8 Must-have Cryptocurrencies for Your Portfolio
With over 9300 coins to choose from and invest in, a deep sense of confusion and uncertainty lurks around the corners of the minds of all potential investors. This leads them to hunt the cryptocurrencies that investors must definitely have in order to build a balanced crypto portfolio. As of March 2022, there are over 18,000 cryptocurrencies in the market. So, it’s definitely impossible for a normal working human being to read about each of them and predict their future scope of them. Hence, we have done some research for you and created this list of 8 must-have cryptocurrencies for your portfolio.
Why Should You Have Cryptocurrencies in Your Portfolio?
You must have cryptocurrencies in your investment portfolio because they put forward a new and improved way of using technology in the various industries of the world. They eliminate the need for intermediaries or third parties in executing basic transactions like loan agreements, real estate contracts, and managing the supply chain of products in a different set of industries like cosmetics, spare parts, etc. In addition to this, cryptocurrencies act as a digital store of value and make investing accessible to everyone in the world. The volatility of the crypto prices may act as a red flag for some investors. However, it is a great way of making money for those short-term investors looking to make instant gains. Furthermore, expert investors suggest investing 5-6% of your money in crypto. This helps in balancing your portfolio while leaving the potential for solid gains.
How to Invest in Cryptocurrencies?
Investing in cryptocurrencies is extremely easy. Thanks to its decentralized nature that investors do not need to complete any tedious KYC verification in order to buy, sell or trade cryptocurrencies. With the presence of tens and hundreds of cryptocurrency exchanges present in the world, you can easily set up an account and start investing. Here are five simple steps to do that.
1.Select the best crytocurrency exchange apps that you would like to use for investing in crypto. Mobile apps make it easier for you to track the progress of your assets on the go. Also, among the different apps, each of them have their own trading fee, which may be higher than the other.
2. Once you have selected the exchange, set up an account and verify your phone and email. This is the necessary step that you have to complete to start investing.
3. When your account is all set up and ready to use, explore the exchange to find projects of your interest. However, make sure that you have all the cryptocurrencies in the right proportion in your portfolio to make a balanced one.
4. Hit the Buy option on the chosen crypto page.
5. Complete the payment from the desired payment method and happy investing! On some exchanges such as CoinDCX, you can also set up price alerts for your favoruite coins so that you can buy, sell, or trade the coins depending upon the market sentiments.
8 Must-have Cryptocurrencies for Your Portfolio
Here are 8 cryptocurrencies that you must definitely have in your crypto portfolio.
Bitcoin was the first cryptocurrency that was introduced in the year 2009. Since then, the currency has only gained value. Though the price of Bitcoin may fluctuate every now and then, we can always see the value growth in the biggest picture. The maximum number of Bitcoins is 21 Million, out of which approximately 18 million Bitcoins have already been mined. As more Bitcoins will be mined, the value of the coin will keep increasing. Now you can totally imagine the rise in the value of Bitcoin that will happen when it starts approaching its upper supply limit.
Binance coin: Must-have Cryptocurrencies for Your Portfolio
Binance is the largest cryptocurrency exchange in the world selling majority of Bitcoins and other altcoins. The coin is the native token of the Binance Smart Chain which is gaining worldwide popularity since its inception in the year 2021. At present, Binance Coin is the third-largest cryptocurrency in the market, occupying over 4.1% of the total market cap.
Algo is the native token of the Alogorand blockchain. The main function of the blockchain is to support smart contracts, a function that is extremely crucial for the working of the entire blockchain system and delivering the features that it is so popular for. In addition to this, Alogrand runs on a Proof of Stake consensus algorithm, which doesn’t only makes it sustainable but also extremely desirable in a current scenario where the oldest and biggest cryptocurrencies are working on developing their green alternatives. At present, Algo has a market capitalization of over $14 Billion which makes it one of the top cryptocurrencies in the world. Experts believe that the value of Algo tokens will increase over three folds by the year 2025. Therefore, Algo is one of the must-have cryptocurrencies for your portfolio.
Ethereum: Must-have Cryptocurrencies for Your Portfolio
Ethereum is the second-largest cryptocurrency in the market after Bitcoin. The fact that the Ethereum blockchain has plenty of use cases such as NFTs, smart contracts, etc. imparts a very high potential for growth to this blockchain. It is so popular that most of the blockchain-based transactions are done in the form of Ethereum. Therefore, we can surely say that it is one of the must-have cryptocurrencies for an investment portfolio.
Loopring has witnessed a hike of over 700% in the past few months. The major reasons for this rise in value are the rumors that the coin will be used to build an NFT marketplace by GameStop. Also, rumor has it that Loopring will be used as a significant element in the concept of Metaverse. Though there is no evidence backing these statements. However, if the rumors turn out to be true, we can very well foresee the giant rise in its value that will happen in the future. Loopring is an Ethereum-based cryptocurrency.
Cartesi: Must-have Cryptocurrencies for Your Portfolio
Cartesi is a growing cryptocurrency claiming to solve the scalability and high-fee issues of other cryptocurrencies. Also, the currency is gaining huge popularity because investors can trade it very easily. It presents the first blockchain operating system, integrating the concepts of decentralized logic with the traditional programming environments like Linux. This allows developers to enjoy the coding process while inculcating smart contracts with old libraries and tools structure of developments.
Solana is the sixth largest cryptocurrency in the world and has gained this position within less than two years of its inception. Introduced in 2020, Solana has increased in value by over 15,000%. It is considered to be a strong competitor of Ethereum, in terms of executing transactions. Slow and failed transactions are one of the biggest loopholes in the working of the Ethereum blockchain. Solana overcomes this problem by offering around 50,000 transactions in one second. Thus, it is clearly a must-have cryptocurrency in your portfolio.
DogeCoin: Must-have Cryptocurrencies for Your Portfolio
Dogecoin was started as a meme coin for making fun of the huge speculation that cryptocurrencies are gaining around the world. Introduced in 2013, the coin has a picture of the Shiba Inu breed of dogs. The major features of this coin are its low price and unlimited supply, which has probably gathered a community of loyal followers around it. Though the coin was a sarcastic step, it has now developed multiple use cases such as tipping on social media, making payments at grocery stores, and so on.
While investing in cryptocurrencies, it is very important for investors to hold on to their senses and not give in to greed if their assets are making considerable progress. The markets of cryptocurrencies are highly unpredictable and you can never know when you will lose your money. Therefore, always keep a watch on your assets and reallocate the capital as and when necessary.