7 Cryptos to Buy That Have Millionaire-Maker Potential


Cryptos to Buy - 7 Cryptos to Buy That Have Millionaire-Maker Potential

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Cryptocurrencies are a promising investment for the future. Crypto has been on investors’ minds ever since Bitcoin (CCC:BTC-USD) started to skyrocket in value. But there’s so much information out there on this space. It makes it difficult to decide which cryptos to buy.

The crypto market is a daunting place for even experienced traders to navigate. There are thousands of digital currencies and projects worth investing in. It can be difficult to sort out which ones will succeed from those that won’t make you money over time without any fundamental analysis.

Before we delve further into this area, it’s worth noting that this is a very volatile asset class. The golden investment rule is never to invest money that you can’t afford to lose.

Keep that in mind when you are looking to purchase any of these seven cryptos:

Cryptos to Buy: Bitcoin (BTC)

A Bitcoin (BTC) coin sitting on a mossy piece of wood.

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It’s no surprise that Bitcoin remains the most popular cryptocurrency out there. The pseudonymous Satoshi Nakamoto created the cryptocurrency in 2009 on the heels of the economic recession.

Bitcoins can be exchanged for goods and services or kept as an investment. This is because there are no government controls over them, unlike traditional currencies, which depend on fiat money issued by central banks. Bitcoin has been around for 12 years, and it’s still going strong. The market cap has exceeded $1 trillion and then some. The importance of this cryptocurrency can’t be understated. The blockchain technology accompanying BTC is revolutionizing finance as we know it.

The crypto markets are difficult to predict. However, considering the bull run, BTC has been on for the last few weeks, reaching $100,000 before the end of 2021 is not out of the question. The odd crash is not out of the question. But the Bitcoin price has doubled since steep price corrections during the summer.

Ethereum (ETH)

A concept image of a virtual coin based on the Ethereum logo.

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Ethereum, the second-largest cryptocurrency by market cap, is known for being one of the most profitable coins to mine. This thriving community has its unique blockchain network with smart contracts that developers can execute without third-party interference.

Bitcoin and Ethereum are often seen duking it out for supremacy in the crypto world. However, both have very different use cases. The former wants to act as an alternative to national currencies. Meanwhile, Ethereum was intended to create programs on its own, which is why it’s a favorite for developers.

Another major difference is that Ethereum is moving from its current consensus mechanism, which entails mining and creating new blocks with computational power calculations called proof-of-work (PoW). The argument for making this switch is that PoW consumes too much electricity compared to other alternatives such as proof-of-stake (PoS). Incidentally, Bitcoin uses PoW, one of the main arguments against its wider adoption. No such issues with Ethereum.

Another great reason to invest in Ethereum is the active developer community. The latest upgrade is the Altair upgrade. It brought about a number of significant changes to the blockchain. However, more importantly for an investor, in the runup to the upgrade, ETH did really well. There are more major upgrades in Ethereum’s future. Hence, now is the perfect time to load up your portfolio.

Cryptos to Buy: Cardano (ADA)

Cardano (ADA) token with blue and orange digital background.

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Cardano is often referred to as another potential “Ethereum killer.” While it doesn’t look like it will overtake Ethereum anytime soon, there is every possibility it can continue rising in its shadow.

Cardano is a public blockchain that uses peer review to determine updates. Unlike many other protocols, Cardano relies on PoS for validation and security instead of miners like Bitcoin does with its PoW system.

Cardano has two layers. The structure improves process speeds and allows it to handle a vast number of transactions — the Cardano settlement layer (CSL) and computational layer designed for Ethereum-style smart contracts. The first enables applications on their platform while recording each one digitally likes how Bitcoin does in its way.

The second layer allows developers to create decentralized apps and enables new ways of doing business entirely by using ADA.

When it comes to cryptocurrency, the sky is seemingly always the limit. However, with prices up over 1,000% this year there is concern Cardano might not have much upside. But don’t worry — multiple use cases mean that the future is bright.

Stellar (XLM)

A concept image for the Stellar (XLM) token with a purple filter.

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The Stellar network is a decentralized system of communication where users can trade different types of cryptocurrency. It was created in 2014 with the mission to bring together the world’s financial systems into one cohesive whole — making it more accessible for people around the world who want access without relying on third-party intermediaries like banks and other traditional institutions.

Stellar’s cryptocurrency is known as the Lumen. It trades on the blockchain under the symbol XLM. Over the last couple of years, it has done very well. Part of that has to do with the general euphoria surrounding crypto. The other half has to do with a large number of unbanked in the world.

The Stellar network has the potential to be a great tool for international loan and remittance providers. The value in this project lies largely in unlocking access in underbanked, emerging markets economies. In these countries, people have to fight tooth and nail for access to banking services and credit. For them, the coin is certainly a blessing, making it one of the best cryptos to buy.

Cryptos to Buy: Monero (XMR)

XMR logo

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To address Bitcoin’s privacy weaknesses, Monero developers implemented confidential transactions. These allow for partially anonymous transactions that are guaranteed safe from hacks due to the implementation of ring signatures which obscure users’ identities without any actual input being known about them on a transaction-by-transaction basis — all while remaining completely verifiable through signature checks.

Bitcoins are not anonymous. They can be traced and blocked by regulators if there is suspicion that users may have used them for criminal activity. These are traceable since the public knows about each Bitcoin transaction and certain data points on the parties involved.

On the other hand, the Monero blockchain is completely hidden from public view. This means that transactions are private, and users can complete them without revealing personal information to anyone in the process — not even other members of its network.

Binance Coin (BNB)

A Binance Coin (BNB) sits in front of trading charts.

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The Binance Coin is a cryptocurrency that users can use to trade and pay fees on one of the largest crypto exchanges in the world. Since its launch in 2017, it has expanded beyond merely facilitating trades towards being used for booking travel arrangements or buying goods from other stores that accept this coin as a payment method.

One of the biggest things going in favor of BNB holders is that they get discounts when paying fees on the blockchain. This incentive — providing fee reductions — has created a growing community and facilitating force that helps traders perform daily operations.

Burning is an essential feature of BNB to ensure its growth and stability. Binance is committed to burning a certain number of coins every quarter until there are only 50% remaining in circulation. This can provide investors with increased prices over time because deflation increases value through competition among buyers.

Cryptos to Buy: Litecoin (LTC)

Image of one litecoin in front of many stacks of litecoins

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Litecoin is a popular cryptocurrency that started in 2011. Former Google (NASDAQ:GOOG, NASDAQ:GOOGL) engineer Charlie Lee, who also spent four years at Coinbase (NASDAQ:COIN), created the coin. Considering its developer pedigree, Litecoin possesses certain advantages that are other altcoins do not have.

Charlie Lee created Litecoin to be Bitcoin’s silver. The faster block generation rate and shorter confirmation times make it a better choice for transactions than Bitcoin, which cannot handle rapid popularity growth.

Litecoin has high liquidity and visibility. This is extremely important for investors in the highly volatile crypto market, because they need to make sure their investments don’t go down in value because of illiquidity.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

Article printed from InvestorPlace Media, https://investorplace.com/2021/11/7-cryptos-to-buy-that-have-millionaire-maker-potential/.

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