These three cryptocurrencies deserve to be added to your watchlist this month.
the main points
- Polkadot, Stellar Lumens, and Sandbox are three alternative currencies that you may want to keep a close eye on if you are interested in cryptocurrencies.
- While these altcoins could see big moves in November, you have to remember that cryptocurrency is a volatile industry with many question marks.
October was another record-setting month for cryptocurrencies as Bitcoin (BTC) broke past all-time highs and the overall crypto market crossed the $2.6 trillion mark for the first time.
As expected, the spikes elicited screams from experts on both sides of the debate. Some warn that the rallies are symptoms of a bubble set to burst, while others predict that Bitcoin and the crypto market will rise further. It is always a good idea to be careful after a big price hike, given the volatility in the cryptocurrency market, there is a strong possibility that prices will drop again.
Long-term investors may find it easier to keep their eyes on the horizon and adjust market sentiment in the short term. But it’s still a good idea to keep an eye on general trends, especially because they can guide our decisions about which cryptocurrencies to keep on our watchlists.
1. Polkadot (DOT)
Polkadot is one of many alternatives to Ethereum (ETH), with smart contract capabilities that process transactions quickly and inexpensively. Where Polkadot stands out is its interoperability – the ability to talk to other blockchains – which will be essential to the success of the crypto industry as a whole.
Polkadot deserves special attention in November because it will start the parachine auctions. What are Parachin Auctions? Let’s start with the parachin. Threaded chains located on top of the main Polkadot relay chain. Parachains work in parallel with each other to avoid the network congestion we’ve seen on other platforms.
There is only space for a limited number of parachains, so projects need to bid to rent space on the network. Hence the auctions.
If you want to dig deeper, take a look at some of the projects that are bidding for parachute space. Investing can be more complicated, but understanding it is a great way to learn more about cryptocurrency development.
Available from the following US cryptocurrency exchanges: Coinbase and Kraken.
2. Excellent Lumens (XLM)
I am often hesitant about cryptocurrencies designed solely as a means of payment. One concern is that it is a crowded space – a space that is complicated by stablecoins and central bank digital currencies (CBDCs). However, Stellar Lumens is not just an outdated digital payment method. It has an eye on the multi-billion dollar remittance and money transfer market.
If Stellar isn’t already on your radar, November is a good time to add it to your watchlist — especially since it recently announced a partnership with one of the world’s largest money transfer companies, MoneyGram.
Stellar wants to make it easier to send money – be it dollars, pesos or bitcoin – around the world. Blockchain technology and the XLM token are used to make the trading and transfer of funds more efficient.
Stellar has a lot in common with Ripple (XRP), another digital payment currency. This is not surprising since one of its founders, Jed McCaleb, was also a co-founder of Ripple. However, while Ripple is focused on the global banking industry, Stellar is more individual oriented. Importantly, while Ripple has an ongoing lawsuit with the SEC pending on it, Stellar Lumens does not.
However, be aware that regulation may still affect XLM as authorities look to introduce more controls on bank-like services, which may include Stellar Lumens.
Available on the following US cryptocurrency exchanges: Coinbase, Binance.US and Kraken.
3. Sandbox (SAND)
From Decentraland (MANA) to Sandbox, virtual worlds have been getting a lot of attention lately. In fact, Facebook plans to spend $10 billion this year on its metaverse division and Mark Zuckerberg sees virtual reality as a major topic for the future.
Cryptocurrency is an ideal form of payment in these virtual worlds, although it is not clear if one virtual world will eventually come to the fore. It’s worth checking out the landscape carefully and even visiting these metaverses before you part with your cash.
Sandbox players can purchase and create digital real estate, as well as create their own games and NFTs. It is an Ethereum-based game, like the very successful Axie Infinity AXS), operating on the play-for-profit model.
Available on the following US cryptocurrency exchanges: Gemini and Kraken.
Be careful and do your own coding research
Every month, we try to highlight interesting cryptocurrencies that deserve further research. But you need to do your research as well – see how each investment fits into your overall portfolio, whether you are comfortable with leading the project and its long-term vision, and whether you think crypto will find enough usefulness with a broad user base.
We usually only show coins in this column that you can buy from major US cryptocurrency exchanges. There are many opportunities with other coins, but buying from lesser known exchanges carries additional risks. Because there are a lot of exciting cryptocurrencies be Easily available, it doesn’t make sense to tell you which ones are hard to get.
November promises to be another interesting month. Not least because we may finally get some long-awaited additional regulatory coding guidance. Although this has been the case for several months now, so I’m not holding my breath.
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