If you are thinking about adding to or diversifying your investment portfolio, you have come across the right article. Explore what advantages of traditional cryptocurrencies you have been missing out on or have not paid enough attention to. Also, get to know new projects that might bring you some good income from investments.
The more nuances you learn at the start, the more profitable your investment will be. If you are already sure which cryptocurrency to choose, go to exchange cryptocurrency at good rates.
Crypto that still worth investing
Pay attention to cryptocurrencies that have performed well over the years. Of course, many of them have had ups and downs in price, but recently the crypto market has seen a positive trend. This means that many major currencies could rise in value in the near future.
Also, traditional currencies have a huge market capitalization. This is calculated by multiplying the number of crypto assets in circulation by the price of the respective asset. That is, reflecting the value of the entire crypto industry.
Bitcoin (BTC)
Bitcoin is one of the most popular and trusted cryptocurrencies, often topping the charts and picks. It was created in 2009. Like most cryptocurrencies, BTC runs on a blockchain. Blockchain works like transaction logs that are distributed across a network of thousands of computers.
This system guarantees good protection against fraudsters. In order to change the records, a fraudster would have to go into the distributed ledgers and solve a cryptographic puzzle. This process is called proof-of-work.
Bitcoin has seen its price skyrocket, thanks to its worldwide popularity. Have you ever wondered why you didn’t buy Bitcoin in 2009 and sell it at its peak price? You can invest some of your money in Bitcoin now. By May 2023, its price had risen more than 5,000%.
Market capitalization is almost $525 billion.
Ethereum (ETH)
Close to the market capitalization of Bitcoin is Ethereum. It has a market capitalization of $218.9 billion.
Ethereum is multifunctional. It is both a cryptocurrency and a blockchain platform. Ethereum attracts investors and developers of apps and various software. The benefits of this cryptocurrency for them are smart contracts. They are automatically executed when conditions are met.
The second advantage is the availability and non-fungible tokens (NFT).
Ethereum has also seen rapid growth in its history. From April 2016 to the end of May 2023, it increased by more than 16,000%.
Tether (USDT)
Unlike the first two cryptocurrencies, Tether is a stablecoin. Its exchange rate is pegged to fiat currencies, such as US dollars or euros. In the future, Tether is expected to retain a value equal to one of these fiat currencies.
Therefore, you can use Tether not only as a resource for investment but also as an alternative to the dollar for various transactions and transfers.
In this way, Tether can be useful for diversifying your investment portfolio as a relatively stable cryptocurrency. It is less likely to risk losses, as it could be with more volatile coins.
New crypto projects
The second part of your investment portfolio may consist of newer cryptocurrencies. The volatility of such coins can bring huge investment returns in the future. We recommend exploring a few of these projects.
Balancer
The balancer is a decentralized financial platform (DeFi) that can offer several unique features. It is built on the Ethereum blockchain.
One of the main advantages is the ability to create customizable automated market makers (AMMs). They allow traders to assign their own liquidity pools and determine commissions.
The second advantage of Balancer is its smart order routing system. It facilitates transactions between multiple liquidity pools and allows users to select the most attractive prices.
The third advantage is the proprietary BAL management token. It is designed to communicate with users and cryptocurrency holders. Everyone can make suggestions.
Thus, Balancer is useful for investors and users because of its manageability. The market capitalization is more than $264 million.
Qtum
Qtum is also a decentralized blockchain platform.
It has two super important advantages. It combines the security of Bitcoin’s UTXO model with the flexibility and capabilities of Ethereum smart contracts. One of its key features is the use of the Proof of Stake (PoS) algorithm, which enables faster block creation times and more efficient use of energy than Proof of Work (PoW) systems.
Qtum also supports smart contracts written in popular programming languages, making it easier for developers to create and deploy decentralized applications (dApps) on the platform.
Additionally, Qtum has a governance system that allows token holders to vote on important platform decisions, ensuring community participation and consensus. Overall, Qtum offers a secure, efficient, and flexible blockchain platform for both developers and users. Its market cap is about $272 million.
Conclusion
Cryptocurrency is a rapidly changing and evolving environment. At the moment, more than 19,000 crypto projects have been created. Many of them are well known with very few barriers to entry. A sharp increase in the number of projects in the crypto world was observed in 2022. Then thousands of new crypto projects entered the market.
Therefore, the choice of cryptocurrencies for the portfolio, which will not only receive profit but also retain their performance, and will be reliably protected from scammers, is a complex process.
In order not to lose all your funds, you should choose a variety of cryptocurrencies for investment. Build on your investment plan. Choose a few traditional currencies, a few reliable ones, and a few new but promising ones. Be sure to study the price history and information about the developers. Knowledge about the cryptocurrency world is your power and responsibility.
