It has been a remarkable few weeks in the world of cryptocurrencies. We’ve seen Bitcoin on a rampage, and other currencies like Ethereum, following suit. There has been a lot of positive news around cryptocurrencies which might be increasing FOMO levels. The rapid spike in bitcoin prices might encourage a lot of people to decide to invest in cryptocurrency with the hope of getting a quick return on investments.
With all the excitement going around, deciding on a currency to invest in might be hard. Cryptocurrencies are notoriously volatile; a currency doing well today, might disappoint investors without warning the next day. Quite a number of currencies are doing well right now. A lot of positivity is flooding the crypto world right now, as large companies like PayPal have also shown interest in crypto. According to its press release, the company will allow users to store, buy and sell on its platform. Supported currencies are ETH, BTC, LTC and BCH.
The fintech firm, Square, co-founded by Twitter CEO, Jack Dorsey, also bought $50 million worth of BTC. Some central banks are also beginning to see the potentials of cryptocurrency. The People’s Bank of China has been conducting trials for its digital currency, e-RMB. The Bank of England, the European Central Bank and 5 others, are looking at the possibility of a Central Bank Digital Currency.
In light of all the positivity trailing the crypto community, in no particular order, here are some of the currencies that can currently be invested.
Zcash’s inflation level should reduce by at least 13% after its halving this November. The currency was released in 2016 with a circulating supply of over 10,000. The halving could shoot up the price of the currency in subsequent months. The hike could, however, be temporary.
Cardano could be the currency to challenge Ethereum’s DeFi reign with plans to introduce new features like smart contracts and decentralised applications. A lot of developers will be looking to build their applications on Cardano. The currency’s future in DeFi makes it an attractive investment.
With a market cap of $40.6 billion, Ethereum is the second most valuable cryptocurrency after bitcoin. Holding the top spot at the Defi boom, there is a possibility of more growth coming to ethereum through decentralised finance. Daily transactions of ETH reached an all-time high of $14 billion this year. The price of one ETH stands at $459 at the time of writing this.
Ripple is more than a cryptocurrency; it is an exchange used in transferring funds across borders very rapidly. Ripple does this in a very unique way. When funds are transferred in dollars from America, it is converted to XRP then delivered in pounds when it reaches the recipient in the U.K.
According to Crypterium, Ripple’s payment platform might attract partnership with big banks which could drive the price up to $1.40 to $1.50.
Bitcoin is the most profitable asset of the decade, and it is almost certain that it will be in any list of cryptocurrencies to invest in. The coin has been the best performer of all cryptocurrencies for over a decade. With a halving coming up this November, there have been crazy predictions about the coin. Some have said it could reach its all-time high of $20,000 again in March of 2021.
It is important to note, however, that cryptocurrencies are largely unpredictable and extremely volatile.