Unlocking the Future of Finance: Understanding DeFi's Potential

                                                                                                   Photo by Kanchanara on Unsplash

Introduction

In the ever-evolving world of finance, a new player has emerged, sparking conversations and raising eyebrows across the industry. Decentralised Finance, affectionately known as DeFi, is making waves with its promise to revolutionise how we interact with money.

Picture a financial ecosystem where traditional banks and intermediaries are no longer necessary. Instead, blockchain technology takes centre stage, offering a direct line to financial services. It's a concept that's both exciting and, for some, a little daunting.

But what exactly is DeFi, and why is it generating such buzz?

At its core, DeFi represents a shift towards a more open and accessible financial system. By leveraging blockchain technology, this initiative seeks to harness the power of distributed ledger systems to establish a global environment where monetary operations and financial tools are accessible to all individuals with online connectivity, irrespective of their geographical position or economic standing. In essence, DeFi is built on three pillars: decentralized protocols, smart contracts, and decentralized applications (dApps). Think of decentralized protocols as the digital equivalent of financial wizards, tirelessly working behind the scenes to make your transactions smooth and effortless. Smart contracts are like digital handshakes – once the terms are set, they automatically execute when conditions are met, no human intervention needed. And dApps? They're your gateway to this new financial frontier, user-friendly tools that let you navigate the DeFi landscape with ease.

The beauty of DeFi lies in its openness and accessibility. It's not about replacing the entire financial system overnight, but rather about giving everyone – yes, everyone – the opportunity to take control of their financial destiny. No more gatekeepers, no more exclusivity. Just you, your digital wallet, and a world of financial possibilities at your fingertips.

This new approach to finance raises intriguing questions about the future of our monetary systems. Could we be witnessing the dawn of a new financial era? What implications might this have for traditional banking institutions, and more importantly, for everyday individuals like you and me?

As we stand on the cusp of this potential financial revolution, it's worth exploring the promises and challenges that DeFi brings to the table. 

How Does DeFi Work?

DeFi is transforming the traditional financial system by using blockchain technology to create a decentralised infrastructure. Picture this: a financial system that's more open, secure, and accessible than ever before. That's exactly what DeFi is bringing to the table by harnessing the power of blockchain technology. It's like giving the traditional financial world a 21st-century upgrade!

So, how does it work? Well, imagine turning your assets - whether they're digital or physical - into digital tokens on a blockchain. These tokens can represent virtually anything, from cryptocurrencies to stocks and even commodities. It's like having a universal language for all things financial!

With these tokens in hand, you've got a world of financial possibilities at your fingertips. Want to lend, borrow, trade, or invest? DeFi's got you covered. And here's the kicker - you don't need to go through any middlemen. That means more accessible and affordable financial services for everyone.

The best part? All you need is an internet connection, and you're good to go. It doesn't matter if you're in New York or Lagos; DeFi levels the playing field for all. Plus, every transaction is recorded on a public ledger, making the whole system transparent and tamper-proof.

Photo by Michael Förtsch on Unsplash

The Advantages of DeFi

DeFi offers a revolutionary way of handling financial transactions. Here are some of its key advantages:

First off, think of DeFi as a financial superhero with a transparency cape. Every transaction is out in the open, recorded for all to see. It's like having a financial system with glass walls – you can't hide any funny business, which means less chance of fraud and more peace of mind for users.

But here's where it gets really exciting: DeFi is throwing open the doors of finance to everyone. Got an internet connection? You're in. This is huge news for folks who've been left out in the cold by traditional banks, especially in parts of the world where banking services are scarce.

And let's talk about those pesky fees that seem to nibble away at our hard-earned cash. DeFi cuts out the middlemen, which means more money stays in your pocket. It's like finding extra cash in your jeans – who doesn't love that?

Control freaks, rejoice! DeFi puts you in the driver's seat of your financial journey. No more waiting on hold with your bank or jumping through hoops to move your money. You're the boss, and your finances answer to you.

Last but not least, DeFi is a hotbed of innovation. It's like a financial lab where the smartest minds are cooking up new ways to make your money work smarter, not harder. The possibilities are endless, and that's what makes DeFi so intriguing.

The Risks of DeFi

Imagine a financial frontier where the rules are being rewritten daily. That's the world of Decentralised Finance, or DeFi. It's a thrilling space, full of innovation and potential, but like any frontier, it comes with its share of risks. Let's take a closer look at what you should keep in mind before diving in.

First up, security. While DeFi protocols aim to be fortresses of digital finance, they're not impenetrable. Just as clever thieves can crack a safe, skilled hackers can sometimes find ways to exploit vulnerabilities in these systems. It's a constant cat-and-mouse game between security experts and those looking to make off with people's hard-earned crypto.

Then there's the rollercoaster ride of market volatility. If you thought traditional markets were unpredictable, DeFi takes it to a whole new level. The value of your assets can skyrocket one day and plummet the next. It's exhilarating for some, but it's definitely not for the faint of heart.

Now, let's talk about the learning curve. DeFi isn't exactly user-friendly for newcomers. It's like being handed the controls of a spaceship without much training. There's a lot to learn about interacting with different protocols and managing your digital keys. It can be overwhelming, but don't let that discourage you – everyone starts somewhere.

The regulatory landscape is another factor to consider. Right now, it's a bit like the Wild West out there. Governments and financial authorities are still trying to figure out how to approach DeFi. This uncertainty means that the rules of the game could change at any moment, potentially impacting how these protocols operate.

Lastly, remember that DeFi is still in its infancy. It's cutting-edge technology, which is exciting, but it also means not everything has been thoroughly tested. Some protocols might turn out to be revolutionary, while others could fail spectacularly. That's why it's crucial to do your homework before jumping in with both feet.

DeFi is a fascinating world of financial innovation, but it's important to go in with your eyes wide open. The potential rewards are enticing, but so are the risks.

The Future of DeFi

DeFi is growing at an incredible pace. Since its inception in 2017,DeFi has experienced a meteoric rise. By December 2020, a staggering $25.2 billion was locked in DeFi protocols – and that figure keeps climbing. But what does the future hold for this financial phenomenon?

Let's peek into the crystal ball and explore some exciting trends on the horizon:

1. DeFi Goes Mainstream: As word spreads about the benefits of DeFi, more people are jumping on board. This surge in adoption is fuelling innovation, with new protocols and services sprouting up like mushrooms after rain.

2. Old Meets New: Traditional finance embraces DeFi. The old guard is even looking up and paying attention. Some traditional financial institutions are dipping their toes into the DeFi waters, bringing their expertise to this new frontier.

3. Financial Wizardry: Advanced instruments take centre stage. DeFi isn't just about basic financial services anymore. We're witnessing the birth of more sophisticated tools like derivatives, insurance, and automated trading systems. These innovations are opening up a world of possibilities for users.

4. User-Friendly Revolution: Remember when using the internet required a degree in computer science? DeFi is undergoing a similar transformation. As the technology matures, we're seeing more intuitive interfaces and platforms that welcome even the most technophobic among us.

5. Fort Knox 2.0: Enhanced Security Measures: In the world of finance, security is paramount. DeFi developers are working tirelessly to fortify their protocols, ensuring that users' funds are safer than ever.

Conclusion

The world of finance is on the brink of a revolution, and its name is DeFi. By leveraging blockchain technology, DeFi offers a more secure, transparent, and efficient alternative to traditional finance. The rapid growth of DeFi tokens and the increasing number of users are clear indicators of its potential to completely overhaul the financial industry.

Think about it: DeFi tokens are skyrocketing, and more people are jumping on board every day. Why? Because they're seeing the potential for a financial system that's not just more secure and efficient, but also fairer and more accessible to everyone.

Sure, there are some bumps in the road – what ground-breaking innovation doesn't have its challenges? But the benefits of DeFi are simply too compelling to ignore. We're talking about a complete overhaul of how we think about and interact with money.

Whether you're a seasoned crypto enthusiast or just dipping your toes into the world of digital finance, there's never been a more exciting time to get involved. The DeFi train is leaving the station, and trust me, you don't want to be left behind.

So keep your eyes peeled and your mind open. The future of finance is being written right now, and DeFi is holding the pen. Who knows? The next chapter might just change everything we thought we knew about money.

For more insights into DeFi, check out these resources:

• 41+ Brand New DeFi Statistics (2024)

• Blockchain News

• DeFi’s Comeback 

Is NFTs worth investing in? 6 factors to consider before you say yes

                                                                       Image Credit: Milad Fakurian on Unsplash

Nonfungible token assets, or NFTs, are digital tokens that constitute real-world ownership of assets. You might have heard of a handful of projects that are trying to make NFTs mainstream, such as CryptoKitties, RarePepe, and CryptoBuck. The idea is that NFTs could become a cheaper and more secure way to invest in real world assets (e.g., collectibles) and digital assets (e.g., cryptocurrencies).NFTs are now at the peak of their popularity in the crypto space. They have been around for about 2 years now, but have a positive momentum that has accelerated in the last few months.

It’s becoming evident that NFTs are here to stay. But, with so many projects emerging in the space, how do you sift through the red-hot projects to find the diamonds in the rough?

Let’s take a look at 6 factors to consider before you say yes to NFTs.

What is a Non-Fungible Token?

Non-fungible tokens (NFTs) represent a new asset class. That’s right — they’re not fungible tokens. Hence, it is a virtual representation of real-world goods such as art, music, in-game items, and films. They're acquired and traded online, often using cryptocurrency, and they're usually created with the same software as most other cryptos.

A fungible token can be used as money and is interchangeable with another identical token. With NFTs, however, each token represents a specific asset and is unique. A specific Pokémon card, for example, could be represented by its own token and be traded on a centralized platform. NFTs are rapidly gaining popularity as a chosen method of purchasing and selling digital artwork. A look backwards from November 2017 to date, a whopping $174 million has been utilized on NFTs transactions in total.

NFTs: A Growing Trend

NFTs first emerged in 2017 as a fun way for crypto enthusiasts to sell their collectibles to other enthusiasts. The hype quickly went viral and crashed the Ethereum network due to sheer traffic.

Fast forward to today and NFTs are no longer just a novelty — they’re here to stay.

In late 2018 and early 2019, the buzz around NFTs reached a fever pitch. Crypto enthusiasts rushed to collect unique digital assets, which fuelled a new asset class and increased demand for NFTs. Gaming was the second most significant emerging trend for NFTs in 2021. NFTs have served as a catalyst in gaming, as block chain technology based earn while you play games that compensate players including in game assets, have set in its first time that gamers are truly the proprietors of their assets. These they could then sell on NFT exchanges for a profit.

The trend for 2022 seems to be the purchasing and selling of fractionalized NFTs of real-world masterpieces by well-known painters, and fractionalized NFTs has allowed investors to invest in strong cryptocurrency assets for a fraction of the price, you can get crypto assets.

Now that the hype has died down, perhaps it’s a good time to evaluate if NFTs are worth it.

Is it worthwhile to invest in NFTs?

NFTs, like any other asset type, have advantages and disadvantages. The value of a collectible depends on the perception of the person who wants it and the purpose for owning it.  There are actually some digital artworks that are not utterly overpriced while there are still some that does. We’ll swiftly assess whether they're worthwhile investments - but remember, we're not financial counsellors, so you should always conduct your own research.

How to evaluate an NFT

Is the Project Worth Investing in?

One of the first questions you should ask yourself is whether the project is worth investing in. Personally, I see two types of projects.

First, there are projects that are interesting from a technology perspective. They may be trying to solve a real problem or offer a novel solution to a problem.

For example, RarePepe is a blockchain-based platform that connects rare Pepe cards with new owners through an auction-style marketplace. It’s a novel approach for a problem no one has ever solved before — even though it seems like a great idea.

The second type of project is a traditional investment. It’s not interesting from a technology perspective, but it’s a product or service that’s trying to gain market share. These projects often have a delayed product that they’re trying to release, so they’re worth investing in.

Is the Token Transferrable?

This may be a red flag for many projects. There are many projects that are trying to make NFTs mainstream, but not all of them are worth it.

We wouldn’t want to invest in a company that doesn’t want us to sell their tokens.

So, how do you know if a project is trying to make its tokens non-transferable?

There are many red flags in this area. First, you want to make sure that the project is trying to make its tokens non-transferable.

Many projects are trying to make their tokens non-transferable, but not all of them are worth it.

Second, the project should have a solid plan to make sure the tokens are not transferrable.

If the project’s plan doesn’t include a way to make the tokens not transferrable, you should run away as far as you can.

How to invest in NFTs

You'll need the following items to establish your own NFT collection. A digital wallet to hold NFTs and cryptocurrencies first. Contingent on what currencies your NFT issuer takes, you'll probably have to buy some cryptocurrency, such as Ether. Credit/debit cards and P2P are available for you to fund your wallet on any of the chosen trading platforms.

Find a Decentralized Exchange or Trading Platform

There are a plethora of decentralized exchanges and trading platforms. It’s a good idea to do your research and find one that suits your needs. Centaurus is an example.

There are centralized exchanges, but they’re often the subject of hacking attacks.

• That’s why it’s best to invest in NFTs through a decentralized exchange or trading platform.

Buy the Token Off the Ground

The first step is to find a reputable trading platform. That platform should allow you to trade the token.

If you want to get into the market early, it’s best to find a trading platform that’s willing to offer the token for sale.

• Once you’ve found a platform that’s willing to offer the token, you can go ahead and buy it off the ground.

 

In terms of size, the most accepted marketplaces for NFTs are: OpenSea, Foundation, and Rarible.

A Way to Invest in Real World Assets

Once you’ve got the hang of investing in NFTs, you may want to invest in real world assets.

There are plenty of platforms that will connect you with investors who want to purchase real world assets such as art, cars, and sports franchises.

You can find these types of platforms on sites like FundYourselfNow.

 The 6 Factors to Consider before Saying Yes to NFTs

Creating a NFT is exciting, but it may also be nerve-wracking. While it may feel like your world is about to end, remember that not everyone feels the same way about NFTs. Do your research, ask questions, and consider the following factors before saying yes to NFTs:

Understand The Basics

It’s understandable if you have never heard of NFTs before. You can’t expect people to know about something they don’t know about! Before you dive into creating an NFT, it’s important to understand the basics and how they relate to crypto wallets.

What is a crypto wallet and why is it so important to NFTs?

A crypto wallet is a digital storage system that allows you to hold, receive, and send cryptocurrencies. It’s a type of hardware or software that stores your private and public keys and acts as a hub between your different digital wallets.

An important distinction to make between a crypto wallet and a digital wallet is that a crypto wallet is specific to cryptocurrencies, while a digital wallet can be used for any type of asset.

Another important thing to understand is that there are several different types of wallets. A hot wallet, for example, is one that’s connected to the internet and can be easily accessed by hackers and is not recommended for long-term storage of large amounts of value. A cold wallet, on the other hand, is one that’s not connected to the internet and is only accessible by your private keys stored in the wallet.

Know What You're Getting Into

If you’re still in the planning phase for your first NFT, you may be wondering what you’re getting into. Keep in mind that NFTs are still in their infancy and the technology and the regulatory framework to back the assets is still being figured out. Because the regulatory framework is still being worked out, there are still a lot of grey areas that need to be addressed to ensure the safe and proper implementation of NFTs.

While many think that NFTs are a crystal-clear concept, the truth is that many questions still need to be answered.

Right now, the most important one is: What are the risks involved in creating and issuing an NFT?

Understand The Risk Involved

The first thing that comes to mind when you think about creating a NFT is the risk involved. After all, NFTs are completely decentralized and decentralized systems are always prone to risks.

There are different ways in which you can mitigate the risks involved in creating NFTs. One way is through the use of a trusted third party.

This could either be a start-up that’s well-established in the asset space or a more established agency that’s been around in the blockchain industry for a while. If you choose to go this route, make sure that you conduct your due diligence and look for a company that’s established and has a good track record.

Take Note of The Laws Guiding NFTs

If you’re new to the world of blockchain and NFTs, it’s easy to get caught up in the excitement of creating your first NFT. However, it’s also important to make sure that you understand the laws related to NFTs and how you can protect your assets.

Certain laws should be taken into consideration when creating an NFT.  Copyright, creative commons and intellectual ownership rights are a few of the legal elements to be factored into consideration.

Consider The Best Approach To Safeguard Your Wallet

If you’re planning on creating a blockchain-based NFT, it’s important to consider the best approach to safeguarding your wallet.

The most common approach is for the company to create a cold wallet that’s stored offline, and then store the keys in a hot wallet.

Another way is to simply store the keys in different software that’s connected to the internet. However, make sure that you perform your due diligence and choose a third party that’s professional and reliable.

Have A Budget In Place

You sure wouldn’t want to be overtly excited that you commit all your funds/income to NFT investment due to the hype on what others have profited from it. Be intentional about your investment and put in funds that you can bear to risk. Remember that in everything diversification is key if risk will be mitigated substantially.

Bottom line

When you’re creating a blockchain-based NFT, there are a number of factors that you should consider before saying yes. Make sure that you understand the risks involved in creating an NFT, take note of the laws guiding NFTs, and have a budget in place to protect your assets.

A Look at the Indicators That May Prove the Future of Cryptocurrency

                                                                                            Photo by Kanchanara on Unsplash

The future of cryptocurrency has become a staple of popular discussions and mainstream media coverage in recent months. In the lead-up to the 2017 bull run, many predicted that the industry was about to take off. Now that the dust has settled, what can we say about the future of cryptocurrency? Presently, it is too early to tell. While there are definitely positive long-term trends, the future of cryptocurrency is still very much up in the air. To get a better idea of where things are headed, let’s take a look at a number of the most important indicators.

Regulations are Coming

As soon as we begin to see a significant increase in the number of Initial Coin Offerings (ICOs), the SEC will take notice. The number of investors involved in cryptocurrency markets is still relatively small, which makes it easy for bad actors to take advantage of the crowd. Once the SEC realizes that a large number of people are getting involved with ICOs, they will put out statements about it. They have already cautioned investors about some of the risks involved with ICO investing. In the future, we should see stricter regulations, which will make it harder for fraudsters to exploit the ICO space.

 Although global authorities have already been engaged on analyzing vulnerabilities and effective policy solutions to the proliferation of cryptos, there seems to be no inclusive and integrated regulation of cryptocurrencies. Monetary authorities and regulatory agencies throughout the world are now keeping tabs on this rising trend. Countries ranging from China to El Salvador have begun examining and enacting various regulatory solutions, despite having a shared goal of preserving their financial systems and fostering development and economic progress.

Although some countries, like as India, have modified their laws, others, such as Liechtenstein, have offered customized approaches. Some other strategy, which appears to be favored by the EU and the United Arab Emirates, is to create wholly new regulators to manage with the industry as a whole.

ICOs are Becoming Popular

We are starting to see more widespread adoption of cryptocurrencies in general. This is likely to continue over the next few years as the market matures. More people will want to get involved with cryptocurrencies as they become more popular. This will drive demand, which will likely cause prices to rise. At the same time, more established investors are looking at ways to get exposure to the cryptoasset market. This might result to an increase in the number of professional investors in the future. As more people get involved with ICOs, it will make it easier for them to get approval from financial regulators. This could increase the number of ICOs that get funded in the future.

 Institutional Investors Are Getting Involved

As soon as the market started to become legitimate, a few large investment firms began looking into ways to get involved. Currently, they represent only a small percentage of overall investment. They have shown great interest, however, and are likely to increase their exposure in the future. More institutional investors means an increased risk of price manipulation and other unethical practices. All of this raises important questions about how best to regulate the industry. At the same time, it is important to remember that many institutional investors also drive long-term growth.

Bitcoin is the Industry leader

Bitcoin is the classic example of a cryptocurrency that is leading the way. More than anything, this is what will determine the future of cryptocurrency. If the price of Bitcoin keeps rising, it will draw in more people who want to get involved with it. This will help to drive demand, which may culminate to increased adoption of other cryptocurrencies in the future. If people see that Bitcoin is a good investment, they may be more willing to give other cryptocurrencies a shot as well. At present, Bitcoin is exhibiting some very healthy long-term growth. This may translate to even more growth in the future.

We have all heard of Bitcoin, the largest cryptocurrency by market cap. While all these other altcoins - or alternative coins - may, at present, be marketed to and track fundamental drivers, Bitcoin’s investment value has been growing steadily and will likely continue to do so as its liquidity becomes more prominent. It is important to note that the more comprehensive better asset line – one that includes both Bitcoin and Ethereum – is showing much greater returns than any of the individual asset-tropes.

Other Cryptocurrencies are Exhibiting Strong Growth

There are countless other cryptocurrencies that are already well on their way to becoming major players. Some of these cryptocurrencies are already experiencing very strong growth. Over the next few years, it is likely that we will see many more. This is great news for cryptoinvestors. It means that there is plenty of opportunity to find new and profitable investments in the growing cryptoasset market. One only has to look at the number of new cryptocurrencies that have been introduced over the past few months to see how quickly things are moving.

Cryptoassets as a whole are Evolving

At this moment in time, we are in the very early stages of the cryptocurrency revolution. This revolution is still in its infancy, which means that we can expect tremendous volatility. Long-term growth, however, is likely to be very significant. Cryptocurrencies are still very much in their infancy, which means that we can expect them to change a lot over the next few years. This is especially true when we look at the long-term growth prospects of different cryptocurrencies. As time goes on, it is likely that we will see the cryptoasset market evolve into something more stable and mature.

 More than a third of the global financial system is now powered by blockchain technology. It is only a matter of time before regulators realize this and begin to offer more positive regulation. When they do, it will be a game changer for the industry. It will allow cryptocurrencies to reach their true potential, which is to become a legitimate form of money.

8 Altcoins To Watch Out For In Second Quarter of 2022, And How You Can Profit From Their Growth

                                                                                                                            Image Credit: Unsplash

The cryptocurrency world is changing at an alarming pace. While this has been a good thing for adoption, it has also made it difficult to keep track of what is happening. However, while these gains are exciting, they can also be nerve-wracking. After all, the more money that flows into an investment, the more risk there is that it will lose value. If you’re new to the world of cryptocurrency, this rapid price volatility may be confusing and intimidating. However, if you understand the fundamentals of supply and demand, it’s possible to capitalize on this volatility to earn money. New cryptocurrencies are being created almost every day, making it difficult for investors to keep tabs on them all. When it comes to making money in this market, it is important to be aware of the new players. Many new digital currencies have the potential to grow in value over time. If you are interested in taking your investment to the next level, you should keep an eye on the following altcoins.

Cardano

What Is It?

Cardano is a decentralized open-source blockchain platform developed by the Cardano Foundation. The project’s goal is to become the “third generation blockchain”, after Bitcoin and Ethereum. Cardano is fully mineable and contains its own cryptocurrency, the ADA. The project is led by a scientific philosophy and is highly focused on the needs of the market.

Why Is It A Good Investment?

Cardano is a promising investment because it is fully mineable and has its own proprietary currency, the ADA. The team wants to be the “third generation blockchain” after Bitcoin and Ethereum, which means it has a lot to prove. However, with a strong focus on the needs of the market, it is possible that the Cardano blockchain will be the one that makes it big. Cardano’s price as the time of writing this article is $1.20 USD and the 24 hour trading volume is $1,558,303378 USD. It is placed number seven by CoinMarketCap, and it has a live market capitalization of $40,603,714,468 USD.

Ethereum

What Is It?

Ethereum is a blockchain-based software platform that enables developers to build and run applications that use blockchain technology. It’s a highly popular platform for Initial Coin Offerings (ICO), as an entrepreneurs can use it to issue their own cryptocurrencies that can be used for fundraising.

Why Is It A Good Investment?

Ethereum is a good investment because it’s used by so many people. More than 40,000 merchant around the world are using Ethereum to improve the way they do business. You can also use it to trade peer-to-peer with like-minded people or invest in ICOs. According to CoinMarketCap, Ethereum is number two with a live price today of $3,474.66 USD and a trading volume of $16,701,805,119 USD in the last 24 hours.

 NEO

What Is It?

NEO is a blockchain architecture designed for the creation of smart contracts and distributed applications. It is a smart contract blockchain that can be used to host almost any kind of decentralized application.

Why Is It A Good Investment?

The most attractive thing about NEO is that it promises to build on the strengths of both Ethereum and Bitcoin. They are also committed to creating a smart economy, and they are doing this by creating a platform that will be used by developers to create smart contracts. It is a blockchain designed for the creation of smart contracts and decentralized applications, but it’s also an efficient digital wallet for storing and managing assets. Neo is currently selling at $26.87 USD and in the last 24 hours, the trading volume is $168,268,920 USD. CoinMarketCap currently placed it on number 63 and its live market capitalization is $1,895,349,850 USD. 70,538,831 is the circulating supply and the maximum supply is 100,000,000 coins.

IOTA

What Is It?

"The infrastructure for the growing machine economy" is IOTA's objective..” It’s a cryptocurrency designed for the “establishment of new decentralized ecosystems.” This actually is not a blockchain but rather a proprietary technology called Tangle which is a structured nodes that confirm transactions. It is currently ranked number 54 and $2,419,484,671 USD as the live market capitalization. Its price as at today is $.870465 USD.

Why Is It A Good Investment?

IOTA is a new cryptocurrency with a unique selling proposition. It has a lot in common with Ethereum: it’s also a smart contract blockchain, but it also wants to be a standard for the “Internet of Things”. It’s an ambitious project with a big focus on the future.

Monero

What Is It?

Monero is a privacy-focused cryptocurrency with a focus on providing security and scalability. It is a fork of Bytecoin, which was itself forked from the CryptoNote protocol. Monero, contrastingly is meant to hide both senders and recipients using powerful cryptography, hence making security and privacy its focus objectives. It is currently selling at $213.56 USD and in the last 24 hours has a trading volume of $119,072,280 USD. CoinMarketCap currently ranked it number 43.

Why Is It A Good Investment?

Monero is a good investment because it provides both privacy and security. It’s an open-source blockchain that’s developed by volunteers, so it has no company backing it like the other coins on this list. However, it has a large userbase and has proven itself as a reliable cryptocurrency.

Ripple XRP

What Is It?

Ripple presents itself as a provider of "global financial settlement solutions.". It currently has a unique position in the market as the only cryptocurrency with a proven track record of use. Ripple's native cryptocurrency is XRP, which was developed by Ripple Labs Inc. as a cryptocurrency payment service. Ripple's XRP is a "virtual currency created for cross - border payments," meaning that the company intends to compete with traditional bank-to-bank money transfers. Users of XRP would be able to send money at a very cheap rate, garnering the desire of both ordinary banks and customers. Ripple's core business model is its ultra-low transaction fees and transaction completion in less than five seconds.

Why Is It A Good Investment?

Ripple XRP is a good investment because it is currently the only cryptocurrency that has proven itself as a reliable real-world payment system. It is also the second-largest cryptocurrency by market cap. Ranked number 8, today’s market price is $0.835352 USD and a live market capitalization is $40,209,865,625 USD.

Bitcoin Cash

What Is It?

Bitcoin Cash is a cryptocurrency that split off from Bitcoin in August 2017. Like Namecoin and Dogecoin before it, Bitcoin Cash has no real use case aside from being a digital coin for speculation. Bitcoin Cash is a community electronic cash mechanism that intends to really be a reliable worldwide currency offering fast payments, low transaction costs, and huge transaction capacities. Bitcoin Cash payments are transmitted from one person to another directly, similar to how actual money, such as a dollar bill, is handed to the person receiving payment.

Why Is It A Good Investment?

Bitcoin Cash is a good investment because it is currently the fourth-largest cryptocurrency by market cap. Since it is a fork of Bitcoin, most of the existing community around Bitcoin will also be around Bitcoin Cash. As a result, it's a strong speculative investment, but not something you would want to hold a large amount of for long-term use. Its live price today is $376.04 USD.

Litecoin

What Is It?

Litecoin is a peer-to-peer cryptocurrency that is hinged on the Bitcoin code but offers a higher maximum coin supply. Unlike Bitcoin, which is controlled by very few people, Litecoin can be controlled by almost anyone.

Why Is It A Good Investment?

Litecoin is a good investment because it is similar in functionality to Bitcoin but has a much larger maximum coin supply. Like Bitcoin, it is a decentralized cryptocurrency - it is not issued or controlled by any central entity. However, unlike Bitcoin, it has a maximum coin supply of 84 million, which means it has a greater potential for growth.

How To Profit From Their Growth

Yes, it is highly possible and obtainable to exploit the opportunities inherent in these altcoins for growth. These three procedures are handy: investing or trading in the cryptocurrency exchange market, usage of coins in your portfolio for staking or lending to the system or other users, and partaking in the blockchain system by receiving coin rewards for task completed or mining. Following the above, you can do the following:

• Invest. Investing is a protracted procedure that requires purchasing and preserving crypto assets for a period of time. Crypto-assets might seem volatile in the interim but portend significant potentials in the long run for growth. The identified altcoins here have long term growth potentials. Cryptocurrency platform like Changelly can be utilized in doing this.

• Trading the Crypto Assets. In order to exploit short term opportunities, trading can be leveraged on rather than taking the long position of buy and hold. Due to the volatility of the crypto market, prices can increase or decrease in the shortest possible interval. Using proper analytical and technical skills, one can take position when prices are down and sell off when they increase or rise above purchase price.

• Stake and Lend. This functions by way of validation of transactions. This means that you have ownership of the coins but you do not spend it rather the coins are locked in your cryptocurrency wallet. Your coins are then used to verify transactions on a Proof of Stake network. As a result, you will be rewarded. To put it another way, you're lending coins to the network.

• Cryptocurrency Social Media. You will be rewarded for generating and organizing content on a number of blockchain-based social media networks. You are frequently awarded with the platform's own coin.

•  Airdrops And Fork. To raise awareness, airdrops and free tokens are issued by some exchanges. To build a big user base for a project, an exchange might execute an airdrop. You can acquire a free currency by participating in an airdrop, which you may then use to buy items, reinvest in, or trade with. Changes or updates to a protocol lead a blockchain to fork, resulting in the creation of crypto assets. When you have money on the old chain, you will almost always receive free tokens on the new network. Because you were in the right position at the right time, you get a free crypto asset.

•  Mining. Cryptocurrencies mining is a way to make money using cryptocurrency in the same way that the early adopters did. Mining is indeed an important part of the Proof - Of - work system. It is here that a cryptocurrency's value is created. You get compensated with crypto assets if you mine a cryptocurrency. You'll require technical know-how and beforehand, an investment in dedicated hardware to mine.

 Final Thoughts

The wave of cryptocurrency prevalence and acceptability is ever increasing and the opportunities and potentials for acquisition of huge profits cannot be over-emphasized. Following the forgoing, it is critical for an investor to commit to carrying out full diligent research before committing funds. This is vital in ensuring that risk of failure is substantially mitigated on.

There is myriad of new altcoins that enter the market frequently, hence attention should not only be centered on the ones mentioned in this article. Doing this will enhance diversification of your portfolio and positioning for greater returns on investment.