The Crypto Survivors: Which Coins To Invest In?

Cryptocurrencies are digital currencies that exist on decentralised peer networks. They are designed to be free from government manipulation and control. Bitcoin is the original cryptocurrency and is currently the leader in terms of market capitalisation, user base and popularity.

However, there are thousands of other cryptocurrencies, and it can be difficult to know which ones to invest in. Nolan Bauerle, research director at CoinDesk, predicts that 90% of cryptocurrencies will not survive a crash in the markets.

So, which cryptocurrencies will survive? Well, it's hard to say for sure, but a good place to start is with the top 20 most-traded cryptocurrencies. Bitcoin, for example, is likely to remain the original and most valuable cryptocurrency. Ethereum is another strong contender, with its own crypto coin, Ether, which is easily exchangeable.

Other cryptocurrencies that could survive include Cardano, Polkadot, Cosmos, and Dogecoin. These currencies offer unique features and benefits that could make them viable alternatives to Bitcoin and Ethereum.

When investing in cryptocurrencies, it's important to do your research and understand the risks involved. The crypto market is extremely volatile, and prices can fluctuate wildly. Always invest responsibly and only invest what you can afford to lose.

Bitcoin's value and mainstream appeal

Bitcoin is a decentralised peer-to-peer payment network, with no central bank or administrator. This means that there is no central authority or middleman controlling the currency. As a result, no one can artificially affect the value of bitcoin, and there are no fees for issuing currency.

Bitcoin is based on mathematics, and anyone can use the freely available formula and software to make bitcoins. The maths behind the system is designed so that it becomes harder to obtain bitcoins over time, and there is a limit of 21 million bitcoins. This scarcity is part of what makes bitcoin valuable.

Bitcoin is kept secure by cryptography and a publicly distributed ledger called a blockchain. This ledger is stored on every computer in the network, so everyone has a record of every transaction. This transparency makes it almost impossible to hide transactions.

Bitcoin's value has skyrocketed as it has become a household name. In May 2016, one bitcoin was worth about $500. As of September 2024, a single bitcoin was worth around $59,125.

Bitcoin's mainstream appeal is growing, with some sources saying it is already mainstream. It is gaining recognition from merchants, and more businesses are accepting bitcoin payments. However, some argue that bitcoin becoming mainstream could be a bad thing. With each step towards widespread acceptance, bitcoin loses some of its original appeal. As it becomes regulated and traded on public markets, it loses its edgy, rebellious nature.

Ethereum's potential as a business currency

Ethereums's Potential as a Business Currency

Ethereum is a decentralized, open-source blockchain system with its own native cryptocurrency, Ether. It is the second-largest cryptocurrency by market capitalization, behind Bitcoin. Ethereum's blockchain is designed to be a global platform for decentralized applications, allowing users to write and run software that is resistant to censorship, downtime, and fraud.

Smart Contracts

Ethereum has pioneered the concept of blockchain smart contracts, which are computer programs that automatically execute the actions necessary to fulfill an agreement between several parties on the internet. Smart contracts reduce the need for trusted intermediaries, thus lowering transaction costs and increasing reliability.

Ethereum's blockchain is able to host other cryptocurrencies, or "tokens", through its ERC-20 compatibility standard. This has been the most common use for the ETH platform so far, with over 280,000 ERC-20-compliant tokens launched to date.

Stablecoins

Stablecoins are another important use case for Ethereum. These are cryptoassets pegged to a fiat currency, most often the US dollar, and they are used to make fiat currencies usable in the crypto world. Ethereum has established itself as the platform of choice for the issuance of stablecoins, with the two most important stablecoins, Tether and USDC, running on its network.

Decentralized Finance (DeFi)

Ethereum is also the foundation for decentralized finance applications, which offer a range of financial services without the need for traditional intermediaries like banks. DeFi applications include decentralized lending platforms, such as Compound, and stablecoins, which can be used for savings and collateralized loans.

Non-Fungible Tokens (NFTs)

Ethereum is being used to create non-fungible tokens (NFTs), which are unique digital assets with a variety of use cases, including in gaming and virtual reality.

Scalability and Transaction Fees

One of the main challenges facing Ethereum is high transaction fees and low throughput, with the network currently handling only 15 to 30 transactions per second. The Ethereum 2.0 upgrade, which includes the London hard fork and the upcoming Shanghai Upgrade, aims to address these issues by transitioning to a proof-of-stake consensus mechanism and introducing sharding as a scaling solution.

Investment Potential

Ethereum has experienced tremendous growth since its launch in 2015. From April 2016 to September 2024, its price rose from about $11 to around $2,505, an increase of 22,675%.

Despite the competition from other blockchains, Ethereum maintains its position as the second-largest cryptocurrency by market cap, and it is widely used for NFT trading activities.

While investing in cryptocurrencies carries risks due to their volatile nature, Ethereum's potential as a business currency is significant, and it could become the base layer for a new and alternative financial services system.

Cardano's sustainability and scalability

Cardano is a blockchain platform for changemakers, innovators, and visionaries, with the tools and technologies required to create possibilities for the many, as well as the few, and bring about positive global change. It is a proof-of-stake blockchain platform that combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.

Cardano is built on three core values: scalability, interoperability, and sustainability. Cardano's blockchain technology has the ability to allow generations to strive and for every single individual to have a part in a global society.

Cardano's first principle is to integrate a treasury system. The second principle is to deploy a formal process to propose Cardano Improvement Proposals through a system coordinated by the Cardano Settlement Layer (CSL) itself. The third principle is that Cardano believes that Ouroboros provides an elegant solution to the challenges of decentralization and sustainability.

Ouroboros is the first peer-reviewed, verifiably secure blockchain protocol, and Cardano is the first blockchain to implement it. It enables the Cardano network's decentralization and allows it to sustainably scale to global requirements without compromising security. This makes Cardano scalable and sustainable.

Cardano is also unique in its approach to sustainability. Mining cryptocurrencies requires a lot of computing power, which leads to increased energy consumption and contributes to increases in pollution, costs, and accessibility. Cardano is looking for ways to reduce resource consumption by lowering the computing power required to unlock parts of the blockchain. This makes Cardano more sustainable and scalable compared to other cryptocurrencies.

In conclusion, Cardano's sustainability and scalability are underpinned by its core values, principles, and technology. It aims to create a global society that is secure, transparent, and fair, serving the many as well as the few.

Binance Coin's role in the Binance ecosystem

Binance Coin (BNB) is a utility token native to the Binance ecosystem. It was introduced in 2017 as an ERC-20 token based on the Ethereum blockchain, with the primary function of offering reduced trading fees for users on the Binance platform. Over time, BNB's role has expanded beyond fee reduction to include staking, lending, and participating in new projects within the Binance ecosystem.

The Binance ecosystem initially featured the Binance Chain and Binance Smart Chain (BSC), but has since evolved to include the BNB Chain, which combines the Binance Chain and Binance Smart Chain. This integration aimed to deepen decentralization and broaden the token's utility beyond Binance's platform.

The BNB Chain consists of two main parts: the BNB Beacon Chain, which handles governance aspects like staking and voting, and the BNB Smart Chain (formerly BSC), which continues to support a multitude of blockchain functionalities and applications while remaining compatible with the Ethereum Virtual Machine (EVM).

BNB is integral to the BNB Chain and plays a crucial role in the Decentralized Finance (DeFi) ecosystem. It offers a considerable discount on fees for various trading options, including a 25% discount on spot and margin trading fees and a 10% reduction on futures trading fees. BNB also enables users to stake, lend, and spend on new projects within the Binance ecosystem.

Additionally, BNB holders can participate in the governance of the Binance ecosystem, influencing key decisions on the BNB Chain. The decentralized, open-source, and community-driven nature of the BNB Chain encourages engagement and involvement from its users, aligning with its democratic spirit.

Binance Launchpad, which uses BNB for Initial Coin Offerings (ICOs), provides blockchain startups with access to important resources and exposure to over 10 million Binance users. The success of these launches depends on various factors, including the quality and practicality of the project, community involvement, and compliance with regulatory and security requirements.

In terms of market performance, BNB has seen exponential growth, with gains of over 13,000% in 2021. However, it has been trending downwards since its peak in April 2023, facing regulatory scrutiny and increasing market competition. Despite these challenges, BNB remains a significant force in the DeFi sector, sustaining a considerable daily trading volume.

Solana's speed and efficiency, and developer support

Solana's Speed, Efficiency, and Developer Support

Solana is a layer 1 blockchain that offers an open framework for developing scalable cryptocurrency applications. Its architecture is built for speed, security, and resistance to censorship, with the aim of supporting global adoption.

Speed and Efficiency

Solana is one of the fastest and most functional web-scale projects that leverage the features of programmable blockchain technology to deliver Decentralized Finance (DeFi) solutions.

Solana's blockchain is designed to be highly performant, achieving impressive speeds and efficiency in transaction processing. It can handle over 65,000 transactions per second (tps), making it one of the fastest blockchains in existence. This high throughput is due to its unique consensus algorithm, Proof of History (PoH), which enables the network to process transactions in parallel.

Additionally, Solana's fees are considerably lower compared to other major cryptocurrencies, making it attractive to developers and users. The average transaction cost is just $0.00025.

Solana's innovative architecture also incorporates advanced algorithms to eliminate performance bottlenecks typically associated with blockchain software, resulting in a network that is highly scalable, secure, and decentralized.

Developer Support

Solana provides a powerful platform for developers, offering smart contract capabilities and a fast and efficient blockchain platform. Developers can create decentralized apps (dApps), decentralized finance applications, and Web3 games.

The Solana Foundation and community provide courses and resources to help developers get started with building on the Solana ecosystem. There are also tutorials, guides, and tools available from across the greater Solana ecosystem to support developers in their journey.

Solana's growing ecosystem and strong development community contribute to its potential for growth and adoption, making it a compelling investment option for those interested in blockchain technology.

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