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Ripple, Terra, Bitcoin Cash: There is great potential in these 9 cryptocurrencies

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The search for the best cryptocurrency is partly reminiscent of the one after the amber room: many seekers, many self-proclaimed experts – and no one who can say for sure what is actually behind it.

Numerous factors come into play when evaluating a cryptocurrency. Crypto fans have their individual favourites. The invention of Satoshi Nakamoto, for example, is particularly praised by so-called Bitcoin maximalists, whereas it is only a horse put before the rest of the crypto world.

There is currently a keyboard of cryptocurrencies on the financial market. Some have potential, with their own use cases, different functions and goals. Experts in particular advise not to put everything on one card, but to invest in several cryptocurrencies at the same time on crypto exchanges. Binance, a cryptocurrency and derivatives trading platform, is one of the best crypto trading exchanges in view of its high number of cryptocurrencies.

Nuri offers its customers uncomplicated access, similar to “coindex”, which is particularly attractive due to the index-based portfolio. When it comes to security and regulation, “Coinbase” and “Kraken” are the market leaders.

It is clear: If a crypto currency is doing well, this has a positive price influence on all other crypto siblings. Investors often jump into such situations with their investments in previously undervalued coins or tokens whose prices then skyrocket. It is almost irrelevant in which coin you are currently investing, as demand is constantly increasing at the moment. As a consequence, this will result in an increase in value for everyone. However, it is also important to note the risks of such a “currency”. Key word: forgotten password and suitability for normal payment transactions.

It is important to know that there are different types of cryptocurrencies

For example, there are the classic cryptocurrencies, i.e. coins, such as Bitcoin, Bitcoin Cash, Litecoin or Monero.

They are primarily concerned with the digital currency. In this case, the blockchain is used to record, secure and distribute the funds. The coins usually differ based on factors such as: cost, special security and anonymization features, their suitability for microtransactions or their susceptibility to inflation. Then there are the stable coins like Tether (USDT), Terra (LUNA) or the DAI of the MakerDAO. These cryptocurrencies are tied to so-called fiat currencies.

The so-called platform coins also belong to the cryptocurrencies with potential. These are blockchains with smart contracts and decentralized applications, in short: dApps. The tokens from this are also used to pay the respective execution fees of the contracts. Many DeFi platforms are ultimately just smart contracts with their own cryptocurrencies.

These include Ethereum (ETH), Cardano (ADA), Polkadot (DOT), VeChain (VET) and Chainlink (LINK).

Ethereum is still the leading cryptocurrency in this category, but today more and more platforms of a similar kind are emerging.

Staking is also possible with tokens of this type, i.e. crypto owners use their coins to add new blocks to the associated blockchain and receive a reward in return. Finally, there are the utility tokens. These can have a variety of functions, such as paying fees on crypto exchanges, as the internal currency of blockchain games, as non-fungible tokens for works of art, pictures, music or videos, and much more. There is still plenty of scope for new developments of a similar kind in the future.

Cryptocurrencies with potential that can be subordinated to this category are, for example: Ripple (XRP), Stellar Lumens (XLM), Binance Coin (BNB), Tron (TRON) or IOTA (MIOTA). 

With cryptocurrencies there is always a risk of total loss. But the young coins and tokens in particular, which have received little attention to date, could still see enormous increases in value. Others, such as Bitcoin, on the other hand, are now considered safe investments that will probably continue to rise in many years to come.

Terra

The stable coin Terra (LUNA) is tied to more than one fiat currency. These include the US dollar, the South Korean won, the Mongolian tugrik and the International Monetary Fund’s basket of currencies. The LUNA token is used to stabilize the price. LUNA owners can also participate in related voting processes. Terra is particularly active in the Pacific-Asian region and has therefore been able to enter into partnerships with companies in South Korea and other Asian countries.

bitcoin cash

Bitcoin Cash (BCH) is primarily used to split off bitcoin and enables faster transactions, but also less market volume. Investing in BCH could be a lucrative addition.

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MakerDAO

The MakerDAO is a decentralized finance network and a lending platform on top of that. It is based on Ethereum as a project and is deposited as collateral in smart contracts. The cryptocurrency of the MakerDAO is called DAI. This stable coin is also pegged to the US dollar. The credits are issued in DAI.

Uniswap

Uniswap is the name of a popular DeFi platform, UNI is the token. Uniswap is an “Automated Market Maker” (AMM), i.e. traders come together here automatically. Smart contracts also ensure that trades are executed correctly. Various tokens can be traded via Uniswap. The UNI token serves, among other things, as a governance token.

BinanceCoin

Binance Coin (BNB) is the in-house cryptocurrency of the world’s largest crypto exchange: Binance. If you pay fees with BNB on the trading platform, discounts rain down. Furthermore, Binance Coins are used for investing in IEO’s (Initial Exchange Offerings), and they can also be used as a means of payment for other DeFi functions.

Litecoin

Litecoin (LTC) is one of the oldest coins. In the broadest sense, it is a copy of Bitcoin. However, it works faster and with cheaper transaction costs. Important to know: Since there is potential for high price jumps in the Altcoin season, Litecoin is not a bad idea as a side investment.

chainlink

Chainlink (LINK) is an oracle platform for smart contacts that sits on top of Ethereum as a kind of additional layer. The main task of the Oracle service is to provide the smart contracts with information so that they can perform their functions correctly. The LINK token recorded an enormous increase in value, especially in the last year. Chainlink is connected to a number of DeFi platforms and ensures correct price regulations here. Due to the growth potential in that area, Chainlink is also a cryptocurrency with potential.

Cardano

Cardano (ADA) is more than just an Ethereum clone. The reason for this? This smart contract platform is developed based on scientific principles. In the long term, it should be more scalable and faster than any competition. Since the current price of Cardano is still relatively low and it will probably take some time until completion, an investment could pay off these days.

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