Get Into Cryptocurrency Trading Today

This year has been a good year from cryptos lead by Bitcoin, which hit and crossed the $60,000 mark for the first time since it was launched. If you are new to the cryptocurrency game, you may be wondering which cryptocurrency, among the thousands, you should invest in. We’ve got you covered. In this article, you will find three cryptos that probably will double their prices in the next three months. 

Compilation criteria

Before proceeding to the list, here are some key factors we considered when compiling this list. A cryptocurrency may fail to meet all of the factors, but it should meet most of them. 

• The tech behind the cryptocurrency - Many times, a cryptocurrency is only as good as its tech.

• The community - Cryptocurrencies are highly driven by sentiment, and therefore, a promising cryptocurrency will have a strong community of supporters.

• Utility value - The cryptocurrencies that will stand the test of time are those that people will find useful in their day-to-day lives. 

• Previous trends - You want to invest in a cryptocurrency that is already showing a bullish drive.

• Scalability - One sure way to evaluate a cryptocurrency is to check if it can grow to accommodate more users in the future and how it uses the available resources to meet this expansion

• Market capitalization - It may be safer to invest in cryptos with a high or mid-market cap than those with a low market cap. You can find the market capitalization information on cryptocurrencies at the CoinMarketCap. 

With these factors in mind, here are three cryptocurrencies you should consider investing in;

1.    Cardano 

Cardano is a third-generation platform that was launched by the co-founder of Ethereum. Its cryptocurrency is ADA. Cardano is currently the 5th cryptocurrency by market cap. It was designed to solve some flaws the founder saw in older-generation cryptocurrencies. They include;

a.     Scalability 

There are two main barriers to any blockchain network’s scalability issues; the number of transactions it can verify per second and the amount of energy needed to run the network. Cardano is designed so that it might be able to handle 1 million transactions per second if needed, thanks to the Hydra protocol. Secondly, it uses the Ouroboros proof-of-stake consensus algorithm, which is significantly less energy-intensive than the proof-of-work algorithm. 

b.    Interoperability 

Some experts argue that unless the interoperability problem is solved, cryptocurrencies have a meager chance of adoption as mainstream currencies. The interoperability problem refers to the fact that most cryptocurrencies cannot communicate or exchange value with one another. Cardano’s platform can solve this. 
Cardano is constantly being improved and upgraded to improve security and function. Add to the fact that Cardano allows its users to launch Decentralized Finance applications and is constantly trying to improve this function, and you can see why the future is very bright for this.

2.    XRP

Many people use Ripple and XRP interchangeably, but they are wrong. There are three independent but interrelated things you should understand. Ripple Labs is the company that developed the Ripple network. Ripple Labs is also involved in developing other blockchain-based network solutions besides the Ripple network. The ripple network is a digital payment network that, like all cryptocurrencies, is blockchain-based. XRP is the Ripple Network cryptocurrency.  

Ripple was designed to make it easier to make cross-border payments that can be expensive, complicated, and time-consuming. It not only facilitates the transfer of fiat currencies but also cryptocurrencies. One of XRP’s biggest selling points is that it has already seen adoption by banks and financial institutions. Examples of its adopters are MoneyGram, Bank of America, and American express. In 2020, Western Union was deliberating using XRP as a cross-border payment service. It is currently being used by hundreds of customers across 55 countries. 

If you consider XRP’s practical value, customer base, and current market capitalization (7th), you can understand why it is a wise investment option.

3.    Polkadot

Polkadot is currently the 8th cryptocurrency by market capitalization. It was created in 2017 by a co-founder of Ethereum. One of its goals is to deliver the next iteration of the internet, Web3, with Polkadot at the core. Polkadot’s cryptocurrency is DOT which is used for bonding, staking, and governance. 

There are some factors you need to understand about Polkadot that make it stand out;

a.    Ability to make upgrades and fix bugs

Polkadot’s community uses DOT to vote for any changes that need to be made on the network. Once voting is complete, any bugs in Polkadot can be fixed and new features introduced. This distinguishes it from many cryptocurrencies that need a spinoff or a hard fork to make any upgrades on the network.

b.    Blockchain interoperability 

You understand by now why interoperability is so crucial in the future of blockchain networks and cryptocurrencies. Fiat currencies today work because you can exchange one currency for another directly easily. Polkadot could be able to make cryptocurrencies’ multichain future a reality. Through a bridge, compatible connections can be created between blockchains and the main network. 

Some networks have already expressed interest in building parachains on Polkadot. A parachain is an independent blockchain that may have its own tokens, bridged to Polkadot’s chain relay chain. An example of a parachain that will exist on Polkadot’s is the Moonbeam network and its token GLMR. 

We are yet to see the full capabilities of Polkadot, and the continuous strive for growth and capability improvement makes it a great investment option. 

Conclusion

This article highlights some great cryptocurrency investment options for short-term traders. The important thing to remember is that these cryptocurrencies rely heavily on investor sentiments. Do your research and use the evaluatory criteria set out at the beginning of the article to determine which cryptocurrency on our list you feel will double their price soon.

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