5 Things You Should Know About Each Cryptocurrency Before You Invest

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Source: intelligenthq.com

The Crypto market is exploding right now. Everyone is looking to find their way into this semi-known thing called cryptocurrency.

Why did I mention semi-known? Well, the fact is that the basis of crypto are all the same but variations of certain coins and currencies are always popping up and honestly it is hard to track them all. A person who is looking to invest in the crypto market with some mediocre knowledge about what is going on probably knows about two or three top coins to invest and that is about it.

If you are one of those persons and are looking to invest then hold n just a second and read this through. We will tell you a bit more about some cryptocurrencies and then try and find a way to invest in the ones you think have a future. One of the ways you can invest is over your phone or PC on an app like bitqt.org.

Now let’s get back to the topic at hand. Knowledge is a very powerful thing to have especially when it comes to investment. You have to be familiar with the basis of crypto and you have to know a bit about some of the leading and some of the up and coming cryptocurrencies if you want to make an educated investment that can’t fail. Let’s get started!

1. Ethereum

Source: cnn

Most of you probably know what is Ethereum and how it works but if you forgot we will make a bit of a recap. Ethereum is the number two cryptocurrency that allows smart contracts and decentralized applications to operate on its network and it has proven over and over again to be much more than the regular store of value like Bitcoin claims to be. With Ethereum you can create build and revolutionize through the use of its smart contracts. The special thing about Ethereum that most of us like is that seemingly unlimited use case that has ranges from creating a social media network to filing storage, sending payments or anything else similar. We can all agree that the future of Ethereum is bright and it is continuing to make network upgrades to continue to support increasing demand in network usage. As the adoption of crypto continues Ethereum will always be the essential network that can supply power and resources for many of the decentralized apps. The number one place on this list goes to Ethereum because as of right now 2700 decentralized apps use Ethereum and when you look at that in terms of low risk and well-balanced portfolio it will continue to be the king of picks.

2. Polygon

Source: Analytics Insight

Very strong and almost bulletproof crypto to the market volatility and crash that began in May, is the Polygon. Polygon is formerly known, to some of you, as a Matic Network, a multi-chain scaling solution for Ethereum and its goal is to provide faster and cheaper transactions on Ethereum using layer 2 side chains. It is solving the talked about, congestion and reduced gas fees due to the popularity of D5 products and applications using Ethereum’s network. If you want success to make upgrades to crypto you have to scale the base layer known as layer 1 upgrade, or you even build upon that layer 1 blockchain using its existing elements, and that is called layer 2 solutions. Why is this so good? Well, layer two can dramatically increase the transaction speeds comparing to layer 1 or Ethereum 2.0 upgrades. Polygon is a bit special and it offers more scaling solutions, on top of layer 1 and 2, and the example of those are Side Chains, Plasma, ZK rollups and Optimistic Rollups. Thanks to this diversity they allow the creation of a long-term solution in the case that any scaling solutions fail. In the last year, Polygon has increased over 8,000% and this is probably not all that they’ve got.

3. Chainlink

Source: The Cryptonomist

This is a decentralized oracle network that uses smart contracts to implement real-world solutions. Chainlink is supposed to be the link that is going to tie cryptocurrencies into a real-world usage scenario. These applications will prove to be a great investment for the future since their utility can be used in many different markets in real life. The utilization of the Chainlink is huge and it can benefit us all anywhere from the financial sector and markets to the business side of things with accounting, overhead costs or it can reduce any mistakes made in the system human error and so much more. This is all thanks to the smart contracts that are just now showing their full potential and the best use case scenarios. Since smart contracts reside within the blockchains many believe that this will be the most superior form of digital agreements compared to third party entities. Chainlink is up by 300% in the last year and it looks like a very good and stable investment.

4. Cardano

Source: The Daily Chain

Another decentralized and public blockchain and cryptocurrency project is fully open source. They are also developing a smart contract form that will deliver more advanced features than any protocol we know so far. This is the first crypto made out of the scientific philosophy and research-first driven approach. The development team is a large global collective of expert engineers and researchers. Cardano is aiming to solve 3 major problems that other projects face like scalability, sustainability and interoperability. To help scale the system they implemented a layer two solution called the Hydra Protocol where the proof of state consensus is used. Cardano is investing a lot in continuous improvements and the team is very ambitious and has set a lot of goals in front of them. It is currently the 4th largest cryptocurrency and they are up over 2,000% in the last year.

5. Ave

Source: Cryptocurrency Hub

Ave is a native governance token and it is based on the Ethereum network as well. the funny thing is that it has been crushing it this past year and it is crushing it as a top contender in a d5 space. It focuses on creating an open and transparent peer-to-peer lending and borrowing money market. The upside of Ave is that it needs zero registration or know your consumer processes and all you have to do is connect your wallet to the platform to get started. It uses smart contract protocols and liquidity pools where everyone puts their money into this one giant bucket to help give out the money for people who request the loan. This way all the money is stored in the liquidity pool and there is no risk at all. Ave collects interest and returns it to the person that lends the money. This means that the funds will be allocated to the public open source-verified smart contract and you can rest assured that this won’t be just “one of those lender things”. Ave is currently up by 71,000% in the past year and this just shows the strength and resilience of thy crypto.