cross-chain technology. Also, it runs on a common-purpose blockchain based on Proof-of-Stake consensus and, therefore, can be used to create and implement smart contracts and dApps.
Best Site to Invest Bitcoin
There are several good sites to invest in Bitcoin such as…
- Coinbase (best overall)
- Square Cash (best for versatility)
- Robinhood (best for low cost)
- Coinbase Pro (best for active traders)
- Binance (best for affordable rates)
- Coinmama (best for user-friendliness)
How to Buy, Sell, and Keep Track of Bitcoin?
Bitcoin is enjoying the first position for long being an open-source P2P digital currency that enables instant peer-to-peer worldwide payment transactions. This cryptocurrency is free from band charges and delays and available for all - Individual, business, and developer.
You need to choose an exchange to get started dealing with Bitcoin and download a wallet app. You will be asked for Coinbase sign-up, select state, verify the phone number, and verify your identity for which you may need to provide a few identify/address proofs.
Once you are done with the registration, you can complete the account setup and add your bank account for further process. You can choose from different investment options including Bitcoin security, buy & sell, or send & receive.
There are different ways you can store your Bitcoin such as digital wallets, software wallets, and hardware wallets. You can purchase Bitcoin using your credit card and start buying or selling Bitcoins to make profits.
The Final Words
It is imperative to understand the concept better before investing as just like the stock market, cryptocurrencies may be subject to risk. Once you’re done with your research, you can enter the world of cryptocurrencies and start making profits.