Bitcoin (BTC) is the original cryptocurrency. At the time of writing, it is the most valuable cryptocurrency on the market by some distance, which suggests it remains the cryptocurrency that the most people believe will substantially grow in value.
There’s no guarantee that this is the case though. Here, we explore some other cryptocurrencies with the potential to rocket in value in the next few years.
Ether (ETH)
The Ethereum blockchain is the only one with no limits as to what can be created on it.
It has been used to invent smart contracts and decentralized autonomous organizations, among other things.
Efforts are already being made to disrupt dozens, if not hundreds, of industries using the Ethereum blockchain within the next few years.
Ether, the currency within this blockchain, has the second biggest market cap in the world.
Ripple (XRP)
Ripple is a digital currency with the same ultimate goal of Bitcoin; to improve the global financial system.
However, Ripple has a much faster speed of transaction than Bitcoin (1,500 transactions per second vs. 7 transactions per second), arguably making it better suited for worldwide adoption.
There will be ultimately be 100 million Ripples circulated, and the speed they are mined can be altered by the company’s founded if they deem this necessary.
Be Aware of ICOs
New cryptocurrencies are being created at an increasing rate. Many of them are being funded using ICOs, where buyers exchange BTC or ETH for tokens, which can be traded for the new cryptocurrency once it’s formed. It’s similar to an IPO for stocks and shares.
ICOs can represent the best opportunity to buy cryptocurrency as its lowest price, but as these investments are unestablished, there’s a greater risk of them failing completely.
Which Cryptocurrency Should I Buy?
Your choice of cryptocurrency should be based on your belief of its ability to become more valuable (in its usage and therefore its value) in the future.
Considering its volatile nature, it’s often recommended that you purchase cryptocurrency as part of a diversified investment portfolio in order to reduce your investment risk.
Click the link to learn more about how Moneysling can help with your investment choices.