May 12, 2021, | AtoZ Markets – What is the first thing that comes to mind when you hear the word cryptocurrency? For most of us, it is probably bitcoin. However, the crypto space is a continuously expanding universe that not only is increasingly reaching new heights but is becoming a key market that is capturing investors’ attention. So, if you are seeking to explore new crypto horizons, there a whole other landscape to venture into.
Why Invest in Crypto?
Why should you consider investing in crypto? There are many benefits that a crypto asset brings to an investor’s portfolio.
For starters, cryptocurrencies are increasingly becoming recognized by big brand names and financial institutions alike. Tesla recently made the news when it stated that it plans to start accepting bitcoin payments. There are also crypto plans in the pipeline for the likes of PayPal, MicroStrategy, Square, and Morgan Stanley.
The crypto market’s value has recently hit the impressive $2 trillion mark with increasing growth envisaged on the horizon. This confirms the staying power of this increasingly important market. It is also coupled with the fact that cryptos are now seen as a solid option that is not susceptible to inflationary changes in the same way that fiat currencies are.
However, this is not all. Cryptocurrency transactions are not dependant on banks or ‘middlemen’ like brokers or exchanges which results in very low fees and faster execution. They are also a highly liquid asset since the market never closes and can be traded, bought, or sold at any time.
The Rise and Rise of the Altcoin World
What is an altcoin? In its simplest form, an altcoin (a portmanteau of alternative and coin) is the description that can be given to any digital coin that is not bitcoin. Bitcoin was the catalyst that revolutionized the way in which we think about currencies. Indeed, for the first time in history, there was a digital token that carried value. Bitcoin’s launch and the attention that it generated opened the doors for the creation of more digital coins. The idea of a token that holds digital value, that can be used for transactions and to affect purchases without the jurisdiction of a central bank or government was a concept that is not only here to stay but it is increasingly becoming endorsed. Suffice to say that there are now over 9,000 altcoins, which is a staggering number of coins to be circulating in the crypto world. It is also important to note that these coins have been responsible for a substantial part of the crypto market and they now account for 40% of it. Doubtlessly, the sheer number can seem a bit overwhelming at first glance. However, not all altcoins are created the same and some clearly can add more value than others to an investor’s portfolio.
The Fantastic 5 Altcoins
While there are some noteworthy altcoins out there, there are five that are particularly interesting to watch now. These are:
The most known name from the altcoin crowd; Ethereum has recently made the news after it hit a new all-time high and went up by nearly 390% from the start of the year. Ethereum holds the second-largest market capitalization after Bitcoin and the coin’s moment in the spotlight is far from over.
Arguably the coolest altcoin that gaining more traction. It probably does help that mogul Elon Musk dubbed himself as ‘The Dogefather’ and is very supportive of the coin. The coin may have started out as a joke, but it has grown impressively (a whopping 14,000% to be exact) and now has a market cap of nearly $80 million. This pup is certainly going places.
It can be said that Binance has had an impressive run so far this year. Impressively, the coin has increased by nearly 1,600% since the beginning of 2021 and has also surpassed the $95 million market cap threshold. Just to put things into perspective, this makes it more valuable than some well-known banks like Santander, UBS, and the Bank of Montreal.
Litecoin is another coin that is doing very well for itself. While the Bitcoin fork has been around since 2011, it has recently made some noteworthy gains and experienced an increase in trading volumes lately. Predictions for the coin are also bullish going forward.
Ripple or XRP presents the advantage of being a cryptocurrency and a digital payment platform. Interestingly Ripple is not mined like other cryptos which represents a clear advantage in terms of speed and cost. Statistically, XRP’s returns year to date is up 155.11% and has hit a high of $3.40. So, another interesting digital currency to have on your watchlist.
In summary, it is safe to say that the expansion of the crypto world is not going anywhere. Increasingly far-reaching acceptance and endorsement of this digital world mean that keeping tabs on this market can be a wise thing for your investment portfolio. Thinking about exploring the exciting world of crypto? TradeOr is an innovative platform that allows you trade crypto with ease and with 0% commission. Better yet, traders can analyze the markets more clearly, diversify their portfolio, create compelling watchlists allowing them to find new opportunities faster. Create bigger, better, and more advanced charts with both TradingView and ChartIQ.