It goes without saying that Bitcoin is the crown jewel of the whole cryptocurrency world. Besides being a recognizable name when it comes to digital currencies, the last year’s increase in value cemented its position as the number one cryptocurrency. Nevertheless, the time has come for it to pass on the torch. When Bitcoin proved how someone can accumulate a fortune by identifying the right cryptocurrency trend in time, people began giving more credit to this global phenomenon.
Naturally, this led to a larger influx of capital into this business as a whole, which granted resources required for the further development of this already exceptional payment method. Contrary to real money, cryptocurrencies differ not just in value. Particularly, they have genuine features including the speed of transactions, the level of security, and means of payment, which can serve as a sign of their performance in future. Without further ado, here are some speculations and prognoses regarding the subject of the next big cryptocurrency, as well as some methods on how to recognize a winner.
1. Market Cap
The first way of determining which cryptocurrency is on the rise may appear primitive, but it is a potent indicator that should never be underestimated. We are talking about controlling the market cap and current supply. This way you can examine the entire value of particular cryptocurrency and its availability. Bear in mind that this shifts at a high pace; however, if a single cryptocurrency shows a constant rise or even reaches position among the top 50 cryptocurrencies for an extended period of time, it is clearly worth checking out.
2. Blockchain is Important
Another thing deserving attention is the matter of blockchain technology. Rather than being a centralized, government-controlled payment method, cryptocurrencies have their own infrastructure, which enables them to customize the process in which they manage their transactions in various different ways. This resulted in the appearance of various technologies like blockchain that aim not only to transform the world of cryptocurrencies but the internet in general. This bulletproof technology generates databases whose data cannot be copied or altered, which makes the entire industry more reliable.
3. The Emergence of ICOs
The increase of the cryptocurrency industry produced numerous independent developers than ever. Although they come with fresh ideas and an outsider’s insight on the market as a whole, they regularly lack money to compete with cryptography and infrastructure of their predecessors. This lead to the creation of the trend known as ICO (initial coin offering). The benefit of investing in ICOs is the fact that you can obtain an enormous amount of coins in their initial stages of development, while the downside is in the fact that they are pretty unpredictable.
For that reason, people who are considering investing in ICO need to find a credible source of news and information like The Blockchain Review. This will help you learn the basics of ICO as well as how to do this in the safest way possible. You must keep in mind that no matter how promising an ICO may appear to be, it is still a risky game; that is why you must tackle some safeguards in order to avoid spending more than you are prepared to lose. The risks may be high but so are the possible profits.
4. Improved Cryptography
Once you’ve worked through matters like supply and market cap, you must look towards cryptography, which is something that usually works in favor of ICOs and related new coins on the market. It is simple to improve on old ideas when you arrive late to the game; still, learning from the weaknesses of your predecessors is reasonably the only right path to improvement. Basically, you should regard things like speed and number of transactions per second, the capacity to use crypto as a common currency (grocery shopping, paying bills, etc.) and the privacy of transaction.
While it is a fact that there are still countless skeptics out there insisting that it is already too late to earn money off cryptocurrencies or thinking that it is all a bubble ready to explode, the certainty is that cryptocurrencies are here to stay. The logic behind this is the simple fact that they represent a more practical and decentralized alternative to conventional currency. It is a human trait to correlate convenient with superior and that is exactly the point of cryptocurrencies.