The number of people interested in cryptocurrency investments is increasing continuously. Today, one can observe that more and more large investors are about to join the crypto world. For example, Grayscale, an American crypto fund, continuously buys large amounts of Bitcoin and Ethereum for its customers. So the issue then — What are the most promising altcoins? This article will help you find out!
In our view, in addition to Bitcoin as the number 1 cryptocurrency, extra attention will be given to privacy coins. The largest privacy coin in terms of market cap is Monero (XMR).
The advantage of cryptocurrencies like Monero is that they are actually anonymized. Outsiders cannot check how many XMRs were transferred and transactions cannot be traced back using hidden addresses. Due to the declining trust in politics and banks, we see great potential for cryptocurrencies like Monero.
People no longer want to suffer from banks and regulations when it comes to their hard-earned money. The fear of inflation might also encourage security-conscious crypto enthusiasts to invest their money not only in Bitcoin, but also in anonymous cryptocurrencies.
#2 Blockchain Platforms
Smart contract-enabled platforms are likely to pick up speed in the medium term. More and more alternative blockchain platforms are emerging around Ethereum. These platforms in their turn are about to solve the main problems of the existing Ethereum solution. It’s essentially about the scalability of the network.
Only a certain number of transactions are possible per second. However, if the popularity of dApps increases, many applications will become unusable. Ethereum would like to solve this problem through Ethereum 2.0. Here some adjustments — PoS instead of PoW, sharding — will improve the scalability.
While the work on Ethereum 2.0 continues, the competing projects won’t be far behind. Here we’re talking about Tezos (XTZ) and Komodo (KMD). Tezos had a very successful ICO and now has around 400 million US dollars. Tezos Foundation has invested this money in various assets in addition to development.
There’s shouldn’t be a problem with financing in the early stages. According to experts, Tezos combines the best of both crypto giants — Bitcoin and Ethereum. XTZ can also be used as a currency and offers reasonably fast transactions. Moreover, the application of Tezos as a blockchain platform is limitless.
Komodo (KMD) is another favorite when it comes to blockchain platforms. It’s one of the few projects that not only survived the bear market but used it to expand its own technology. Also, there are other promising platforms:
- Projects like Chainlink (LINK) that strive to enable unhindered collaboration between crypto and legacy platforms via Oracle technology.
- Projects like IOTA that work with Tangle technology. Tangle tech is also often referred to as ‘Blockchain 3.0’ technology.
#3 Security Tokens
A smart investor usually thinks in advance. An investment should not only have a relatively stable value but also provide profit opportunities — if possible with the greatest possible flexibility in trading an asset.
Security tokens enable the division of assets that are normally not divisible. A large area of application could be the tokenization of real estate, for example. In accordance with existing practice, the fact that 100 investors divide the purchase price of a property and ownership rights is impossible — or at least requires great effort. Security tokens greatly simplify this process.
Security tokens could also be a good form of raising capital for medium-sized companies. In economically difficult times, in which larger investors are more cautious, one could offer ordinary investors the opportunity to acquire a mini-share in their own company and thus increase their own liquidity.
Which altcoins do you consider the most promising ones? Feel free to share your opinion in the comments!