Crypto market, reliability, and investments. Which cryptocurrencies are worth paying attention to?
“Cryptocurrencies offer forgotten and oppressed people an opportunity to participate in the global economy,” Congressman Paul Gosar, Representative from Arizona, USA.
It was in 2017 that cryptocurrency exploded. The market capitalization of all cryptocurrencies in March 2017 was about 21 billion dollars, whereas nowadays it is over 454 billion dollars.
However, the market is no longer just about bitcoins. Other cryptocurrencies have also entered this space and shown incredible results over the past year.
What are stablecoins and tokens?
Stablecoin is a cryptocurrency with low price volatility. Its value does not change too much over time, as the US dollar or euro have a stable value compared to many cryptocurrencies.
Besides, when dealing with cryptocurrencies, reverting to fiat currencies like the US dollar is usually slow and expensive. Stablecoins are the best of both worlds. They offer price stability for stable assets as well as the speed and convenience of cryptocurrencies.
Crypto tokens are special types of virtual currency tokens that reside in their own blockchains and represent an asset or utility. They are most often used to raise funds for mass sales, but they can also be used as replacements for other things.
Tokens are also an ideal tool for interacting with social media platforms. People spend 1.7 hours a day browsing social media in the US (according to We Are Social), and much less time watching TV or reading magazines.
For startups as well as for established brands looking to connect with consumers through social media, personalized tokens can be a tool for more direct interaction with your followers and potential clients.
Tokens can ultimately help companies gain immediate support in the ultra-competitive markets developed in the limited world of fiat money.
Most popular stablecoins
Stablecoins are becoming more and more popular. Many people like the idea of a cryptocurrency without chronic volatility in the price of bitcoins. However, there are many stablecoins now, and it is important to choose the one you need.
Let’s take a look at the top 5 stablecoins of 2020
1. Tether is by far the most famous and most used stablecoin in the world. It has been around for many years and has one of the highest usage rates of any cryptocurrency in the world. It is estimated that about 80% of all cryptocurrency trading in the world takes place through the stablecoin Tether.
Tether is backed by the US dollar. This means that any time, you could trade it your Tether for US dollars with the holding company.
2. USDCoin is the official stablecoin of the reputable crypto exchange Coinbase. It aims to be a more tightly regulated and transparent stablecoin than Tether. The coin has obtained financial licensing to operate in the jurisdictions it operates in. Companies and bank accounts that hold foreign exchange reserves for USDCoin are regularly audited to ensure that clients can rest assured that their funds are safe and compliant.
3. TrueUSD is another stablecoin backed by the US dollar. It doesn’t have the above-mentioned stablecoin adoption rates, but it does have a lot of potential.
4. DAI is a stablecoin that is very different from those supported by fiat currencies.
5. Paxos Standard is another alternative to Tether with a much greater emphasis on regulation, transparency, and money laundering risk reduction. This is an attempt to prevent Paxos from being used as a money-laundering tool.
Summary. Fixed value currencies are an integral part of any economic system. Stablecoins are gaining popularity in the world of cryptocurrencies, and there are many players in the market competing for the first place.
9 factors to consider when choosing
a cryptocurrency for investment
1. Community. Before investing, check what people are saying about your potential investment.
2. Team. One of the main things you can research is the cryptocurrency team. In fact, researching and verifying the team behind the cryptocurrency is one of the most important factors to pay attention to.
3. Technology. Much of the success of a cryptocurrency depends on its underlying technology. You need to understand how the cryptocurrency will perform against competitors, and what makes its technology stand out. For example, Ethereum has such an innovative technology that makes it easier for developers to create larger-scale applications.
4. Whitepaper is one of the best places to evaluate the fundamentals of a coin. You should never invest in a cryptocurrency until you have read their whitepaper. You may have to get over technical jargon in a whitepaper, but don’t let it discourage you. This document is 100% worth reading because it is such a rich source of information. Plus, the more whitepapers you read, the better you’ll be able to identify long-term winners in the cryptocurrency market.
5. Vision of the creators. You need to be sure that the coin will last for at least the next 5-10 years, and if its creators don’t think long term, you should be seriously worried.
6. Project leaders. See if they are personally investing in the project. Look at other projects of the developers of this cryptocurrency, check if they have relevant experience. Do they have a reputation as a CEO? Read what project leaders say about the coin and what they are trying to accomplish.
7. History of pricing. Have you ever heard the saying: “The best predictor of future behavior is past behavior?” Of course, it is not always the case, especially with cryptocurrencies. However, price fluctuations give you a compelling story behind a coin and whether it will be a safe investment in the future.
8. Trust and reputation. Browse crypto communities and see what people have to say about the coin. Avoid scams and cryptocurrencies similar to MLM schemes or pyramid schemes. And if you want a real-world example, check out the controversy behind BitConnect.
9. Roadmap. When deciding which cryptocurrency to invest in, look for a coin with clear development plans. This is the key to long-term success. Here are a few things to pay attention to:
- A clear time frame for the development of a coin. No clear deadlines may indicate a lack of commitment from the development team.
- When do they plan to release major updates?
- If a coin has a limited number of coins in circulation, when is this limit expected to be reached?
Summary
Regardless of whether you want to invest in cryptocurrencies, trade, mine, store, keep or avoid political blockages and economic crises, cryptocurrency can help you secure your income while being able to invest in the best possible way in your country or elsewhere within the limits of blockchain security.
Crypto exchange Cratos understands the security and reliability needs of corporate clients well. If you have any doubts about which cryptocurrency to invest in, we will help you make the best choice based on your current needs — investment, transaction speed, security, etc.
