Shiba Inu released the top 10 cryptocurrencies this week. But that doesn’t mean you should buy it.
the main points
- Shiba Inu has grown significantly this month, but its price tag will be difficult to maintain.
- Ethereum, Cardano, Aave, Solana, and Polkadot are all better long-term choices.
Shiba Inu (SHIB) price is up more than 850% since the beginning of October, largely on the broad back of Robinhood’s meme coin listing. Shiba Inu is one of many Dogecoin (DOGE) imitations that gained market share after Doge’s meteoric rise to fame.
SHIB initially jumped at the start of October after Elon Musk tweeted a photo of Shiba Inu’s puppy, which SHIB fans took as an endorsement. He later tweeted that he does not own SHIB and continues to focus on the original Dogecoin. But this temporarily halted SHIB’s growth. Instead, speculation that Robinhood might respond to the petition of more than 400,000 signatures proved more aggressive and continued to raise the price.
Unfortunately, Shiba Inu has very little use in the real world. There is a ShibaSwap exchange where investors can share SHIB to earn interest. But it is very difficult to see how he can maintain this price for any length of time.
Instead of focusing on what is wrong with Shiba Inu, let’s take a look at some of the cryptocurrencies out there that have better long-term prospects. Here are five to put on your watch list.
1. Ethereum (ETH)
Ethereum is the second largest cryptocurrency by market capitalization and was the first cryptocurrency to offer smart contracts. Smart contracts are small pieces of self-executing code that make it possible to create applications on the blockchain.
Ethereum has already grown over 150,000% since its launch in 2015, but the network is now experiencing heavy congestion and high transaction fees. However, Ethereum still hosts the lion’s share of decentralized applications and it’s hard to underestimate its first advantage.
It is in the process of upgrading to Eth2 to make the system more sustainable and scalable. Assuming its success, we can expect Ethereum to continue powering a large cryptocurrency industry.
2. Cardano (ADA)
Cardano is the brainchild of Charles Hoskinson, one of the founders of Ethereum. Instead of upgrading the existing blockchain to make it faster and more efficient, the Cardano team went back to the drawing board and built a new blockchain from scratch. Cardano’s research-based approach means he has been much slower in developing his technology and only recently launched his smart contracting capability.
What sets Cardano apart is that he already has a number of partnerships in the real world, particularly in Africa. For example, earlier this year it committed to working with Ethiopia’s Ministry of Education to store students’ academic records on the blockchain.
3. Aave (AAVE)
Aave is a decentralized finance (DeFi) protocol focused on the lending and borrowing industry. DeFi takes the broker – that is, the banks – from a number of financial transactions. To borrow from a DeFi lender, people can skip regular paperwork or credit checks. Instead, they just need to make a deposit in cryptocurrency.
Be aware that DeFi lenders may be hurt by increased regulation, especially in the US. However, Aave is a major player in this field and should be able to navigate any legislative changes successfully.
4. Solana (SOL)
Solana has made extraordinary gains this year, rising more than 12,000% since Jan. It is one of the many cryptocurrencies seen as a potential killer for Ethereum due to its fast and low-cost transaction processing.
I’ve always been cautious about buying coins at higher levels, but so far Solana hasn’t shown any signs of stopping. It has strong leadership and has attracted many reputable investors. For now, Solana appears to be in a good long-term position.
5. Polkadot (DOT)
Polkadot set out to solve another problem faced by Ethereum and other legacy blockchains – they don’t communicate well with each other. It is completely different, but it will be more like a bank account and the inability to transfer money to another bank. This is why solutions like Polkadot are essential to the future of the crypto industry.
There are two players in this field, but Polkadot has a good reputation and already has a number of projects working on its platform.
Do your own research
Cryptocurrencies are a relatively new and unregulated market, which makes them a high-risk investment. Each investor has different priorities and a different tolerance for risk. But even if you are comfortable with high-risk investments, it is still better to invest your money in coins that have real interest than speculative meme coins.
Make sure to thoroughly investigate any coins before purchasing them. You should be comfortable with the risks involved and ensure how well the coin fits into your overall investment portfolio. Pay attention to the currency’s leadership, its suitability to its competitive environment, the problem you plan to solve, and the number of people it may affect.
Given the levels of risk and volatility in cryptocurrency, it is only important to invest money that you can afford to lose. That way if the price drops next week, you won’t be under pressure to sell at a loss to cover your other expenses. All the aforementioned coins are available from most cryptocurrency exchanges, so you can buy from one that offers reasonable fees and protects your security.
Buy and sell cryptocurrencies on an exchange chosen by experts
There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. In order to find the right feature for you, you will need to decide which features are most important to you.
To help you get started, our independent experts have tested the options to bring you some of our best crypto exchanges for 2021. Check out the list here and start your crypto journey, today.