Lots going on in the world of cryptocurrency. Bitcoin made new highs in the year of 2017, and so did Ethereum, Litecoin and many others. So, to invest in cryptocurrency looks a lucrative option.
But, in which one? Bitcoin prices are quite high, and there are 1000+ other cryptocurrencies. Also, you can always create more. How?
How to invent a new cryptocurrency is an entirely different topic, but we need to talk about the technology behind these virtual currencies. It will help you in understanding how Bitcoins (or other currencies) work and what is the next Bitcoin in the coming future.
The cryptocurrencies can be sent from one user on the internet to another, and this is the transaction.
These transactions are recorded on a digital public ledger called blockchain. Computers around the world share and update this blockchain instead of any central institution. The usual technology and development professionals are trying to become the top blockchain developers of the world.
That’s why cryptocurrencies are called decentralized currencies, not under control of a single authority.
After the recent price explosion in Bitcoin, in 2017, people now pay attention to the cryptocurrency charts and compare various altcoins that have popped up in the aftermath. Altcoins?
Bitcoin is now so mainstream that anything other than that fall under altcoins (Bitcoin alternatives).
And we will take a peek into some of these low-profile altcoins, probable candidates for the next Bitcoin.
Our first choice is Skycoin. It is designed for quick transactions and to achieve genuine decentralization, something which Bitcoin has no more. Bitcoin’s network is now concentrated in the hands of few individuals.
Skycoin’s algorithm looks forward to making their cryptocurrency network decentralized, again.
There is no miner in the scene. The Skywire network developed by them function as a miner. The protocol ensures speed, reliability, and security, and users on the Skywire network get high performance and maximum privacy. The system uses the CoinJoin protocol to blend transactions from different wallets to ensure the privacy. You can think of it as a specialized VPN.
When the user provides network resources, he/she receives Skycoin. And when he/she consumes resources (or media), he or she spends… Skycoin. This is how the Skywire miner functions. So, if you have high bandwidth or have content, many people look out for, you can maximize your earnings.
Instead of PoW (used by Bitcoin), Skycoin uses the Obelisk method. PoW stands for Proof of Work, and in it, the system creates hard-to-compute functions.
Although these could be verified easily, they took up a lot of resources and time. The Obelisk is a faster and greener method.
It also makes the transaction faster. They can complete within 15 seconds, well, most of them and CoinJoin ensures that tracking is not possible. The transactions are free, and the system can compete with the other instant payment methods available online.
It would be worth noting that Bitcoin transactions, on an average, take about half an hour. Another prominent currency, Ethereum’s operations are too slow for its millions of users.
The absence of miners and a public ledger keeps the Skycoin network safe from the possibility of a 51% attack because of this it could be the next cryptocurrency to invest in.
Next on the line is Bitcoin Cash. This currency forked out from Bitcoin in the August of 2017 and had faster transactions with fees lower than that of Bitcoin.
Many independent teams of developers now control the processing of blocks, the blocks of transactions that form its blockchain.
Although it doesn’t have broad acceptability, it did become the second-most valuable currency for a short while.
Ethereum took that place again. Everyone who had Bitcoin, got an equivalent in Bitcoin Cash when the split happened. And with the growing awareness of this decentralized cryptocurrency, its value is bound to increase; it has got its branding and is present in many exchanges.
With a robust backing by KlickEx and IBM, there are more than 8 billion Stellar Lumens as of now.
Stellar is a distributed blockchain, and the transaction fees for this digital currency is quite low, only a fraction of a cent.
Just like the other decentralized currencies, the value of Lumens to depends on the interest of the investors.
Although people call it as China’s Ethereum, at a market cap of around 6 billion, it is way behind the 2nd-rank holder. It already is China’s no. 1 and more than 70% of the trade takes place in Chinese Yuan.
Its developer, the Shanghai company Onchain, is a familiar name there and China supports their own a lot.
They are in talks with the authorities to help in expansion and real-world applications and may explode soon. You can buy NEO and keep it in your wallet, and your holding will earn you dividends; future earnings.
And at last, comes the Metalicoin. The platform offers a cost-effective and transparent way for small miners to get investing.
People can purchase commodities (metals, as of now) at wholesale prices and then trade them. You don’t need to have a million-dollar bank account.
Backed by the commodity, the value of the currency Metalicoin will increase as the demand grows.
And you can always opt-out, trade the metal on the platform and then convert them to BTC or even USD. Transaction charges are quite low and won’t affect you a lot.
It is quite beneficial for the small-cap miners who find it difficult to get funds. Under this system, they can get funds from a global audience and get into the market.
Now that you know where to go let’s see how to plan your crypto-investment. And the first thing to consider is the price.
Those who are priced lower than the dollar (or a few dollars) are good to start your cryptocurrency banking and mining. You can invest in many currencies as you get them so cheap and one or more of them can give you a good return in a short span.
Next thing to look out for is the discussion. There are online forums where you can make regular visits to see which one is buzzing around. If crypto is being talked about, chances of it getting into the mainstream are high.
Also, know that you need to have separate wallets for different currencies. And a bitcoin exchange may not be trading in your currency. So, you have to maintain a separate account with different exchanges too.
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