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Introduction
Cryptocurrencies have been around for nearly 15 years. Bitcoin, of course, is still King of Crypto.
If you were wondering if it is too late to get on the crypto bandwagon or have missed the crypto boat, then think again. Because after nearly 15 years one thing is clear – Crypto is no fad. In fact, it is STILL growing as an investor asset.
It means there are going to be plenty of NEW assets coming into the space and onto the market.
As well as having some well-established cryptos that have stood the test of time – and will continue doing so.
In this article, we present the Top 5 Cryptos that are “rising stars” and catching our eye and explain why you should have them on your radar too.
Let’s dive into it!
Setting the Scene
It’s important to remember that the crypto space is valued at around $1 TRILLION dollars. That in itself speaks volumes when you consider the value was $0 in 2009.
A quick word on the two most established cryptos in the world right now: Bitcoin and Ethereum.
Bitcoin (BTC)
Bitcoin is the one that kicked it all off – and it is still the #1 King of the Crypto clan.
Here’s what you need to know about why it should already be on your radar:
- Bitcoin hit the giddy heights of $69k a couple of years ago. Then slumped. It has been steady this year at around the $25k mark. Then rose to $35k just days ago.
- Forecasters are putting BTC way above that sum by April next year (2024). That’s because it is the year of the next “halving.”
- This is mightily significant “happening” for Bitcoin watchers and investors – because it’s the moment when the number of new BTC being mined is reduced.
- This naturally affects the SUPPLY of bitcoin – while DEMAND will go up. When that happens – the price of BTC is only going to rise. It is inevitable.
Exciting New Development – Bitcoin ETF’s
An ETF is a managed fund – i.e. you put in a sum to invest, the fund manager makes the investments on your behalf. That happens now with traditional fiat “money.”
BUT it is soon going to happen with crypto. In other words – you can invest in a Bitcoin ETF. You won’t actually own any bitcoin outright – but you will profit from any rises in BTC when it is traded as an asset on your behalf.
In other words, investing in Bitcoin is about to get a whole lot easier, with less risk.
Which is a pretty good reason to have Bitcoin on your radar.
Ethereum (ETH)
Ethereum is the 2nd largest crypto in the market. It was launched in 2015. That’s only 8 years ago, yet Ethereum is considered to be a very established crypto with an even brighter future.
That’s because:
- Ethereum is renowned as the “computer of the blockchain.”
- Co-founded by Gavin Wood and Charles Hoskinson (who went on to found Polkadot and Cardano, respectively)
- Ethereum is decentralised and allows anyone to deploy permanent and unchangeable applications onto it. Users can then interact there.
- Its ETH coin price has been hovering in the $1500-$2000 range this year.
Groundbreaking Innovation – Account Abstraction
One of the main concerns about crypto accounts/wallets has always revolved around security. For all its decentralisation, accounts and wallets can, and have, been hacked.
But now, Ethereum is developing Account Abstraction using “smart” digital contracts.
- This will make it an easier, safer way to have an account.
- There will be no need for seed phrase and make it more powerful. It will be like having a regular bank account – i.e. you can verify transactions using biometrics, your face or friends and family.
- It will even allow automated transactions for regular payments, like one does with a bank and direct debits.
- There will even be a “forgot password” functionality.
- It brings with it a level of assistance, while maintaining the peer-to-peer ethos of decentralisation.
Analysts View
The development of Account Abstraction will be a major key to the onset of mass adoption of Ethereum.
Okay, moving on, here’s…
The Best of The New Crypto Breed
There are currently something like 26,000 crypto projects in existence. That’s crazy. So to help you get a handle on what are the most stand out, here’s our Top 5 Cryptos we believe you should have on your radar:
#1 Solana
Solana was launched in 2020 by Solana Labs (founded in 2018 by Anatoly Yakovenko and Raj Gokal).
The Solana blockchain was designed to support smart contracts and decentralised apps in particular.
Solana’s total market cap was $55 billion in January 2022. The FTX fraud scandal brought market confidence down to around $3 billion by late 2022.
However, crypto buoyancy this year has pushed it back to $7 billion.
Why do we like it?
We always have and despite its issues, we still do. Here’s why:
- It’s a high performance blockchain platform with exceptionally good speed and scalability.
- Low fees.
- Great transaction volume – 1 million transactions per second.
- Well-established with growing adoption and a rapidly growing ecosystem.
- Competitive edge – technological advancement.
- Strong position, solid historic performance.
- Good presence in defi and NFTs.
- Clear development and road-map and engaged community.
Hovering around the $30 per coin price, it’s a nice price to get in.
#2 Polygon (MATIC)
Launched in 2017, Polygon (MATIC) is a rising star in the crypto space. It’s a layer 2 Ethereum token that powers the Polygon Network.
It is significant that 60%-70% of transactions on ethereum are coming from Layer 2 solutions.
It shows us Layer 2 is really moving forward. In fact in 2021 Polygon enjoyed a 760% growth surge in just one month.
Why we like it:
- Designed to tackle etheruem’s scalability issues – as etheruem can be a little slow and expensive sometimes, Etheruem is great, provide stability and security, they’ve been around but slow – so we need something else
- Polygon have marked their turf and are the leader of Layer 2.
- Emerging as the “Internet property ownership layer.”
- Quick adoption.
- Also prominent in the DEFI sector.
- Solid team – technology is looking good.
- Security comes from ethereum. Polygon gathers Layer 2 transactions then when it has enough it dumps it all on ethereum, and is made secure.
#3 Cardano (ADA)
Charles Hoskinson, the co-founder of Ethereum, began the development of Cardano in 2015. The platform was launched two years later as an alternative to Ethereum. Like Ethereum, Cardano focuses on smart contracts, and creating a connected, decentralised system.
Its mission is also to provide banking services to the world’s unbanked – i.e. adults who do not have their own bank accounts or rely on alternative financial services.
Cardano grabs us because:
- It’s a unique digital currency.
- Established, long term prospects.
- Founded by Charles Hoskinson who is a little bit special, with a deeply academic basis. His sights and vision are firmly set, a great trait for someone leading a project – building slowly.
- Competitive edge.
- Solid functionality
- Investor faith in the project. When the price drops, holders are buying more, not bailing out.
- Not a quick mover, but one for long term.
- Restoring trust in the economic system.
- Need to see more adoption for it to boom – but it is well-supported, which is important, and is recognised academically.
#4 Polkadot (DOT)
Co-created by another Ethereum co-founder, Gavin Wood, in 2017. It is Wood who is said to have come with the term “Web3.”
Polkadot is a blockchain is governed by a “relay chain” and user-created “parachains” that run parallel. The relay chain validates data, achieves consensus and ensures the execution of transactions.
Why we invest in Polkadot:
- Groundbreaking connectivity across blockchains, this is what makes Polkadot stand out – we need chains and glue to pull things together.
- It’s the bridge of blockchain, connects multiple blockchains effortlessly. It ties things together and helps solve problems, makes transactions smoother.
- Facilitate communication – seamlessly.
- Founder is Gavin Wood – co-founder of Ethereum = experience, been doing this before and has been successful with Ethereum.
- They are “beyond the hype” – they don’t play that game.
- Designed for economic scalability and security – we believe this is a good “future-ready” investment.
#5 Avalanche (AVAX)
Avalanche is a relatively new player in the crypto space, launched in 2020. It’s a decentralised, open-source blockchain with smart contract functionality.
It moved into the Top 10 of crypto in 2021 after teaming up with world famous accounting firm, Deloitte. In January 2023, it announced a partnership with Amazon.
We like the look of Avalanche because:
- We believe it is the future of digital transactions, with a very robust ecosystem.
- Has a unique governance and economic structure.
- High throughput and scalability.
- Strong developer ecosystem.
- Nice partnerships and institutional adoption with other big crypto entities – Chainlink, Tether, Circle.
Conclusion
Bitcoin and Ethereum are the world’s two most famous and successful cryptocurrencies/blockchains. If you got in with them early on, then you’d have made some great investments.
But crypto isn’t just about Bitcoin and Ethereum. There are thousands of crypto projects that could make great assets.
The 5 we have selected are the ones we believe are stand-out and are worth our time and money.
Now the thing is, all 5 have their own unique strengths – so why invest in just one of them, when you could have a piece of them all?
After all – that is the beauty of DIVERSIFICATION.
To learn more about crypto investing and diversification, and the strategies you need to be a success at investing, subscribe to IM Insider now.
