Over the recent time, cryptocurrency has significantly become famous, well advanced, and how we use money. The cryptocurrency market has numerous cryptocurrencies available and therefore while making investment, an intensive research will be done to make the best decision on the best coin to invest on.
The volatility of the crypto market influences the prices of currencies. It is essential to understand that the market volatility of cryptocurrencies made it risky to make investments on. Therefore, before making investment certain factors should be put into considerations, which includes; making of fundament and technical analysis to know the direction of the market, market trends, and knowing the point to use stop-loss.
Looking at certain conditions such as; use case of coins, promising futures, adoptions, tokeconomics and market capitalizations, etc this article will be making emphases on several cryptocurrencies that you can make investments on.
Bitcoin ($BTC)
It is often known to be the first cryptocurrency. It uses a technology known as “blockchain”. This technology works in a network based on decentralization to secure peer-to-peer transaction. Bitcoin has important features which include; its future potential, decentralized network, and its scarcity.
Ethereum ($ETH)
New crypto coin and decentralized applications can be created using Ethereum on its network. It is known to be the second largest cryptocurrency. Ethereum brought about the ideal of smart contracts which plays a vital role in the crypto industry. Ether is the native token of the Ethereum network. It has a good potential future with a promising increment because of its use case.
Binance Coin ($BNB)
Binance is one of the biggest centralized exchange, performing a multipurpose-tasks such as; serving as a trading platform, serving as a wallet platform, a launchpad platform, etc. Binance coin ($BNB) is the native coin of $BNB. This native coin has various uses in the Binance ecosystem or network, these uses include; using $BNB coin to participate in token sales on Binance launchpad, it is use to gives lower trading commissions, and more. Binance coin have important use case that can be use in decentralized application for the purpose of decentralized finance (DEFI) activities in the smart chain network, also it enables transactions on cross-chain.
Cardano ($ADA)
The cardano network has a native token called ($ADA). It enables the creation of smart contracts and decentralized applications due to the possession of blockchain technology and its flexibility. Its goal is to build a platform for developing decentralized applications and smart chain projects.
Ripple ($XRP)
Ripple is a digital currency and a payment system which was developed to carry out international transactions quickly and efficiently. Ripple plays a significant role in making international payments due to their collaborations with different financial institutions, and other use cases.
Polkadot ($DOT)
Polkadot is used as a governance and bonding token and it has a native coin called $DOT. This is a multi-chain platform which makes it feasible for numerous blockchain to communicate with one another. It strives to build a network that are decentralized and accessible that can render the transmission of data between different blockchains.
Solana ($SOL)
Solana is created to assist projects that are develop on decentralize applications (DAPPs) and decentralized Finance (DEFI). However, it is a blockchain platform that help to execute transactions in a fast and less expensive manner. For the purpose of staking, investments or performing other transactions on the Solana ecosystem, $SOL was created as its native token.
Litcoin ($LIT)
Most times, Litcoin is called “Bitcoin Gold”. It was among the first set of cryptocurrencies that was created after the invention of Bitcoin and as that, it has some comparable to it. Due to its rapid block generation times and several hashing algorithm. Litcoin is enticing for regular usage and for carrying out less transactions every day.
ChainLink ($LINK)
It is a decentralized network that provide information to smart contracts. Using Chainlink, the challenge faced by off-chain information sourcing by smart contracts can be solved. Through decentralized network of oracle, $LINK network provides accurate information to smart contracts and APIs. It has a native token called $LINK which can be used as a medium of payment for smart contracts that utilizes the data provided by the link network.
Stellar Lumens ($XLM)
Just as Ripple, it is a blockchain platform that a payment system that is use to carry out international transactions quickly and efficiently. However, this project was created to offer financial services to people operating banking services and those that are not operating on banking services around the world. It has a native token called $XLM, which help to prevent network spamming and help in enabling transactions om its network.
Summary
The advancements of technology have led to the developments of different cryptocurrencies. This has made it cumbersome to know the best cryptocurrency to invest on. In the content of this article above, certain things such as; tokeconomics, use cases, market capitalization, market trend, etc are to be put into consideration while making investment on cryptocurrency.
As a newbie coming into the crypto space as an investor, it is important to have in-depth understanding of the market trends, and its working mechanism. Understand how analysis can be carryout on the chart as that will help to easily detect the directions and movement of the market.
