Consensus 2018, or colloquially known as the
annual “bitcoin conference,” was supposed to generate investment enthusiasm
toward cryptocurrencies. While most conference participants were indeed
passionate about the overall blockchain industry, someone needs to tell that to
the bitcoin price.
Following
Consensus, the original blockchain-reward token is down roughly 10%, falling
below the critical $8,000. The recent volatility in the bitcoin price was
especially disappointing for long-term proponents, as only a few weeks ago, it
was challenging the $10,000 level. Now, the digital token appears ready to test
this year’s support line at $6,500.
The last few weeks have firmly confirmed one
thing: cryptocurrencies are incredibly risky assets, no matter how you cut it.
Here at InvestorPlace,
sentiment leans somewhat bearishly. Laura Hoy has a neutral view. Ian Bezek doesn’t believe bitcoin will
return to its all time highsa. And don’t invite Lawrence Meyersto Consensus
2019.
Even our feature writer, James Brumley, has
been warning investors against cryptocurrencies. I admit, especially at this
juncture, their cautiousness sounds exceptionally wise.
But for those sitting on the fence, let me
share with you this fact: we’re rapidly approaching bitcoin’s ten-year
anniversary. Thus, I believe the common criticisms that cryptocurrencies are
fads that will simply fade away is disingenuous.
I say this because the greatest bubble in
human history, the infamous Tulipmania, lasted just over a two-year period.
Once people realized that their tulip investments weren’t rare at all, the jig
was up. The bubble popped, never again to be resurrected.
You can’t
say that about bitcoin. Especially in our current information age, virtually
all concerns are widely and immediately distributed. Yet here we are.
I do not
offer the following for those who simply want to get rich from fast-moving
trends, but for those who truly believe cryptocurrency is the future. If you’ve
got the stomach, here are 20 cryptocurrencies to consider:
Cryptocurrencies to Buy: Bitcoin
Bitcoin isn’t the fastest blockchain token. It’s
certainly not an easy one to mine. Nor is it particularly convenient, now that
everybody is “clogging up” its blockchain network.
Plus, only 21 million units will ever be mined.
Once that metric is hit, that’s it. Why, then, would anyone want to buy bitcoin
at this time?
Simply, bitcoin has the brand leverage that other
cryptocurrencies do not. The term is synonymous with crypto-trading and the
broader blockchain industry. And while things move at lightning speed in the
technology sector, bitcoin offers familiarity and implied stability.
For newcomers to the blockchain, this reassurance —
even if purely psychological — could be the decisive factor.
Cryptocurrencies to Buy: Ethereum
Second-ranked
in market capitalization, ethereum hardly behaves like a perennial runner-up.
While bitcoin collapsed from its all-time high back in December, ethereum was
going strong until mid-January. Even until early March, it stayed above the
$800 price point before eventually correcting.
Fundamentally, ethereum is based on a much more advanced blockchain technology than bitcoin.
Essentially, ethereum is bitcoin without its flaws and blemishes. As a result,
the runner-up crypto has utility beyond just its use as a digital commodity.
Notably, Toyota Motor Corp (ADR) (NYSE:TM) and Merck & Co., Inc.
(NYSE:MRK) were early adopters of the ethereum platform.
Moving
forward, the immediate risk is that ethereum falls to this year’s low, which
sits around $370. But considering its mainstream value, such a discount would
be an enticing opportunity.
Cryptocurrencies to Buy: Ripple
Just recently, Mila Kunis’ husband Ashton Kutcher made an appearance on Ellen
DeGeneres’ TV show. Kutcher being a tech-savvy investor, donated $4 million to
the host’s wildlife charity. But the catch was that the donation was paid in
the ripple cryptocurrency.
But before
you go out and buy ripple, please note that Kutcher co-produced “Punk’d,” a
show featuring celebrity pranks. Therefore, it’s still possible that he’s
pulling a fast one on us.
That said,
I believe Kutcher, if he’s sincere, made a shrewd move. Ripple, known commonly
as the “banker’s cryptocurrency,” aims to improve the financial system through
blockchain technology. As you can imagine, that’s caused controversy among
bitcoin proponents, who argue that central banking is anathema to
cryptocurrencies.
Still, you can’t argue with the heavy-hitters
that are exploring Ripple’s utility. American Express Company (NYSE:AXP) and Banco Santander, S.A. (ADR)(NYSE:SAN) last year announced partnerships with
Ripple to speed-up financial transactions. More will surely follow, making its
cryptocurrency especially exciting at around 63 cents.
Cryptocurrencies to Buy: Bitcoin Cash
By including bitcoin cash on this list, I’m going
to catch a lot of heat from the “bitcoin only” crowd; this is similar to
hardcore traditionalists screaming “King James Bible only.” And yes, I admit
that some folks have a near-religious fervor when discussing cryptocurrencies.
But why the controversy over this offshoot token?
As bitcoin became more popular, it became clear
that its underlying blockchain network couldn’t handle the immense transaction
loads. The original cryptocurrency’s creator(s) didn’t imagine the spike in
popularity. To resolve this issue, most bitcoin proponents fell into two camps:
“fix” the original network from within, or start a new, derivative
cryptocurrency.
The two sides couldn’t come to a resolution. Some of those who wanted to
split off started Bitcoin Cash. Utilizing a process called a hardfork,
bitcoin cash retains the advantages of the original digital token, but with
several other advantages, key among them being faster transaction speeds.
So far, bitcoin cash has been incredibly robust,
rising to the fourth-most-valuable cryptocurrency by market cap. As the
blockchain industry becomes further integrated into the mainstream, I expect
this hardforked token to move significantly higher.
Cryptocurrencies to Buy: Litecoin
Before the
term “altcoin,” or alternative cryptocurrency, was created, early blockchain
investors had only one other choice, which was litecoin.
The
original number two has a colorful history. Originally conceptualized as a
quicker and scalable version of bitcoin, it once traded for mere pennies. Up
until the early spring season of last year, litecoin traded for mere dollars.
Today, it exchanges hands for over $120.
Is it worth
the extreme valuation spike? I argue that it is. First, the enormous
profitability stems from increased mainstream integration. Second, litecoin
transacts significantly quicker than bitcoin, and is therefore useful for
everyday purchases. Finally, litecoin has greater brand familiarity than most
other altcoins.
Also note
that litecoin currently trades close to its year-low price of around $112. This
implies that most of the downside has already been priced-in.
Cryptocurrencies to Buy: Dash
Easily one
of the most important goals for any blockchain-based project is mainstream
usage and acceptance. If cryptocurrencies are to replace regular currencies,
they will have to attract exponentially more people than they do now.
This is where the dash hopes to shake things
up. Dash, which stands for digital cash, has a leg up on its altcoin competitors.
Presently, over 1,100 businessesaccept
dash transactions. Granted, that’s not a large number, by any means. I wouldn’t
even call it significant. Plus, many of these businesses are located in
countries far away from the U.S.
That said,
I appreciate that the cryptocurrency’s project leaders are focusing on the
retail aspect, and not necessarily on its investment value. This is a
blockchain project that’s more interested in the cryptocurrency platform’s
broader economic implications.
However,
that factor is exactly why dash appeals to so many, and why its value should
continue to rise.
Cryptocurrencies to Buy: Stellar
While bitcoin enjoyed its breakout moment in 2017,
the stellar cryptocurrency was the true winner. Back in January of last year,
stellar traded for fractions of a penny. Just one year later, stellar was
closing in on a buck. Even at today’s deflated price of 30 cents, early
adopters accrued immeasurable profitability.
Ordinarily, buying publicly traded stocks for less
than a dollar signifies trouble. But in many cases, the most highly-capitalized
cryptocurrencies happen to have diluted supply. That’s not necessarily a bad
thing, as stellar provides practical scalability that the original bitcoin does
not.
Also, because Stellar utilizes consensus algorithm for
increasing its supply rather than bitcoin’s mining process, transactions are
significantly faster.
I concede that stellar will likely see wild trading
throughout this year, and as a result, it’s not for everyone. That said, as a
number-eight-ranked cryptocurrency by market cap, its lower price point is
extremely attractive for newcomers.
Cryptocurrencies to Buy: Cardano
Inevitably,
the blockchain concept conjures up images of untold riches and flashy
Lamborghinis. To be fair, the extracurricular hoopla surrounding Consensus 2018
only reinforced this stereotype. However, some blockchain projects are purely
concerned about the platform’s technology, which is where Cardano comes in.
Focusing on the scientific aspect, Cardano’s
website emphasizes its network’s open-source nature. That is, anyone with an idea
can utilize its blockchain. There are no patents associated with Cardano, thus
facilitating a “spirit of collaboration.”
That might
sound like tech-geeky stuff, and it is. But for the investor who has no time
for dealing with the project’s granularity, the cardano cryptocurrency is a
standout performer. Currently ranked seventh in market cap, it’s attractively
priced at just under 21 cents.
Cryptocurrencies to Buy: NEM
NEM was one
of the first “utility blockchains” to hit the market; that is, blockchain
projects that are specifically designed for multiple uses and to serve as a
platform to launch new ideas.
To that end, NEM’s development team created a “Smart Asset System.” .This
unique protocol allows individual users to customize the NEM blockchain to fit
their needs precisely. In other words, NEM is scalable to your demands. If
demand grows, NEM can seamlessly incorporate additional functionality.
In theory, NEM sounds like a market-winner,
and it was. However, a hack which
resulted in 500 million NEM units being stolen from a Japanese cryptocurrency
exchange killed its value.
But with
the hack fading from the news cycle, I believe NEM presents a shrewd
opportunity. Irrespective of the breach, its underlying blockchain technology
is one of the most innovative. Eventually, more investors will recognize this,
increasing its value.
Cryptocurrencies to Buy: Ethereum Classic
Ethereum
Classic confuses crypto newcomers, as it’s actually the original Ethereum
blockchain. Similar to the Bitcoin Cash controversy, the Ethereum community had
its own internal struggle.
A hacker
exploited a loophole in the original Ethereum network, draining several ether
tokens. Debates quickly sprouted as to how best resolve this crisis. Back in
January, I wrote:
A consensus of supporters decided
to create a hardfork of the ethereum blockchain. However, a significant amount
of dissenters existed. They objected to the hardfork on the basis that it
violated the immutable principle of a blockchain application. Rather than
follow the new blockchain pathway, the dissenters remained on the original.
Thus, ethereum classic came to existence.
That’s the
extremely abridged version. You can peruse extensive literature on this topic
should you wish.
For the
rest of us, the ethereum classic cryptocurrency provides a speculative
opportunity based on the shared brand name. Not only that, the
higher-capitalized ethereum coin was priced where ethereum classic is today
before launching into low-earth orbit.
Perhaps a
similar thing could occur with this “classic” version?
Cryptocurrencies to Buy: DigiByte
Most
cryptocurrency projects are junk, redundant or flat-out scams. Worse yet,
several lower-tier crypto projects don’t even have the courtesy of putting up a
halfway decent website. If you’re going to scam me, at least look good doing
it!
Although
ranked 52nd among all blockchain tokens, what impressed me about the
digibyte coin was its development team. Not only do they have a slick,
professional website, the programmers explain their project in human terms.
And what makes digibyte tick? Simply, that
with their advanced blockchain platform, they can facilitate lightning-quick
transactions with unprecedented security. Eventually, the team aims to replace traditional
payment-processing services.
I honestly
wish all blockchain projects would explain themselves so clearly without BS
pseudo-intellectual terminology that no one understands.
Cryptocurrencies to Buy: EOS
Another utility-blockchain project, EOS’ website
states that its programmers “enable vertical and horizontal scaling of decentralized applications.”
In human terms, individual EOS users can build custom projects on top of its
blockchain platform.
I can’t understand for the life of me why
blockchain programmers can’t speak human; thus, EOS gets a strike. Second, EOS, like so
many other crypto projects, is cryptic. Most of the actual program architecture
will be developed by a company headquartered in the Cayman Islands. That’s
strike two.
But recently, EOS has generated significant buzz. The most important is rumors that the
number-five-ranked crypto will be listed on Coinbase.
If that’s true — and that’s a big if — EOS will
land on the moon. Remember that litecoin gained significant investor sentiment
when it was listed on Coinbase’s consumer-based platform (Coinbase has a
separate GDAX trading platform). With EOS currently priced at $12.50,
speculators are anticipating a repeat performance.
Cryptocurrencies to Buy: Presearch
Presearch is one of those cryptocurrencies you
find only while randomly browsing the internet inebriated or otherwise impaired.
Ranked 288th by market
cap, this article may very well be the first that you’ve heard of this project.
With these caveats aside, Presearch is a
tremendously intriguing concept. Marketed as a “decentralized search engine,” Presearch
users earn PRE tokens for engaging the search engine and its associated
community; hence, the name.
Should Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) worry? For
the time being, no. However, I love the Presearch team’s ingenuity, and
utilizing the blockchain beyond its typical investment-platform process. In
addition, as crypto projects become further mainstream, we could see more
organizations challenge the current tech hegemony.
The
disruptor getting disrupted? That’s perfect poetic justice!
Cryptocurrencies to Buy: Storiqa
The
ultimate goal for blockchain proponents is to create a fully functional digital
economy. At present, however, this is just a pipe dream. Traders passionately
exchange different cryptocurrencies, but when it comes time to cash out, they
do so literally.
Storiqa would like to change this mindset.
Developed as a literal market for cryptocurrencies, you can use your blockchain
tokens to buy or sell physical goods. Not only that, Storiqa allows you to
monetize your business reviews: think Yelp but you get paid for it.
If this
sounds like Silk Road 2.0, keep in mind that this is a Moscow, Russia-based
venture; thus, our administration is unlikely to pursue sanctions.
As far as
the storiqa altcoin, I’m very cautious. Priced at four-tenths of a penny (or
0.00000054 of one bitcoin), storiqa is incredibly speculative.
That said,
a dollar will give you 240 units of this stuff, so it may be worth a shot, if
only for amusement’s sake.
Cryptocurrencies to Buy: Steem
The 32nd-ranked coin, steem, is an absolute no-brainer.
Among major cryptocurrencies, steem is the only one that you can earn for free.
That’s right! Logon to Steemit.com, create
an account, and once accepted (this could take a while), you’re on your way to
earning blockchain tokens for your blog posts.
In a way, Steemit is what happens when Facebook, Inc.
(NASDAQ:FB) gets
blockchained. On the surface, it’s an incredible concept. Rather than waste
time on Facebook’s platform, or that of Twitter Inc (NYSE:TWTR) and Snap Inc(NYSE:SNAP), you can
make money on Steemit. So why isn’t everyone joining?
Bluntly
speaking, it’s extremely difficult to make worthwhile money. While Steemit
advertises their thousand-dollar posts, the reality is that most people will
make two or three cents per post. Furthermore, con artists have saturated the
platform.
For instance, some of the pump-and-dumpers
that urged people to buy precious metals to crash JPMorgan Chase & Co.
(NYSE:JPM) — because
they have naked short positions on the metals — are plying their dirty tricks
on Steemit.
Still, it
is free, which is a huge deal. You can also buy steem tokens to enhance the
marketability of your posts, thereby improving your earnings potential.
Cryptocurrencies to Buy: IOTA
Currently ranked tenth by market cap, IOTA has
one of the most ambitious goals in the blockchain. Utilizing a completely decentralized platform,
IOTA is extremely robust and agile. Unlike bitcoin, no limitations exist as to
how many transactions can occur within a given timeframe.
Plus, IOTA
doesn’t charge transaction fees, which is true decentralization!
But the
reason this blockchain is structured like this is to actualize the “machine
economy.” Consider the Internet of Things (IoT), where everything will be
digitalized. If the IoT is taken to its extreme, machines will be able to
communicate with each other. Under such a system, machines may be able to
transact with each other using digital tokens such as IOTA.
If this sounds like Skynet going live, don’t
worry: we’re still a good distance away from the machine economy. However, the pursuit of
this concept is very much alive. Thus, IOTA could receive a significant boost
from speculative visionaries
Cryptocurrencies to Buy: PotCoin
Arguably the most dramatic investment sector
in the stock market today is marijuana.
Long-stigmatized, American public sentiment has shifted firmly towards
legalization in recent years. That has sprouted significant electoral
victories, with more likely in the near future.
Logically,
it’s only natural that a disruptive plant would join forces with a disruptive
technology. PotCoin is just one of many botanical-friendly blockchain projects.
Its ultimate goal is to facilitate a fully viable green economy, where growers,
dispensaries and individual botanists can transact with potcoin.
Undoubtedly,
it’s a great story. Moreover, potcoin enjoys legislative tailwinds. That said,
marijuana-based cryptocurrencies are incredibly volatile. Not only do they have
to deal with problems associated with the blockchain, the U.S. government still
categorizes marijuana as a Schedule I drug.
But if the
“agricultural” industry can generate additional support — and I believe they
can — potcoin becomes a solid gamble.
Cryptocurrencies to Buy: Lisk
Almost
every blockchain project promises that they’re the “next big thing,” yet they
all sound the same to the newbie. So what makes Lisk different from the rest?
Utility blockchains must first and foremost
offer accessibility; otherwise, how else will people use their platforms? To
that end, Lisk’s open-source network is written in JavaScript, the most
popular programming language according to a recent survey. This is smart and
practical thinking that industry proponents often overlook.
As an
investment, the lisk altcoin has seen wild swings. At one point, the token hit
above $35. Presently, lisk has fallen back down to earth, trading hands at just
over $9.
Still,
another sentiment boost towards cryptocurrencies could spark a return to those
highs.
Cryptocurrencies to Buy: NEO
The NEO blockchain operates under the “smart contract” principle.
Based on the driving force behind Ethereum, smart contracts eliminate the
middlemen involved in the enforcement of contractual agreements. In other
words, the blockchain acts like an attorney but without the exorbitant legal
fees.
Initially,
NEO doesn’t appear substantially distinct from other blockchain projects. The
primary difference is that the NEO altcoin has garnered serious financial
success. Back in January 2017, the altcoin traded hands for less than 15 cents.
Today, it’s a quarter shy of $54.
What
speculators are looking for is at least a doubling of its current price. A few
months back during the crypto-frenzy, NEO eclipsed $160. While I’m not sure if
history will repeat itself, a second bullish wave will surely push the altcoin
significantly higher.
Cryptocurrencies to Buy: Factom
Data security and integrity are massive
concerns for the business world. Because human operators are fallible, mistakes
can end up costing both time and money. Not only that, humans are seducible. Everyone
has a price, which adds an entirely new dimension for security protocols.
Specifically focused on the business world,
Factom distinguishes itself from the competition. Its program is adaptable to a company’s already-established data
management system. This allows Factom’s clients to benefit directly from
blockchain technology without incurring costly integration expenses.
The factom cryptocurrency, called factoid, is
significantly off its all-time high of $87. This is one of the cases where I
believe the investing community has it wrong. Ranked 96th by market cap, factoids
are severely undervalued considering the Factom blockchain’s exceptional
utility.
As of this writing, Josh
Enomoto did not hold a position in any of the aforementioned securities. He is
long all the cryptocurrencies mentioned, except: IOTA, NEO, EOS, dash,
presearch, storiqa, and factom.
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