Cryptocurrency is the future of money, and even though it is still in its infancy and lacking the regulatory systems and networks to fully utilise. The shared agreement to use and embrace this new wave of technological assets, means that the current financial systems that control, regulate and maintain paper currencies such as the USD, GBD, EURO, YEN etc will no longer maintain a monopoly over the financial and monetary markets, and moreover, human affairs.
Cryptocurrencies are used primarily outside existing banking and governmental institutions, and exchanged over the Internet. While these alternative, decentralized modes of exchange are in the early stages of development, they have the unique potential to challenge existing systems of currency and payments – Wikipedia
Besides being the future and the vigilant citizens currency of choice. Cryptocurrecny have been known to make many rich and therefore, there is a financial incentive to early investors that that pick the right coins. There has so far been two waves of monumental growth in the cryptomarket. The first being that of Bitcoin, and more recently that of Ethereum (which isn’t a coin/currency as many believe).
These digital coins make a great investments for those wanting to diversify their portfolios. Much like gold or silver, they can be backed and stable when traditional currencies fall or become obsolete.
Great, So How Do I Invest?
There are essentially two ways to enter the market. The first is to buy the coin using your money of choice, either early in its funding or down the track. Or by “mining” the coins using computation. Which is the system that allows for these decentralised proofs of transactions to occur in the network. Read more here
After dabbling in cryptocurrency after the first wave (through purchase & mining) and missing out on the Ethereum bubble through the second wave. I decided that I could not afford to miss another opportunity like this. Through research into the market, I’ve discovered new coins that peaked interest could show good long-term potential. These will be a good starting point for you.
[Note: I am not a professional, so risk at your own merit]
Cryptocurrencies To Invest In 2018 & 2019
- Bitcoin – The original goldenchild of cryptocurrency is different, because the supply of Bitcoin is mathematically limited to twenty one million Bitcoins and that can never be changed.
- Ethereum – Adds the benefit of smart contracts, which cannot be censored, fraudualent or interference with, by a third party. Smart contracts can be used to to store and transfer value without a middleman.
- Ethereum Classic – Is identical to Ethereum, but runs on the original blockchain which was forked after the technology was hacked, due to a bug. This hard fork has led to the cryptocurrencies ETH & ETC.
- Litecoin – Is the younger and more lightweight version of Bitcoin which allows instant, near-zero cost payments to anyone in the world.
- NEO – originally Antshare, which was lost in translation. Is basically Ethereum 2.0 and its direct competitor, with the ability to perform more transactions per hour and open to multiplie programming languages.
- Monero – Is based on a different kind of algorithm that focuses on privacy of users and scalability.
- Dash – A similar coin to Monero which focuses on the privacy and anonymity of its users and transactions.
- Steem – Steem is a cool social media platform similar to Reddit, which grants is users actual monetary rewards based on its own Steem currency.
- IOTA – Is a real time open market platform, with no fees. Focused on business-2-business transactions.
- Waves – A decentralised crowdfunding and trading platform, which users can use to create custom tokens.
- Golem – Defined as Airbnb for computers. The Golem Project allows users to rent out their unused CPU/GPU capabilities through cloud computing systems for rewards.
- Peercoin – Seeks to be the most secure cryptocoin at the lowest cost, rewarding all its users by paying 1% annual PPC dividends when minting.
- PIVX – Is a privacy-focused, decentralized, open source cryptocurrency run by a global community of creators, innovators, and technology enthusiasts.
- TenX – Has tackled the major problem of how to actually spend cryptocurrencies in real life.
- Cardano – An open source and patent free, Cardano is engineered for efficiency and scalability with an aim to create the most useful and complete cryptocurrency.
- Tron – is designed for payments, development, storage and credit sharing for global digital entertainment platforms. Such as gaming credits and currency.
- Siacoin – is the first decentralized storage platform secured by blockchain technology. The platform leverages underutilized hard drive space to create a more reliable and lower cost network than traditional cloud storage providers eg. One Drive & Google Drive.
Almost all the coins have spiked in gains and are due to undergo stabilising to the markets needs and capacities (until there is more fake news to create hysteria). We can see that there is a strong correlation between the gains of the major coin BTC and the other alternativecoins (Altcoins). Attracting people that want a share in the pie, which leads new buyers to look at other currencies for the next big win. Almost seems like any gains have been because of the increase in the price of BTC.
Now this does not take away from the long-term value of Cryptocurrencies, not at all. But it is important to understand the power of hype and human emotions when it comes to such instances. Being an eager witness to the most recent spikes and having the foresight to take an eagle eye approach to the market has already made me a better investor. However, I too have fallen for the rollercoaster ride of IOTA and NEO. It’s all very unpredictable and high gains and lows seem to be the norm and you need to detach yourself from the daily swings when investing.
In the end we need to realise that the value of other coins should not correlate to Bitcoin. They are valuable regardless of what Bitcoin is valued. Some would even argue that Bitcoin has no future and is currently more of an icon and store of value. Even though cryptocurreny has become synonymous with Bitcoin, it isn’t the end and the future of the technology.
Ethereum, the other Bitcoin
For many newbies entering the market, ETH holds quite a bit of promise. However, the same thing can be said about Ethereum. Even though some of the new ICOs and other coins like Waves were setup on the technology of Ethereum, it does not guarantee longevity. As there are already new platforms that are competing in its space, such as NEO.
Ripple (XRP) still holds has the third biggest market cap and has recently jumped in price. Though some from the community equate it to profiting from a genocide. I personally chose to stay away from it, because the ethics of investing and better future for us all is more important to me than double gained loses.
With new coins starting every other week. There is an ever growing list of options. However, for those who are in it for the long-term, then serious thought must be given to longevity of the coins and their platforms. Also reaslise that many fulfill the same/similar functions and therefore, are directly competing with one another.
The Ethereum (ETH) vs Ethereum Classic (ETC) debate is also something to consider. Now that Ethereum has all the attention and the market capital behind it, will ETC be able to survive long-term and maintain its value and status? Also why invest in ETH when NEO is faster, more open and not overprice? NEO is ETH 2.0 and where my personal bets are. It hasn’t forked, is sleeker and sexier, plus it just makes more sense.
NEO can support 10,000 transactions per second, making it way more efficient in comparison to Ethereum. And what is Solidity (Ethereums programming language), when NEO can be built and maintained using .Net, Java, Python & Go. The future must be as accessible as possible, and that is what NEO is aiming to do.
Also we must remain vigilant, cryptocurrencies have the potential to create for us, a future that is better governed and more prosperous in multiple dimensions of life. If we make the mistake to merely run after profits alone, there might not be a future to spend our earnings.
What’s To Come
There are many things to consider, when making these investments. But one thing is for sure, the cryptocurrency market can be confusing. Meaning you will be seeing overall unpredictability until the losers are pushed out or better systems of news and information is placed + actual products are produced.
Using Chinese whispers to pass fake news to one another isn’t the best way forward. The next big gain may very well have to do with global adoption and systems of regulations that will make these more viable in the present economies.
But it is safe to say that previous trends of the cryptocurrency market is the safest indicator of its future. Identifying these trends is the key. If the market has reached its height, and has now has fallen. Know that it will most likely return to that point again. So when buyers aren’t feeling confident and bearish, it’s a good time to start shopping for the more courageous.
- The market is still very volatile due to the lack of rules and regulations.
- Cryptocurrencies are in their infancy, which is both good and bad.
- Cryptocurrencies aren’t currently being fully utilised, including Bitcoins.
- New investors need to understand that they are a long-term investment.
- There is a risk of hacking & theft. Safety isn’t the highest factor for these investments right now.
- Fake news is created to influence the market.
- When looking to invest, future potential and community are very important factors to estimate future value.
- Focus on a few coins rather than spread out your investments thinly.
- Buy low and keep. Also consider reinvesting the initial gains back into the coin.
- More than just investments, they stand for a free and decentralised future.
Coin Market Capitalizations gives you a real-time charts of all the cryptocurrencies in all major world currencies. Keep up with the news using Google Alerts or the Reddit cryptocurrency sub. Follow Youtubers such as Ameer for latest news & discussions on the topic. And checkout ICO listing websites to see the latest startups based on the these innovative technologies.
Coinspot – If you’re in Australia, New Zealand or somewhere remote, Coinspot is your best bet for cryptocurrency purchases and trading. Not the best rates, but has a great selection of coins, features and security. [Referral Link]
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