Top 10 Cryptocurrencies
Last updated July 2018
The financial world is changing and a big game changer is cryptocurrencies. Imagine sending money to a friend on the other side of the world in less than 5 seconds, where using a bank would take you about three to five days. The implications of blockchain technology for global commerce is tremendous.
Not only do cryptocurrencies enable fast money transfers but many cryptocurrencies have yielded exponential price growth that has surpassed the wildest expectations.
While Bitcoin was the cryptocurrency that started it all, there are now a number of other innovative technologies ready to carry the industry forward. Apart from being a way to transfer value, many are incorporating exciting new ways to use blockchain technology, that might very well change the way the world operates.
As a whole, cryptocurrencies have pulled back from the highs of late 2017. But overall, there are many that are providing some excellent investment opportunities, based on what they can offer. With many analysts comparing the current retrace with 2014, where there was an opportunity for savvy investors to buy the first big dip in Bitcoin was available.
1. Ripple (XRP)
Ripple’s XRP token is still a long-term favorite of ours. The price might be off the highs, but it is still more than double where we were in 2017. Take a look at this daily Ripple chart by eToro, an excellent crypto (and social) broker:
Ripple Daily Chart
Despite a broad-based sell-off in cryptocurrencies, Ripple’s XRP token continues to grow in popularity.
This major price increase has made ripple the third largest cryptocurrency by market capitalization (after bitcoin and ethereum).
Relatively speaking, Ripple is really strong when compared to other major cryptocurrencies. Particular Bitcoin which has fallen from its highs by almost three quarters.
Other positive aspects of Ripple (XRP) include its incredibly fast, and cheap transactions. The Ripple network is also much more stable and reliable than Bitcoin and boasts immaculate scalability. With Ripple, there are no transaction bottlenecks or delays in settling transactions.
Ripple was created to enable banks and other financial institutions to perform real-time global payments and to supply the on-demand liquidity required to accomplish this.
We are seeing more and more financial institutions and payment providers incorporate Ripple’s technology into their own platforms.
An important consideration for investing in Ripple is its remarkable utility in the banking industry which could have a positive effect on its price for a considerable time to come.
However, questions remain as to whether XRP will be classified as a security which will have a fundamental impact going forward.
For more information about ripple and why it has so much potential, take a look at the ‘Best cryptocurrencies to invest in 2018’.
2. NEO
Of all the cryptocurrencies mentioned in this article, the China-based NEO has received a fair bit of attention in recent times.
NEO is often compared to Ether (ETH) and the Ethereum network but it is actually much more advanced than Ethereum. While both networks facilitate smart contracts, NEO’s are much more secure, scalable, and easier to use.
To keep it simple, let’s just say that NEO is faster, smarter, and more versatile than the Ethereum network. It is also easier for developers to work with NEO than with Ethereum because NEO supports several programming languages while Ethereum only works with Solidity.
NEO is currently ranked as the 13th largest crypto coin, down a little bit but still strong. Keep an eye on this superior cryptocurrency!
3. Ether/Ethereum (ETH)
Ether (Ethereum), while still a new technology, feels like it is one of the old stagers. That’s not to say it isn’t a good investment, because its utility and user base only continue to expand. The Ethereum network has more utility than Bitcoin’s and boasts faster transaction settlement.
Concerning investment value, Ether (Ethereum) seems to have more potential than Bitcoin. It offers higher trading volume and larger market capitalization (Ether is currently the second-largest crypto in terms of market capitalization).
While many of the smaller and newer cryptocurrencies have retraced, Ethereum continues to stand tall within the industry. Learn how to trade Ether.
4. Litecoin (LTC)
Litecoin is a solid cryptocurrency which continues to trade around similar levels to late 2017.
Litecoin was founded in 2011 and has been doing well ever since. It is currently the sixth largest crypto by market capitalization and still trails the big two (Bitcoin and Ethereum).
Litecoin transaction processing speed is much faster than Bitcoin in terms of transaction processing speed and its network is geared for high scalability. Although Litecoin is slower than Ripple, it also doesn’t have any bottleneck problems with transaction processing.
Litecoin can easily be integrated into systems using Bitcoin because it is compatible with Bitcoin’s API. This greatly adds to Litecoin’s popularity as a solid and convenient alternative to Bitcoin.
The world is using Litecoin more and more, especially in the East. Two major crypto exchanges in Hong Kong and South Korea are incorporating Litecoin into their offering in 2018 and more merchants around the world are starting to accept Litecoin payments.
Hong Kong is expected to buy more Litecoin going forward.
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5. Dash
Dash is the14th largest crypto by market capitalization. It has held up relatively well given the broad based sell-off.
Besides the powerful bull trend in play, other reasons to invest in Dash include that
Dash is faster and cheaper than Bitcoin and that more and more merchants are beginning to accept Dash payments. Dash (DAS) has proven itself to be a good runner. Let’s see what it will produce going forward!
6. Cardano
Since trading started on Cardano early in October 2017, Cardono is still about 7 times higher at current levels. At the moment, this extremely young coin is the eighth largest crypto in terms of market capitalization.
Cardano’s fundamentals remain solid and point to strength in the long-term.
7. NEM (XEM)
Ranked as the 17th largest cryptocurrency by market capitalization, NEM is one of the cryptocurrencies to watch. NEM remains off the highs of early 2018 but still has had plenty of media coverage in recent times.
NEM is much more efficient than Bitcoin, has more uses than many other cryptocurrencies, including Bitcoin, and can be accessed by programmers who are not necessarily professionals in the crypto arena.
8. Bitcoin (BTC)
Although bitcoin isn’t our number one crypto to invest in right now, it certainly shouldn’t be ignored. Bitcoin’s great advantage is that it is well-known, even among people who don’t know much about cryptocurrencies. Many newcomers to the crypto market start their adventure by purchasing Bitcoin, the big brother of all cryptocurrencies.
The price has seen a significant correction but one of the key elements is that there is still a limited supply with only 21,000,000 units. This is an important factor which is expected to encourage price growth for many years to come. What is Bitcoin?
Bitcoin is still the number one crypto, not only in terms of market capitalization but also price-wise. Bitcoin trading volume is also at least double the amount of any other crypto at the moment.
Besides these points, Bitcoin is accepted by thousands of companies and merchants around the world and has a tradable futures contract. Learn how to trade Bitcoin.
9. Stellar (XLM, Stellar Lumens)
Stellar Lumens performed really well in 2018 on a relative basis. Its market cap has grown to make it the 7th largest crypto at the moment. Up from 10th last year. Like Ripple (XRP), is able to significantly accelerate cross-border payments.
Stellar has already signed up some big clients like IBM which will benefit from quicker and cheaper international payments. XLM has already performed exceptionally well and is expected to continue doing so, especially if the Stellar system is going to be used by more institutional players to optimize their payments.
10. OmiseGo (OMG)
OmiseGo is an Ethereum-based system or payment channel through which consumers can pay merchants in many different fiat and cryptocurrencies. The merchant receives the payments in its preferred currency and doesn’t even know with which currency its clients pay. OmiseGo is currently partnering with McDonald’s in Thailand to streamline its payment processes.
The OmiseGo project aims to make cheap and easily accessible payments possible for people who don’t have credit or debit cards, especially in Southeast Asia.
The OMG token’s value has risen since its inception and is still up from 2017, meaning it is strong on a relative basis, compared to the broader cryptocurrencies. It remains a little more speculative, given the fact it is ranked 20th by market cap, but its application continues to expand.
Conclusion
The cryptocurrency market is volatile and full of opportunities. Huge amounts of capital are pouring into this asset class every day which is sustaining the overall long-term bullish momentum.
People who want to invest in cryptocurrencies have great opportunities but should exercise proper risk management in order to preserve their capital.
A good strategy for those who believe cryptocurrencies are the wave of the future is a buy-and-hold approach. If you do not know which is the best cryptocurrency to invest in you may want to spread your risk and buy a portfolio of a number of cryptocurrencies. Similar to an investor with a diverse stock portfolio.
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