Billionaire investment legend Michael Novogratz recently compared the cryptocurrency market to the early days of the Nasdaq. Just as the Nasdaq offers a large variety of stocks from different companies, the cryptocurrency market currently has over 800 cryptocurrencies on it.
According to Novogratz, it is likely to become a $5 trillion market by 2022. The underlying blockchain technology is beginning to disrupt several industries with its ability to increase the speed of transactions, reduce costs, eliminate intermediaries, improve security, digitize assets, and enable better bookkeeping. The value of cryptocurrencies will continue growing as more people take advantage of this new technology.
In the long run, most cryptocurrencies will fail just as most companies fail. That is why it is important to invest in ones that have compelling use cases, unique value propositions, and solid roadmaps. Here are 12 of the most promising cryptocurrencies to invest in.
Bitcoin
The oldest and most well-known cryptocurrency, Bitcoin functions as both a payment method and digital gold. Fast, secure, and irreversible transactions across the world are conducted on the blockchain at almost no cost. Its decentralized nature means that there is no need to trust third parties. Because it is uncorrelated to the price of traditional assets, it provides an excellent opportunity for investment diversification.
Ethereum
As the second largest cryptocurrency, Ethereum is likely to overtake Bitcoin by 2018. It runs smart contracts, which allow for decentralized projects and businesses free of corruption and third-party influence. This year, the Enterprise Ethereum Alliance was formed, connecting Fortune 500 enterprises such as Intel, J.P. Morgan, and Microsoft. Various countries and international organizations have also taken serious interest in Ethereum.
Ripple
This has been the fastest-growing cryptocurrency in my portfolio for 2017. At the beginning of the year, it was around $0.0064 and is now worth $0.26. It even surpassed Ethereum in market cap at one point this year. With hopes of revolutionizing the bank industry, Ripple’s technology allows banks to send real-time international payments. Ripple has signed on more than 70 banks this year, attracting big names such as Bank of America, RBC, Standard Chartered, and UBS.
IOTA
IOTA is the backbone of the Internet-of-Things (IoT). Its core innovation, Tangle, is a new blockless technology that allows microtransactions to occur seamlessly between businesses and computing devices, making the Internet-of-Things possible. This is done by having no fees on transactions and limitless transactions on the network. Decentralization is maximized by making validation of transactions an intrinsic part of Tangle.
Monero
Monero differs from Bitcoin by offering fully private and untraceable transactions. Bitcoin addresses and transactions are recorded on the blockchain, which makes them available to the public and government agencies. Monero uses ring signatures and stealth addresses to hide the identity of senders and recipients. Unlike Zcash, another privacy-oriented cryptocurrency, Monero is private by default. It is also not a derivative of Bitcoin, which means that it offers a unique value that will not just be adopted by Bitcoin in the future. Among those interested in greater privacy, it has already started achieving widespread adoption. Other Bitcoin-related problems it solves include fungibility and scalability.
Golem
Dubbed the Airbnb of computing, Golem was one of the fastest growing cryptocurrencies in the first half of 2017. It is a decentralized supercomputer in which anyone with a computer as well as entire datacenters can rent out their computing power. Using an Ethereum-based transaction system, it can power any kind of program imaginable. It will be able to revolutionize many industries, including computer graphics, business, artificial intelligence, cryptography, science, and microservices. The alpha version of the network is currently being tested.
Steem
Social media is something that people today cannot live without. That is what makes Steem such a lucrative income and investment opportunity. Steem is the digital currency and blockchain behind Steemit, a new social media platform in which you can earn money on content you post when they receive upvotes from other users. The site benefits those looking for paid blogging and social networking opportunities. In addition to earning extra income on Steemit, investing in Steem allows you to benefit from the cryptocurrency’s rapid appreciation. Launched in March, 2016, it currently has over 200,000 users.
Game Credits
GameCredits aims to make payments easy and secure for companies in the gaming industry. The benefits to gaming companies include fast processing speeds, high scalability, advanced fraud protection, no commission fees or chargebacks, and faster payments. Gamers also have a lot to gain, including higher deposit limits, more purchasing power, transferability between games, safe storage of funds, and anonymous transactions. Recently, they announced the release of the beta version of the first mobile gaming store using cryptocurrency.
Iconomi
With an investment in Iconomi, one becomes a shareholder of the company. Iconomi is a digital assets management platform that allows anyone to invest in and manage cryptocurrencies. Whether you are an investing novice or professional, you can create a cryptocurrency fund (similar to a mutual fund) and make money by attracting other investors. ICNX is the first index-based cryptocurrency fund that has been created, and the platform for managers and users is set to be released later this year. They have also started the first digital asset repayment program in which the company buys back ICN tokens and destroys them on a weekly basis, giving each investor a larger percentage share of Iconomi.
Augur
As a blockchain-based prediction market, Augur allows you to profit for being right about future real-world events. Its decentralized nature gives it several advantages over traditional prediction markets, including the ability to create your own markets, low fees, crowdsourced reporting, and automated payments. It uses an Ethereum-based transaction system that eliminates counterparty risk and stores funds safely in smart contracts. The beta version of the network is currently available.
Factom
Protecting and sharing data is a top concern for most organizations. Factom’s blockchain-based platform helps government, commercial, and non-profit organizations keep their important documents and records safe. After the information is cryptographically processed, it is stored on the Bitcoin blockchain. By decentralizing data storage, Factom helps world’s industries benefit from increased security and transparency. In 2017, they have been taking on the mortgage industry and expanding rapidly.
SingularDTV
This is the most undervalued cryptocurrency on this list. SingularDTV is the bridge between the entertainment industry and the blockchain. From development to distribution, artists will have more power over their work and profits. By using Ethereum-based smart contracts and eliminating the middlemen that take most of the revenue from creative pursuits, artists will be able to realize their greatest potential. SingularDTV will be offering services such as value templates for deal-making, funding mechanisms, inclusive revenues, transparent ledgers, immediate payments, usage data analytics, piracy protection, and digital rights management. This year, they hired Hollywood producer Michael Blieden as an advisor. SingularDTV’s Rights Management Gateway and Project Creation Application will be launching later in 2017.