Bitcoin’s soaring value can make it seem an overwhelming investment prospect, but there are other cryptocurrencies – or altcoins – out there for the budget conscious to start a portfolio.
So, what are altcoins? It means alternate coin, or not a Bitcoin.
The basic structure for altcoins and Bitcoins is similar. However, numerous things distinguish the two from each other. Altcoins were built after the success of Bitcoin, but the rules were somewhat modified for altcoins, so they attract specific users.
Today, altcoins provide better transaction speeds and energy efficiency than most big coins.
There are many different types of altcoins available, based on their purpose.
Here are six altcoins (in alphabetical order) that experts say are the best to invest in with $500.
1. Avalanche
Avalanche (AVAX) has a market value of US$14.5 billion and is up this year by 1,954 per cent, at US$65.94
Developed by Ava Labs, this blockchain is a smart contracts platform for decentralised applications and its AVAX token began trading on Coinbase Pro at the beginning of October.
2. Boost Coin
Boost Coin has a market value of US$53 million and this year, it’s up 293 per cent to US$0.0505.
Launched in August, Boost Coin feeds the Boost ecosystem that’s centred on decentralised finance tools.
The company behind it says it’s similar to Boost Swap, a decentralised exchange. This is the first tool for crypto exchanges Uniswap, SushiSwap, and PancakeSwap.
3. Cardano ADA
The third coin on the list is Cardano ADA, which has a total market value of US$69.3 billion and is up 1,092 per cent this year at US$2.16.
Cardano’s profile and that of its ADA token, have flourished in recent months. Last month, the network ran its Alonzo upgrade that brought smart contract capability to its network. This move specifically reinforces its competition with Ethereum.
4. Crypto.com Coin
Crypto.com Coin CRO has a market value of US$4.2 billion and is up 183 per cent in 2021 at US$0.16531, making it a very affordable coin for beginners.
Launched in March this year, Crypto.com is a cryptocurrency exchange and consumer financial services company whose coin serves as the token for Crypto.com’s chain, a decentralised open-source blockchain.
CRO is used for staking, payments and settlements and many experts think it is underrated.
5. Polygon
Another coin great for those on a budget is Polygon (previously MATIC). This coin has a market value of US$7.6 billion, but is down 27 per cent this year at US$1.236. It’s expected to grow exponentially.
Polygon is designed to scale Ethereum chains and develop the blockchain’s infrastructure. Mark Cuban is a firm backer of Polygon, and earlier this year he added the platform to his impressive investment portfolio.
Polygon, originally called Matic, created the Matic token that’s used on transactions on the network. Experts say it is undervalued as it has low network fees and just enough volatility to benefit trading.
According to Kraken, “Polygon bills itself as a layer-2 network, meaning it acts as an add-on layer to Ethereum that does not seek to change the original blockchain layer”.
6. Dogecoin
Last on the list is none other than Dogecoin. It has a total market value of US$27.3 billion and is up 4,307 per cent this year at US$0.2064 a coin. Another great option if you’re on a strict budget.
in August, Tesla chief Elon Musk backed billionaire investor Mark Cuban’s claim that dogecoin was the strongest cryptocurrency as a medium of exchange. Cuban’s NBA team, the Dallas Mavericks, accepts dogecoin as a payment option.
Change your thinking
Dean Karakitsos, CEO of Bitquery, Inc. said investing in these newer cryptocurrencies required an all new mindset:
“You have to reboot yourself,” he said.
“What we have learned so far for investing in equities and Forex, is that commodities rely on the analog world. I call them analog investments – like receiving your TV signal using a terrestrial or satellite antenna.
“In a digital world, you receive your signal as a stream and you can stream anywhere you have an IP connection – the same way cryptocurrencies are the digital investment where the whole ecosystem of a digital instrument resides on the net.
“No interference. No external entities. Just the net, bits and bytes.
“Algorithms, Computations, logic are all digitised and they are completing their work according to each chain use case.
“Having the above as a digital concept, investing in cryptocurrencies means understanding the underlying technology of each cryptocurrency and the use case of it and applying it to your trading strategy.”
Keep an eye out for these coins and, as always, do your own research.
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