If you’re looking to add some excitement and new opportunities to your investment portfolio, you might want to consider cryptocurrency altcoins. In this article, we’ll dive into the world of crypto altcoins and explore their potential benefits and risks. We’ll look at what they are, why people invest in them, how to buy them, and much more.
Crypto altcoins are often touted as the next big thing for investors who want a way to diversify their portfolio or make some quick money on a rising trend. However, just like any other type of investment, there are both pros and cons. The pros include being able to invest with little initial capital outlay (often less than $100) while also having low risk.
If this excites you, here’s some good news. There are a ton of crypto altcoins available in the market for you to choose from. Here are the top altcoins to look out for.
Ether (ETH) is the cryptocurrency used on Ethereum, a decentralized, open-source platform that uses blockchain technology. It allows developers to build and deploy decentralized applications (dApps).
Like Bitcoin, Ethereum operates through blockchain technology. But unlike Bitcoin, it’s more than a distributed public ledger. On top of being part of the cryptocurrency network, it allows developers to create smart contracts and decentralized applications (dApps) — open-source and autonomous programs from third-party interference.
Ethereum is one of the most popular platforms for initial coin offerings (ICOs), an unregulated fundraising method where startups sell digital tokens in exchange for cryptocurrencies or fiat money.
Cardano, the blockchain that ADA is on, is a smart contract platform. The platform acts like a decentralized application store and computer. It can be used to send and receive digital funds or to create applications or contracts.
The way Cardano works is unique because it isn’t just one layer. Instead, the protocol has been divided into two layers that work together to allow for complex programmability. While this approach is different from others, it also provides flexibility and security through a democratic governance model and the use of extensive peer review.
Primarily, Cardano has three goals: scalability, interoperability, and sustainability. If you are looking for new coins to add to your watchlist or portfolio in 2022, ADA should be one of them.
Polkadot’s price has remained relatively stable since its inception. Suppose you’re interested in adding Polkadot to your portfolio. In that case, it will be important to understand how it differs from Ethereum and other cryptocurrencies that are similar in nature or purpose before buying this digital currency.
The primary difference between Polkadot and Ethereum is that Ethereum can only support one blockchain protocol at a time, while Polkadot supports multiple blockchains through connected “parachain” protocols.
As with any investment decision, you’ll want to weigh the risks associated with investing in Polkdot against any potential rewards that could come from investing in this cryptocurrency before deciding if it’s right for your investment portfolio.
We couldn’t talk about the top cryptocurrencies without including XRP, the third-largest cryptocurrency by market cap. XRP is the native cryptocurrency of the Ripple network and plays a key role in the revolutionary payment system that banks can use.
Unlike other cryptocurrencies on this list, XRP is not mined. Instead, it was initially issued at a fixed rate when it was first launched in 2012. This is unlike most other cryptocurrencies, which are not centrally controlled and instead rely on a network of users all connected to confirm transactions or “mine” coins.
Today there are around 100 billion XRP tokens in circulation – but only around 40% are available for trading as Ripple has kept a large portion of them in escrow.
You may have heard of Solana from their partnership with Serum, the world’s first completely decentralized derivatives exchange. But after a little research, you’ll probably be hooked on so much more. You might have questions like how to buy SOL, what is SOL, why should I buy SOL, and more.
Solana is a proof of history blockchain that uses a mechanism called Proof-of-Stake (PoS) Time Stamping to keep track of when each block was created. As such, it does not need to store or reference previous blocks, which allows for faster data storage.
While there are many different things that Solana can do, its main focus seems to be building new and exciting games and dApps on the blockchain. Additionally, they aim to make their blockchain secure by limiting the number of transactions per second (TPS) they can handle without compromising security.
When we say “limit,” what we mean is that Solana can handle over 50k TPS at least. This aspect makes them unique among other blockchains because most blockchains are limited by how many TPSs they can handle at any given time.
Dogecoin (DOGE) is a good coin to keep on your watchlist. DOGE was first introduced in 2013 as a joke based on the popular doge meme and has no real purpose apart from being traded and used as a tipping currency online.
Last year, Dogecoin rose over 5,000% between January 1st and February 8th, 2021. It went from having a market cap of $50 million to over $10 billion in less than two months.
Dogecoin started as just another altcoin, but it’s become one of the most talked-about cryptocurrencies because of Elon Musk’s tweets. Whenever we look at what drives the price movement of an asset, we need to look at three different factors: supply and demand, market sentiment, and fundamentals.
DOGE is being driven by market sentiment alone. The cryptocurrency was made for fun without any real plans for it to be used or invested in seriously by anyone. However, it has since become one of the hottest assets to trade this year because people are buying into crypto memes in response to the current financial crisis.
Diversify Your Crypto Portfolio With These Top Altcoins
If you’re new to the crypto space, knowing what cryptocurrencies you should add to your portfolio can be a bit of a challenge. The decision can become particularly difficult if you don’t have extensive knowledge of how cryptocurrencies work.
Perform research on your own. If you want to do some digging around and spend some time on the internet learning about different coins, this may be a good option for you. Many online sources can help educate you on the various types of currencies that exist in the cryptocurrency world and their various uses.
Seek advice from an expert financial advisor. If you already have one who knows about cryptocurrencies and is experienced with investing, asking for advice might be beneficial. Even if they don’t know much about digital assets themselves, they might be able to point out things that make sense for someone in your position or not.