|Bitcoin is the crypto king, but there are over thousands of altcoins ready to take its throne, are you wondering who will be the next big cryptocurrency? Let's talk about it.|
Since the release of the original digital coin in 2009, over 5,000 altcoins have been created and put in circulation. Most of them claim to be better than Bitcoin and the rightful heir of the crypto world.
Keep reading this article, and you are going to know what are the cryptocurrencies with the most potential to become the new investment boom in the next year.
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Although Bitcoin's price fluctuates greatly — generally on an upward trend — 2020 is also a relatively mature year for a currency with only a 10-year trading history.
1. Crypto is more acceptable to the mainstream
From Square investing $50 million to buy bitcoins to Paypal allowing users to buy and sell bitcoins, more financial technology companies have recognized this space.
In 2021, we may see more and more mainstream accept cryptocurrency.
2. Competition from large technology companies
Regardless of what Bitcoin has achieved in its 10 years of existence, it has forced many large global entities to consider offering an international digital currency.
Every company involved in the payment field knows that there is still room for the digital payment market.
In 2020, Facebook and Google, two companies with huge global influence, have launched huge digital currency plans.
3. Competition from central bank digital currency
In 2020, a report and survey released by the Bank for International Settlements showed that 80% of central banks around the world are studying some form of digital currency.
Some countries have tried to promote the development of digital currencies, which may weaken the demand for Bitcoin and other independent cryptocurrencies.
These developments show the crypto industry attracts more people and institutions than ever before.
It is undeniable that the cryptocurrency market will continue to gain attention in 2021.
What is the Next big cryptocurrency to invest in?
Let's take a look at the most valuable cryptocurrencies in the market and the ones with the most potential to become a new crypto unicorn and worthy of getting your attention.
■ ETH - Ethereum
■ LTC - Litecoin
■ XRP - Ripple
■ LINK - Chainlink
■ BNB - Binance Coin
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1. ETH - Ethereum
Ether, the world’s second-largest cryptocurrency, launched in 2015. Ethereum is a decentralized network that provides optimized structures for DApps and smart contracts.
Since the start of 2021. Ether has risen about 129% year to date, hits a record high above $1,700.
Nowadays, the rise of crypto futures and other crypto derivatives products give more confidence to invest in the space.
Ethereum has more technical advantages than its earlier Bitcoin and altcoins. Maybe one day become a staple of payments processing because its ability to complete transactions within seconds (versus bitcoin’s minutes).
Ethereum is not a safe-haven asset, it is a "risk" asset, which tends to rise when the time is right.
2. LTC - Litecoin
The Litecoin network provides faster block generation and optimized transaction confirmation. It was launched as one of the first altcoins in 2011, It is called the "silver to Bitcoin's gold."
LTC developers created the coin to be used as a means of payment for everyday goods and services. The option of Litecoin as the next big cryptocurrency lies in that transactions are confirmed by a P2P network more quickly than Bitcoin transactions.
From 2020, Investors have renewed interest in cryptocurrencies. If the broader cryptocurrency market performs well in 2021, we can be sure investors will tend to use the most promising altcoins.
3. XRP - Ripple
It aims to become the payment standard. It is a utility token that represents a blockchain platform that facilitates cross-border, regional, and international transfers of fiat currencies with more efficiency.
Launched in 2012, XRP has known as the establishment cryptocurrency as banks and financial institutions back the coin since its beginning. Ripple has a circulating supply of 43 billion coins with a market capitalization of 12.7 billion dollars. Some experts believe it could be the next cryptocurrency to invest in as it has a broader acceptance within banks.
4. LINK - Chainlink
With over 350 million of LINKs circulating with a worth of 911 million dollars as market capitalization, Chainlink is a decentralized Oracle service focus on the connection between the real world and smart contracts.
Chainlink builds bridges between blockchain networks and applications, payment services, and other transactions as it feeds smart contracts with information.
5. BNB - Binance Coin
Launched on July 21, 2017, the Binance Coin is a utility token that can be used to pay commissions for transactions on the Binance exchange and with a discount. It has a supply of 155.5 million of BNB circulating with a market cap of 3 billion dollars.
As a utility token, its primary focus is to be a method of payment in the Binance network; however, it can also be traded by other cryptocurrencies. Remember that Binance only accepts transactions with cryptocurrency and none with fiat currency. So, BNB was created to facilitate that transition.
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Let's check some aspects you should take into account when identifying the next upcoming crypto boom.
● Technology behind
As mentioned before, a cryptocurrency doesn't have value by itself but because it represents a technology. Bitcoin represents the whole blockchain and crypto industry, but Ether represents the Ethereum Network in the same way XRP represents the Ripple and payments structure.
Is it a revolutionary technology that improves considerably traditional processes? Does it offer an improvement in people's quality of life?
● What it represents
All new technology represents a change, so, think about the possible change it can produce in society. Is it a big or small revolution in a sector? Think about what it will become if everything goes as planned, but also how it would be if something goes wrong.
What industries will affect these changes, how people would react after discovering the new technology, and how it will optimize processes. Do you see a significant difference?
● Potential adoption
Specific cryptocurrencies are more ready for massive adoption than others. Why? Because there are factors that can accelerate or cause a slowdown on its approval. For example, think about Ripple and how banks and financial institutions are adopting it because it is an excellent way to make transfers with optimization of time and fees.
Now think about central banks and possible adoptions after several officials and lawmakers are moving towards the crypto industry.
Another good sample is Ethereum. We are living in the age of DApps, and Ethereum is well-positioned in that field. As the Ethereum platform works on several industries, think about all the potential implementations of that network.
Price is fundamental as an average investor wouldn't be able to buy a very expensive token. So, consider how much are you willing to invest but also how many pieces you can buy with your funds.
● Supply limits
Check if the coin has a supply limit. In other words, if there is a maximum number of coins allowed to be created. It is essential because once the roof has been reached, prices would go up naturally as the offer will remain the same, but if the technology is successful, the demand will increase.
The number of transactions in that given cryptocurrency will show you how well liquid is the market and how much interest is raising the token among investors. Cryptos with a vigorous level of volume is always better than others with nobody trading it.
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Knowledge is power, and cryptocurrencies are not the exception. A well-informed investor is always two and three steps ahead of his peers. That's why your trading career needs to have a pool of sources that provide you with useful and critical information.
In your pursuit of the next big cryptocurrency to explode, we have identified some places you may want to have under your radar.
MIT Technology Review: This magazine covers all the latest technological developments and brings well-researched opinions about possible implementations and effects in the years ahead. Read it as a way to keep you on the vanguard of "important new technologies that will affect your organization, your career, your life."
Reddit - r/Cryptocurrencies: This forum covers all topics about cryptocurrencies and offers different points of view regarding the market, trading, regulations, and any tip of information you may find interesting.
CoinTelegraph: One of the essential crypto-related websites. It doesn't only offer news but also opinion on that news. Bookmark it as a source of news.
Walletinvestor: From early 2018 the site provides forecasts for more than 50,000 stocks, several thousand forex pairs, more than 10,000 funds, commodities and cryptocurrencies.
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There is no denying that cryptocurrency is the most valuable investment in the past decade...
We are just starting our search for the next cryptocurrency to explode. Will it be Ethereum, Monero, or Ripple? These coins are well-established digital assets. Besides those, you can also research for new projects like Dogecoin, BAT, Zcash.
However, be aware of the many cryptocurrency scams that are in the industry and only care about your money.
Pay attention and research well before investing your savings in something that claims to be "the next breaking and revolutionary dream."
We are living in a technological shift not seen in centuries. Everything is changing, and the opportunities are right there waiting for you, but you should prepare yourself to take profit from it.
Identify, research, act, and profit from it.
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