The cryptocurrency market is growing at an unprecedented rate. New coins are being created and invested in every day, but the abundance of options can be overwhelming for new investors. There are currently over 1500 different cryptocurrencies available to purchase. However, not all of these digital assets are worth your time; most will fail to see continued success or adoption. Well-informed investors should look for specific attributes when evaluating which tokens to add to their portfolio. Here are the top 5 crytocoins under $1 that meet that criteria:
Bitcoin Cash
First on the list is Bitcoin Cash. Bitcoin Cash is a decentralized peer-to-peer electronic cash system. It is a fork of the original Bitcoin network that is designed to scale efficiently. BCH has lower network fees and faster transaction times than the original Bitcoin. This is in-part due to an 8mb block size, compared to 1mb for BTC. BCH has transitioned away from being a store of value and is now used for low-cost daily transactions. It is supported by a number of exchanges and has a growing community of users and developers. BCH is currently the 5th most valuable cryptocurrency with a market cap of $9.2 billion.
Ethereum
The next crypto on the list is Ethereum. Ethereum is a decentralized platform that runs smart contracts. Essentially, it is a blockchain-based operating system that allows developers to build decentralized applications (dApps). There are many applications that take advantage of the Ethereum platform, including Augur, Golem, and Ethmoji. Ethereum has a large and active development team behind it and is currently the 2nd most valuable cryptocurrency with a market cap of $29 billion.
Litecoin
Litecoin is an open-source digital currency that was created in 2011 by former Google engineer, Charlie Lee. It is one of the first altcoins to use an alternative proof of work algorithm called Scrypt. Scrypt, which is a sequential memory-hard proof of work algorithm, is less energy-intensive than the original proof of work algorithm used by Bitcoin. This means that Litecoin requires less processing power and is more efficient to mine. This is attractive to many investors because it allows them to earn coins more efficiently. As the price of Litecoin rises, mining it becomes more profitable. In addition to its more efficient mining, Litecoin is also more scalable than Bitcoin. It can process more transactions per second and on a global scale. Litecoin is currently the 6th most valuable cryptocurrency with a market cap of $3.2 billion.
Stellar Lumen
Stellar Lumen is an open-source decentralized protocol that facilitates cross-asset transfers of value. It is a payment network designed to connect people, banks, and payment systems. It allows money to be transferred quickly and securely with little to no fees. Stellar Lumen attempts to solve the problem of slow cross-border payments by creating a decentralized network. The network is comprised of individual nodes that process transactions and store funds. This creates a scalable and secure network capable of processing millions of transactions per day. Stellar Lumen is currently the 9th most valuable cryptocurrency with a market cap of $2.4 billion.
Ripple
Ripple is a blockchain-based payment protocol that facilitates remittance payments between banks. It is currently the 3rd most valuable cryptocurrency with a market cap of $11.7 billion. Stellar Lumen is a for profit company that promotes the Stellar network, which is the network that Stellar Lumen runs on. Stellar Lumen and Ripple are similar in many ways. Both are payment networks designed to facilitate cross-border transfers of value. They both connect banks and payment systems, and they both facilitate remittance payments. Where they differ is in their use cases and their business models. Ripple is targeting banks and financial institutions, while Stellar Lumen is targeting all payment systems. Ripple is more centralized, while Stellar Lumen is more decentralized. This is important because it determines the adoption of each network. Adoption is a key indicator of future success. Ripple doesn’t need to be adopted by a large number of users to be successful. It just needs to be adopted by large banks and financial institutions. Stellar Lumen, however, needs to be adopted by all payment systems. This includes banks, financial institutions, and even individuals. Ripple is currently the 3rd most valuable cryptocurrency with a market cap of $11.7 billion.
Conclusion
Investing in cryptocurrencies can be extremely profitable, but it’s not without its risks. It is important that you do your own research and understand how each coin works before you invest any money. Not all cryptocurrencies are created equal and some are a better investment than others. The coins on this list are all under $1, but each has the potential to increase significantly in value over the next few years. If you’re new to investing, it’s important that you don’t put all your eggs in one basket. Diversifying your portfolio with a variety of different cryptocurrencies will help to minimize your risk. For new investors, these top 5 cryptocurrencies under $1 are a great place to start.