Amid the pandemic that has uprooted the global economy, one asset seems to successfully prove its resiliency during these unpredictable times– cryptocurrency.
Individual and institutional investors alike have taken an interest in trading digital assets as an effective hedge against the inevitable spiral of the U.S. dollar and traditional stocks.
55% of U.S. investors expressed their interest in the crypto market during the COVID-19 pandemic. This translates to approximately 32 million BTC Investor Households in the U.S.
Consequently, Grayscale Investments announced in a 2020 report its highest quarterly capital inflow for cryptocurrency transactions–amounting to almost one billion USD. 88% of these transactions were made by institutional investors.
Expanding Horizons
13 years since the release of the very first cryptocurrency–Bitcoin–the crypto market is again making headlines worldwide.
With the soaring demand in the crypto trade, thousands of spinoffs and innovations have been released in the market. While Bitcoin remains to be the most popular, numerous brands are also hard to ignore.
With over 7,000 cryptocurrencies to choose from, you’d inevitably find the right company that will help you reach your financial goals.
Here is a list of the more obscure and undervalued cryptocurrencies that are worth looking into:
- Fusion (FSN)
Fusion has big dreams of taking the financial world by storm.
While Blockchain technology has for many years overhauled the existing financial sector, FSN is set to completely reconstruct the financial system that many influential industries and industries are determined to innovate.
Fusion is a platform that specifically targets the finance application of blockchain technology to manipulate transparency, decentralization, and scalability across various industries that include entertainment licensing and debt instruments (stocks and bonds).
Fusion works with an expert finance and technical team that is set on solving real-world cases with flexibility. Solutions are based on interoperability and distributive custody to address authentication and privacy requirements across private and public organizations.
Through the Fusion platform, assets reach a whole new level of value. Clients can create and customize new assets that can be easily be digitized and monetized using the innovative ‘Time-Lock’ function.
- IOTA (MIOTA)
IOTA is a gamechanger in the crypto trade. To address issues of cost and scalability, IOTA was the first cryptocurrency that attempted to advance beyond blockchain technology to specifically cater to the Internet of Things (IoT) economy.
The Internet of Things (IoT) system allows private devices and machines to collect and transfer valuable data over the internet. This would allow applications and products to work more efficiently, considerably saving manufacturers and users time and money while reducing waste and emissions.
While connected machines are believed to be the potential backbone of rising technology, no platform was available to allow the exchange and transaction of valuable information underlying the IoT system. This is where IOTA came in.
Instead of using blockchain technology, IOTA uses a Directed Acyclic Graph (DAG) technology which allows transactions of any scale that are free of charge. These seamlessly address the current issues of Bitcoin on scalability and processing time.
- Basic Attention Token (BAT)
The Basic Attention Token business model is simple and straightforward, yet it might just be the smartest one yet.
BAT is focused on innovating the digital advertising model by aligning the interests of users and advertisers.
Users are given a financial incentive through BAT to watch advertisements, while advertisers are encouraged to share ad revenue to users who share their personal information (that is tracked and monetized) by viewing the ads.
The goal is ultimately to get more consumers to watch advertisements while the advertisers generate more brand awareness to sell their product.
- Fantom (FTM)
Fantom is another cryptocurrency that aims to innovate the current financial system by debunking blockchain technology with Directed Acyclic Graph (DAG). The Fantom platform would then allow users infinite scalability and instant transactions at a low cost.
Fantom has already attracted a considerable number of investors, and remains to be a promising company that aims to attract partnerships across a variety of sectors including food management, healthcare, education, traffic management, public utilities, smart home systems, as well as resource and sustainability management.
- Quant Network (QNT)
Quant Network aims to create a trusted space in the connected world of the internet. Digital security is targeted for all–individuals, industries, enterprises, and the government.
The company uses an OS called Overledger that allows individual networks to connect simultaneously, these include blockchains, CRM systems, databases and IoT devices.
QNT tokens are used to avail of the trusted OS system to make transactions and manipulate digital assets.
- Zcash (ZEC)
Zcash is a cryptocurrency with privacy at its core.
While Zcash has slowly been gaining some popularity by the crypto community, the token is still highly undervalued with its game-changing moves on security and decentralization.
With the ever-expanding crypto-world, privacy coins is the top priority of investors. ZEC allows for the anonymity of users and transactions.
- Matic Network (MATIC)
Matic Network doesn’t play around in terms of innovation.
The company aims to solve the large scale issues of scalability and user experience to improve the mass adoption of blockchains by mainstream users.
Through the use of Matic and its applications, clients are able to get secure and fast transactions. The Matic Network also offers its clients incentives when they make contributions and keep the system active.
Choosing a Cryptocurrency
Considering the high volatility of cryptocurrencies, choosing to build a long-term investment portfolio when you go crypto is ultimately the safest strategy.
Here are a few tips on how to get started in the crypto market:
Assess your Risk Level
Bitcoin is the most stable and volatile of all cryptocurrencies. Other options, called alternative cryptocurrencies or “altcoins,” are also viable yet riskier options.
It is advisable to limit your risk by diversifying your portfolio. This can be done by investing in one or more stable digital currencies.
Conduct a Thorough Independent Research
While it is a good practice to read up on company representative statements and investors’ opinions, the best way to make investments is to do research independently.
You must not only focus on the current market price but try to follow the company’s full history and market trends. This will give you a general idea of the brand’s strategy, plans for innovation, and system.
Pay attention to circulation, market cap, and how the company addresses problems in its price movement.
Choose a cryptocurrency with a strong background in terms of leadership and technical team.
Remain Vigilant
Once you’ve chosen a cryptocurrency to invest in, remember to closely monitor your portfolio especially if you’ll be investing in the more obscure altcoin. Continue to do your research and be on the lookout for news regarding your investment.
While altcoins do not grow as rapidly as Bitcoin, many are making admirable innovations that take into address current global issues with flexibility. This allows them to advance considerably through the growth phase.
