Diversifying Bitcoin? Take a Look at These Five Cryptocurrencies
The unregulated cryptocurrency market is characterized by its high volatility. Therefore, it’s important to have a well-diversified portfolio of cryptocurrencies. Since investing in new technologies such as blockchain always bears risks, it’s better to take some measures to mitigate potential risks and take advantage of the growth opportunities. Diversification is a less risky solution than storing eggs in one basket.
We call contributors to diversify their cryptocurrency portfolios; otherwise, they cut off vital opportunities and expose themselves to unwanted risks.
When Bitcoin crashed, many BTC holders kicked themselves and regretted that they blew a chance to buy altcoins at lower prices. It seems the cryptocurrency market is recovering now but don’t take it easy just yet. You still need to diversify your coins and it’s time to study the market in order to choose the most suitable cryptocurrency to contribute in.
How to choose the right coins? You should take into consideration the following points below:
- value they offer to the contributors
- value they offer to the cryptocurrency world
- their success history
- qualification of the team
Let’s take a glance at the market of cryptocurrencies. Bitcoin is a leader of this market. Nevertheless, there are several cryptocurrencies that can significantly grow this year and that can compete with it:
1. NEO (NEO)
NEO is a blockchain platform and cryptocurrency designed for building a scalable network of decentralized applications. Its base asset is NEO token, which generates Gas tokens as dividends. The wallets of NEO holders will generate Gas automatically. The NEO will generate Gas if the owners hold it in private wallets unless they hold it in Binance. The current price of Gas is around $40 now. According to CoinLib, it may rise to $92.50. The users should have at least 500 Gas to launch a smart contract. It will allow prevention of fraud. This platform attracts contributors, hence, increases its value.
2. Ethereum (ETH)
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract functionality. It facilitates online contractual agreements. Ethereum provides a cryptocurrency token called ETH, which can be transferred between accounts and used to compensate participant nodes for performed computations. The price of ETH has rocketed recently.
3. COSS (COSS)
COSS is a startup exchange with its own cryptocurrency as distinct from Binance, Bittrex, and GDAX. COSS holders earn a percentage of all of its transaction fees. It doesn’t generate more currencies as NEO and its Gas but allows users to receive a percentage of every purchase made by them on COSS. The holders can store cryptocurrency on any wallet compatible with Ethereum ERC20 because COSS is built atop Ethereum as a Token.
Why is this cryptocurrency perspective? Its all-time-high is nearly $3 according to CoinLib. It’s under $1 now. For example, other exchanges also offer their own coin. Kucoin with its Kucoin Shares and Binance with its Binance Coin also offer dividends and have all chances to grow this year. However, COSS is going to implement FIAT trading, deposit, and withdrawals on its exchange. As a result, traders will be able to buy and sell cryptocurrencies directly through cash and won’t need to do BTC, ETH, or LTC transfers.
4. ICON (ICX)
ICON is a Korean smart-contract platform. Its Main Net was launched in late January of 2018. It is now possible to build and launch Decentralized Apps on ICON. Moreover, one has already begun to develop five various DApps on this platform.
5. NOAHCOIN (NOAH)
NOAHCOIN is a cryptocurrency token issued by the Noah Project using ERC20, which resides on the Ethereum blockchain. This token will be used in the Noah Project ecosystem for discounts, rebates, rentals, and amenities. The users will be able to use NOAHCOIN in Horizon Manila. It will be the largest Central Business District in the Philippines. There is another project. It is Noah Resort located in Zamboanga Del Norte. The NOAHCOIN will provide the users with the possibility to visit tennis courts, play bowling and golf, to ride banana boats, etc. The holders will be able to trade NOAH on cryptocurrency exchanges. Also, NOAH holders will be able to take part in Noah’s bonus programs and receive increased cashback for certain categories with shop-partners.
