As we make our way into a new year, we can undoubtedly claim that 2017 have been a good year for cryptocurrencies.
The cryptocurrency market has grown from a few billion dollar market to a half a trillion dollar market. And that too without considering the billions of dollars invested in various technologies related to cryptocurrencies.
Thanks to mass adoption, the whole cryptocurrency ecosystem is looking more promising than ever.
But the cryptocurrency market has become so huge that newcomers often feel overwhelmed. Currently, there are 1376 cryptocurrencies in total. And while some of them are just scams, there are a lot of gems too.
Those good cryptocurrencies also offer their own unique set of features, making the choice even harder. That is why for a newcomer the number one challenge is choosing the best cryptocurrency to invest.
And this is what this post is going to cover.
- 1 MY METHODOLOGY FOR CHOOSING THE CRYPTOCURRENCY
- 2 BEST CRYPTOCURRENCIES UNDER $50 FOR 2018
- 3 FINAL WORDS
MY METHODOLOGY FOR CHOOSING THE CRYPTOCURRENCY
I want to be extremely transparent with you guys with my methodology. I have seen a lot of posts on the Internet and a lot of videos on YouTube that suggest cryptocurrencies without mentioning some key details.
They don’t even mention their motivation and reasons behind choosing a cryptocurrency. So often I get the feeling that they have some kind of hidden agenda behind suggesting those cryptocurrencies. But I digress!
I choose coins under $50 on this occasion because for newcomers this demands a low initial investment. Now let’s talk about the methodology.
PURPOSE OF THE CRYPTOCURRENCY
In my opinion, this is the most important point to check when hunting for a cryptocurrency to invest. A cryptocurrency without a valid purpose is like investing in a mutual fund without any goal.
With this huge number of cryptocurrencies available in the market, a cryptocurrency needs to provide some real use cases to survive in the long term.
MARKET CAP AND PRICE
When a cryptocurrency passes my first requirement of having a proper goal or goals, it is time to check its market cap. Market cap is the product of the number of tokens already circulating the market with the price of each token.
It gives us a good idea of the overall performance of a cryptocurrency.
GROWTH AND TRACK RECORD
Nothing beats a cryptocurrency that has a proven track record. Consider Ripple for example. In its operation of 5 years, the Ripple protocol has never failed and it has closed all the ledger entries successfully.
This shows that the development team knows what they are doing.
Also, a cryptocurrency with a good track record is bound to have a good growth.
PUBLIC INTEREST AND ECOSYSTEM
Another important pointer to check is how active the whole ecosystem is for a cryptocurrency. By ecosystem, I mean not only the cryptocurrency and its development team but also the adopters, independent businesses built over the cryptocurrency etc.
At the end of the day, a cryptocurrency that has the most support from the public is going to go up.
Often overlooked, trade volume is a great pointer for determining the popularity of a coin beside searching the internet to find how many people are actually discussing it.
BEST CRYPTOCURRENCIES UNDER $50 FOR 2018
Now that you know my methodology for compiling this list, let’s take a look at the list itself.
Verge is a cryptocurrency completely focused on providing proper privacy features over the blockchain. Zcash and Monero can be considered its main competitors. Verge provides a “two-layer” privacy protection for its users. First of all, Verge hides the users’ IP address by forcing them to access the Verge blockchain using the Tor network or I2P.
This feature makes it impossible to track down the end user as the Tor network is so random. Moreover, you can make private transactions on Verge using stealth addresses, thus hiding your public wallet addresses from the public ledger.
This feature is called Wraith Protocol and is somewhat similar to Zcash’s Z-address feature.
- Strong privacy-oriented features especially the unique IP hiding feature.
- Truly decentralized platform.
- Made from scratch without the help of any premine, ICO or airdrop event.
- Plans to roll out smart contracts which will put it in a league of its own.
- Fast transactions thanks to Simple Payment Verification (SPV) and 30-second blocks.
- Multi-algorithm support that eliminates the need for specialized equipment.
- Extremely low price of 12 cents. So a great investment opportunity for newcomers.
- An extremely good market cap of $1.8 billion; quite impressive for a cryptocurrency so new.
People often view EOS as Ethereum on Steroid and rightfully so because of its Ethereum-like features but with ambitious additions.
According to the EOS whitepaper, the whole EOS software can be seen as an operating system running on thousands of nodes around the world. This new architecture provides the developers to communicate with the underlying blockchain quite efficiently and effortlessly.
So decentralized applications or DApps and smart contracts can be created easily. This will also allow the EOS blockchain to be upscaled both vertically and horizontally, making it more powerful than Ethereum.
- Decentralized, operating system-like construct.
- Better experience for both users and developers.
- Elimination of fees.
- Fast transactions due to Delegated Proof of Stake.
- Can handle asynchronous communication and parallel processing.
- Plans to use human-readable code for communicating with the blockchain instead of binary code.
- Extremely talented team of blockchain architects are behind the project.
- Unique year-long ICO which will give everyone a fair chance to participate.
- Currently, has a $5.4 billion market cap and that too in its ICO stage.
- One EOS token is about $9.57; so a great choice for newcomers.
IOTA is a third generation open source peer to peer cryptocurrency that is specifically designed to be utilized in the field of Internet of Things. IOTA doesn’t use the same blockchain technology like other cryptocurrencies.
Instead, it uses a unique public ledger system called the Tangle. Tangle, unlike the blockchain, is not a linear structure. It is a directed acyclic graph that supports branching.
As IOTA uses tangle as its ledger system, it cannot use the available mining or minting algorithms. In case of IOTA, a node has to verify two other transactions of its choice alongside its own transaction.
So practically the nodes verify each other because of mutual interests. This also eliminates the concept of network fee, making IOTA the perfect solution for microtransactions.
- Intended to be used by IoT devices, a very futuristic concept.
- Uses a new form of distributed ledger system called the Tangle.
- Specialized mining equipment is not needed.
- Fast and free transactions.
- Quantum computing safe.
- Supports flash channel for even faster transactions.
- On an average, 1 MIOTA (1 million IOTA = 1 MegaIOTA) trades for $3.47.
- $9.6 billion market cap; promising for a cryptocurrency so new.
Often termed as Ethereum Killer, Cardano is a third generation cryptocurrency that is the result of extensive research works. Unlike many other cryptocurrencies, Cardano was first researched and its concept was peer-reviewed by expert scientists around the world before it was built.
The Cardano cryptocurrency promises to solve the issues with current cryptocurrencies. It aims to bring interoperability to the cryptocurrency market and make an advanced feature-rich cryptocurrency.
- Foolproof concept and architecture.
- Provably secure Proof of Stake algorithm.
- Support for smart contracts and decentralized applications.
- Pioneering in the field of interoperability.
- Being led by John Hoskinson of IOHK, one of the most prominent figures of the cryptocurrency world.
- $10 billion market cap; putting it just behind Litecoin, a market veteran.
- Priced at only 39 cents.
Ripple is a real-time gross settlement and remittance network operating on the blockchain. Ripple is maintained by Ripple Inc.
The main goal of the Ripple project is to revolutionize cross-border payments. Ripple is undoubtedly one of the most responsive cryptocurrency protocols.
Ripple transactions are fast (settles within 4 seconds), traceable (publicly viewable on the blockchain in real-time), cheap (only takes a few cents) and environmental friendly (consensus based verification instead of mining).
Currently, Ripple is enjoying a very rapid growth.
- Maintained by a proper company instead of a decentralized foundation.
- Very promising roadmap.
- Great 5-year track record.
- Fast and cheap real-time global transactions.
- Built for commercial use; already being used by several big banks and financial institutions around the world.
- Healthy userbase and daily trade volume.
- Market cap of $58 billion placing it just behind Bitcoin and Ethereum.
- Each XRP unit only costs $1.51, making it one of the best investments for crypto-virgins.
I hope I was able to compile the list properly and help you in choosing the best cryptocurrency coins under $50. In my opinion, you can never go wrong with these cryptocurrencies.
But as always, do your due diligence. Please don’t take my words blindly and do your own research before settling on a coin. We are here to only provide you useful information.
Cryptocurrencies are extremely risky investments. So only invest the amount you can handle losing.