The cryptocurrency market has exploded in recent years, making it difficult to navigate and decide which coins are wise investments. We’re here to help by providing a list of some of the best cryptocurrencies to invest in, as well as some you should reconsider.
Whether you are planning to use poker skills to invest on your own or are going to get help from a broker, here’s all you need to know.
5 Cryptocurrency to Invest In
First up, here are some cryptocurrencies with bright futures that are likely to give you a good return on your investment.
1. Dash (DASH)
Dash is a privacy-centric digital currency with instant transactions. It is a decentralized autonomous organization (DAO), meaning it is governed by a network of master nodes who receive 45% of the block reward on each block they put in.
Dash was originally a fork of Bitcoin but has since changed its codebase significantly, including introducing an improved governance model that allows for rapid decision-making, which is beneficial when developing features at an accelerated pace.
2. Monero (XMR)
Monero is a privacy-focused cryptocurrency. It uses ring signatures and stealth addresses to obfuscate transaction information, making it more difficult to trace transactions back to their sender.
It is mineable, which means you can acquire XMR through “mining” – the process of using your computer’s power to verify transactions on the blockchain. You don’t need any special equipment for this – all you need is a desktop or laptop with an internet connection and adequate processing power (AMD graphics cards are the most efficient). Monero’s mining algorithm has been designed so that CPUs perform better than GPUs, so if you have a PC at home that isn’t being used for anything else, there’s no reason why you shouldn’t mine some Monero.
3. Zcash (ZEC)
Zcash is a decentralized, open-source cryptocurrency offering privacy and selective transparency of transactions. The protocol was launched in 2016, with a monetary base of 21 million units distributed through a mining process.
Zcash payments are published on a public blockchain, but details relating to the sender, recipient, and amount of a transaction remain private.
4. Factom (FCT)
Factom is a cryptocurrency that allows you to purchase data on the network. It’s a blockchain-based system that records and secures data in an immutable manner. It also uses a network of nodes to verify transactions by immutably recording them into an ever-growing list of linked blocks.
The key difference between Factom and other cryptocurrencies is that it doesn’t use proof-of-work (PoW) or proof-of-stake (PoS) algorithms, but instead uses its own algorithm called “proof of existence” or PoE. This means that no expensive computers are needed for mining because there are no miners involved. You can buy Factom coins (FCT) on cryptocurrency exchanges like Coinbase Pro and Binance.
5. Ethereum (ETH)
The value of Ethereum has increased a staggering 32,000% from 2016 to 2022, and it’s set to continue rising. The decentralized, open-source blockchain cryptocurrency has undergone upgrades recently – Ethereum 2.0 uses ‘sharding’ to increase the throughput of transactions made with this coin.
5 Cryptocurrency to Reconsider
Before we get into the coins to reconsider, keep these tips in mind:
- Don’t invest in cryptocurrencies you don’t understand. This might sound obvious, but it’s easy for investors to become emotional about their investments, especially when it comes to the coins and tokens they’re excited about. If you’re not familiar with what a project is trying to achieve – how it works, why it’s different from others in its ecosystem, who’s involved, and what they bring to the table – you should be wary of investing.
- Don’t invest in cryptocurrencies with no future. No one can predict the future of any cryptocurrency (or any business), but there are some projects out there that are dead on arrival or don’t have much of a chance at success even if everything goes right for them.
Let’s start with the biggest one: BitConnect. This is a cryptocurrency that was launched in 2016 and designed to be a decentralized crypto exchange, but it quickly fell into disrepute as a Ponzi scheme. The cryptocurrency was accused of being fraudulent by many industry experts and traders.
Burstcoin, now rebranded as Signum (SIGNA), is currently worth less than $0.005, and it has held a similarly low value for the last several years. This, and the fact that the coin now goes under a different name, serves as a sign to stay well clear if you want to make any money.
Ethereum Classic (ETC) is the original Ethereum blockchain. It differs from Ethereum by not having a hard limit on the number of coins that can be mined, which makes it more similar to Bitcoin. ETC is also a fork of Ethereum, meaning that they both share the same history and codebase but have different development teams now.
Ethereum Classic was created as a result of an attack against The DAO, which led to a chain split. This means that when you bought ETH in 2016, you also had access to your original funds via ETC if you held them on Poloniex or Kraken exchanges at the time of the hard fork (July 2016).
Bitcoin Cash (BCH) is a forked version of Bitcoin (BTC). It was launched in August 2017, and it’s currently the fourth most valuable cryptocurrency in the world.
However, it’s not a good investment compared to the original Bitcoin. It’s less in-demand and isn’t widely accepted – you might make some money in the short term, but it’s unlikely to have a future as big as Bitcoin’s.
These are not real cryptocurrencies. Neither is backed by anything, and they are not real coins. You may have come across these in your wanderings around the internet. They’re scams, but we thought it would be useful to talk about them anyway – they both have extremely low values and they can’t be used for anything. Definitely best reconsidered.