Look for solid coins with reliable business plans.
There are over 11,000 cryptocurrencies on the market right now, and it’s not easy to predict which of them might be successful in the long run.
Unlike investing in stocks, when you buy cryptocurrencies, it is difficult to analyze the fundamentals because the market is very new. You also can’t be sure that people are telling the truth because there are very few regulation.
Many cryptocurrencies will fail as we move to the next stage of this technology. As a result, the cryptocurrencies that are most likely to do well in the long-term are those with strong leadership, solid fundamentals, and reliable long-term insights.
Before we get to the list of currencies with potentially brighter futures, it’s worth explaining some of the reasons why I stayed away from Doge. Dogecoin’s popularity may help shape the future as a form of digital payment, but it’s still struggling to grow further (and the price may drop). this is the reason:
- It does not have a white paper or a full-time team. Dogecoin has a huge community of loyal fans, but no one is driving the ship.
- Price is highly dependent on tweets from Elon Musk. Musk’s influence has sent Dogecoin prices skyrocketing, and this is not a sustainable growth driver.
- One person owns 28% of Dogecoin. Almost a third of the Dogecoin is in a single anonymous wallet. About 100 portfolios make up about 65% of the total DOGE market. So a small group of people (and one in particular) can have a huge impact on the price.
- There is a lot of competition in the digital payment space. Fast and cheap transactions are an attractive feature of digital currencies, but the introduction of stablecoins and government-backed currencies could undermine this market.
More importantly, there are a number of exciting projects that are opening new horizons and using blockchain to do exciting things. Here are three of them with high chances of success.
Three cryptocurrencies with futures contracts brighter than Dogecoin
1. Ethereum (ETH)
The man behind Ethereum is crypto visionary Vitalik Buterin, and the project has attracted an active community of programmers and developers. Ethereum is the second largest cryptocurrency by market cap, and it was the first cryptocurrency to launch a smart contract capability. Smart contracts are small pieces of self-executing code that reside on the blockchain. They removed it from the system records Single transactions of a programmable network that can run applications. As a result, nearly 3,000 applications and many other cryptocurrencies have been created on the Ethereum platform.
In some ways, Ethereum has been a victim of its own success. Its popularity means that its network is very congested, so users have to pay high gas (transaction) fees to use it. It was also built using a power-intensive Proof of Work mining model. That’s why it’s undergoing a major upgrade to Eth2 to be greener and process transactions faster. But this transition will not be completed until at least 2022.
However, it recently completed a successful smaller upgrade called the London Hard Fork. This builds confidence that the company can implement greater developments in the coming years.
2. Cardano (ADA)
Cardano was founded by Charles Hoskinson, one of the co-founders of Ethereum. It is a third generation cryptocurrency. Instead of upgrading to address scalability and power consumption issues, Cardano used lessons from Bitcoin (BTC) and Ethereum to design an entirely new blockchain. It was designed to be faster and more sustainable from the start.
However, Cardano’s biggest attraction may be its biggest weakness. Teammates review each step before it is posted. This means that Cardano’s blockchain will eventually function like a finely tuned engine. However, it also takes a long time to develop. For example, Cardano is only planning to launch smart contracts in September. Other programmable block chains have been running it for years.
On the positive side, Cardano has also proven his realistic abilities. It has various projects in developing countries, such as the partnership with the Ministry of Education in Ethiopia. This pilot scheme will use Cardano’s blockchain to record the academic progress of 5 million students, giving them all tamper-proof educational credentials.
It remains to be seen if Cardano’s slow and steady approach is too slow or too consistent, but I think it has a bright future.
3. Aave (AAVE)
Decentralized Finance (DeFi) is an umbrella term for applications that remove intermediaries (banks) from financial transactions. For example, you might use crypto as collateral for a loan without the need for a credit check or paperwork.
At heart, Aave is a DeFi lender. Investors can earn interest by contributing their cryptocurrency to the lending pool. They get a percentage of the interest that borrowers pay on their loans. It has some strong partnerships and a good reputation. In addition, the DeFi industry could change the way we do business with banks.
Know that authorities can crack down on the entire DeFi sector with increased regulation. However, it is unlikely that it will completely destroy the market. And established companies like Aave are likely to ensure that their products can withstand any regulatory scrutiny.
Cryptocurrencies are already risky enough
All these currencies are available from the best cryptocurrency apps and exchanges. Do your own research and understand what each company does and how it fits into your investment strategy, and don’t invest money you can’t afford to lose.
There will be other Dogecoins – coins that go on to stardom due to celebrity endorsements and other factors we can’t predict. But personally, I don’t like to gamble with short-term winnings, even though those winnings can be tempting. I could potentially lose this money to a scam.
I want coins that have the best chance of surviving a potential crypto crash and doing well over the next five to ten years. For me, cryptocurrencies above all have the experience, knowledge and foresight to outperform any short-term winners.
Buy and sell cryptocurrencies on an exchange chosen by experts
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