- Prices of altcoins like Cardano and XRP have surged in the last few weeks. If the momentum continues, their prices could further go up this year.
- Managed by algorithms, cryptocurrencies are a form of virtual money.
- Investors could consider HODL-ing (Hold on for dear life) some cryptocurrencies as their mainstream acceptance increases.
Cryptocurrency is becoming mainstream as it has captured worldwide attention in recent years. Although there is still a lot to learn about the evolving technology, young investors seem to be getting more interested in the cryptocurrency market by the day.
It is believed that the digital currencies can now disrupt financial systems. Some supporters of Bitcoin and other cryptocurrencies trust the digital assets as they have no relation with any government or a financial institutions. For example, unlike the US dollar, a cryptocurrency is not dependent on the US federal government.
Managed by algorithms, cryptocurrencies are a form of virtual money. They are issued and operated through processes such as proof-of-work, where people solve complex mathematical problems to generate the digital currencies. Issuance of cryptocurrencies are not dependent on any kind of traditional financial institutions.
When compared to the early years of cryptocurrencies, investing in them seems to be profitable and a simpler process in present time.
Bitcoin was launched in 2008, however, the price of the digital asset only caught attention in 2010, when a single Bitcoin climbed to a value of US$ 0.08 from US$ 0.0008.
Since the surge in 2010, the world's oldest cryptocurrency has gained relatively well, trading at US$ 47,882.88 per token (9AM EST) on Wednesday, August 25. However, it is always important to research about the market before making an investment.
That said, we have shortlisted three cryptocurrencies or altcoins that you could consider HODL-ing (Hold on for dear life) in the next five years. We have not included Bitcoin and Ether in the list as they are the main cryptocurrencies in the present-day scenario.
Cardano recently secured a position among the top three cryptos around the globe in terms of market capitalization.
Cardano is a blockchain platform and cryptocurrency (ADA) based on the Ethereum blockchain.
Priced at US$ 2.71 per token (9:30AM EST) on August 25, ADA token prices could soar in the next five years as it is set to launch Cardano's smart contracts on September 12 this year.
Smart contracts enable the blockchain platform to compete with rival programmable blockchains and offer solutions to real-life problems.
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According to crypto platform CoinGecko data, ADA token price has surged by 41 per cent since the past week and 119 per cent in the last one month.
Binance Coin (BNB)
Binance Coin, which grew about two per cent in the 24 hours ending August 25, is the fourth largest cryptocurrency in the world in terms of market capitalization.
It is the utility token of crypto exchange Binance. Users can use it in transactions and as trading fees on the platform.
BNB's market cap stood at around US$ 75.8 billion and it posted a circulating supply of 154.533 million tokens .
At the time of writing this, BNB token stood at US$ 490.34.
BNB coin could go on to have a long-term growth as Binance is said to be the largest cryptocurrency exchange in the world, with a capacity of supporting 1.4 million transactions every second.
Based on the data from CoinGecko, BNB token has skyrocketed by 2072 per cent in the last twelve months.
XRP is the native token of Ripple Labs, which is a platform used for asset exchange, payment settlement and remittance systems.
Despite facing a lawsuit filed by the US Securities and Exchange Commission, XRP token price has surged since the past few weeks.
The price surge of this crypto token could be due to the rumours regarding the possibility of Ripple walking away unscathed from the lawsuit.
Also, Ripple Labs’ recent announcement about the XRP Ledger being enabled to support smart contracts could give investors a reason to take note of the cryptocurrency.
XRP token price has surged by 35 per cent in the past two weeks and grown 88 per cent in the last one month, according to CoinGecko data.
The cryptocurrency market is a highly volatile space, but the increasing acceptance of digital currencies and decentralized finance infrastructure (DeFi) indicates that they could stay for a long period.
Holding on to certain cryptocurrencies, based on thorough research and thoughtful consideration, could help investors keep a diverse investment portfolio and draw long-term benefits.