Tag: Altcoins

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Cryptocurrencies

Bitcoin is Booming, But Which are the Best Altcoins to Own?

In the midst of the current Bitcoin bull run, it is difficult just to look any other way. After all, it is this pioneer crypto that has been hitting the headlines for weeks now. Both speculators and analysts have said the rally will continue. Also, there’s a likelihood that BTC will surpass the $20,000 mark, judging by recent performance and investor sentiment. In short, all our eyes have been glued to BTC, which has delivered a spectacular show hitherto. But, remember, investors must diversify. 

In the midst of the current Bitcoin bull run, it is difficult just to look any other way. After all, it is this pioneer crypto that has been hitting the headlines for weeks now. Both speculators and analysts have said the rally will continue. Also, there’s a likelihood that BTC will surpass the $20,000 mark, judging by recent performance and investor sentiment. In short, all our eyes have been glued to BTC, which has delivered a spectacular show hitherto. But, remember, investors must diversify. 

In the midst of the current Bitcoin bull run, it is difficult just to look any other way. After all, it is this pioneer crypto that has been hitting the headlines for weeks now. Both speculators and analysts have said the rally will continue. Also, there’s a likelihood that BTC will surpass the $20,000 mark, judging by recent performance and investor sentiment. In short, all our eyes have been glued to BTC, which has delivered a spectacular show hitherto. But, remember, investors must diversify. 

 Some spectators wonder whether it is still viable to jump in, naysayers are waiting for the crash, and risk-takers are diving deeper into the frenzy and multiplying their investments by the minute. Whichever your case, there are alternatives worth considering. 

Today, we take a look at some of the most promising altcoins, at least the ones you can bet your dollars on in the coming months. 

#1: Monero (XMR)

The rate at which Monero is rising is monumental – well, not price-wise, yet – but in terms of interest. Year-to-date 24-hour trading volume has increased by 20 times. The interest investors, regulators, and other stakeholders expressed in Monero in 2020 confirm that good tidings are in the offing. 

While Monero prices have not grown monumentally, they have still grown anyway. At some point in March, the coin was exchanging at $37. However, on pulling up its socks, it rose steadily beginning April to its current $130, a 400% gain. Let’s just say this is a modest gain given that the crypto has much more potential. 

Also worth mentioning is that Monero also recently reached $139, its 2-year high. Combining this with the fact that the crypto has become the center of attention among regulators, we are likely to see even higher volumes, which will boost speculation and eventually impact prices. 

Of course, things could go wrong and cause the crypto to crash, particularly if the Department of Internal Revenue succeeds in cracking its privacy – something they have been pursuing. Until then, XMR is one altcoin you cannot afford to lose sight of.

#2: Ripple (XRP)

Ripple has had an advantage over other altcoins since its inception, and that is because it was designed for real-time payment settlement. Essentially, Ripple is a platform that financial institutions can use to send money across borders with the following major advantages:

  • Lower costs than the traditional SWIFT system
  • Faster (real-time) settlements, compared to the traditional system that takes several business days.
  • Has all the security mechanisms of blockchain technology 

This background tells us that Ripple is a solid project, and we know solid projects have the growth potential – there’s no guarantee, but there’s hope.

Hope aside, Ripple’s native currency XRP has been performing modestly for the better part of 2020, trading between the $.013 – $0.69 range. If you compare it with Bitcoin’s performance, you’re likely to undermine Ripple’s year-to-date growth. But think again – since the 2017 crypto bubble, XRP has never reached the heights we see now. To be fair, surpassing the 2-year high is a milestone that signifies that this cryptocurrency is rising. 

You can choose to wait and see how things turn out, but it’s best to keep close tabs on XRP. 

#3: Fusion (FSN)

Fusion is one of the most underrated cryptocurrencies. Although investors are yet to see Fusion’s potential, there is an indication that this crypto will grow. 

Fusion’s potential lies in the adoption of DeFi, which is already on the rise. The crypto’s developers are working on several innovations that are set to transform DeFi. One of the most notable is the WeDeFi project that seeks to bring DeFi to the common person.

Fusion provides investors with different and exciting investment options. For instance, the crypto supports passive staking, which is only available in proof-of-stake crypto networks. With this investment option, you delegate your savings for verifying transactions. In proof of work networks, those with more tokens have higher staking power. Leaving aside the intricacies, Fusion can enable investors to earn by basically doing nothing. 

At the moment, the crypto is undervalued. It ranks at around 460 by market capitalization. This valuation will certainly change, especially as DeFi picks up pace. Meanwhile, you can invest in Fusion now while the prices are still low ($0.26) at the time of writing. When daily trading volumes increase as a result of DeFi’s mass adoption, consider this opportunity gone. 

#4: Ethereum (ETH)

Historically, Ethereum has been Bitcoin’s most fierce competitor. Best known as the king of smart contracts and decentralized apps, Ethereum has worked its way up to become the second-largest cryptocurrency by market capitalization. 

Ethereum’s tech and investment potential is its backbone. Developers have used the crypto’s facilities to build a wide range of applications, all of which add value to the network. However, it is the upcoming launch of Ethereum 2.0 that we should set our eyes on. 

On December 1 at noon, Ethereum will change from proof of work to proof of stake (no more mining). First, whenever cryptos undergo significant changes, a frenzy is created, and prices surge as investors scramble to be part of the revolution. Secondly, the staking system will encourage investors to lock their funds in the network to earn returns from verifying transactions. Since a higher stake gives one more power, investors are likely to lock more ETH to the network. The result? An inevitable shortage and a consequent price surge.

Unless something goes wrong, ETH will keep rising further in the coming months. 

#5: Litecoin (LTC)

Litecoin is among the oldest altcoins. It was created shortly after Bitcoin as a lite version of the pioneer crypto. As such, it is very similar to Bitcoin. The main difference between the two is that Litecoin is less resource-intensive, and this trickles down to users as faster and cheaper transactions. 

Like BTC and other major cryptos, Litecoin has shown stable upward growth in 2020, especially from April onwards. In November, it reached $86, its highest in the year. The crypto’s performance seems to be following Bitcoin’s performance, albeit not so closely. Even so, since the trend is upward, it is a sensible alternative at the moment.

There you go, folks! Take some time to monitor each of these from close quarters to find out which one works best for you.

Final Thoughts

While Bitcoin is currently grabbing headlines for its stellar performance, it is not the only cryptocurrency worth investing in. Monero, Ripple, Fusion, Ethereum, and Litecoin are equally savvy alternatives. These altcoins have a good track record, have solid projects behind them, and are currently performing well. Whether you’re looking for short-term or long-term investments, you now know which are the best altcoins to own.

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Crypto Daily Topic

Here is how to make a kill investing in Altcoins in 2021

As the bulls continue to run the Bitcoin market, investors have squarely focused their attention on this crypto. Meanwhile, many seem to not care about altcoins. 

As the bulls continue to run the Bitcoin market, investors have squarely focused their attention on this crypto. Meanwhile, many seem to not care about altcoins. 

As the bulls continue to run the Bitcoin market, investors have squarely focused their attention on this crypto. Meanwhile, many seem to not care about altcoins. 

Just like BTC, altcoins provide investors with a good opportunity to make money, both now and in the near future. Making money in the near future is the interest of this article. If you wonder why not just invest in BTC amid the current boom, your answer is right below. If you want to explore something different (from Bitcoin), your guide is down below as well. And for those who are curious to know how profitable altcoins can be, read on. 

This article will look at why investing in Bitcoin might be riskier than investing in altcoins, why you should consider altcoins, and what should be your next steps in that course. 

Why Not Bitcoin? It’s Currently the Talk of Investors 

Bitcoin is undoubtedly performing impressively. Since July, BTC investors have enjoyed a stable and significant growth of their assets. At the moment, it is the most enviable crypto. However, we cannot ignore the fact that the bulls will eventually run out of energy. Price falls after periods of booming growth are a natural part of market cycles. So, it is only logical to expect Bitcoin to start declining. 

What makes Bitcoin particularly risky at the moment is that there is a high chance that it will rapidly devalue when that descent begins. To be honest, $16K (which is still growing) is not a stable price for Bitcoin. While we might disagree on what is a good average for Bitcoin, historical figures show that BTC has an affinity for $10K. The point is when the hype dies down, speculations are confirmed as either true or false, and investor sentiment switches to pessimism, BTC will shed value until it finds some semblance of stability.

But altcoins go through the same cycle, so what’s the difference? Of course, all crypto inevitably cycle through the bear and bull markets. The difference is that Bitcoin is already in the bull market, and this favors those who jumped in about four months ago (that’s July). If you are not one of them, you may as well consider yourself late to the party and look in the direction of altcoins.

Can You Make Profits Investing in Altcoins?

The simple answer is, it’s complicated. Some altcoins are performing okay while others are struggling. But to be fair, altcoins are still profitable. 

Two things make crypto investments lucrative:

1. The margins you get through buying and selling coins, tokens, and other crypto-assets

— If you’re in the business of buying when prices are hiking and disposing of just before the descent begins, you can make profits trading any crypto. And if the price movements for an altcoin are significant enough and you get your timing right, you can make as much profit as you would with BTC. 

2. The gradual increase in the value of A crypto

— Some cryptos experience sustained growth against the dollar over the course of their lifetime. This growth is usually attributed to the usefulness of the project/idea on which the crypto is pegged. Gradual value growth makes sense, particularly to long-term investors. Just as Bitcoin solved the problem of having money controlled by central authorities, different altcoins solve different problems, which gives them the potential for gradual long-term growth. 

As you see, altcoins can be just as good as BTC. You only need to identify an investment ‘style’ that suits your needs and a good altcoin to match that.

Why You Should Consider Altcoins

#1: They are cheap

Actually, they’re not any cheaper than Bitcoin. Altcoins give you the chance to own more coins for the same amount of dollars. Whether this is any good is debatable, but the feeling you get by having a mind-boggling number of crypto coins to your name is satisfying. If you’re satisfied with your investment progress, you are likely to pursue the course further. That’s simply the logic. 

#2. The most profitable venture is not necessarily the most suitable for you

High margins can be irresistibly tempting. But on the flip side, the risks associated with high-margin investments are proportionately scary. 

We can safely assume that Bitcoin has had the highest growth in value within the last four months. However, we can also assume that the crypto will experience a slump when the bears come calling. Just because we don’t know when this will happen, we should not assume that it’s too far away. When choosing an investment, the amount of risk you’re willing to take matters a great deal. So, if you’re not into high-adrenaline crypto investments, you might want to consider altcoins for now.

#3. It would help if you diversified your investment

Investment wisdom dictates that one should never put all their investment capital into one asset. This is because no matter how lucrative an investment may appear, there is none without risk. 

There is no guarantee that Bitcoin will not face some unforeseeable calamity that would shatter its prices. Thus, in the interest of spreading your investment risk, it is worth considering altcoins. If you’re already a Bitcoin investor, that’s good. But what’s better is channeling some of your capital to altcoins to balance off the potential risks of a catastrophic BTC crash. 

Next Steps

If you are beginning to see altcoins as a good investment alternative in 2021, you are on the right path. Here are some steps to help steer you through that course.

#1. Research which altcoins are currently performing well 

All altcoins are not equal, and so are their investment prospects. Look at the price history of the coin, evaluate the concept’s soundness, and find out what experts are saying about the crypto. This information will help you eliminate investments that might not work for you and narrow down to a crypto that’s suitable for your needs. 

#2. Find out the altcoin’s growth potential 

You create value by solving people’s problems, and that’s the philosophy behind most successful cryptocurrencies. There are many altcoins for which crypto analysts are still struggling to find their usefulness. However, for the successful bunch, their ability to solve different financial problems has already been demonstrated. 

If you want to know that an altcoin will grow in the future, determine whether it has life-saving real-world use cases. Ethereum demonstrated the potential of smart contracts, and Ripple has shown how blockchain can disrupt real-time cross-border payments, and both have experienced sustained growth. As long as the crypto has a meaningful real-world utility, it is bound to grow, of course, unless something really wrong happens.

Final Thoughts

Altcoins are as good an investment as Bitcoin. Although BTC is currently booming, it is not the only worthy crypto investment. In fact, some investors may find altcoins a better alternative as some have yet to enter their bull markets. If you do your analysis properly and find a suitable altcoin, you can make reasonable profits when the market booms. Due to Bitcoin’s current hype and associated risk of entering the bear market, altcoins are a good option for spreading out the risk. Today is certainly a good day to think about altcoins. 

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Cryptocurrencies

Most Important Cryptocurrencies Apart From Bitcoin Part 2

1. Tether (USDT)

1. Tether (USDT)

1. Tether (USDT)

Tether was one of the pioneers of a new class of cryptocurrency known as stablecoins. Stablecoins are cryptocurrencies that avoid the legendary volatility of cryptocurrencies by being pegged to real-life assets. The cryptocurrency industry, including Bitcoin itself, is known for unpredictable price swings that can wash out gains in a matter of hours. This volatility is also the reason why cryptocurrencies have been slow at real-life adoption since users fear making losses. Stablecoins such as Tether exists to provide cryptocurrency users with both security and speed of cryptocurrencies with the stability of Fiat currency. 

Launched in 2014 by Tether Holdings, the project describes itself as a “blockchain-enabled platform designed to facilitate the use of Fiat currencies in a digital manner.” What this means is that Tether users also get to sidestep the complexity sometimes associated with crypto. As of July 18, 2020, Tether’s per-token value is $0. 997473, with a market cap of 9.2 billion. It currently occupies the third spot right after Bitcoin and Ethereum.

2. Bitcoin Cash (BCH)

Created in August 2017, Bitcoin Cash is one of the most recognizable altcoins. This is because it was born of a contentious hard fork of the Bitcoin blockchain. At that time, the Bitcoin community was split into two. One faction was against the idea of splitting the chain, while the other argued that for Bitcoin to reach its potential, it had to be able to process more transactions at each time.

Be that as it may, it’s one of the most successful forks of the dominant currency. The source of that success is probably the currency’s compelling offering of a much faster Bitcoin network. This it does by increasing the size of blocks, and as a result, a number of transactions each can hold. 

Satoshi Nakamoto intended Bitcoin to be a peer-to-peer electronic currency that could be used for day-to-day purchases. However, as the coin gained mainstream traction, so did transactions increase on the network, and the network slowed down due to the limited 1MB block size. The block limitation meant that one block could only handle a limited number of transactions, causing transactions to queue up and clog the network. 

Bitcoin Cash’s solution was to increase the block size to 8 MB, thus permitting more transactions to be held in one block. While one block on Bitcoin can hold between 1000 and 1500 transactions, one block on Bitcoin Cash can handle tens of thousands. As of July 2018, BCH’s price was $225.36. It occupied the 5th position in the market with a market cap of 4.2 billion.

3. Libra (LIBRA)

The decision to add Libra to this list can certainly raise eyebrows but bear with us. Important here can mean the scale and magnitude of a cryptocurrency’s potential disruption or simply the power of the outfit behind it. And going by those two yardsticks, Libra is, to put it mildly, important. 

The currency is set to be launched by Facebook. When Facebook broke out the news last year, it said the currency would launch in 2020, but at the time writing, we’re yet to see that happen. 

As would be expected, the news was met with mixed reactions. Some people were excited about the potential of a powerful entity such as Facebook, helping to push the concept of crypto into the mainstream. Others, especially regulators, met the news with indignation. The reason for this was twofold. 

One was Facebook’s unflattering history with how it has dealt with users’ data and privacy. Regulators submitted that Facebook would sell user data to advertisers, and then we’d have a repeat of the Cambridge Analytica debacle. The other reason was due to Facebook’s massive worldwide reach – we’re talking about billions of users – which regulators argued would undermine the global financial system. 

The reason for the cryptocurrency’s launch delay is probably its going back to the drawing board to create a cryptocurrency that can appease regulators. In July last year, David Marcus, the project’s head, in remarks prepared for US lawmakers said that Libra would be “the broadest, most expensive, and most careful pre-launch oversight by regulators and central banks in fintech’s history,” and that Facebook wouldn’t launch the crypto until it had “fully addressed regulatory concerns.” Upon launch, the project will be overseen by Switzerland-based Facebook’s subsidiary, Calibra.

4. Monero (XMR)

Monero is one of the cryptocurrencies that have been created to make up for Bitcoin’s less than satisfactory privacy approach. While the Bitcoin blockchain does not reveal a user’s identity, all its transaction history is out there for the whole world to see. With enough resources and dedication, an entity can trace down the real-life owner of a transaction. 

Created as a fork of Bytecoin in April of 2014, Monero is a privacy-oriented cryptocurrency whose development was completely donation-dependent and driven solely by the community. It utilizes “ring signatures” to anonymize transactions. A ring signature is a cryptographic signature in which several signatures are merged together, with all of them appearing valid, while in actuality, only one is. This makes it impossible to single out the real signature.

This level of privacy for Monero has caused it to become the go-to currency for clandestine dealings and criminal activities. No matter the reputation it has acquired, though, Monero has enormously contributed to the crypto space in its offerings. So, let’s see how Monero is doing in the market. At the time of writing, Monero has a per-token value of $68.63, with a market rank of #15 and a market cap of $2.1 billion.

5. Cardano (ADA)

Created by Charles Hoskinson and launched in September 2017, Cardano is a cryptocurrency platform on which people can send and receive value in a decentralized, peer-to-peer, and safe manner. Through this, Cardano wants to make the world “work better for all.” The cryptocurrency has been nicknamed the Ethereum killer, and given its rapid rise to the coveted top 10, it wouldn’t be a surprise if this prophecy came true in a few years.

Cardano has taken a unique and intriguing approach to its development process. Apart from being originally peer-reviewed by blockchain experts, academics, and researchers from various universities, protocol updates have to undergo the same round of evaluation by experts. Cardano’s rationale for this rigorous process is to ensure that the platform meets the highest standards for security, scalability, and efficiency, ultimately granting users a quality experience. 

Cardano is one among many third-generation cryptocurrencies, which is a term used to describe cryptocurrencies that seek to improve upon the deficiencies of the first generation (Bitcoin) and second-generation blockchains (Ethereum). As of July 19, 2020, Cardano has a per-token value of $.0123970 and is the sixth-largest cryptocurrency with a market cap of 3.2 billion.

6. EOS (EOS)

EOS is one interesting cryptocurrency in part because no one knows what ‘EOS’ stands for and because it rose to the high sanctums of cryptocurrency riding on a wildly successful ICO that raised $4 billion. The crypto was created by Dan Larimer, who is also the founder and co-founder of successful crypto projects BitShares and Steemit, respectively.

Just like Ethereum, EOS seeks to provide a platform for developers to create decentralized applications. Unlike Bitcoin and Ethereum that use the power-hungry proof-of-stake consensus mechanism, EOS uses a delegated proof-of-stake mechanism that is not only energy-efficient but also allows it to achieve an impressive TPS (transactions per second) capability of 1000+. As of July 19, 2019, EOS traded at $2.50 had a market cap of $2.3 billion that positioned it at #12 in the market. 

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Cryptocurrencies

Most Important Cryptocurrencies Apart From Bitcoin

As the most popular and successful cryptocurrency, Bitcoin enjoys most of the spotlight. For this reason, it’s easy for most people to think that cryptocurrency is synonymous with Bitcoin. Indeed, a YouGov study reported 75% of US adults knew about Bitcoin, while other cryptocurrencies such as Bitcoin Cash and Ethereum were each known by less than 30% of the population. 

As the most popular and successful cryptocurrency, Bitcoin enjoys most of the spotlight. For this reason, it’s easy for most people to think that cryptocurrency is synonymous with Bitcoin. Indeed, a YouGov study reported 75% of US adults knew about Bitcoin, while other cryptocurrencies such as Bitcoin Cash and Ethereum were each known by less than 30% of the population. 

As the most popular and successful cryptocurrency, Bitcoin enjoys most of the spotlight. For this reason, it’s easy for most people to think that cryptocurrency is synonymous with Bitcoin. Indeed, a YouGov study reported 75% of US adults knew about Bitcoin, while other cryptocurrencies such as Bitcoin Cash and Ethereum were each known by less than 30% of the population. 

If you’re an aspiring user of cryptocurrencies, or simply interested in that world, it’s important to acquaint yourself with other forces in the space. This article takes a look at other cryptocurrencies that have proved themselves worthy of attention and, of course, investor money. But before we get into that, let’s do a refresher on this new and exciting asset class. 

What are Cryptocurrencies? 

It’s necessary to do a recap of what cryptocurrencies are because many people associate the word cryptocurrency with just Bitcoin. So, when we are talking about cryptocurrencies and altcoins, what do we mean? A cryptocurrency, at its most basic definition, is a purely digital and internet-based currency that’s secured with modern cryptography and utilizes a ledger that is distributed across network participants. The most common type of distributed ledger is a blockchain. The blockchain concept always existed in the computer space but was only actualized in 2009 by the creator of Bitcoin, Satoshi Nakamoto.

The ‘crypto’ in cryptocurrency refers to the cryptography that is used to encrypt and hence secure cryptocurrencies and transactions. Cryptocurrencies subscribe to the tenet of decentralization, which means free from state manipulation or control and self-issuance. Cryptocurrencies are designed as code – almost always open source, with in-built mechanisms for issuance. These mechanisms vary from one cryptocurrency to another. 

As you probably already know, Bitcoin is the first-ever and most successful of cryptocurrencies. All other cryptocurrencies apart from bitcoin are collectively referred to as altcoins. Currently, there are more than 5,000 altcoins, according to Coinmarketcap. The total market valuation of cryptocurrencies is currently 269 billion, with Bitcoin taking the lion’s share with 62.3 billion in market valuation. Many of these coins have been designed to improve on Bitcoin in one way or another – either on security or speed or ease of storage (e.g., in terms of space). 

With that background, let’s look at some of the most important cryptocurrencies apart from Bitcoin.

1. Ethereum (ETH) 

Ethereum is a cryptocurrency and blockchain launched in 2015. The project is the brainchild of Vitalik Buterin, a Russian-Canadian programmer. Industry experts view Ethereum is the next most important crypto after Bitcoin. Let’s examine why. 

Ethereum is the next cryptocurrency that brought a ground-breaking product into the blockchain space. The project is more than a digital finance platform. Its main objective is to be a decentralized applications and smart contracts platform. Decentralized applications (DApps) are a new kind of application that can run without downtime and are free from control, manipulation, and censorship by a third party.

Smart contracts are a new kind of contract – not unlike the traditional contracts, but this time is purely digital, self-enforcing, unalterable, and completely transparent to all relevant parties. 

Applications on the Ethereum platform are powered by its native token called ether (ETH). Ether is the currency in which people using the Ethereum blockchain pay in transaction fees. As an investor, you can also use Ether as a store of value. Ether is the second most successful cryptocurrency after Bitcoin – even though it trails behind the dominant currency considerably.

In 2014, Ethereum launched a pre-sale (an initial coin offering ICO) to fund the project. The effort was incredibly successful and is credited with helping usher in the age of the ICO. Ethereum has also weathered one of the biggest security breaches in the history of cryptocurrency – the DAO attack in 2016. This attack led to the split of the Ethereum blockchain, birthing Ethereum (ETH) Ethereum Classic (ETC). As of July 18, 2020, ETH has a market capitalization of $26 billion, and one ETH is going for $232.93.

2. Ripple (XRP)

Launched in 2012, Ripple is a cryptocurrency and a real-time digital payments network. The project was created by Chris Larsen and Jed McCaleb.

Ripple’s protocol facilitates the global, peer-to-peer, decentralized, and real-time exchange and transfer of money in any currency, whether it’s the US dollar, Japanese Yen, Bitcoin, Ethereum, and so on. XRP can settle transactions within 3 to 5 seconds. 

XRP is the platform-specific asset of the Ripple network. Individuals can exchange XRP between each other without the need for an intermediary. It’s the go-between currency in any exchange that happens on the Ripple network. 

Ripple’s transaction confirmation mechanism differs from that of Bitcoin in that it does not utilize ‘mining.’ All XRP tokens were ‘pre-mined’ or ‘minted’ before launch, meaning there is no release of new coins over time. Indeed, Ripple ‘burns’ XRP tokens immediately after they facilitate a transaction, in a bid to avoid inflation. Ripple’s no-mining approach is a massive save on power, and it also considerably aids the network to achieve incomparably faster transactions. 

For a long time, XRP occupied the third spot in the crypto market. However, it has been knocked down to the fourth spot. As of July 18, 2020, XRP is trading at $0. 194295, with a market cap of $8.6 billion.

3. Litecoin (LTC)

Litecoin is a cryptocurrency that is modeled after Bitcoin but aims to be more lightweight and scalable. It was launched in 2011 and is a brainchild of former MIT graduate and Google engineer Charlie Lee. 

Litecoin is often called the “silver to bitcoin’s gold.” It’s a “lite” version of Bitcoin only with more coins, faster transactions, and a different hashing algorithm. While Bitcoin uses the SHA-256 algorithm, Litecoin utilizes one known as “Scrypt.” 

Another difference is Bitcoin’s circulation can never exceed 21 million, while Litecoin is designed to help 84 million coins. This might not mean much for either currency in terms of real-world usage since both are divisible to very tiny amounts. Litecoin is also way faster in terms of transaction confirmation time. While Bitcoin’s transactions can take up to 10 minutes, Litecoin takes about 2.5 minutes. Litecoin is also one of the cryptocurrencies that have enjoyed significant merchant adoption. 

So how is Litecoin performing today? Well, as of July 18, 2020, Litecoin traded at $41.95, with a market cap and rank of 2.7 billion and #9 respectively.

4. Chainlink (LINK)

Launched in September 2017, Chainlink, a project by FinTech company SmartContract Chainlink Limited SEZC, has seen the success that few cryptocurrencies do within such a short period. Perhaps this is because of its unique proposition of providing an oracle system that allows on-chain contracts to utilize external data, greatly expanding the capability of smart contracts. 

Courtesy of this feature, Chainlink has deep-running relationships with a lot of other innovative blockchain projects, a factor that’s given it a leg-up in the space. Some of these partnerships include Synthetix, Loopring, Aave, Ampleforth, and Binance. The project has also managed to secure other significant partnerships out of the blockchain space, including Google, Oracle, Gartner, Brave New Coin, and Web3 Foundation. 

Thus far, Chainlink has no competitor, and this has given it the dominance as far as its selling point is concerned. As of July 19, 2018, Chainlink’s price was $7.96, and, with a market cap of 2.8 billion, it was the 8th largest cryptocurrency.

 

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Crypto Daily Topic

Tips to Trading Cryptocurrencies

Cryptocurrencies present a world of possibilities. Trading in cryptos can be a thrilling endeavor, not just because of their novelty but also their volatility. Many traders and investors – new

Cryptocurrencies present a world of possibilities. Trading in cryptos can be a thrilling endeavor, not just because of their novelty but also their volatility. Many traders and investors – new

Cryptocurrencies present a world of possibilities. Trading in cryptos can be a thrilling endeavor, not just because of their novelty but also their volatility. Many traders and investors – new and experienced alike, are moving in to try their hand at crypto trading.

While trading in cryptos can be profitable, it’s also really easy to lose your money – thanks in part to their wild volatility and unpredictability. A single mistake in crypto trading can be very costly, and that’s why you should go in with a strategy.

With that, the tips below should set you in the right direction in crypto trading; whether you’re looking to dip your toe in the water or have been in the game for a while. 

Research and Research More

Before diving headfirst into what is usually a murky world of cryptocurrency trading, it’s important to arm yourself with its very basic concepts. This starts with knowing the terminologies mostly thrown around and understanding what they might mean for you. Understand what cryptocurrencies are, the technology powering them (blockchain), how to be safe while trading cryptocurrencies, and so on.

You will also need to read up on the language used in crypto trading, such as limit order, bullish, bearish, market depth, all-time lows, all-time highs, etc. It’ll also be essential to keep tabs on what is happening in the cryptocurrency world. This means knowing new cryptocurrencies, which cryptos are increasing or falling in prices, the market value of different cryptos, etc.

Knowing how different cryptocurrencies have performed in the past, their all-time lows and all-time highs is also necessary. It will help you assess the volatility of cryptos you’re interested in and determine if they’re worth investing in. It might even give you an inkling of their probable future market trends.

Bear in mind that things keep changing in cryptoverse, so one single sitting of research is not nearly enough. What was true six weeks ago may not be true today. The regulation, technology, news, and pretty much everything concerning cryptos is always changing at a fast pace.

Understand Arbitrage

Arbitrage is the difference in the price of the same commodity in two different exchanges – like, say, Bitcoin trading at a slightly lower price on Coinbase than on Binance. Understanding this and acting accordingly can be profitable for you, the trader. But keeping track of the different prices on crypto exchanges is a difficult and time-consuming thing to do.

Other factors that may affect your trading are current volumes of the currencies, variation prices, network fees. To stay on top of these elements, resources such as CoinScanner and other similar tools should be of help. They can help you understand arbitrage better and how to capitalize on it, as well as trade cryptos at the cheapest prices and gain profits.

Be Safe

The first safety rule is to find out the safest places for buying cryptos. The second is to know how to protect them once you’ve bought them. Cryptos, in particular, tend to attract scammers, hackers, phishing attacks, impostors, etc. Take precautions. Always double-check before you enter passcodes/private keys or send money to accounts. Disable any unnecessary extensions in your browser and be careful before opening any URLs.

Protection also means knowing how to store your crypto coins. There are several purpose-built crypto wallets designed with security as a priority. Ledger Nano S, TREZOR, Atomic Wallet, Abra, are some of the most trusted wallets out there.

Crypto Exchanges Are For Just That – Exchanging

Even if you’re a pro at crypto trading, you could lose your money if you’re not careful enough. Cryptocurrency has no insurance, and the responsibility of protecting your coins is yours only.

Many people make the mistake of leaving their fiat holdings on crypto exchanges after they make profitable trades. Yet, exchanges are not a secure place to store your assets. The story of Mt. Gox illustrates this too well. The former world’s leading Bitcoin exchange was put out of business, and thousands of customer coins stolen after a cyber-attack.

The best way to avoid losing your assets on exchanges is to keep your coins in a secure wallet. Also, don’t use the device that contains your assets over public Wi-Fi. Apply other precautions detailed on the safety tip above.

Don’t Ignore the Market Cap

Most inexperienced traders are prone to making trading decisions based solely on the current coin price of a crypto. The reality is the value of a crypto includes the current circulating supply. So when you’re considering whether to buy a cryptocurrency, try to look beyond the current going price and look at the percentage of the total market cap for the currency. The closer a cryptocurrency is to its market cap, the likelier its demand will rise in the near future. 

Beware of Pump and Dump, FOMO and FUD

FOMO is an abbreviation for fear of missing out. FOMO is one of the reasons many crypto traders fail in the art. This a trick that most ‘whales’ use. Whales are people who are holding massive volumes of crypto coins. Some whales buy (pump) the coins in an attempt to show that the currency is in such high demand, only to come and sell it at high prices (dump) after many people have bought the lie. But once they’ve bought it, they may never get the opportunity to trade it for profit, making losses.

When you see a sudden euphoric rush by many traders to buy a crypto, don’t jump in too because of FOMO. Always do your research and rely on your gut to make decisions – following the crowd might cost you big time.

FUD, on the other hand, stands for fear, uncertainty, and disinformation/doubt. Some people deliberately spread FUD with fake news, fake social media accounts, and manipulated facts just to dump some coins. Always verify the sources and intentions of any crypto news before being driven by FUD to make trading decisions.

Invest With Money You Can Afford To Lose

This goes without saying. The first thing to know is: the only predictable thing about crypto prices is their unpredictability. While this might actually be a good thing for crypto trading, it also might mean that nothing’s ever really assured.

Cases abound of many who have emptied their savings in cryptos, took loans, and lost most of those savings. The bottom line: never invest too much money in a very high-risk market (like cryptos).

Diversify Your Portfolio

The reason why it’s important to diversify your portfolio when trading in cryptos comes down to their unpredictability, again. Don’t be tempted to “hold all your eggs in one basket” and invest in one crypto only.

Also, many people think they should spread risk across several cryptos so that in case one tanks, the rest will turn a profit. But what they need to know is all cryptos seem to follow the pattern set by Bitcoin. When Bitcoin decreases in value against the dollar, all other coins almost always follow suit. So, diversifying among different cryptos may not be enough to cushion you against losses. The idea here is to trade in other types of assets as well.

Know Which Altcoins to Trade In

The truth about many altcoins (all other cryptos besides Bitcoin) is they end up losing value over time, sometimes unexpectedly. This means you shouldn’t hold on to an altcoin for too long.

One way to know if an altcoin is ideal for long term investment is to check the daily trading volumes. If a crypto has a high daily trading volume, then chances are it’s a good option for HODLing to sell in the future. Ethereum. Monero, Litecoin, and Dash are some of the currencies that have displayed consistent daily trading volumes.

Also, check regularly the charts of these cryptos and note spikes in price. The patterns can help to identify the perfect time to sell or buy a coin.

Have a Reason for Your Trades

You need to have a purpose for entering any crypto trade. This is because in cryptocurrency trading, someone always wins, and another one always correspondingly loses.

The crypto market is unfortunately controlled by whales who wait for the ‘small fish’ to make a mistake that will land more money on their hands.

Whether you’re a casual or active trader, sometimes it’s better to cool off and not gain anything than rush in and lose. It may seem counterproductive, but sometimes not trading at all is the only way to stay profitable.

Set Profit Targets and Stop Losses

Trading in any asset requires us to determine a point when we’ll exit the market, whether we’re profiting or losing. The target level is an upper limit where you will close the trade after you have reached a certain profit. If you had set a particular profit target and have achieved that target, it’s time to exit the market.

Also, a stop loss level can help you not lose more than you’re willing to lose. A stop-loss is the limit at which you close out your position if the price is falling. For example, if you bought a coin at $600, you can set that as the minimum point you’re willing to trade it. So if the market doesn’t go as expected, you can walk away without losing much. 

The crypto market is exceptionally volatile, and prices can fall any time. Don’t let greed or emotion guide your decision making.

Do Your Due Diligence on Initial Coin Offerings (ICOs)

ICOs offer the public a way to invest in a crypto coin and make a profit when the coin is listed on an exchange. Since they promise high returns, many traders rush in without conducting some due diligence. This is a mistake because some ICOs have turned out to be scams, and many people have lost money this way.

‘‘Trust, but verify’’ is true when it comes to ICOs. Do your own research about the project. Who are the people behind it? Analyze, based on your research, if they really have the ability to deliver on their promise. Analyze, too, the feasibility of the project. Scrutinize the white paper and seek answers where it doesn’t add up. If by the end, you still doubt the credibility of the project, you’d instead give it a pass than sink your money into it.

Don’t Buy Just Because the Price Is Low

Some beginner traders make the mistake of buying a coin just because it has a low price or is “affordable.” But the decision to buy a coin shouldn’t be determined by its affordability, but rather its market cap.

It’s just like with conventional stocks – they’re evaluated with this formula: Current Market Price multiplied by the Total Number of Outstanding Shares. This same formula applies to cryptocurrencies.

Thus, it’s better to determine a coin’s worth based on its market cap than its market price. The larger a coin’s market cap, the more it is worth to invest in.

Find a Community

It can be challenging to keep up with cryptoverse. There is a lot of information about it, and everything is always changing. To stay on top of things, find a reliable group of fellow traders with whom you can share trends, ideas, strategies, and analyses. And whether it’s on Facebook, Reddit, WhatsApp, or Telegram, remember not everyone is worth listening to.

Conclusion

Crypto trading can turn handsome profits, but the opposite is also true. The very aspect that makes cryptocurrencies an attractive trading option is the same one that requires you to tread carefully when dealing with them. Before you invest your hard-earned money in cryptocurrency, remember these cardinal tips. Also, remember trading in any asset requires a cool and sober head – whether you’re winning or losing. Good luck.

 

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Crypto Videos

The Best Way To Send & Receive Altcoins Through Multi-currency Wallets

https://youtu.be/V-NOeyfY8I0
How to send and receive altcoins through multicurrency wallets?
In order to send or receive a cryptocurrency, first, you need a cryptocurrency wallet that supports that cryptocurrency. Many

https://youtu.be/V-NOeyfY8I0
How to send and receive altcoins through multicurrency wallets?
In order to send or receive a cryptocurrency, first, you need a cryptocurrency wallet that supports that cryptocurrency. Many

How to send and receive altcoins through multicurrency wallets?

In order to send or receive a cryptocurrency, first, you need a cryptocurrency wallet that supports that cryptocurrency. Many wallets that support quite a few cryptocurrencies are currently on the market. The decision of which wallet to use comes down mostly to which cryptocurrencies the wallet supports. If more wallets support the wanted cryptocurrency, then the decision comes down to smaller features such as user interface, the option to reduce/increase transaction cost etc.

Sending and Receiving Cryptocurrencies

After deciding which wallet to use, all that’s needed is to put in the public address recipient when sending cryptocurrencies or to send out the address to the sender as a recipient. This can often be as easy as scanning a QR code and typing in the cryptocurrency amount.
Of course, the process of sending and receiving cryptocurrencies can differ slightly between wallets as each wallet has a different interface. However, there are a few general guidelines that are the same with all wallets:

Log into your wallet – Some wallets may have a 2FA (two-factor authentication), PIN code, phone verification or other kinds of security options enabled;
Go to the send/receive screen depending on whether you are sending or receiving cryptocurrency (that’s simply done by clicking the tab or button that says “send” or “receive”);
Choose whether you want to send or receive cryptocurrency. It is important to know that even though wallets can support many cryptocurrencies, each address is bound to one cryptocurrency (unless the coins are Ethereum tokens or a part of a similar ecosystem). This means that Bitcoin can only be sent to a Bitcoin address, Litecoin to Litecoin, XRP to XRP etc.
When sending: Enter the public wallet address (of the corresponding cryptocurrency) of the recipient and choose the amount that you want to send them. The specified amount should also include transaction fees. After double-checking and confirming that the address is correct (as a mistake cannot be undone after sending), click send and the transaction is done.
When receiving: Receiving cryptocurrencies is as simple as sharing the public wallet address (for the coin that will be sent) with the sender. It is even easier in person, as the sender can scan the QR code right from the recipient’s wallet.
Cryptocurrency transaction tips and tricks
Before sending a lot of cryptocurrencies, it’s good to try sending a small amount to the address as a test to make sure everything is working properly.

Sending and receiving cryptocurrency on/from exchanges might be a bit different than how simple wallets work. Sending between exchanges will require using the “withdraw” and “deposit” buttons on the exchange which will be located right next to the token. Each exchange has its own protocol which has to be followed. This means that directions must be followed carefully, as exchanges might require senders to include a message in the transaction or to send a whole number of the coin/token. They will also most likely require some form of transaction verification (2FA, email verification or phone verification).

Crypto-to-crypto exchange lets its users turn one cryptocurrency into another. Using a platform such as Shapeshift could be helpful if the transaction should happen in altcoins but all you currently have is Bitcoin.
You should not be afraid if the transaction does not appear on the recipient side instantly. Sending cryptocurrency may take some time for the transaction to go through (especially if the sender is sending from an exchange wallet, in which case it may take some time for the transaction to be included in a “transaction batch”). The sent transactions can be almost instant, but they could also take a few minutes or even hours (depending on the traffic). Most wallets, however, have the feature where users can see their pending transactions.

ERC20 tokens

ERC20 tokens are cryptocurrencies made on the Ethereum protocol and they are a bit different than other altcoins. These tokens are compatible with the Ethereum protocol as they follow the ERC20 guidelines. To send any ERC20 token to another wallet, the sender has to hold enough Ether to cover the transaction fees. Transaction fee depends on the complexity of the transaction. This fee is called Gas.
Other than the fact that each ERC20 wallet needs to have enough Ether to cover transaction fees, there is no other difference from the other altcoins wallets.

Conclusion

One big thing to point out when transacting cryptocurrencies is to never share private keys. Private keys should be differentiated from public keys and should never be seen by anyone other than the account owner. Sharing it would be the equivalent of sharing the wallet password with a stranger.