What Cryptocurrencies Are Good to Invest in?

This year the value of Bitcoin has soared, even past one gold-ounce. There are also new cryptocurrencies on the market, which is even more surprising which brings cryptocoins' worth up to more than one hundred billion. On the other hand, the longer term cryptocurrency-outlook is somewhat of a blur. There are squabbles of lack of progress among its core developers which make it less alluring as a long term investment and as a system of payment.

Bitcoin

Still the most popular, Bitcoin is the cryptocurrency that started all of it. It is currently the biggest market cap at around $41 billion and has been around for the past 8 years. Around the world, Bitcoin has been widely used and so far there is no easy to exploit weakness in the method it works. Both as a payment system and as a stored value, Bitcoin enables users to easily receive and send bitcoins. The concept of the blockchain is the basis in which Bitcoin is based. It is necessary to understand the blockchain concept to get a sense of what the cryptocurrencies are all about.

To put it simply, blockchain is a database distribution that stores every network transaction as a data-chunk called a "block." Each user has blockchain copies so when Alice sends 1 bitcoin to Mark, every person on the network knows it.

Litecoin

One alternative to Bitcoin, Litecoin attempts to resolve many of the issues that hold Bitcoin down. It is not quite as resilient as Ethereum with its value derived mostly from adoption of solid users. It pays to note that Charlie Lee, ex-Googler leads Litecoin. He is also practicing transparency with what he is doing with Litecoin and is quite active on Twitter.

Litecoin was Bitcoin's second fiddle for quite some time but things started changing early in the year of 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Next, Litecoin fixed the Bitcoin issue by adopting the technology of Segregated Witness. This gave it the capacity to lower transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to put his sole focus on Litecoin and even left Coinbase, where're he was the Engineering Director, just for Litecoin. Due to this, the price of Litecoin rose in the last couple of months with its strongest factor being the fact that it could be a true alternative to Bitcoin.

Ethereum

Vitalik Buterin, superstar programmer thought up Ethereum, which can do everything Bitcoin is able to do. However its purpose, primarily, is to be a platform to build decentralized applications. The blockchains are where the differences between the two lie. Basically, the blockchain of Bitcoin records a contract-type, one that states whether funds have been moved from one digital address to another address. However, there is significant expansion with Ethereum as it has a more advanced language script and has a more complex, broader scope of applications.

Projects began to sprout on top of Ethereum when developers began noticing its better qualities. Through token crowd sales, some have even raised dollars by the millions and this is still an ongoing trend even to this day. The fact that you can build wonderful things on the Ethereum platform makes it almost like the internet itself. This caused a skyrocketing in the price so if you purchased a hundred dollars' worth of Ethereum early this year, it would not be valued at almost $3000.

Monero

Monero aims to solve the issue of anonymous transactions. Even if this currency was perceived to be a method of laundering money, Monero aims to change this. Basically, the difference between Monero and Bitcoin is that Bitcoin features a transparent blockchain with every transaction public and recorded. With Bitcoin, anyone can see how and where the money was moved. There is some somewhat imperfect anonymity on Bitcoin, however. In contrast, Monero has an opaque rather than transparent transaction method. No one is quite sold on this method but since some folks love privacy for whatever purpose, Monero is here to stay.

Zcash

Not unlike Monero, Zcash also aims to solve the issues that Bitcoin has. The difference is that rather than being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, no every person loves showing how much money they actually spent on memorabilia by Star Wars. Thus, the conclusion is that this type of cryptocoin really does have an audience and a demand, although it's hard to point out which cryptocurrency that focuses on privacy will eventually come out on top of the pile.

Bancor

Also known as a "smart token," Bancor is the new generation standard of cryptocurrencies which can hold more than one token on reserve. Basically, Bancor attempts to make it easy to trade, manage and create tokens by increasing their level of liquidity and letting them have a market price that is automated. At the moment, Bancor has a product on the front-end that includes a wallet and the creation of a smart token. There are also features in the community such as stats, profiles and discussions. In a nutshell, the protocol of Bancor enables the discovery of a price built-in as well as a mechanism for liquidity for smart contractual tokens through a mechanism of innovative reserve. Through smart contract, you can instantly liquidate or purchase any of the tokens within the reserve of Bancor. With Bancor, you can create new cryptocoins with ease. Now who wouldn't want that?

EOS

Another competitor of Ethereum, EOS promises to solve the scaling issue of Ethereum through the provision of a set of tools that are more robust to run and create apps on the platform.

Tezos

An alternative to Ethereum, Tezos can be consensually upgraded without too much effort. This new blockchain is decentralized in the sense that it is self-governing through the establishment of a digital true commonwealth. It facilitates the mathematical technique called formal verification and has security-boosting features of the most financially weighed, sensitive smart contract. Definitely a great investment in the months to come.

Verdict

It is incredibly hard to predict which Bitcoin in the list will become the next superstar. However, user adoption has always be one key success factor when it came to cryptocurrencies. Both Ethereum and Bitcoin have this and even if there is a lot of support from early adopters of every cryptocurrency in the list, some have yet to prove their staying power. Nonetheless, these are the ones to invest in and watch out for in the coming months.

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How Cryptocurrency Works

Put simply, cryptocurrency is digital money, which is designed in a way that it is secure and anonymous in some instances. It is closely associated with internet that makes use of cryptography, which is basically a process where legible information is converted into a code that cannot be cracked so as to tack all the transfers and purchases made.

Cryptography has a history dating back to the World War II, when there was a need to communicate in the most secure manner. Since that time, an evolution of the same has occurred and it has become digitalized today where different elements of computer science and mathematical theory are being utilized for purposes of securing communications, money and information online.

The first cryptocurrency

The very first cryptocurrency was introduced in the year 2009 and is still well known all over the world. Many more cryptocurrencies have since been introduced over the past few years and today you can find so many available over the internet.

How they work

This kind of digital currency makes use of technology that is decentralized so as to allow the different users to make payments that are secure and also, to store money without necessarily using a name or even going through a financial institution. They are mainly run on a blockchain. A blockchain is a public ledger that is distributed publicly.

The cryptocurrency units are usually created using a process that is referred to as mining. This usually involves the use of a computer power. Doing it this way solves the math problems that can be very complicated in the generation of coins. Users are only allowed to purchase the currencies from the brokers and then store them in cryptographic wallets where they can spend them with great ease.

Cryptocurrencies and the application of blockchain technology are still in the infant stages when thought of in financial terms. More uses may emerge in the future as there is no telling what else will be invented. The future of transacting on stocks, bonds and other types of financial assets could very well be traded using the cryptocurrency and blockchain technology in the future.

Why use cryptocurrency?

One of the main traits of these currencies is the fact that they are secure and that they offer an anonymity level that you may not get anywhere else. There is no way in which a transaction can be reversed or faked. This is by far the greatest reason why you should consider using them.

The fees charged on this kind of currency are also quite low and this makes it a very reliable option when compared to the conventional currency. Since they are decentralized in nature, they can be accessed by anyone unlike banks where accounts are opened only by authorization.

Cryptocurrency markets are offering a brand new cash form and sometimes the rewards can be great. You may make a very small investment only to find that it has mushroomed into something great in a very short period of time. However, it is still important to note that the market can be volatile too, and there are risks that are associated with buying.

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