Cryptocurrencies are a new asset class, not regulated or categorized by the International Monetary Fund and the World Bank. They make up one of the largest markets in the world, with an estimated $170 billion invested as of early 2018. And while traditional investments such as stocks, bonds, and commodities have long been considered an acceptable investment choice for many people and institutions, cryptocurrencies have gained traction recently, with some promising investors predicting that mainstream adoption is imminent.
Here are cryptocurrencies under the radar and currently offer the best value to investors:
1. XRP
XRP is an open-source global settlement network for banks and payment providers, facilitating the real-time transfer of funds with on-demand liquidity. Ripple is the only existing digital asset that has the power to change how money moves between countries, companies, and people. The cryptocurrency is considered the ‘backbone’ of the Ripple network; one day, an entire network of interbank platforms could use it. Its price has risen sharply over the past couple of months, making it the best performing major digital currency in the world year-to-date, rising almost 500%. It is currently trading for around $1.20, a significant drop from its peak of $3.82 in January. Some have labeled Ripple as the ‘next Bitcoin,’ If this is true, then this cryptocurrency could potentially be an excellent long-term investment for savvy investors.
2. Terra
It is a blockchain-powered platform that enables people to earn digital cryptocurrency by participating in the network’s incentive-based user-driven economy. It is a platform that allows users to make money by creating, evaluating, and distributing content, including earning ‘Terra’ tokens. You can earn these tokens by evaluating content and then sharing it, reviewing it or even rating videos shared on Terra. The network requires users to run a masternode, which requires extensive computer hardware and maintenance costs.
3. Cardano
It is a fully-functional blockchain platform created to build a smart contract platform that will scale to millions of transactions per second. It is an open-source project, and its developers are always learning from each other; in addition to continuing their research, the Cardano team continues to work on improving the technology behind their blockchain. The ADA cryptocurrency originally started as an ERC-20 token but was rebranded with a value of USD 1 as an independent currency. It is currently trading for about $0.38 and has a market capitalization of $1.4 billion. It is one of the many cryptocurrencies that are currently undervalued; if it manages to achieve mainstream adoption, it could potentially skyrocket in value and become a viable long-term investment choice for investors who believe in its potential.
4. Solana
It is a highly scalable and secure, second-generation blockchain that enables businesses to build and scale their applications. It was created by the company behind Ethereum and has been described as a modern blockchain with no transaction fees. The Solana platform was developed to compete with public blockchains such as Ethereum, Hyperledger Fabric, and R3 Corda and private blockchains. It aims to facilitate the creation of smart contracts for business transactions and data sharing across different organizations. This blockchain is also designed to provide businesses with the tools to create, deploy and manage an open market for digital assets, making it one of the best long-term investments for cryptocurrencies under the radar.
5. Polkadot
It is a second-generation blockchain that aims to improve blockchain scalability and privacy. Polkadot is an open-source project, with its development funded by grants from the Ethereum Foundation. It allows for smart contract customization and interoperability across other blockchains, a service that it says will reduce the risk for businesses by reducing the need to develop on multiple platforms.
While cryptocurrencies are a new asset class for investors and are deemed to be highly risky, several digital currencies have strong potential for long-term investment returns. Suppose you’re an investor who believes that the technology behind cryptocurrencies will become essential in the future, and you’re looking for an undervalued cryptocurrency with a lot of growth potential. In that case, these five would be good places to start investing.
