The digital world is growing at a lightning-fast rate, with the total market cap of cryptocurrencies exceeding $600 billion and growing daily. While users can purchase Bitcoin for investment or to pay for goods and services online, there are several other types of cryptocurrencies (known as altcoins) available for purchase. And just like the stock market, it makes sense to diversify your cryptocurrency portfolio. There are more than 1,300 cryptocurrencies that you can invest in today. Not all of them are worth your time, but some have the potential to grow substantially over the coming months or years. If you’re thinking of investing in a new coin or two — or maybe even three — we have advice on which ones you should avoid and which ones you should buy right now to get in on the ground floor. Here is our list of top 5 coins that you should consider investing in as soon as possible.
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Ripple (XRP)
XRP is a token associated with Ripple, a fintech company that aims to revolutionize international payments with blockchain technology. Now, Ripple is focused on building relationships with banks and financial institutions, but there are plans to extend beyond these industries. XRP is currently the second largest coin by market cap, and it has the potential to overtake Ethereum. Ripple is a centralized cryptocurrency, which means it’s controlled by a single company. Depending on how the company’s partnerships with banks go, the value of XRP could go up significantly. Right now, it’s a good choice for investors who want to get in on the ground floor of a coin with the potential to be worth a lot in the future.
Ethereum (ETH)
ETH is the top altcoin in terms of market cap, and it has the potential to become even more valuable. Ethereum is a decentralized system built on the blockchain that allows companies to build applications and issue their own tokens. Ethereum is a general purpose blockchain, and there are thousands of people building applications that run on top of the network. Based on current trends in the industry, the number of projects built on Ethereum could double or triple in the next year or two. Ethereum’s price climbed from $8 at the beginning of the year to over $400 in the fall. If the trend continues or accelerates, ETH could be a very valuable investment.
Bitcoin (BTC)
Bitcoin is the original cryptocurrency, and it’s still one of the most valuable coins on the market. While investors who buy Bitcoin now are unlikely to see the same returns as those who got in on the ground floor, it’s still one of the most valuable cryptocurrencies in the world. And the more people that use the blockchain, the more valuable the tokens associated with it become. The blockchain is a decentralized network that allows people to send money to each other without an intermediary like a bank. The original concept is helpful in the developing world, where sending money between countries can take weeks due to bank processing times. It’s also extremely helpful for people who want to keep their money safe from government interference.
Also Read- What Is Bitcoin? How to Invest In It With a Minimum of Risk
Litecoin (LTC)
Litecoin is another altcoin that’s worth a lot more than it was at the beginning of the year. Unlike Bitcoin and Ethereum, Litecoin is a lot easier to mine. Litecoin is a great way to invest in the blockchain and see some good ROI (return on investment). Litecoin has a lot of similarities to Bitcoin, but it’s worth less, making it a good investment for people who don’t have a ton of money to put into cryptocurrencies. Litecoin is a good choice for investors who want to get in on the ground floor of a coin with the potential to be worth a lot in the future.
Stellar Lumens (XLM)
Stellar Lumens is another altcoin that’s worth much more than it was 12 months ago. XLM is a great investment for people who want to invest a small amount in several different coins. Like Ripple, Stellar has a lot of potential in the fintech sector, but it also has the potential to grow outside of it. Stellar is a decentralized network that allows people to send money to each other without an intermediary like a bank. It’s like a cross between Ripple and Bitcoin. Stellar is one of the few cryptocurrencies that’s likely to grow in value in the coming years.
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Summing up
Cryptocurrencies are going to play an increasingly important role in our digital future. They’re a new asset class that is still in the process of being discovered and understood by investors. There are tons of different cryptocurrencies to choose from, and each has their own unique use cases and value propositions. When choosing which coins to buy, you should look for coins that have the strongest use cases, or most people who will use them. Stellar Lumens and Ripple are both worth a lot more than they were at the beginning of 2018, and both have enough potential for growth to be worth investing in. Stellar is the better of the two, but the choice is up to you. Now that you know what the best cryptocurrencies to invest in are, what are you waiting for? Investing in cryptocurrencies is risky, but the potential rewards are worth it. Now is the perfect time to get in on the ground floor of the next big thing.
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