Why invest in cryptocurrencies? Fast-rising value, excellent interest return rates, and the chance to be part of something new are all great reasons to buy cryptocurrency today. The hardest decision isn’t whether or not you should invest in crypto (hint: the answer is yes) but rather which currency you should choose. Do you go for one of the big, well-known but expensive coins, or do you go for something with a lower value and (hopefully) more potential for growth?
There’s no single, simple answer to those questions unless you’re willing to take “it depends” as an answer.
Invest Smartly With These 12 Crypto Coins
While we won’t tell you which crypto you should invest in, we will point you toward 12 that, we feel, show promise.
Bitcoin has been likened to gold in that it acts as a storehouse of value. It was the first cryptocurrency and has become the most valued and popular coin. People buy it because they feel it has value, and that belief rolls into the notion that it will continue to increase in value or at least maintain its current value. In 2020 the price skyrocketed to a new high, reaching more than $60,000 USD in 2021 before falling.
Although down from that high, it’s still up considerably from when the surge began. As the largest and most popular cryptocurrency, BTC is widely available and commonly used as the base currency on platforms.
To buy Bitcoin, head to midas.investments. You’ll need an account to sign in, but it’s quick and easy to get started.
Ethereum is more than just a currency. It’s a platform for a broad range of decentralized apps, or dapps, built on the Ethereum blockchain. The Ethereum currency, Ether (ETH), is the second most popular behind Bitcoin and has seen a recent rise in value.
What makes Ethereum so attractive is its potential uses. Automated or self-executed transaction protocols, known as Smart contracts, are just one example of how Ethereum could revolutionize the way finance is conducted.
Speaking of revolutionary software, many of the decentralized finance (DeFi) apps, like asset management tools, crypto exchanges, and lending platforms, are built on Ethereum.
The Midas token supports the Midas.Investments ecosystem. Holding Midas coins on the platform can provide a return of up to 24% APY. Midas coin owners can participate in coin burn-outs, allowing them to receive returns based on the platform’s growth.
Choosing to lock-in your Midas coin will boost yield while also reducing fees.
The Midas.Investments platform also has a buyback function, intended to grow the value of Midas coins as the platform grows.
The value of Midas coin is variable and considered undervalued, with a general upward trend since its inception in 2019.
Polkadot has been called the “Ethereum killer” for its gains. It has also been projected as the coin most likely to take over Ethereum’s spot as second in line to Bitcoin. Considering the coin only came into existence in May of 2020, that’s a bold claim.
For consumers, it functions the same as other cryptocurrencies in that it can be used for all the same purposes. The main differences are under the hood at the developer level. For developers, it offers several advantages over Ethereum, which has made it a popular choice for building apps. The advantages it offers coders may see it attain its goal of being the major supplier for smart contracts – the same goal that Ethereum has.
Solana claims to be the fastest-growing crypto ecosystem. The Solana blockchain’s structure offers some advantages over Bitcoin and Ethereum, including scalability. Its system allows transaction throughput to grow in proportion to bandwidth.
Where Bitcoin can handle seven transactions per second, Solana’s developers claim a capability of 50,000 transactions per second. This scalability makes it better suited for decentralized apps or dapps. This is good for developers, but what about users?
The benefit for users lies in the delegated staking structure of the blockchain. By staking, or locking in, your Solana coin, you’ll earn a passive income. This tends to be easier to figure out for those new to the crypto space and also provides a more stable return compared to crypto trading.
Binance Coin (BNB)
Binance is the world’s largest cryptocurrency exchange. Binance coin (BNB) is the coin issued by the exchange. Although once based on Ethereum, it was brought into the Binance ecosystem by placing it on the Binance blockchain.
Being connected to such a large exchange has helped BNB rise to become the third most popular coin, trailing only Bitcoin and Ethereum.
Originally launched in 2017, the coin was initially intended as a way to lower trading fees. It has since broken free of that limitation and from the Binance platform itself to become a useful currency in its own right. It’s now possible to use BNB to purchase travel accommodations, buy lottery tickets, make credit card payments, and pay for online services, among other uses.
Polygon, formerly Matic, is a blockchain scalability platform that aims to address some of the problems with Ethereum. Mainly, these are high fees, a low transaction per second (tps) rate, and a subsequent inferior user experience.
Polygon’s aim is to create distinct blockchains that exchange information and value. The founders—four software engineers based in Mumbai, India—have aspirations of displacing Binance as the third most popular crypto.
Polygon is still a relatively inexpensive buy. Even with prices rising, it’s still under $2, making it an attractive buy for people looking to get in early on what billionaire Mark Cuban sees as a good thing.
Cardano is a blockchain on which multiple cryptocurrencies can be traded. It’s a cryptocurrency, but it’s also more than that. It’s a platform that enables people to develop apps that solve a range of issues, from counterfeit prevention to microfinance.
This value-added component makes Cardano an interesting alternative to Bitcoin. However, its low worth and relatively unknown status don’t place it anywhere near Bitcoin in terms of current value.
Chainlink offers oracle for DeFi projects. Oracles are a way to monitor outside forces, from the weather to sports scores. The mission of Chainlink is to create the first blockchain oracle network. LINK, the coin associated with Chainlink, is used to help build toward its mission. The project has proven to be more than just hype, in part by expanding the functionality of blockchains. This has helped it to become a rising star in the world of cryptocurrencies.
DeFi tokens work a bit differently than other crypto coins. The decentralized finance sector is based on Ethereum, but there are multiple tokens with various primary functions. These tokens exist to serve a function and also have their own value, independent of ETH.
AAVE ($AAVE) is a lending protocol – meaning that it facilitates the exchange of coins.
Uniswap ($UNI) is used to exchange tokens in the DeFi space. It’s considered a decentralized trading protocol.
1inch ($1INCH) is used to access the best exchange rates across several exchanges and currencies, including Ethereum, Binance, and Polygon.
The crypto space is full of projects that are taking advantage of this new technology. These are just some of the more popular options. No matter what you’re looking for in a cryptocurrency, you’re likely to find something that fits among the thousands of available currencies.
About opportunities in crypto
There are many opportunities to get in early on a project that could potentially be the next big thing. This is a highly speculative market with no guarantee of returns. As an investment strategy, there are more secure ways to grow your funds. But as a way to support projects you like or see potential in, investing in lesser-known cryptocurrencies can provide a level of personal satisfaction.
There is, of course, the opportunity to make money in crypto as well, especially with the more popular coins.
About being careful
Whether investing as a way to make money or a way to show support, it is important to do your research and follow security best practices, such as cold storage for your crypto. As in any internet venture, the security of data and being knowledgeable about the subject will help you make smart decisions.