Top Crypto's 2019
The cryptocurrency market appears to be heating up again with the bitcoin (BTC) price surging from about $3,500 earlier this month to currently around $3,900 according to CoinMarketCap data. Other major altcoins have also surged with Ethereum’s native token, ether (ETH), EOS, and litecoin (LTC) recording considerable gains.
Although it’s unclear what’s behind the short-term rally, there are definitely some cryptocurrency projects that are arguably worth investing in more so than others. In this article, we will briefly discuss why certain digital assets may yield a higher return on investment (ROI) when compared to others.
Many analysts argue that litecoin (LTC) offers nothing new in terms of technology, as it’s basically another proof-of-work (PoW) fork of the Bitcoin (BTC) protocol. While the Litecoin network does use a different mining algorithm than the flagship cryptocurrency (Bitcoin uses SHA-256, Litecoin uses Scrypt), most investors won't know what makes Litecoin different – as in what is its unique value proposition?
Launched in 2011, Litecoin can be thought of as a brand that most in the crypto community has learned to trust. The Litecoin blockchain has a relatively long and established transaction history – which has helped it gain a powerful network effect. There aren’t too many cryptocurrencies which have the same level of security and network effect that Litecoin has managed to develop.
Litecoin also serves as a testnet for Bitcoin, as developers can try to experiment with new ways to improve Bitcoin’s protocol by first trying the new code on the Litecoin network. Last year, leading social trading platform eToro had published a report in which it noted that Litecoin was “massively undervalued.” eToro’s report mentioned that Litecoin had integrated the Lightning Network (LN) to its platform, which allowed the layer-two payment solution to be tested on a large digital asset network. For these reasons, we expect Litecoin to remain a good long-term investment choice for crypto enthusiasts.
Binance Coin (BNB)
The world’s largest cryptocurrency exchange, Binance has launched a utility token called Binance Coin (BNB). Binance Coin’s market capitalization continues to increase – despite the prolonged bear market. It appears that the long-term success of this token is inextricably linked to the success of Binance.
As crypto enthusiasts know, last year Binance recorded first quarter profits which were greater than that of Deutsche bank, one of Europe’s largest financial institutions. Moreover, what made the achievement even more impressive is that Binance has fewer than 200 employees while Deutsche bank has approximately 100,000 employees on its payroll.
Recently, Binance CEO, Changpeng Zhao has admitted that business has slowed down for the exchange as trading volumes have dropped considerably. Despite this, Binance revealed it has still managed to remain profitable. While some analysts such as TheBlock founder, Mike Dudas have criticized the use of Binance Coin, it’s clear that there’s a legitimate use case for BNB coins – as it incentivizes traders to use it to benefit from discount while trading on Binance.
As Binance continues to expand its line of services and products, including the launch of a decentralized exchange (DEX), we expect the value of Binance Coin (BNB) to increase in the mid to long-term.
Maker, an Ethereum-based collateralized loan ecosystem based on “decentralized governance” and stablecoin, Dai, is arguably one of the most useful applications developed on the Ethereum network. MKR coins should be a sensible investment choice as they contribute to an ecosystem that has now locked up approximately 2% of Ether’s total circulating supply.
Experienced traders and investors looking for a viable, long-term investment should consider allocating a small portion of their digital asset portfolio to Maker’s MKR tokens.
Zilliqa is a third-generation blockchain network that is notably able to process over 2,800 transactions per second (TPS). In comparison, bitcoin and ethereum can only handle an average of 7-15 TPS. According to Zilliqa’s developers, its platform has been developed in a manner that allows users to “focus on developing [their] ideas without worrying about network congestion, high transaction fees or security.”
Moreover, the Zilliqa platform uses advanced sharding techniques, in order to allow developers to create scalable decentralized applications (dApps). Since launch, Zilliqa has consistently maintained a high market capitalization and currently ranks as the 35th largest crypto platform as the value of all ZIL tokens in circulation is valued at over $150 million. We believe Zilliqa’s steady ongoing development give it a fair chance at remaining a top cryptocurrency.
Lisk is arguably one of the top 10 or 20 cryptocurrencies to invest in – as its development team continues to post regular updates.
Nano has been dubbed as the “global world currency” and it’s also consistently ranked among the top 50 cryptocurrencies by market capitalization. Developed as a currency to solve the problem of slow transaction times and high transaction costs, Nano is built on a “trustless, low-latency” crypto network. The Nano platform is implemented by using a “block-lattice” architecture in which each account, or address, has its own dedicated blockchain.
Moreover, the Nano network achieves distributed consensus through delegated proof of stake voting. For investors who want to stay committed to the crypto space long-term, Nano is among one of the best projects to be invested in.
ICON is a decentralized blockchain-based platform that has been designed to facilitate improved communication between separate distributed ledger technology (DLT)-based networks. Facilitating communication between independent blockchains is also called “interoperability” – which is one of the main goals of ICON.
There are now dozens of established digital asset platforms and it will become critical for blockchains to communicate with each other in the foreseeable future. Because ICON is one of the leading projects that aims to facilitate blockchain interoperability, it’s definitely worth keeping an eye on this year.
Factom is based on a cryptocurrency protocol that allows users to determine the authenticity of documents. Factom’s native token, FCT (called “factoids”) are used to store and access documents. Notably, the content of the documents themselves is not stored on Factom’s blockchain. It’s only the pointers to the original, or authentic, documents that are kept on Factom’s immutable ledger.
Blockchain experts believe that legitimate use cases for DLT include document authentication, id verification, and tracking products on the supply chain. Given that the Factom protocol is designed to help with at least one of these legitimate use cases for blockchains, it’s definitely a cryptocurrency worth investing in for those looking for long-term returns on their investments.
Investing in crypto assets remains highly risk due to the volatile nature of the market. However, the market does appear to be stabilizing as prices of cryptocurrencies are not fluctuating as wildly as they were a year back.
Most financial advisors, including Morgan Creek Digital Assets, recommend only allocating 1-2% of a portfolio to cryptocurrencies. Moderate exposure to crypto assets has statistically performed better than investing higher amounts. Although our list of cryptos does not mention top blockchain platforms such as Bitcoin (BTC), Ethereum (ETH), EOS, and Tron (TRX), it’s generally recommended to include these in a comprehensive crypto portfolio.
While Tron and EOS have seen more developers create and deploy decentralized applications (dApps) on their networks compared to Ethereum, most crypto pioneers including the founder of leading crypto platform NEO have pointed out that Ethereum is still the most established smart contract platform. That’s because Ethereum still has the strongest community of developers.