The key to reaping substantial returns on your investment is buying into a project early. Early investors buy cryptocurrencies when they are still cheap, helping them acquire many tokens. Bitcoin, for instance, made lots of millionaires. Investors who bought low and held their Bitcoin enjoyed the bull runs.
While Bitcoin remains a favorite among cryptocurrency enthusiasts, it has become inaccessible to retail investors due to its price. Thankfully, you can still make substantial profits from investing in new and promising altcoins.
Because these projects are new, not many people have invested in them — leaving an opportunity for early buyers to reap good returns. This also makes it necessary to be on the lookout for top cryptocurrencies to invest in.
Why Should You Invest In Altcoins?
ltcoins are crucial for investors looking to diversify their portfolios. And because blockchain technology has improved since the creation of Bitcoin, you can buy into new and exciting projects.
You may also enjoy greater rewards when you buy alternative cryptocurrencies early. In a similar vein, investing in them also comes with risk. But you can reduce the risk associated with an investment by diversifying your portfolio and embracing good investment strategies.
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Benefits of investing in altcoins
1. Greater returns
2. Lesser capital required
4. Faster transaction execution
1. Greater returns:
One of the most important benefits of investing in altcoins is the possibility of getting more significant returns. Bitcoin is expensive and may not assure as many profits. But if you want a cryptocurrency that can double or triple your returns, you should invest in less expensive cryptocurrencies. Buying them early also allows you witness their growth.
2. Lesser capital required:
While institutions have no problem buying Bitcoin, not many individuals can afford it. Thankfully, there are hundreds of digital assets that are cheaper than Bitcoin. You need to assess their potential and buy them before their prices skyrocket. It’s important to say that not all altcoins are worth your coins. Investing in some of them may cause financial losses.
Utility is an important reason for you to buy altcoins. Today, numerous digital currencies have interesting utilities that may change the asset space for the better. Near, for instance, strives to help the space remain scalable. These utilities can help your altcoin remain relevant even when the market crashes.
4. Faster transaction execution:
Because Bitcoin leverages a proof-of-work consensus mechanism, executing transactions on it can be time-consuming. However, things are different for most new cryptocurrencies because they use a proof-of-stake consensus mechanism, consuming lesser power while executing transactions faster.
Top 3 Promising Altcoins
SOL is one of the hottest cryptocurrencies in the digital space. It is the native currency of Solana — a public blockchain with smart contract support. Like Ethereum, Solana hosts decentralized applications (dApps) while striving to make them scalable.
Claiming to be the fastest blockchain worldwide, it supports various projects in the decentralized finance (DeFi) and NFT space. Like most public chains, Solana is an open-source and decentralized platform, allowing developers to build on it.
Because of the platform’s utility and relevance, SOL has become one of the top 3 blockchain cryptocurrencies investors should look out for when searching for new assets. People who use the blockchain pay transaction fees in SOL, contributing to the coin’s growth.
Near protocol is another public blockchain that supports smart contracts. This is not surprising due to the rise in decentralized applications in the space. The platform’s native currency, NEAR, allows users to pay transaction fees.
Using POS, Near protocol strives to be a platform suitable for dApps. While still undervalued, NEAR may become one of the industry’s top performers. And because of the growing demand for decentralized applications, currencies like NEAR have exciting utilities.
Besides paying for transactions with the native currency, applications on the blockchain need to pay for storage. They pay for these with NEAR. While the crypto market’s outlook is bearish, this currency remains ready to break the next resistance.
Similar to other chains on this list, Cardano is a public and open-source network. Founded by one of ethereum’s founders, Charles Hoskinson, it leverages a proof-of-stake mechanism known to be environmentally friendly.
ADA is Cardano’s native currency, and together, they assist the growth of the Cardano ecosystem. The currency is also a top choice for investors hoping to buy undervalued digital assets. Launched in 2017, Ada has rallied over the years, assuring growth for early investors.
Fortunately, you can still buy ADA at a discount because it’s still far from its all-time high. Buying an asset when it’s cheap may assure more profits, especially when market conditions change for the better.
Great investors are always on the lookout for great buys. Finding good assets when they are cheap may help your portfolio in the long run. In this article, we looked at SOL, NEAR, and ADA and their blockchains; we also discussed their potential and relevance to the cryptocurrency market. This article is not investment advice, and you should do your due diligence before buying into any project.