Top 5 Cryptocurrencies to Invest in 2018 – Bitcoin and Beyond.
Top 5 Cryptocurrencies to Invest in 2018 is my attempt to draw attention to cryptocoin investments that deserve serious consideration as investing opportunities. It is fair to say that cryptocurrencies have taken the world of finance by storm. They have not only outperformed every other traditional investment in the markets, but they have also delivered sizeable returns in a very short span of time. However, they have also moved on to shed all their astounding gains in a matter of days, making them highly volatile investment instruments. If you are interested in exploring cryptocurrencies, then we suggest you read up on them first and understand the risks associated. Furthermore, considering their volatile nature, you should only invest what you can afford to lose.
With that in mind, here is our list of top 5 cryptocurrencies to invest in 2018:
- Bitcoin (BTC)
Bitcoin is the world’s very first decentralised cryptocurrency. Being one of the first real-world applications of blockchain technology, Bitcoin set the precedent for other cryptocurrencies to follow. In a way, Bitcoin is the starting point for cryptocurrencies. Despite its drawbacks like high transaction fees, slow transaction speed, and centralised mining, Bitcoin still remains to be among the most popular cryptocurrencies.
The supply of Bitcoin is limited – only 21 million BTC will ever exist. This finite supply coupled with massive popularity has taken Bitcoin to new heights. At the start of May 2017, the value of 1 BTC was around $1,300. By mid-December, the same was on the verge of crossing $19,000. This translates into an increase of more than 1,000% in less than a year!
However, its price collapsed soon thereafter and it went down to be traded at levels slightly above $6,000. Bitcoin price rebounded a bit and is hovering in the 6500s with many Bitcoin bulls expecting a history-making price rise now through the end of the year.
- Golem (GNT)
The reason why Golem makes this list is because of its revolutionary idea – it aims to be a global, decentralised supercomputer that can be used by anyone for applications like CGI rendering, machine learning, and scientific computing. It is like the Airbnb of computers – individual PC users and massive data centres alike can put up their idle computing power for rent and get paid in Golem Network Tokens (GNT) by the requestors. In simpler terms, the Golem Project is like a decentralised marketplace for computing power.
Needless to mention, the idea behind Golem is definitely intriguing. Unlike many cryptocurrencies which are simply a digital currency, the Golem Project actually aims to do something worthwhile. As of late June 2018, the price of 1 GNT is $0.3, making it an attractive buy. For more information on this currency, you can visit Bankbazaar.com.
- Ethereum (ETH)
Ethereum is more than a cryptocurrency – it is an open source, blockchain-based platform that can be used by anyone to develop blockchain applications with the help of smart contracts. Allow us to break it down for you. Assume that you want to develop a blockchain solution to efficiently manage the logistics of your company. Instead of starting from scratch with coding, you can visit the Ethereum platform and just build your application. This is one of the reasons why a vast majority of cryptocurrencies are Ethereum-based – it makes it easier to launch new blockchain projects.
The native currency of the Ethereum platform is known as Ether (ETH). It is used to pay for the computing power utilised on the platform by developers and clients. In other words, anyone who is looking to interact with the Ethereum platform or intends to build an app on the Ethereum blockchain needs Ether. As blockchain becomes more popular in the future, Ethereum is going to play a vital role in making the ideas of developers come to fruition.
At the start of 2017, the price of 1 ETH token was less than $10. By January 2018, the same token was available at a whopping price of $1,100. However, when the cryptocurrency bubble burst, Ether, just like its peers, lost massively to go below the $500 mark.
- Litecoin (LTC)
If we look at Bitcoin as gold, then Litecoin is unarguably its silver counterpart. Litecoin is an open source, peer-to-peer cryptocurrency, just like Bitcoin. In many ways, the creation of Litecoin was inspired by its elder brother, although it is considerably faster and cheaper. There are many merchants worldwide who are already accepting Litecoin as a mode of payment.
In January 2017, 1 LTC could be bought for around $4.5. By late December, the same Litecoin was priced at $280. It goes without saying that this meteoric rise in value was almost immediately followed by a sharp nosedive which the took the price well below the $100 mark. This behaviour has been quite similar to that of Bitcoin.
- Ripple (XRP)
Ripple is among the few cryptocurrency projects that became massively popular in 2017. Unlike other projects which were driven by market speculation and developers’ enthusiasm, Ripple has garnered interest from several reputable financial institutions like Standard Chartered, American Express, Axis Bank, et cetera. While XRP has its haters I feel it deserves a spot here with Top 5 Cryptocurrencies to Invest in 2018
It is because Ripple is not a product; it is an infrastructure that facilitates real-time exchange of anything in value across the world. The Ripple Protocol uses blockchain technology to make international transactions faster, cheaper, and more secure. As a global settlement network, Ripple can truly transform the way we send money internationally.
In 2017, the value of ripple jumped by more than 35,000%! Yes, you have read it right – the price of 1 XRP moved up from around $0.005 to $3.20, before losing these gains in 2018. In terms of market capitalisation, Ripple XRP is among the most popular cryptocurrencies. You may be wondering that you have missed out on an exciting investment opportunity, but considering its future, it is never too late to invest in Ripple.
Things to consider before investing in cryptocurrencies not just among Top 5 Cryptocurrencies to Invest in 2018 but in general.
It is a well-known fact that blockchain is the next revolution in the world of technology. Cryptocurrencies play an important role in making blockchain technology a success and implementing them in our day-to-day lives. However, the world of cryptocurrencies has been largely unregulated, up until now. Many governments across the world have begun to impose regulations to prevent money laundering – a move that has drastically affected the value cryptocurrencies.
Furthermore, as a relatively new asset class, they are highly volatile and there is no predicting how the markets will behave. From a long-term investment perspective, you should look at cryptocurrencies which have real-world applications and aim to solve real-world problems. While you cannot entirely be certain that your investment won’t go down, you will at least be confident because you believe in the future of the currency. All the best as you consider Top 5 Cryptocurrencies to Invest in 2018.
[ Editor’s note: We thank Adel John for her guest post and must remind everyone that every cryptocurrency investment comes with significant risk. We urge all of our readers to do their homework and deep research before making any investment decision. ]