Litecoin

Should You Invest in Cheap Cryptocurrencies?

The digital currency industry has been ever-present from the moment the first example of it saw the light of day back in 2009. Back then, when bitcoin stepped onto the scene and changed both technology and finance forever, a few people recognized its potential immediately. It took the wider population some years to understand what it is, how it works, and whether or not it can be useful. Fast forward some 12 years and a single bitcoin is worth around $40,000.

However, it is hardly the only cryptocurrency out there in the world, and neither is it the only one worth your time, nerves, and investment money. By some estimates, there are over 2,000 cryptos in existence today, with new ones coming and going away each year. This crazy amount of potential investment opportunities cannot and must not be ignored especially if you are looking for lucrative ways of making additional money on the side. Passive income is done the best way with the help of virtual currencies, so why wait?

Since it took other types of digital money a few years to catch up to the king called bitcoin, it is currently by far the most valuable one you can pick and invest in. By the time others started joining in bitcoin was already way ahead, a trend that is still relevant. Despite this, you should always diversify your investment portfolio and spread the total amount you are ready to put down among a few prominent cheaper cryptocurrencies. Now, mind that by cheaper we generally mean anything that is not BTC, since it is incomparably more valuable and famous.

In the article ahead you will learn everything there is about cheaper digital money. If you are still wondering about whether you should invest in cheaper cryptocurrencies and would like to learn more about the prices and the market in general, make sure to click here. Following is the list of the best options with their prices at the moment of writing.

1. Ethereum (ETH) – $1,218

Source:uktech.news

The second most popular and valuable cryptocurrency is ethereum, first launched in 2015. It is the best alternative for anyone looking to invest in something other than BTC. It also has the second-largest market cap (around $15.6 billion), but the difference between then is still enormous. In 2020, it was only one tenth of what bitcoin has. EHT is actually a decentralized software platform and not just a digital coin. The coin is actually called ether. The platform it is based on enables smart contracts and DApps (decentralized apps), which can run without any frauds, scams, control, third party interference, or even downtime. Ether is the token these apps and programs run on, and it practically serves as a vehicle that moves throughout the whole system. The best use of this form of cryptocurrency is definitely achieved by developers who run and develop apps within the ethereum platform. However, more and more investors are also looking to make more purchases of other virtual currencies through ether.

2. Litecoin (LTC) – $142.30

Source:bitcoinist.com

Launched two years after bitcoin in 2011, it is among the first clones and competitors of bitcoin. This crypto tried to capitalize on the initial success and estimations of bitcoin and it has done somewhat of a good job. People generally think of and refer to it as silver in comparison to bitcoin’s gold, which is fair. Charlie Lee, a graduate of MIT and a former engineer with Google, based it on the open-source global payment network no central authority controls. While it is similar to bitcoin in many ways (including the catchy and similar name), its rate of block generation is faster. This means that all the transaction and confirmation times are shorter making this a more efficient cryptocurrency. Developers and investors like it and use it alike, but merchants and various business owners have started accepting it at legitimate payment too. For the better part of 2020, the market cap of litecoin was over $3 billion. It has a lot of potential and should therefore be on your radar.

3. Ripple (XRP) – $0.274

Source:ft.com

Before you ask why ripple is worth so little, bear in mind that not all digital currencies are the same nor are they used for the same things. Here we have a real-time global settlement network that works by offering users a certain, low-cost, and near-instant access to international payments. Ripple was launched in 2012, which makes it one of the oldest in existence. It is advertised as something that enables the banks to settle payments across the border in real time, using end to end transparency and low costs. There is no mining because its ledger is unique. Instead, the whole total was pre-mined before the initial launch so you cannot create more of it as time goes by. There is only removing and introducing XRP from the market supply if the guidelines of the network allow it. This basic difference is what makes ripple different from bitcoin, ethereum, and the others. No mining means no computing power needed, resulting in less network latency and minimal electricity bills. In January of 2020, the market cap for XRP was $9.2 billion, making it one of the most valuable in the world.

  1. Tether (USDT) – $1- January 2020 market cap of $4.6 billion
  2. Bitcoin Cash (BCH) – $482- January 2020 market cap of $4.4 billion
  3. Diem (formerly Libra) – $1.35 – New cryptocurrency with a bright future, proposed by Facebook
  4. Monero (XMR) – $160.146 – January 2020 market cap of nearly $1 billion

Conclusion and Takeaways

Basically, to answer the titular question simply, yes, you should definitely invest in cheaper cryptocurrencies. The reason behind it is that the worth per coin is not always the best judge of how much the coin is actually worth. As mentioned, there are plenty of ways these digital currencies can be utilized and they are never really interchangeable. This is exactly why you should diversify your investments and opt to invest in much more than one single cryptocurrency. If you already have money in bitcoin, it is definitely time to start thinking about the rest of them.

Is it Possible to Create Your Own Cryptocurrency?

There is a big hype over digital currencies in recent years, and many people think that they represent the future of payment that will completely replace the traditional fiat currencies and paper money. However, there are still many people with a lack of knowledge related to the structure and potential of cryptocurrencies since most of them only heard about Bitcoin and some other popular coins, and how they might be a great investment option because of the high volatility. Bitcoin is especially popular as the first and most valuable cryptocurrency on the market with a current price of around $38,000.

The main advantages of investing in cryptocurrencies are indeed a great chance to make a profit. According to many experts, popular tokens like Ethereum, Litecoin, XRP, and many others also has the potential to become much more valuable over time. Also, many countries are already creating plans on how to implement the blockchain currencies into their monetary systems. The challenges here are related to the fact that most of these digital currencies are decentralized and use advanced security measures that make users completely anonymous. Therefore, financial institutions will have to find a way to include taxes in transactions with e-wallet.

Source:paymenticon.com

Moreover, when it comes to safety, we have to mention that storing cryptocurrencies on an e-wallet is the safest solution today and a much better option than keeping your money on a bank account or some online crypto exchange. Also, there are several methods for storing your Bitcoin or any other crypto, and you can read more about that at devdiscourse.com. Furthermore, since they have such potential, it is not a surprise that many people are interested not only in investing in existing cryptocurrencies but in creating new ones as well. We are going to analyze more about that topic in the following article.

Benefits and Downsides of Cryptocurrencies

Source:cryptofish.com

Before you decide to invest in the creation of a new token, you should learn more about the main features, benefits, and potential downsides of digital assets. One of the main advantages that makes them so popular is the fact that they are decentralized, which means that there are not big financial institutions or banks that could control them in any way. That is one of the reasons why many people are choosing the invest in the crypto market to protect their funds from the recession, which has a high chance to occur in the following years. Another benefit is that they provide users with both transparency and anonymity, much lower transaction fees, and faster transfers. On the other hand, the biggest downside is that there is always a chance for a token to become illegal in some states. Also, most cryptocurrencies are under constant fluctuation in value on the market.

How To Create Cryptocurrency?

Source:morioh.com

Before you decide to invest in the development of a new cryptocurrency, you will have to learn the difference between tokens and coins and their structure. If you are looking for an easier way to get your part in the market of digital currencies, we suggest you choose a token option. The main feature of tokens is that they are using existing blockchain, which means that you will need much less time to start competing on the market with your own digital asset. On the other side, this method requires a much higher investment.

On the other side, if you are interested in creating a coin similar to Bitcoin and many other virtual currencies with their blockchain. However, that will require advanced knowledge in computer science and coding. Also, with proper knowledge, this process might last only a few minutes, since the structure of Bitcoin is available in open-source format, which means that you can use it with some slight changes to start your blockchain system. Still, hiring a team of experts is necessary for allowing the whole structure to operate properly from the start.

Source:voanews.com

Popular Blockchain Options

There are over 2,000 blockchain-based currencies available on the market, and most of them are using the same systems.  The first system that offered people to use it for their tokens is Ethereum, which is also the most popular solution. Besides Ether, you can choose between EOS and NEO. There are many differences between these blockchains related to the required programming language, available e-wallets, standards, ability to provide users to use hardware e-wallets, and volume of transactions per second.

Most Important Things During the Process

As you can see, there is a possibility to create your token or coin even with a lack of knowledge since you can always hire a team of professionals. However, you will have to learn more about the whole market, the structure of your currency, and its potential. First of all, you will need a proper strategy related to the right selection between token and coin. Also, you should choose the system with proper security measures, speed of transactions, and good potential to become competitive on the market.

Also, hiring a team of experts can be crucial as well, especially if you are not so familiar with the processes related to the development of blockchain. After you finish all of the technical details, the promotion can be crucial for the performance of your virtual money on the market. Therefore, you should find a way to offer something new and useful that will attract people to invest in your coin.

The Bottom Line

It might seem like a challenging process to become competitive on the market where we already have some popular choices like Bitcoin, Ethereum, Dash, and more. However, the market is quickly expanding, and many investors are searching for various options related to new and cheap coins that might bring them high profits. That is one of the main reasons why investing in the development of new crypto can be an excellent business strategy. Even though the technical process can be finished in one day if you choose to introduce a new token, you will have to invest a lot of money in further development, white paper, placement on the market, ICO security, and more.

Cryptocurrency and ICO market

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Cryptocurrency could best be explained as a parallel to the game of PUBG as both of them has epitomized controversy and sparked debates around their acceptability as a format. As PUBG comes with a string of statutory warning on its possible predicament on different psychological aspects which could plague the mind of an adolescent child, the same appears to be true for Cryptocurrency as well. The only significant difference is the warning that circles around cryptocurrency, which seems more potent as it comes from eminent economist and reputed financial audit and research firms across the globe. But the popularity of both goes unabated with more and more users pouring in.

Cryptocurrency has now become a global phenomenon with Google having a contingent of more than a thousand dedicated pages designed to cater to the curiosity of the common man about it. The institution of cryptocurrency still stands inundated in the thick layers of myth around it. Consequently, it looks so opaque that most of the people who are contemplating on it, find themselves in a state of utter dichotomy and cannot really conclude whether it appears good, bad or ugly.

Img Source: medium.com

What is a cryptocurrency?

Cryptocurrency refers to the digital currency encrypted with cryptographic protocols that help users do the transaction at their convenience without any possibility of being tracked at any point along its digital route. In a bid to redefine ease of making payments online, cryptocurrency has made digital transactions simpler for both the private sector and the common public. The most important attribute of cryptocurrency is that it cannot be brought into the ambit of regulatory control of any central agency or financial body which works under the guideline of any nation or united unions. Being very liberal in spirit and democratic in concept, it has now got immune to traditional controls and interventions made by several legal and financial bodies. That is where we need to draw the line of caution followed by taking a stance, which is balanced and reflective on the possible prejudice that it can invite to mankind. There is a score of incidents reported by security agencies and financial watchdogs where cryptocurrency has been misused to make illegitimate monetary transfers to radical groups and extremist outfits all across the globe. The use of cryptocurrency has garnered traction among the drug peddlers, unscrupulous people involved in human trafficking and arms dealers who remain invisible in the real world and usher in a pseudonymous transaction that cannot ever be tracked and breached into.

Img Source: digitaltrends.com

The future of Fintech?

If we can put aside the mist of the apprehension of misuse, nobody can turn a blind eye to the enormous possibility it could unfold in shaping the future of Fintech more in terms of how it can drive the world economy towards inclusive prosperity and well being for all. Anyone can log into https://CryptoLab.one to keep themselves well abreast of latest updates and developments along with interactive charts and graphs showing markets trends in the world of cryptocurrency

There is a variety of cryptocurrencies available in the niche economy ecosystem that it carved out for itself over time. The most important breed of cryptocurrency is Bitcoin, which is believed to have served a digital gold standard in the whole cryptocurrency industry. Only within a span of seven years, the valuation of Bitcoin has reached 650 dollars from zero, and its transaction frequency has brewed up to 0.2 million units per day which truly shows the immense possibilities that the destiny has in store for it. Apart from Bitcoin, there are so many other currencies as well which are also gaining prominence. Ethereum, Ripple, Litecoin are some of those species which are also gaining popularity over time.

Img Source: 5wpr.com

What is ICO?

In the context of the resurgence of new currencies, the circle of discussion cannot complete without the mention of ICO which stands for Initial Coin Offering. What IPO means for a mainstream investment world, ICO holds the same relevance in the realms of cryptocurrency. ICO serves the purpose of the fund-raiser. When an entity looks forward to creating a coin, app or service, it does it with the launch of ICO. ICO has come into the limelight and occupied news headlines as more and more investors are joining in with an expectation to make quick money. Some very successful ICOs over the period has given the investors reasons to bank upon it, but there is an opposite side of the coin as well which is not very glittery and flamboyant. There are instances where all the investment has gone down into the drain. Being an unregulated proposition, it always runs the risk of being exploited.

Img Source: hackernoon.com

Therefore, we all need to draw a forbidden line of caution around it which will put a restraint on how we use the technology and what for. If we let the conscience take over and decide the course of our action, cryptocurrency will eventually unleash its true potential where everyone across the tiers and pedals of the society will be empowered to wake up to a dawn of new financial resurrection.