Cryptocurrency is probably the most divisive concept in trading, investments, and financial circles in recent times. Last year, Bitcoin, the poster boy of cryptocurrencies delivered 1400% gains to open the floodgates of news about how traditional assets such as stocks and bond are dying assets. On the other side of the divide, critics believe that cryptocurrency is mostly a fraud.
Of course, traditional Wall Street investors are still skeptical about cryptocurrencies because it is speculative, highly volatile and largely unregulated. Nonetheless, it might be myopic to ignore the possibility that cryptocurrencies are here to stay, and they might become a major investment vehicle going forward. If you missed the initial boat on Bitcoin and you’ll love to include cryptocurrencies in your portfolio, below is a list of potential winners worthy of your due diligence as we head into Q2 2018.
Ethereum is an interesting blockchain application that is worthy of your due diligence if you’ll like to play the long-term game on cryptocurrencies. Ethereum is setting up shop to become the blockchain of choice for enterprise clients who are attracted to the fact that you can create self-executing smart contracts on Ethereum’s blockchain. Ethereum also has decent long-term prospects because it provides a platform for other companies to launch their ICOs on its platform when they join the Blockchain ecosystem.
You should, however, note that Ethereum probably doesn’t enjoy the same level of buzz or hype that Bitcoin has in the news; nonetheless, Ethereum conveniently delivered 8,674% gains last year to dwarf the 1,400% gains that Bitcoin delivered in 2017.
If your due diligence suggests that Ethereum might be a good buy, you should also consider adding NEO to your cryptocurrency investments. NEO is similar to Ethereum in that it is a platform for creating smart contracts, launching ICOs, and managing enterprise projects. NEO’s unique selling point is that it allows people to create smart contracts using one of the popular programming languages such as Java and C#.
The best part is that NEO’s latest price movements suggest incredible upside potential in relation to Ethereum and Bitcoin. You should also give additional weight to NEO’s “immunity” from regulatory risk because it enjoys the tacit support of the Chinese government.
Ripple is probably the best performing cryptocurrency of 2017 – it delivered an unbelievable 41.040% in 2017 and it doesn’t seem to be slowing down as 2018 gets underway. Ripple simply wants to facilitate the transfer of money using cryptocurrency on the RippleNet network. Ripple believes that the current money transfer system is expensive, inefficient, and outdated because blockchain can facilitate a near-instant transfer of value.
The New York Times says Ripple is “a cross between Western Union and a currency exchange, without the hefty fees.” Interestingly, many traditional financial institutions are already integration Ripple’s solution into their payment networks.
Stellar is a blockchain solution for moving money quickly across borders, quickly, reliably, and at a cheap price – and no, it is different from Ripple. Stellar deserves your attention if you believe that cryptocurrency will eventually displace fiat currencies or at least, co-exist with fiat currencies for transactional purposes.
One of the key selling points of Stellar is that it seeks to provide a point of convergence between cryptocurrencies and fiat currencies. Stellar is also trading incredibly low around $0.37, but you can expect its trading price to climb rapidly once investors latch on to its potentials.
Cardano is another interesting cryptocurrency showing signs that it is here for the long haul. Created by a blockchain firm in Hong Kong, Cardano is simply a tool designed to embrace the social nature of money, separate the accounting value of blockchain into different layers, and listen to regulators to find ways to integrate cryptocurrency into the current economy.
Cardano also prides itself on being the “first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach.” In 2017, Cardano rewarded investors with more than 3,296% gains. Despite its impressive gains, it still trades at the fraction of a dollar around $0.34.