Best altcoins to invest
Previously, any cryptocurrency except for Bitcoin was considered an Altcoin. But, as of today, there are more than 10,000 cryptocurrencies in existence and hence, not every crypto can be characterised as an altcoin. Altcoin means the coin or crypto asset that is essentially the Bitcoin competitors i.e., can be used as a medium of exchange. In this report, we are going to talk about the six best altcoins to invest in this year.
Also, note that the crypto market is suffering huge losses after the covid break out and almost all the major cryptocurrencies and altcoins are underperforming this time. The main reason for the same is the difference in the current macroeconomic factors as compared to the pre-covid times.
Therefore, it would not be fair to discuss current crypto growth for long-term investment because the macroeconomic and liquidity factors will not remain the same in the future. So, we have used the pre-covid data to study the past performances of the below-mentioned altcoins.
Best Altcoins to invest: Litecoin
Litecoin is a currency that is designed with the aim to provide secure, low-cost and fast payments and it leverages the unique features of blockchain to fulfil its purpose. The crypto is built on the BTC protocol but has a different hashing algorithm, block transaction time and hard cap.
Its pre covid (from December 2018 to February 2020) price movement states that Litecoin’s price has increased from $32.56 to $76.49, indicating 2.34 times increase in its price during that period.
Let’s also have a look at how Litecoin’s competitor has done so far this year. Its one of notable competitors is Ripple (XRP). XRP’s market price changed from $0.37 to $0.28 and hence, it decreased by almost 1.32x during the pre-covid period compared to 2.34x growth in Litecoin. Hence, Litecoin clearly outperformed its competitor.
Note that Litecoin is the second most popular pure crypto after Bitcoin, which makes it pretty unique in itself. LTC is simple and has clear utility, just like BTC. What makes it better than its alternatives are its speed and cost-effectiveness. For instance, transaction fees for LTC are negligible and the transactions get confirmed within minutes.
In comparison to Bitcoin, Litecoin provides multiple functionalities, including peer-to-peer transactions, daily transactions and international transactions.
On the Litecoin network, a new block generation takes 2.5 minutes, while new blocks are generated every 10 minutes on bitcoin. It means that compared to BTC, new block generation is 4 times faster on Litecoin Network and its transaction throughput is 4x faster. Moreover, around 3070 merchants accept LTC or payments, as of Sep 2021.
This feature of Litecoin even makes it better than BTC in developing countries. Therefore, Litecoin is one best altcoins to invest in this year.
Best Altcoins to invest: Dogecoin
Dogecoin is an open-source blockchain that was launched as a mere joke. The makers of the coin have said that the coin is meant to be fun and nothing else. It soon garnered attention after big names like Elon Musk started tweeting about the coin.
Its current market price at the time of writing is $0.1067 and its price increased from $0.0022 to $0.0028 during pre-covid period, indicating 1.27 times increase in its price. Apart from Dogecoin’s price movement, let’s have a look at how its competitor has done so far this year.
Its one of notable competitors is Shiba Inu (SHIB) and its price increased from $0.000000001 to $0.000000003 in 2020, indicating 3 times increase in its price
Nonetheless, Dogecoin is ranked 8th according to the coinmarketcap ranking and can be used to make payments in more than 300 online stores and businesses (including Tesla), despite being a meme token.
As compared to its competitor, SHIB (which is ranked #15), DOGE is performing much better overall. Moreover, it is an altcoin whose total supply is not capped i.e., there is no limit on the number of DOGE tokens to be minted.
Even though Dogecoin has a blockchain, its business model is focused on payment and consumer usage.
Compared to Bitcoin, DOGE has a block time of 1 minute; while Bitcoin takes around 10 minutes to build a block. Therefore, DOGE is the best altcoins to invest in 2022.
Best Altcoins to invest: Shiba Inu
Launched in 2020, SHIB is a meme token that has the aim to be the Ethereum-based counterpart to the Srypt-based algorithm of Dogecoin. Its current market price of Shiba Inu is $0.0000092, at the time of writing. Shiba Inu’s price increased from $0.000000001 to $0.000000003 in 2020, indicating 3 times increase in its price.
One of its notable competitors is Dogecoin, whose price changed from $0.0022 to $0.0028 during the pre-covid period. It means that DOGE’s price faced a hike of nearly 1.27 times during that period compared to 3x growth in SHIB’s price, clearly indicating that Shiba Inu outperformed its competitor.
Note that Shiba Inu is built on Ethereum Blockchain which provides it with the security and other benefits of Ethereum (unlike its competitor). Moreover, SHIB can also be used to shop on Amazon and pay Netflix Subscription charges.
Unlike Dogecoin, Shiba is an ERC-20 token and is a digital token issued by the Ethereum network. Shiba Inu has a complete ecosystem of tokens and decentralized exchange, contrary to Dogecoin.
In comparison to Bitcoin, Shiba Inu can build a block in 15 seconds. While Bitcoin takes around 10 minutes to build a block. Moreover, Shiba is faster in transactions compared to BTC. Hence, SHIB is one of the best altcoins to invest.
BNB
We know that Binance is one of the largest cryptocurrency exchanges in the world. BNB is its native currency and is a deflationary currency. It means that BNB maintains a stable value throughout the year because of the burning of the tokens.
In simple words, when crypto tokens are burnt, these are effectively removed from the available supply and hence, their number in circulation decreases. Now, this scarcity in the crypto token doesn’t let the price decrease much and hence, it becomes deflationary.
In the case of BNB, the token has become more deflationary with the BEP-95 upgrade by Binance. BEP-95 proposal introduces a real-time burning mechanism to BSC through which the network burns a fixed portion of gas fees collected by the validators. In simple words, it leads to the burning of some of the gas fees on the Binance Smart Chain and further decreases the supply of BNB.
BNB’s current market price at the time of writing is $300.94. Considering the pre-covid period (from December 2018 to February 2020), BNB’s price has increased from $5.9 to $22.82, indicating 3.86 times increase in its price during that period.
Let’s also have a look at how BNB’s competitor has done so far this year. Its one of notable competitors is Huobi Token whose price has changed from $1.18 to $4.77 and hence, it increased by almost 4.04x during the pre-covid period.
Nonetheless, BNB coin can be used to pay the transaction fee on the Binance crypto exchange.
In contrast to Bitcoin, BNB Uses a proof of stake mechanism and hence faster time is achieved. Moreover, it has lower trading fees in comparison to the Bitcoin blockchain. Also, BNB tokens can be used to make payments for crypto credit card bills on crypto.com.
Its utility in real life makes BNB one of the best altcoins to invest in the coming year.
Also read: Best cryptos to buy under $10
Mana
The current market price of MANA is $0.40, at the time of writing. Its market price increased from $0.049 to $0.065 and hence, it increased by almost 1.32x during the pre-covid period (from December 2018 to February 2020).
Decentraland’s one notable competitor is Sandbox, whose price changed from $0.062 to $0.048 during the pre-covid period. It means that SAND’s price faced a decline of nearly 1.29 times during that period compared to 1.32x growth in MANA’s price, clearly indicating that Decentraland outperformed its competitor.
Decentraland is powered by the Ethereum blockchain where the users can easily monetize their applications and content with the platform. Being built on the Ethereum blockchain provides it with the advantage to run smoothly and without any fraud.
Talking about the unique features of Decentraland, it is the first virtual reality system based on decentralization allowing users to interact and communicate, which makes it special in its niche. In comparison with Sandbox, Decentraland’s mission is to expand the network beyond gaming and thus, it focuses more on user-generated art and content.
Mana coin can be used to purchase goods and services within the Decentraland ecosystem. Therefore, MANA is another best altcoin to invest in and add to your portfolio.
Dash coin
Dash is a blockchain and cryptocurrency which is focused on providing a cheaper and faster payment network across the globe. Its aim is to improve upon BTC by offering faster transactions and stronger privacy.
The current market price of Dash is $43.83. Its pre covid (from December 2018 to February 2020) price movement states that DASH’s price has increased from $64.03 to $119.8, indicating 1.87 times increase in its price during that period.
Dash coin’s notable competitor is Ripple (XRP). As we know that XRP’s market price changed from $0.37 to $0.28. it means that it has decreased by almost 1.32x during the pre-covid period compared to 1.87x growth in Dash. Hence, Dash coin clearly outperformed its competitor.
We are aware that Bitcoin uses a Proof-of-Work consensus mechanism to mine the coin. On the contrary, Dash uses X11 the algorithm which is a modified proof of stake algorithm to mine the coin. Moreover, Dash crypto can be used as a medium of daily transactions with maximum privacy and instant transactions making it a good coin for real-life utility. Therefore, this altcoin is worth investing in.
~Charu Taneja
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.