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There is more to cryptocurrencies than their market capitalization. Rather than the usual pump and dump tactics you joke about with your friends, it’s important to dive deeper if you’re set on making some serious dough from crypto-investments.
A good start would perhaps be learning more about how these popular coins came to be, their objectives and beliefs, and ultimately their contribution to the crypto ecosystem. After all, to appeal to investors and maintain an edge over other crypto or “meme coins”, they must have a good reason to exist.
Due to Bitcoin being rather expensive to a wage salary worker and its overwhelming popularity, this article instead compiles a list of cheaper “altcoins” for the common folk to have a stake in.
1. Ethereum (ETH)
As the biggest rival to Bitcoin, Ethereum has grown phenomenally in the past few years, largely due to the ingenuity of “Smart Contracts”. With the announcement of Ethereum 2.0, it claims to become a much more sustainable form of investment after a paradigm shift from a process of “mining” to “staking”, reducing energy consumption by at least 99.95%!
Moreover, NFTs, which have gained traction after the spectacular sale of Beeple’s “Everydays: the first 5000 days” artwork, operate purely on the Ethereum blockchain. Ethereum becomes a legitimate medium of exchange for NFT lovers, serving as an added layer of insurance for Ethereum. You can read more about what are NFTs here.
2. Dogecoin (DOGE)
Thanks to business moguls and celebs, Dogecoin’s popularity shot through the roof and went to the moon. This “meme coin” has received numerous publicity in the past few months and many have invested a great sum of money into it. As of May of this year, the value of dogecoin rose up to 12,000% over a short span of 4 months due to the hype created mainly by Elon Musk, who simply can’t stop tweeting about it.
However, traders should take caution given that many have suffered serious losses due to the higher-than-normal volatility as a crypto asset.
3. Cardano (ADA)
Calling it the “swiss army knife of protocols”, creator Charles Hoskinson envisions his crypto to enhance economic accessibility worldwide. Branding itself as environmentally-friendly as well, Cardano boasts a peer-reviewed technology, where it grants the academic community access to its open-source blockchain for rigorous peer reviews.
With over 100 peer reviews, it’s recognised to be one of the few cryptos that prizes “substance over hype”, Cardano is a good choice in your portfolio.
4. Litecoin (LTC)
Litecoin was born because its creator was skeptical about the US Federal Reserve in regulating the circulation of US dollars in the market. As such, Litecoin’s fixed supply (like bitcoin) hopes to prevent devaluation in the long run.
Litecoin is perhaps better if you’re familiar with its mining process because its method is cheaper and easier than Bitcoin. Its relative speed and low cost make it a more viable crypto used in the transaction and give it greater popularity due to its convenience, an important trait for continued confidence in the coin.
5. Axie Infinity (AXS)
Touted as the “crypto for gamers”, it’s one of the most popular game cryptocurrencies out there based on market capitalization. Axie Infinity is an NFT-based online video game that has an ingenious way of helping people living in developing countries to tide through unemployment as a result of Covid-19, by simply earning cryptocurrency as you play games from the comfort of your own home.
This unconventional way of earning a side income quickly gained traction with the masses, and soon AXS rose to fame. The prospect of AXS looks bright given that the company is already generating revenue, and has attracted investments from crypto-maniac Mark Cuban. Given that AXS has not reaped its full potential just yet, perhaps now is a good time to enter the market
6. Binance Coin (BNB)
As its name suggests, BNB is a utility token created by Binance (one of the largest crypto exchanges in the world), intended to be used to lower trading fees, but took off on its own after the launch of the Binance smart chain, and accelerating in value as the overall adoption and market cap of cryptocurrencies increased as a whole in Jan 2021.
With a max capacity of 200 Million tokens, Binance Coin will surpass Bitcoin volume eventually and hence making it easier to trade. Being backed by one of the safest exchanges in the world, investing in Binance Coin can be a good start.
7. XRP (XRP)
It is often referred to as Ripple, the name of the company that birthed it. Ripple’s recent victories against the SEC have shown investors that they’re resilient despite continued onslaughts of the federal government.
Like Bitcoin, Ripple has limited supply, but the key difference is that it can’t be mined. All 100 billion of it are already readily available on the market so there will never be a case of a sudden surplus that can affect its supply. Therefore, investing in it can yield lucrative returns in the long run if you keep “Hodling”.
8. Chainlink (LINK)
You should only invest in Chainlink if you’re up for some thrills. As a “high risk, high return” crypto-investment, Chainlink has doubled its value within just one month between July and August of this year.
Chainlink is better known for its decentralized Oracle network instrumental in the implementation of blockchain technologies. It provides data to smart contracts on the blockchain, just like Ethereum. Therefore, investing in Chainlink is sort of like investing in improving the blockchain system.
9. Polkadot (DOT)
Named as “Dot Token”, Polkadot is widely known for its ability to connect individual blockchain, bringing in a new era in “scalability, interoperability, and security”. It’s this ability that could potentially erode Ethereum’s market share that makes investors so hopeful in what it does.
10. Solana (SOL)
Despite it being so new to the crypto market, Solana’s price and publicity have skyrocketed since the beginning of this year. One of the key reasons is because Solana already has more than 400 projects built on its network such as DeFi applications.
Its software engineers have launched the “wormhole” project, an odd but sensible way of describing bridge assets that can be moved between Ethereum and Solana at a rather low cost, and that can be very appealing should the project continue to develop further. A key bonus is that if you hold on to Solana long enough, you are able to earn interest.
For more information on purchasing cryptocurrency in Singapore, you can check out our article here.
*Note that these are just some of my personal opinions and not some crypto-investment advice, so be sure to do sufficient research before embarking onto this exciting and tumultuous journey.