If you are the one who thinks that the money-making capability of cryptocurrencies comes with a lot of risks, diversification is your answer. If we look back at the performance of different cryptocurrencies and portfolios in 2021, we see that diversified portfolios having a mix of different high-performing coins were the absolute winners. In the last year, the crypto market collectively grew by almost three times its value the previous year.
This year also, the crypto industry growth is expected to continue at a higher pace. And you can get the best out of it by investing and holding just the right coins. To know which coins these are, continue to read.
1. Libra Coin
It’s not Facebook’s Libra. But’s it’s better. The Libra Coin was created and launched as the native cryptocurrency for the Libra ecosystem - a comprehensive blockchain platform for e-commerce businesses. The platform offers a suite of products and services intended to help optimize e-commerce with the use of blockchain technology. And the Libra coin is a digital payment system that powers the entire Libra ecosystem. From finding the right product at the right price to placing an order, making payments and tracking delivery, Libra provides all services, including the ability for businesses to accept and manage investments.
Qtum is the native coin for the Quantum project - a blockchain system that combines the best aspects of the Bitcoin and Etherum networks to build a more powerful blockchain platform. It utilizes the UTXO transaction model of bitcoin along with the Etherum Virtual Machine to produce a highly secure digital payment network with smart contract capability. It can be used both for sending payments and for building decentralized finance (DeFi) and decentralized applications (dApps). The Quantum network can reportedly process transactions at a phenomenal speed of 70 transactions per second.
Even after almost a decade of its creation, Ethereum remains a popular choice among crypto investors and a blockchain of choice for developers. Of course, being the blockchain that introduced smart contracts certainly helps. And both the blockchain and its native currency - ETH - have been growing at a rapid pace, with ETH still being the second-largest cryptocurrency in terms of market cap. The only downside with Ethereum’s network is that it’s not super fast when compared to other advanced blockchains, a problem that would expectedly be resolved by the upcoming, most anticipated Ethereum 2.0.
As the number one cryptocurrency in the world, Bitcoin continues to remain the top choice of both retail and institutional investors. The value of Bitcoin has increased by more than a 100% in the last year or so. And if you are looking to quickly double, or even triple, your money in the shortest time possible, there is no better alternative than this. However, know that Bitcoin is a highly volatile coin and one must diversify their folio across different assets rather than putting all of it in just one coin.
Dogecoin was created as a meme coin but has now become a very popular cryptocurrency for investors across the world. The coin has risen to popularity in 2021, primarily because of the interest shown by Elon Musk, the electric mobility and space entrepreneur, and a couple of other crypto enthusiasts and because of the presence of a strong community of millions of DOGE investors and holders. There cannot be a lot said about whether or not DOGE will be a big coin this year, but it won’t probably hurt to put a small part of you funds into this hype-first coin.