London, UK, 12th August 2021, ZEXPRWIRE – For many of the companies developing blockchain technology, 2017 was a record-setting year. In fact, at time of writing:
Challengers to Bitcoin’s position as the dominant cryptocurrency abound, but none have yet overtaken the original and all others appear to be heavily dependent on it in some way or another. The main appeal of investing and holding Bitcoin is its potential as the future currency of the internet.
The appeal of this investment isn’t exactly based on good fundamentals, but rather on speculation that this technology will revolutionize communications in a similar way to how it has already begun to reinvent money transfers and online commerce. In other words, if you’re willing to throw away your principle for the chance to become fabulously rich, Bitcoin could be a good opportunity.
With that in mind, the broker from Financialcentre, Michael Goldberg says, let’s take a look at some other cryptocurrencies you may want to consider investing in instead of or alongside Bitcoin. While they’re not necessarily better investment opportunities than the cryptocurrency everyone is talking about and may never stop talking about, these have better odds of succeeding as currencies or as assets with inherent value.
Bitcoin may have a monopoly on the cryptocurrency market similar to how Facebook has a monopoly on social media, but investors shouldn’t let that distract them from considering more dynamic and innovative alternatives. Cryptocurrencies were created for a reason: To enable people to conduct transactions over new protocols based on blockchain technology instead of more traditional, government-supported currencies.
This means their uses range from money transfers to online purchases and more, which gives a wide variety of possible opportunities that investors can capitalize on by investing in one or several of these seven cryptocurrencies.
- Monero (XMR)
For starters, let’s look at an anonymous cryptocurrency that’s been around for nearly four years.
Monero (XMR) has seen a lot of market activity, in part thanks to its role as the currency of choice for potential darknet marketplace AlphaBay prior to its demise last July. The developers behind this peer-to-peer open source cryptocurrency have made it one of the most secure on the market, as it uses ring signatures – a special property of a certain type of cryptography – to mask the identities of those making transactions.
This peer-to-peer digital currency also enables completely anonymous transactions thanks to its inclusion of stealth addresses, which protect both senders and receivers by generating one-time addresses for each transaction. This makes it impossible for anyone to track funds as they move from one account to another.
With this level of anonymity, Monero has been touted by many online drug dealers as the best cryptocurrency for conducting transactions on the darknet: Even if it is somehow identified and traced back to its owner, authorities would have a hard time prosecuting the user. The confidentiality provided by Monero also makes it a good choice for making transactions that the user would rather not have traced back to them in any way.
That being said, because Monero is a peer-to-peer cryptocurrency without centralized management for conducting transactions or monitoring accounts, it may not be well suited as an investment if you prefer something else to hold on to.
- Dash (DASH)
If you’re looking for a cryptocurrency that can act as both an anonymous store of value and medium for exchange, Dash (DASH) might be the one for you. The developers behind this open source decentralized payment system launched it in 2014 and have since been working on improving its infrastructure by adding new features like its InstantSend feature, which allows users to make instant transactions that confirm within a couple of seconds.
Another feature is its PrivateSend function, which uses the master node network to mix multiple transaction inputs together in order to prevent traders from being traced if their identities are somehow compromised. This protocol also adds an additional layer of privacy, ensuring that cryptocurrency traders can remain anonymous throughout the entirety of their transactions.
Dash’s self-governing and self-funding nature enable its developers to continually update their protocol with new features, without having to worry about a central authority interfering or blocking upgrades. This enables it to remain as competitive as possible in the cryptocurrency market, giving users access to an ever-expanding list of features in order to keep the Dash network flexible and functional.
However, this approach does come with a downside for investors who prefer something more stable: Because its development is self-funded, it’s not necessarily immune to risk when it comes to market activity. In times of economic hardship, cryptocurrency markets can plummet along with more traditional investments.
With this being said, Dash’s ability to maintain its level of anonymity in the market despite the fact that it was a fairly recent entry into the world of cryptocurrency – and with a relatively high price per unit – might make it an interesting choice for investors who are looking both to store value and to exchange it frequently.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.