We Have Put Together a List Of The Best Cryptocurrencies To Invest In 2017?
For many people, 2017 is officially the year to invest in cryptocurrencies. As the value of substances like Bitcoin continues to soar – sometimes beyond the worth of gold, it’s easy to see why people everywhere are clamoring to get their hands on a slice of the pie. Now that a number of new currencies have joined the market alongside Bitcoin, such as Zcash, and Ethereum, the overall worth of crypto-coins falls at well over $100 billion.
— BITMAIN (@BITMAINtech) March 3, 2017
Unfortunately, while the current statistics for cryptocurrency might look good, it’s hard to determine what the future holds for this method of investment. After several years of dominance in the marketplace, squabbles among developers in the Bitcoin world have led to some problems in the market. Combine a general sense of uncertainty with a lack of progress and rising transaction fees, and you get an all-around troublesome picture for the world’s first cryptocurrency.
On the other hand, Ethereum has hit the market as a strong competitor – although it’s entirely different to Bitcoin, with a strong concentration applications on the blockchain instead of just recording payments. Although no-one can say for sure where the crypto-world is headed, now is a good time to take a look at some of the most promising competitors on the market, and what they can offer. We have put together a list of our personal favourite coin which we think are the best cryptocurrencies to invest in 2017.
Introducing The Best Cryptocurrencies To Invest
1. Bitcoin (BTC)
As the cryptocurrency that started it all, Bitcoin is still on of the best cryptocurrencies and the most popular option for investors – despite a few problems. With a worth of around $41 billion, Bitcoin owns the largest market share, and it’s been around for more than eight years. Today, the currency is used around the world, and no-one yet has found an exploitable weakness in its format.
Bitcoin is both a payment system and a store of value. It allows users to receive and send bitcoins (BTCs) easily. The history of Bitcoin is someone mysterious, as all we know is that it started with a person, or group of people called Satoshi Nakamoto – which then disappeared two years after the project was launched in 2009.
Bitcoin works on an invention called blockchain – which is also responsible for many of the other cryptocurrencies on the market today. The “blockchain” is a kind of distributed database that stores all the transactions a person makes on a network in chunks of data known as blocks. Every user with Bitcoins has a copy of the blockchain, which means that everyone knows (in theory), where each bitcoin is. The complete network is powered by “miners” who use computing power to mine the next block of information for bitcoins. This generates new coins and provides the power the system needs to keep transactions recorded.
The blockchain works by solving numerous important mathematical problems. It’s a transparent and engaging system of financial transactions, which allows the movement of bitcoins to be tracked. Because the system is decentralized, you don’t need a bank to use it, or vaults to store money. You don’t even need a team of people to tell you how much you own. Bitcoin is a clearly effective way of storing, sending, and receiving digital money in a secure, and efficient fashion. You can learn more about how to buy Bitcoin here
2. Ethereum (ETH)
Ethereum is another of the most popular solutions for cryptocurrency investors today. Designed by a programmer called Vitalik Buterin, Ethereum works in an entirely different way to Bitcoin. Though it can do many of the same things that Bitcoin can do, its primary purpose is to act as a platform for building decentralized applications.
The biggest difference between Bitcoin and Ethereum is the use of blockchains. While Bitcoin’s blockchain records contracts, showing how digital funds have moved from one place to another, Etherum has expanded this concept. The Ethereum blockchain uses a far more complex scripting language, and its smart contracts can form complex applications that have a broad range of potential uses.
Developers have recently started to take notice of the potential that Ethereum can offer, building projects on top of the cryptocurrency. Some individuals have even used Ethereum to raise millions of dollars through crowd sales known as ICOs, and the trend remains strong today. This makes Ethereum a powerful option for those invested in finance. However, the popularity of the currency means that the price has skyrocketed.
Though many experts regard Ethereum to be potentially the most promising cryptocurrency on the market, the future of the coin is unclear. At present, Ethereum is valued by the apps that are built using it, and if those apps start to lose some of their worth, or begin to fail, then Ethereum will suffer. Additionally, despite the ambition of Ethereum for long-term success, it’s not totally clear whether the network will be able to scale well enough to allow for more complicated applications to be built.
On top of this, Ethereum can’t be widely used as a form of payment, which means that it’s not a replacement for Bitcoin in every respect. By owning ETH long-term, it’s difficult to see what you can really accomplish. Additionally, just like any form of cryptocurrency, Ethereum is highly volatile. In 2016, an Ethereum-based VC known as The DAO amassed a huge amount of ether in a crowd sale, just to have almost a third stolen by a hacker. The event shook the online community, leading to a huge price drop.
3. LiteCoin (LTC)
LiteCoin is one of the best cryptocurrencies alternatives to Bitcoins that was designed to manage some of the issues that could be holding Bitcoin back. Though it isn’t quite as innovative as Ethereum, it still has potential. LiteCoin’s value is derived entirely from user adoption, and there’s also a difference in leadership for the companies involved too. LiteCoin was created by an ex-Google employee called Charlie Lee, who’s entirely transparent on social media about what he’s doing with the currency.
That said, don’t forget that Litecoin already went through a 10x SegWit price increase this year. Bitcoin has yet to 10x in price. Slowpoke! https://t.co/T6nt0iNifg
— Charlie Lee [NO2X] (@SatoshiLite) August 13, 2017
For quite some time, LiteCoin was nothing more than a distant competitor for Bitcoin. Though it was far less valuable, it was still there as a potential alternative. However, things began to change in Mary 2017, when a huge exchange called “CoinBase” started to use LiteCoin alongside Ethereum and Bitcoin. Since then, investors have begun to take LiteCoin more seriously. Additionally, the currency has also adopted “Segregated Witness” technology which fixes problems that Bitcoin has yet to solve. The solution adds more capacity into the network and reduces transaction fees.
LiteCoin has raised significantly in recent months since Charlie Lee announced that he would be leaving CoinBase to focus his efforts on building LiteCoin. Today, the currency could be even more valuable to users than ever before, as a truly viable alternative to Bitcoin.
4. Alternative Options: Zcash (ZEC) and Monero (XMR)
Although Monero and Zcash are very technically different, we’re bundling them together in our list of the best cryptocurrencies, based on the fact that they can both solve the same problem of anonymous transactions. Although Bitcoin was typically seen as a currency for the darknet, and a method of laundering money, the truth is that its blockchain is very transparent. As we mentioned previously, every transaction conducted through Bitcoin is public and logged. That means that anyone can see how money has moved from one person to another.
Bitcoin’s protocol does allow for some amount of anonymity, and there are methods you can use to increase the secrecy of your Bitcoin transactions – however, they aren’t ideal. The good news is that Monero and Zcash aim to fix this problem. They’re both doing this in very different ways, and the technical details are quite complicated. However, one thing you should know is that the main difference comes down to the blockchain, which is opaque on Monero, and partially public with Zcash.
So far, there’s no real evidence that can determine which chain works better, and Zcash has yet to fully implement its whole solution. However, if you’re looking for privacy, it’s fair to say that Monero and Zcash are where you should start.
Of course, there are plenty of reasons why you might want to add more secrecy to your cryptocurrency transaction – besides nefarious purposes. Remember, you might just want to make sure that no-one knows how much money you’re spending on certain items. Although it’s not certain that privacy-based coins will earn a top spot in the currency market, it’s fair to say that there is a demand for this type of cryptocurrency.
5. Other Options: Bancor, EOS, Tezos, Etc…
Now we’re coming to an area that we can only comment on with educated guesses. The projects that are listed in the subheading, EOS, Tezos, and Bancor, aren’t fully launched yet, and yet they’ve already managed to raise over $100 million each and that is the reason we are adding them to out list of the best cryptocurrencies to invest in.
Bancor is a platform that’s designed to create new digital tokens with simplicity. It’s promised that it will make every token liquid, and easier to use. On the other hand, Tezos is an Ethereum alternative that can be easily upgraded, without any need for hard forks. Finally, EOS is another type of Ethereum competitor, which hopes to problem the Ethereum scaling issues by giving people a more robust set of tools for running apps through the platform.
Of course, there are many other options out there beyond those three that you might want to consider, including Dogecoin, Gnosis, and Ripple. However, predicting which one of these will emerge as the next big player in the cryptocurrency market is almost impossibly difficult. Many of these projects aren’t yet complete, and one of the key factors in the success of any currency will always be adoption rates. Both Ethereum and Bitcoin have thrived as a result of good adoption, and this is because they both offered new and interesting ways to build finance.
Although many of the newest options on the market have received some backing and support from interested early adopters, they’re not exactly proven solutions. Additionally, most of the new coins that have emerged have received their own fair share of criticism too. This is only to be expected in a space that is evolving so rapidly, we’re even starting to see joke coins on the market.
The only way to make sure you’re making an investment that you can feel confident in is to take the time to learn as much as you can about each potential currency before you start spending your money. Just like anything else in the tech world, the best cryptocurrencies will find their way to the top eventually.