Due to the volatility of cryptocurrencies, many financial experts recommend creating a varied investment portfolio. While Bitcoin is a good choice, other alternatives known as ‘altcoins’ have the potential for growth. Besides, Bitcoin may be too expensive for newbie investors, that is why altcoins are excellent for an initial investment.
Before venturing into the world of cryptocurrency, Refined Currency advises looking into certain safety options, such as stowing cash for emergency purposes. The next concern is to choose between over 1300 altcoins on the market, a decision which can get overwhelming. As a guide to which altcoins you should invest in, let’s focus on the ones gaining traction in 2018. Here are the crucial things to know about the following altcoins:
Steem is the currency that powers the social media platform Steemit. Users who create and curate content here can earn Steem, which means that it cannot be mined like the majority of altcoins. Ordinary Reviews pointed out the potential of Steemit’s system, given that people now live in the age of social media. Steemit works by rewarding you with digital currency depending on the upvotes you receive for your content.
Since its launch, the platform has garnered over half a million users. Though it seems promising, bear in mind that social networking is a competitive market with big players like Facebook. If these giants decide to take the incentive route, it could spell doom for Steem. Currently, Steem sits at #28 on the market, with a price of $1.88 (£1.35) per unit.
There is a lot of potential for Ark due to its SmartBridge technology allowing people to link different blockchains together. The transactions are super fast – it only takes seconds to transfer tokens from your account to your wallet. At the time of this writing, its price is at $2.46 (£1.77) per unit and it’s ranked at #50.
The altcoin will eventually feature smart contracts and an expansion of SmartBridge through partnerships with other projects. If there are any criticisms, it’s only that Ark is trying to do many things at once. People are sceptical that the team behind it won’t be successful in implementing the features they promised. Still, current investors are pouring a lot of funding into the development, which is why many people feel optimistic about Ark’s future.
Litecoin is one of the top 5 cryptocurrencies today, and it has major updates coming up this year that may boost its value further. Invest in Blockchain shared details on Litecoin’s two big plans: LitePay and LitePal. The former pertains to a borderless global payment network that will encourage businesses around the world to adopt Litecoin; while LitePal offers added security, seamless integration, and faster transactions. Litecoin’s price is at $154.39 (£110.92) per unit.
The appeal of Monero lies in its promise of privacy. It is highly secure and able to maintain its users’ confidentiality. Because of this feature, however, there are analysts who believe that it’s enticing for people involved in illegal activities. Nonetheless, the fact that around 30 independent developers are working on Monero minimises the chances of it being a pump and dump scam. It’s ranked #11 and priced at $211.89 (£152.10) per unit.
Ethereum is the most valuable altcoin today, which is second only to Bitcoin. It’s a good choice because its own network allows people to create its tokens called Ether. Ethereum also introduced smart contracts, which can prove useful for businesses in the long run. Due to its current status, Ethereum is one the safest bets for investors, even if it is priced at $544.35 (£390.74) per unit.
Critics say that Ethereum’s future may be better than Bitcoin’s, that’s why it serves as a worthy alternative. While many would go for the #1 cryptocurrency on the market today, FXCM suggests that Bitcoin is a highly complex investment, and it would take time to build an expertise surrounding it, more so for people without a financial background. Considering its volatility, Bitcoin has the highest risk, and its price can affect the values of altcoins, either in a negative or positive way.
To decrease the chances of losses, practice diversity in your investments. Check out these five altcoins and pick the ones that are aligned with your financial goals.