The purpose of cryptocurrencies goes beyond facilitating safe and secure transactions. A lot of people who get into cryptocurrency do so instead because they view it as a potentially profitable investment. In fact, a CNBC survey on cryptocurrency investing noted this past summer that 31% of people invested in crypto started trading in the hopes of acquiring "high short-term growth." These investors seek to leverage the high volatility of the cryptocurrency market in order to gain significant returns.
That said, investing in cryptocurrencies can be a daunting experience –– most notably because one can now find thousands of different cryptocurrencies to buy into. For that reason, we've listed below four of the cryptocurrencies that make most sense to have in a digital currency portfolio right now.
1. Cardano (ADA-X)
First released in 2017, Cardano is one of the few cryptocurrencies to boast a small environmental footprint. Indeed, one of the main features of Cardano is that the process that "mines" tokens consumes less energy than those relating to some "bigger" cryptocurrencies like Bitcoin. Cardano also focuses on development in order to be one step ahead of cyber criminals and achieve optimal security. And it appears that traders are beginning to notice these benefits (as well as the quick transactions Cardano facilitates). Analysis at Yahoo Finance pointed out that this year alone (through October), Cardano had appreciated about 1,100%. This delivered substantial gains to those who jumped in early. So, if you're keen on sustainable options and you'd like to catch a potential next Cardano wave, give this token a look.
2. XRP (XRP-X)
XRP is the cryptocurrency created by digital payment processing company Ripple. In essence, Ripple is the crypto world’s PayPal, as it enables users to easily exchange digital currency without needing a third-party crypto platform or wallet. A guide to Ripple on AskMoney's financial advice platform earlier this year pointed out that the crypto's ability to facilitate easy exchanges has already attracted institutions such as Axis Bank, Santander, and Yes Bank –– as well as a variety of international companies. For these companies, XRP is viewed as an attractive vehicle for efficient and low-fee international currency transfers (as it can be converted to different fiat currencies on either side of a deal). In October of this year, the price of XRP reached $1.08, which represented a rise of 17,900% from its 2017 price of $0.006. Given all of these signs of progress and potential, many increasingly view XRP as an essential element of a crypto portfolio.
3. Bitcoin (BITCOMP)
This cryptocurrency still leads the pack when it comes to volume, price, and market cap. Bitcoin has existed longer than other cryptocurrencies, and has thus had time to establish itself as the dominant force in the crypto market. Even now, Bitcoin represents more than 43% of the total cryptocurrency market cap, despite having thousands of counterparts. It has also received public support from a number of major companies such as Visa and Tesla, which only serves to make consumers trust and value it more. The drawback is that Bitcoin's specific price tends to fluctuate wildly, which can put off some would-be investors. Nevertheless, for those who see themselves as long-term crypto investors, Bitcoin is considered to be too significant a long-term opportunity to pass up.
4. Polkadot (DOT-X)
Former Ethereum leaders who wanted to create a more stable network joined forces to produce Polkadot. This cryptocurrency first hit the market last year with the goal of connecting various blockchains so as to help them work in harmony. Furthermore, Shelly Palmer's post on cross-chain blockchains highlights that Polkadot allows its users to conduct cross-blockchain transactions with any types of data or assets –– not just crypto tokens. This has made Polkadot increasingly appealing to prospective investors who are most interested in functional potential as an indicator of a potential leap in value.
In conclusion we'll note that investing in cryptocurrencies isn’t a get-quick-rich scheme –– nor is it something to be approached impulsively or without care. While it is possible to make money in the crypto markets, doing so requires research, diligence, and strategy, as well as a bit of luck. Nevertheless, if you're looking to get started the four we've identified above are excellent cryptos to start your research with.
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