[vc_empty_space]With cryptocurrency, if you’re not early, you’re late. Or at least that’s how it can feel from the outside.
When Bitcoin was released in 2009, no one could have predicted how the cryptocurrency would skyrocket in value, notoriety, and mainstream understanding. At the time of writing, one Bitcoin is worth just under $40k (This is a live link that updates regularly, so expect at least a slight change when you click through).
Suffice it to say, the coin has grown astronomically, and early adopters have reaped massive rewards. The Winklevoss twins (who you may remember from The Social Network) are said to be the first billionaires to build their fortunes on Bitcoin investments. Their initial bet on the company has reportedly swelled up to 10,000%. As Bitcoin becomes more widely accepted, the race to discover the next big cryptocurrency is well underway.
Want to know what to look for? Keep reading for The Future Party’s guide on the cryptocurrencies we’re watching closely. Remember that this post is not meant to serve as financial advice, and you should always thoroughly research your investments.
What’s Working Right Now? Exploring the Cryptomarket Today
Predicting what will happen to a certain cryptocurrency is a fool’s errand, and we’re not even considering NFTs. While it’s becoming a more commonly accepted form of payment and investment, the market remains volatile and unpredictable. That said, here are three key influences we see at play right now:
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- Regulation: The wild west days of cryptocurrency are (largely) behind us. Federal Reserve Chairman Jerome Powell recently shared that the Fed is interested in increasing oversight on stablecoins and potentially introducing a central bank digital currency.
- Acceptance: From Paypal to Apple, cryptocurrency is rapidly becoming an accepted form of payment in more traditional settings. And with companies like Square introducing their own products based on Bitcoin, we can and should consider decentralized digital transactions as a feature of the future.
- Memes: Unlike the stock market, cryptocurrency was always made for outsiders. And that makes it particularly affected by internet culture and, for lack of a better term, memes. Investing in a product or stock based on a joke is now commonplace, and we anticipate this trend to grow.
[/mkdf_unordered_list][vc_empty_space height=”20px”]There’s a lot more at play in crypto, but these three trends are what we’re paying the most mind to.
What’s Coming? Cryptocurrencies to Closely Watch
So now that we understand what the market looks like right now, let’s take a look at some of the key players coming down the pipeline. While this list isn’t exhaustive, these are the cryptocurrencies we’re watching the closest.
Depending on your risk tolerance, some of these may be a better match for you to invest in than others, so make sure to do your own research. Be thorough and find reliable sources for information. Everyone’s feeling a little bullish on cryptocurrencies right now, and the variety of opinions and takes can be staggering.
Cryptocurrencies That Could Be The Next to Explode[/vc_column_text][vc_empty_space height=”20px”][mkdf_unordered_list style=”arrow”]
- Ethereum (ETH): Launched in 2015, Ethereum is the second biggest cryptocurrency in the world. In many ways, the blockchain software was designed as a response to Bitcoin’s limitations. Bitcoin was designed as a peer-to-peer payment application.
With Ethereum’s introduction of Smart Contracts, transactions can be made without any human contact. Because humans tend to make mistakes, you can see why this would be a valuable feature. With so much enthusiasm around the blockchain, it’s no wonder its platform has seen nearly 500% gains this year.
- Compound (COMP): Compound is a token on the Ethereum blockchain that’s most notable because of its commitment to community governance. With the Compound protocol, users don’t have to sell their crypto assets in order to gain liquidity. In essence, Compound allows for productive interest, so cryptocurrency sitting in people’s digital wallets can work harder for them.
- Polka Dot (DOT): Since 2020, Polka Dot has been working to build a scalable and faster blockchain-powered network. The time it takes to validate a transaction is one of the core challenges facing all blockchain technology. Polka Dot introduced something called parachains to combat this problem, which essentially allows parallel transactions to process at the same time.
- Internet Computer (ICP): Internet Computer is a fairly new cryptocurrency (it launched in May 2021), but it’s already making a splash. Despite some recent and well-publicized losses, ICP has a vision that we find pretty interesting. It provides a limitless environment where smart contracts and decentralized apps can run at web speed. Their goal is to develop a model for a blockchain computer that disrupts the internet as we know it today. By using ICP, rather than relying on something like Amazon Web Services, website developers could bypass the traditional system.
- Ripple (XRP): Ripple is accepted more broadly than other cryptocurrencies within banks, which makes it particularly attractive to financial investors. A utility token, XRP is looking to become the universal standard for payments and is already processing cross-border transactions for fiat currencies with more efficiency. That said, Ripple is currently in the midst of a lengthy battle with the SEC over its sale last year, and price pain could be on the way.
- Chainlink (LINK): Launched in 2017, Chainlink is a decentralized oracle service that allows smart contracts to speak to each other on both on-chain and off-chain networks. This gives the contracts more access to real-time resources, addressing one of the biggest issues with the node network.
- Cosmos (ATOM): Cosmos has a similar goal to Chainlink. Ultimately, they want to create an “eco-system of blockchains” that will allow different cryptocurrencies to interact with each other.
By building this internet, Cosmos hopes to scale blockchain transactions, making them more efficient and, importantly, faster. It’s an uphill battle technologically speaking, but as the cryptocurrency is only two years old, it could represent an opportunity to get in early.
- Dash (DASH): Dash is an altcoin that first launched in 2014. At the time, its goal was focused on privacy, with each masternode required to stake 1,000 DASH to start earning block rewards. Today, they’re more focused on becoming a medium for daily digital transactions. DASH wants its users to swap in its app for something like Paypal or Venmo. More signs that cryptocurrency is being more widely adopted by and marketed to everyday people.
- Cardano: This blockchain platform is founded on peer-reviewed research, and makes use of proof of stake. Founded by Carles Hoskinson, co-founder of Ethereum, in 2015, Cardano claims to be more secure than other decentralized application platforms.
[/mkdf_unordered_list][vc_empty_space height=”20px”]Honorable Mention
Dogecoin (DOGE): Dogecoin has had one hell of a year, riding the wave of Elon Musk’s support and public comments. It remains a volatile currency and has struggled to hit the $1 mark, but to us, it represents an important turn in the crypto sector.
Memestocks and Memecoins have soared in popularity in the last year, bolstered by forums like Reddit that encourage mass amounts of ordinary people (that is to say, not the uber-wealthy) to double down on what ultimately amounts to a joke. We’re not sure that the punchline for DOGE is still landing, but we do know that it’s certainly not the last of its kind, and the impact on the market can be huge.
Just to reiterate, this is not an exhaustive list, and we can’t guarantee the success of any of these cryptocurrencies. This post is not intended to serve as financial advice.
Practice Patience: Deciding To Join The Cryptomarket
With so much volatility, it’s pretty difficult to predict exactly what’s coming in cryptocurrencies.
Our best advice is to get your information and advice from a variety of sources. As tempting as it is to adhere to whatever Reddit is encouraging, remember to apply common sense and avoid getting swept into the rush of the moment. Read sites like Coindesk and MarketWatch for objective updates on cryptocurrency prices and news.
When you’re ready to purchase a cryptocurrency, pay close attention to the address, the name, and your passwords. Just because something has Bitcoin in its name doesn’t mean it’s actually Bitcoin. Because blockchain transactions are decentralized, there’s no undo button for you to press if you make a mistake.
Take your time, stay cool, and remember that chaos is part of the deal. If you want to protect your blood pressure, don’t check the price of your coin too often. Trust us.
Let’s Recap: Cryptocurrencies to Keep Your Eye On
Assuming you’ve kept your cool and applied all that patience we talked about, we’re sure you’re ready to get into the world of cryptocurrency. Take a look at the companies below and see if any of them fit your financial goals or represent strategies you believe in: [/vc_column_text][vc_empty_space height=”20px”][mkdf_unordered_list style=”arrow”]
- Ethereum (ETH)
- Compound (COMP)
- Polka Dot (DOT)
- Internet Computer (ICP)
- Ripple (XRP)
- Chainlink (LINK)
- Cosmos (ATOM)
- Dash (DASH)
- Dogecoin (DOGE)
[/mkdf_unordered_list][vc_empty_space height=”20px”]Crypto is only expanding and becoming more accessible, so don’t get discouraged if any of your early investments falter. At The Future Party, we know that history has shown us that the payout for staying the course can be huge. We’re not sure what the next Bitcoin will be, but we’re confident that it will be a wild ride to the top.