If you’ve had access to the internet in recent months, then you probably have some vague understanding of what cryptocurrencies or digital currencies are.
Bitcoin holds the position of being the most popular cryptocurrency at the moment, its popularity has caused it to gained the attention of more people willing to take some risk and make a ton of money.
However, Bitcoin’s fame has been followed by a lot of “competition” in the cryptocurrency market. So much as over 1000 other active cryptocurrencies have emerged since bitcoin’s initial coin offering(ICO) in 2009 by Satoshi Nakamoto.
Although, the true identity/identities behind the name “Satoshi Nakamoto” remains unknown. Bitcoin is a peer-to-peer(person to person, no banks involved) payment platform that guarantees anonymous payments.
General Cryptocurrency terms
Otherwise known as “shitcoins”, these are all other coins apart from bitcoins.
The circulatory supply refers to the total amount of a cryptocurrency that is available to be purchased. The circulatory supply of bitcoin is currently over 18million.
This is the quantity of a product that has been sold multiplied by its current price. A higher market capitalization means a higher value.
Just as your smartphone has a maximum storage capacity, the upper limit refers to the total amount of cryptocurrency that can be mined in a lifetime.
“Bitcoin has an upper limit of 21million, my phone has an upper limit of 64gigabytes.”
Placing a limit on the amount of a cryptocurrency makes it more valuable (the less in circulation, the more the valuation) and less prone to inflation (caused by excess availability).
However, it is important to note that not all cryptocurrencies have an upper limit.
For example, Ethereum does not have an upper limit so it is considered prone to inflation. Ethereum’s infinite feature is nonetheless checked by regular currency “burns”. Periodically, a certain percentage of either in the market is burnt (destroyed) forever to ensure that inflation is kept in check.
Mining is done by specialist miners with the use of various mining equipment in the same sense as gold and other precious gems are but with computer software.
“Think of your computer teachers while you were in school… Yes, that’s a close comparison. Excluding the fact that cryptocurrency miners are more likely to earn more than your average teacher.”
Alternatively, Some cryptocurrencies are pre-mined so they do not need miners.
As the saying goes “Don’t put all your eggs in one basket”. While trying to find the right investment for your money is great, you should be more open to spreading your investment across a short/long range of opportunities. Depending on your capabilities.
There are various cryptocurrency communities across various social media platforms and they are made up of like-minded cryptocurrency investors and analysts that generate buzz over a cryptocurrency.
You might recall the Gamestop saga from a few months ago, a group of Redditers championed that movement. Another scenario of community buzz generation was with the billionaire “Elon Musk’s” tweets about Dogecoin.
Reddit and Twitter are the favorite hangout spots for cryptocurrency communities in case you are curious.
Just like an iPhone is known for its camera’s prowess, sleek outlook, and other features, all cryptocurrencies operate on one technology or the other, this one of the things that give them an edge in comparison to their peers.
Tips on finding the next bitcoin
- Never buy a digital currency without proper research. The main point is to make money so you want to buy at a low and sell at a higher price.
- Only invest money you can afford to lose. There will always be opportunities when you’re ready.
- If you find a good coin and you want to start investing, start small. If you miss the big run, another will come. Better safe than sorry.
- If by chance you get caught up in a prolonged drawdown. It’s important to be patient!
- Cryptocurrency is not for everybody but you can make a truckload of money if you know what you’re doing.
- Again, BUY LOW, SELL HIGH.
Features of Cryptocurrencies
Bitcoin is the most popular but not the most technically advanced of them all. After the birth and initial success of bitcoin, the market became more saturated.
Altcoins more efficient than bitcoin were introduced into the market but this didn’t make them perform better, at least not yet.
Therefore, the key to figuring out the next bitcoin lies in what they have to offer and their rates of adoption in the next few years.
This is a cryptocurrency of the Ethereum network. While it still has a long way to go to attain the status of “the next Bitcoin”, it is well ahead of the rest.
It allows its users to:
- Code and release their decentralized applications and
- Create “smart” contracts that automatically enforce clauses. Smart contracts work with conditional statements.
i.e It is quite useful to huge investment corporations with incredibly deep pockets, meaning higher adoption rates.
Different versions of the technology behind the Ethereum network have also been emulated by companies like Microsoft and Intel for business uses.
Just a few weeks ago Visa also adopted ethereum as a valid payment method. These are the kind of adoptions that you should look to find in emerging digital currencies.
Bitcoin cash (BCH)
This cryptocurrency was formed as a product of Bitcoin to checkmate the slowdown in bitcoin’s transaction speed. It is a standalone currency with a faster transaction speed.
Being closely connected with the king of cryptocurrencies makes it famous.
This was designed as a payment network known as Ripple.Net. It is used by major banks and financial institutions including Santander and American Express.
For instance, you could use the ripple network to send money through continents in minutes and at low transaction fees.
This was designed to be the silver to Bitcoin’s gold. It has 4 times greater supply than bitcoin does as you can see in the silver to gold abundance ratio on earth. There are also different technological characteristics existing between them with LTC having a faster transaction speed but low market capitalization compared to bitcoin.
Monero is one of the very interesting altcoins existing at the moment.
This is so because of its increased ability to anonymize its users. It is incredibly difficult to trace because it uses a technology which enables it to hide the identities of sender and receiver.
Additionally, the technology also conceals the amount transacted therefore providing more increased anonymity. To those who might be thinking, bitcoin also provides secure transactions but not completely.
Transaction on bitcoin remains in public archives, which reduces the level of anonymity expected. Investigators have also grown more familiar with finding their tracing identities with bitcoin because it has been in existence for longer.
In essence, if crime warlords were to think about keeping their money as safe as they can afford. They’d probably have XMR on the top of their lists. This could be an opportunity to grow with this dark side if it interests you.
This is generally known as the meme coin, it started as a joke but has gradually started becoming a fan favorite. Its underlying technology is derived from Bitcoin.
Dogecoin may be used for payments and purchases.
Fastest growing Cryptocurrencies
Market Capitalization rank
This table is present to state that although bitcoin will probably remain the most popular cryptocurrency that exists, there are many others that are better performing. This is in part due to the market capitalization of Bitcoin being too high. Thereby pushing investors to cryptocurrencies with lower market capitalization.
Other cryptocurrencies with potential include but not limited to:
- MakerDAO(MKR, DAI)
To buy cryptocurrencies, you’ll need a “wallet”, a wallet is an online app that can hold your currency.
In conclusion, the recent worldwide adoption of cryptocurrencies shows there’s a bright future ahead. The information shared above gives insight into a few of the best performing and popular cryptocurrencies.
Cryptocurrency goes beyond just charting and into the underlying factors that make each one of them tick. To see what could possibly happen in the crypto markets, you should pay attention to news updates which give insights into what’s coming. It is also advised that adequate research should be done before any decision-making.