There is a palpable rush among ambitious investors to grow their individual fortunes or enterprises, whichever is the case. In a highly commercialised world, a chance to earn any extra money to grow riches means a lot. In our article titled, Why Bitcoin Investors may Need to invest in Altcoins too, we persuade legendary cryptocurrency investors to consider venturing into altcoins.
While everyone appreciates, rightly, that bitcoin has stuck out to be a giant cryptocurrency, investors can’t be so naïve to put all their fortunes in one currency. Business moguls will tell you that no venture is too big to fail. For a fact, bitcoin has occasionally experienced chilling shedding of value that sent investors scampering. Scampering to where? I guess altcoins should be that safe haven where cryptocurrency investors can always save a portion of their wealth. Altcoins continue to perform well in the market and Shiba Inu coin is just a perfect example for anyone doubting their ability.
As a starter or even long standing crypto investor, it may not be immediately clear which altcoins to go for. Granted, certain altcoins have emerged, gotten a hype only to disappear like they never came. Actually, some of these much publicised altcoins that promise exceptional benefits to investors end up becoming Ponzi schemes and swindler games. So, any investor must remain vigilant and excessively watchful because, cryptocurrency transactions authorised may not be reversed, even if it happened by mistake.
A little background on cryptocurrency
The cryptocurrency world is booming with excess optimism into the future with an estimated market worth of $250 Trillion. However, most optimists are hopeful that BTC will only take up a fraction of this estimated growth in the future crypto market. The larger portion of the estimated future growth has been left into the fate of altcoins.
Altcoin definition has substantially evolved since the early days of cryptocurrency when just a few crypto assets existed. During those days, nothing but BTC was considered to be the only alternative. However, today, the world of crypto assets has broadened with the introduction of a wide variety of coins and tokens.
Altcoins for instance, ETH and SOL are indicating very high-end levels of growth in their value dollar average. For this reason, this defines the best time to consider which one of the two would be the best to invest in. Given that there are close to 22000 altcoins available in the cryptocurrency market today, finding a specific top altcoin to invest in can be overwhelming.
Investing in Cryptocurrency
When you invest in cryptocurrency, no such thing exists like you owning shares into a certain company. The cryptocurrency investment procedure is a form of settlement with two parties who both believe that crypto in question has value. There actually no third-party involved in controlling and monitoring the currency operations.
However, before you can start investing in cryptocurrency, it is prudent that you are aware that it is a risky venture. Reason being, the cryptocurrency market is often considered to be an unstable market and fluctuates very strongly. There is a possibility that you can make a fortune within a very short period. Sometimes, you may lose badly and so just invest only what you are comfortable losing.
The market for cryptocurrency, particularly that of altcoins, is a popular one to invest in. Most investors have developed interest in buying altcoins especially when their value goes down with a hope of selling in future when their value rises. This is the aim of every investor in the cryptocurrency market, to make profit.
The Best Choice Altcoin to Invest in
Just like BTC, altcoins are also very good for investment but it may turn out to be the opposite. You must therefore take note that altcoins save for stablecoins have a very high volatility level. What it means is that the value can enormously fluctuate within a short duration and this can make the investment risky.
Investing in cryptocurrency can be a very risky venture but also interesting and colossally rewarding. The only requirement that would be necessary is to first get familiar with the exchange rate for the particular altcoin you intend to buy.
Making a choice however, is not going to be an easy one. This is majorly attributed to the fact that there are new areas in the blockchain industry receiving massive developments this year. Considering the DeFi, Metaverse, and NFT market places, a lot of development is happening around these areas. Hence a lot of research is necessary.
We have the leading altcoins like ETH, Litecoin, Shiba Inu, and XRP as worthy contestants. However, with some worthy additions to this list, there is a perceived potential explosive growth in the coming days. All in all, I still believe that these altcoins would still make the best choice for investors and traders presently.
Ethereum (ETH)
Just like BTC, Ethereum has grown to be a popular type of cryptocurrency that also works using blockchain technology. Ethereum is simply a phrase forming from the word “ether”. It also has the aspect of decentralisation feature which suggests the absence of a third-party authority in its operatives.
With a current market capital of $192 billion, and 20% crypto asset holdings, ETH is currently the biggest altcoin in the market. ETH operates under a system of distributed computing network to allow users to use the blockchain technology to operate decentralised applications. Decentralised applications meant here are for instance the dApps and host smart contracts.
The reason why I would recommend ETH to be the most appropriate altcoin to invest in is because of the decentralised feature. It is way greater and bigger to explore more than just the dollar average value that BTC enjoys. ETH’s is considered to be a decentralised playground for its users to determine the future in the realm of technological advancement.
Ever since ether’s creation in 2015, it has recorded massive growth and popularity. ETH is presently the largest contract platform and a home to the famous selection of DeFi, dApps, Web3 projects, and metaverse. All these build on the massive use of the ETH tokens thus pushing their prices to greater levels.
Solana (SOL)
If not interested in the features of ETH then another best alternative coin known as Solana might just be the best for you. The fact that it is the fastest-growing smart technology platform, it has embodied all the technologies that ETH has in place. Right from the DeFi rod Apps, metaverse, NFTs, to meme coins not forgetting all its decentralised exchanges.
It is these adapted features that have greatly influenced the growth of SOL tokens thus the sustained uptrend growth in prices. Even amidst the cryptocurrency market depreciation, SOL continues to actively expand its ecosystem by adopting more programs hence growing its community.
Most importantly, SOL has proved to be a worthy and sustainable cryptocurrency project. As an investor, SOL passes the test of a good investment. It’s track record has been a positive one and value projected to rise much in the near future. Moreover, market trend analysis show that the number of users on this network will keep increasing. When the cryptocurrency market starts its recovery SOL is likely to recapture its highs and resume the rally towards new levels.