6 Altcoins with Significant Growth Potential
As the first digital coin in the world, Bitcoin, understandably, is currently the most established cryptocurrency in the market. However, savvy investors know better than to put all of their capital in the most popular cryptocurrency in the industry. Those who are looking to buy small and sell big need to look at other cryptocurrencies with a high potential for growth.
As of April 2022, there are more than 18,000 digital coins on the market. All but one of them are called altcoins. To elaborate, altcoins–short for “alternative coins”–refer to any cryptocurrency that is not Bitcoin. Using Bitcoin as a benchmark, these coins have made changes, added features, and developed new technologies that not only differentiate themselves from Bitcoin and other coins, but also contribute to the development of crypto as a whole.
For new investors, sifting through the countless altcoins in the market can be a taxing endeavor. This does not include signing up for coin exchanges, downloading the necessary tools and wallets (e.g. XMR wallet), and developing an effective strategy in surviving the volatile crypto industry. For those who are new to crypto trading and need some helpful tips, here is a list of the best digital coins that investors should consider adding to their portfolios.
Ethereum is the most popular, high-value digital coin in the market after Bitcoin. Launched in 2015, Ethereum made a name for itself by offering functions that go beyond just being a currency. More accurately, it is a software platform that enables developers to build decentralized applications and implement smart contracts, opening the opportunity to revolutionize whole industries.
One of the best things about Ethereum is that it is open to everyone. By functioning as both a cryptocurrency and blockchain platform, investors, users, and developers can build and accomplish different kinds of tasks and projects, limited only by one’s imagination. Additionally, after transitioning to a proof-of-stake (PoS) algorithm, Ethereum now offers faster transaction speeds at lower fees, making it one of the best altcoins with the most potential.
High energy consumption has always been a concern in the crypto industry. Running blockchain networks and ensuring smooth transactions requires a substantial amount of energy and resources as computers often have to perform at their highest capacities. Hence, when Solana entered the market in 2020, it quickly grabbed the attention of crypto investors and users alike.
Solana uses an uncommon hybrid of proof-of-history (PoH) and PoS mechanisms. This algorithm combination allows Solana to verify transactions faster and at a cheaper cost–as well as a lesser degree of energy consumption. As such, Solana positions itself as a greener alternative to Bitcoin and Ethereum, making it one of the most promising altcoins for environmentally-aware investors.
At face value, Cardano works very similarly to Ethereum. It is a decentralized software platform that allows developers and programmers to use smart contracts and build applications on the blockchain network. Cardano’s standout feature, however, is the team and method behind it.
While many digital coins have a degree of research behind them, Cardano takes its research to an entirely different level. Indeed, it can be said that the research is its backbone. Its developers (composed of cryptography experts, mathematicians, and engineers) took a research-based approach to build Cardano, going through numerous extensive experiments and peer-reviewed research. The high level of dedication and expertise put into Cardano has built trust among its investors, making it an altcoin to keep one’s eyes on.
Lucky Block (LBLOCK)
Lucky Block is an up-and-coming altcoin that seeks to revolutionize one of the most well-known industries in the world: the lottery industry. The coin is hosted on the Binance Smart Chain and seeks to improve how traditional lotteries work. More specifically, it hopes to implement an anti-fraud ecosystem that is more accessible to everyone.
The digital coin plans to accomplish this through numerous means, including reducing draw times and increasing transparency. It also aims to increase the average person’s chances of winning, which is a great incentive for investors who are also lottery players.
The crypto market is notorious for its volatility. While some investors find this exciting, others prefer coins that are not as affected by the industry’s characteristic price swings. Enter stablecoins. Unlike other coins whose values depend highly on speculation, stablecoins aim to tie their value to external reference points, such as fiat currency, making them less volatile than other coins.
Tether is one of the first–and currently, most popular–among these stablecoins. Its price is linked to the U.S. dollar, which helps smooth out rapid price fluctuations. Stablecoins like tether are highly favored by investors who wish to tap into crypto and use blockchain-related technologies but would like to minimize their exposure to the market’s volatility. As such, it is a high contender for digital coins whose purpose and value will be significant in the market for a long time.
One of the most enticing features of cryptocurrency is the lack of overhead control from third-party regulatory organizations, with no middlemen and no substantial fees to interfere with each transaction. However, many blockchain networks are accessible to the public. While personal details can be hidden, it is possible for other individuals and institutions to track a user with a little bit of elbow grease. Considering this, Monero, a digital coin that promises complete privacy in all transactions, has gained steady support since its launch in 2014. As investors and users prioritize their privacy more, Monero remains a highly promising altcoin with a lot to offer in terms of protecting transactional information thanks to its unique privacy algorithm and safeguards.
With the variety of altcoins that exist, investors are not running out of investment opportunities in the market. More altcoins get added by the day, and it is difficult to determine the course of the industry in the future. Thus, to gain the most returns, it is important to do one’s research dutifully so that investors can separate the coins with potential from those that do not.