New Crypto: Best Investment Options

Cryptocurrency is digital money that is not managed by a central system, like a government, but by blockchain technology. Bitcoin, the first cryptocurrency, remains the most popular and highest-valued, with a market cap of over $1 trillion as of August 2024. Other top cryptocurrencies by market cap include Ethereum, Tether, Binance Coin, and Solana.

When deciding which new coin to invest in, it is important to consider the coin's historical performance, transaction speed, security, and level of adoption. Newer coins may be riskier investments due to their shorter history, but they can also offer higher returns. It is also essential to do thorough research and understand the risks involved before investing in any cryptocurrency.

Bitcoin's value and market cap

Bitcoin is the original cryptocurrency, created in 2009 by Satoshi Nakamoto. It is a decentralised digital currency, which, unlike government-issued currencies, does not rely on a central bank or company. Instead, it operates on a peer-to-peer network, where transactions are stored on a blockchain.

Bitcoin's value has skyrocketed since its creation. In May 2016, one bitcoin was worth about $500. As of August 2024, a single bitcoin is worth around $55,175, representing a growth of 10,935%. Bitcoin's market cap is currently $1.2 trillion, with a daily trading volume of $25,426,058,116.12.

Bitcoin's value is determined by aggregating the latest data across 223 exchanges and 5063 markets, using a global volume-weighted average formula. Its market cap is calculated by multiplying its price by the number of coins in circulation (20 million).

Bitcoin's dominance in the cryptocurrency market is notable, with a share of over 55%. Its price performance has been strong, with a decline of only -2.10% in the last 7 days, outperforming the global cryptocurrency market, which is down -1.30%.

As the first cryptocurrency, Bitcoin has gained immense popularity and established itself as a notable player in the financial markets. Its value is derived from its unique use cases, such as an alternative means of payment, and its decentralised, secure nature.

Ethereum's unique technology

Ethereum is a unique blockchain with smart contract functionality. It is a decentralised, open-source platform that supports peer-to-peer transactions. Its native cryptocurrency, Ether, is the second-largest crypto by market capitalisation, behind only Bitcoin.

Ethereum's blockchain network is distributed in the sense that everyone participating in the network holds an identical copy of the ledger, letting them see all past transactions. It is decentralised in that the network isn't operated or managed by any centralised entity—instead, it's managed by all of the distributed ledger holders.

One of the most intriguing use cases of Ethereum is self-executing contracts, or so-called smart contracts. Like any other contract, two parties agree to deliver goods or services in the future. Unlike conventional contracts, lawyers aren't necessary: the parties code the agreement on the Ethereum blockchain. Once the contract conditions are met, it self-executes and delivers Ether to the appropriate party.

Ethereum's blockchain also allows users to create and exchange non-fungible tokens (NFTs), which are tokens that can be tied to unique digital assets, such as images.

In 2022, Ethereum switched its consensus mechanism from proof-of-work to proof-of-stake, which phased out the need for miners and reduced the crypto's carbon footprint by up to 99.9%.

Binance Coin's volatility

When considering which new coin is best to invest in, it's important to remember that all cryptocurrencies are subject to high market risk and price volatility. Volatility is a measure of how quickly and how much the price of an asset changes, and it is often used as a measure of the investment risk associated with an asset.

Binance Coin (BNB) is a form of cryptocurrency that can be used to trade and pay fees on the Binance exchange, one of the largest crypto exchanges in the world. BNB has evolved since its launch in 2017 and can now be used for trading, payment processing, and even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency.

The Binance Volatility Index (BVOL) measures the expected 30-day implied volatility derived from tradeable crypto option prices. This index operates without relying on any specific model and is crafted to incorporate the entire spectrum of option strikes to accurately capture the market sentiment regarding expected volatility. The methodology used by the index provides accurate and insightful data to market participants.

As with other cryptocurrencies, Binance Coin is subject to high levels of volatility. In part, this higher level of volatility is responsible for powering mass interest in cryptocurrency investment, as it has allowed some investors to realize large returns over relatively short periods. It is likely that volatility in cryptocurrency markets will decrease in the long term as a result of wider adoption, market growth, and increased regulation.

As a cryptocurrency, Binance Coin is far more volatile than most other asset classes due to its digital nature, low level of regulation, and smaller market size. This volatility is an important measure of risk for investors to consider when evaluating potential investments in Binance Coin or any other cryptocurrency.

Cardano's functionality

Cardano is a decentralised blockchain project designed as an open-source platform to support peer-to-peer transactions. It was founded in 2015 by Charles Hoskinson, an Ethereum co-founder, and launched in 2017. Cardano is one of the biggest cryptocurrencies by market cap and is designed to be a flexible, sustainable, and scalable blockchain platform for running smart contracts.

• Energy Efficiency: Cardano’s Proof-of-Stake (PoS) algorithm is more energy-efficient than Ethereum’s Proof-of-Work (PoW) system, resulting in lower transaction costs and a reduced environmental impact. Cardano's PoS consensus mechanism, Ouroboros, saves on energy costs and enables faster transaction processing.
• Scalability: Cardano is designed to handle a high volume of transactions per second, offering a highly scalable platform for decentralised applications (DApps) and smart contracts. Its blockchain is divided into two separate layers: the Cardano Settlement Layer (CSL) and the Cardano Computing Layer (CCL). The CSL contains the ledger of accounts and balances, while the CCL layer is where all the computations for apps running on the blockchain are executed.
• Safety and Security: Cardano utilises the Haskell programming language, known for its safety features, to ensure a secure environment for complex smart contracts and DApps.
• Native Tokens: Cardano introduced the ability to create native tokens in March 2021. These native tokens run on the same architecture as the ADA cryptocurrency itself, making them theoretically more secure and reducing transaction fees.
• Staking: Cardano uses a PoS consensus mechanism, where users "stake" the blockchain's cryptocurrency (ADA) for the opportunity to become a validator. Validators open and finalise blocks of transactions and are rewarded with ADA. Users can participate in the validation process by creating or joining a staking pool.
• Smart Contracts: Cardano implemented smart contract support in 2021 with its Alonzo update, allowing developers to create DApps such as non-fungible tokens (NFTs) and manage multiple cryptocurrency assets.
• Decentralised Applications (DApps): Cardano aims to be a DApp development platform with a multi-asset ledger and verifiable smart contracts. Its DApps have multiple use cases, governed by stakers.

Polygon's Ethereum scaling

Polygons Ethereum Scaling

Polygon, formerly known as Matic Network, is a layer-2 scaling solution for the Ethereum blockchain. It aims to address Ethereum's transaction costs and scalability challenges. Polygon provides a foundation for interconnecting and constructing scalable blockchain networks. As of August 6, 2024, it is trading at $0.4129 and is among the top 25 cryptocurrencies.

Polygon offers near-zero gas fees and fast transactions while maintaining security and EVM compatibility. It connects blockchains and decentralized applications (DApps) to Ethereum via sidechains. When using Ethereum via the Polygon layer, transactions are settled immediately, and gas fees are minimal.

To achieve its scaling goals, Polygon has been actively acquiring Ethereum scaling startups. In August 2023, Polygon merged with Hermez Network, a zero-knowledge scaling solution, in a $250 million deal. In December 2021, Polygon announced a $400 million acquisition of Mir, a project focusing on zero-knowledge proofs, which allow for the verification of information without revealing specific details.

Polygon's scaling technology has been adopted by various projects, including the Ethereum-based AR metaverse ecosystem OVR. OVR is a decentralized AR project that relies on NFTs and has moved to Polygon to address scaling as its user base and activity increase.

Polygon is also planning further acquisitions to enhance its scaling capabilities, targeting a gaming studio and non-fungible token (NFT) properties. With these strategic moves, Polygon is positioning itself as a multipurpose scaling solution for Ethereum.

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