While cryptocurrencies have made a lot of people millionaires, some have become retched as a result of investing in virtual currencies. While Bitcoin dominated the whole 2017 and made a lot of investors millionaires, there are plenty other cryptocurrencies out there, most of which are also popular with a relatively high profile like Ripple and Ethereum. However, there are also lesser known cryptocurrencies, too; thousands of them out there.
While it is relatively not common to buy anything with the virtual coins, there is still a lot of money one could potentially make these more obscure currencies that have been compared to the ‘penny stocks’ of the crypto world – and the right virtual currencies could be due for the rise just like Bitcoin did in 2017.
Here are five potential virtual currencies which could be heading up, but note that you are investing in the volatile arena at your own risk.
1. Litecoin (LTC)
Litecoin was created by a former Google engineer Charlie Lee in 2011. It is often referred to as the Bitcoin ‘little brother’ – a kind of silver to Bitcoin gold – with a current market cap of $10 billion, and a hard limit of 84 million Litecoin to be issued.
Litecoin, just like Bitcoin is a decentralized cryptocurrency which allows peer-to-peer transactions. While Bitcoin is based on the SHA algorithm, Litecoin uses a Scrypt algorithm that runs faster, with a target of 2.5 minutes for each new Litecoin block (of course, Bitcoin takes ten minutes per block).
This means that Litecoin transaction is faster, and comes at a lower cost compared to Bitcoin. This is a favorable point when it comes to the potential growth of Litecoin.
2. Bitcoin Cash (BCH)
BCH was forked from the original Bitcoin in 2017, and currently holds the market cap of $28 billion. The goal behind creating Bitcoin Cash is to create the new version of Bitcoin with a bigger block size, because the original Bitcoin was limited to 1MB that in turn limited the processing of Bitcoin transaction to just seven per second, a huge restriction as Bitcoin becomes more popular.
The BCH creator views it as the next step on when it comes to the evolution of the virtual currency, promising faster peer-to-peer transactions at a lower fee.
3. Vertcoin (VTC)
Vertcoin is similar to Litecoin and Bitcoin, and it was launched in 2014, although it is not well-known. With block time of 2.5 minutes, Vertcoin is open source and decentralized virtual currency. It has been named ‘the peoples’ coin.
In a simple term, Vertcoin is trying to avoid both centralized mining powers and banks control. It incorporates ASIC resistance, which means it is designed to avoid being dominated by mining farms, giving everyone the chance to mine it using simple consumer graphic cards.
Vertcoin also makes use of the Lightning Network to conduct instant blockchain transactions. Also, the Lightning Network’s Atomic Cross-Chain allows Vertcoin to be exchanged directly into Bitcoin or Litecoin, decentralizing the exchanges. The creators of Vertcoin are now working on ‘Stealth Address’ which will allow them to provide privacy within the public ledger of the blockchain.
Vertcoin is also popular for its active community on social media websites and novices can easily mine it by using one-click software – it is highly accessible.
4. Monero (XMR)
XMR is an open source cryptocurrency dated back to 2012. Its original name was Bitmonero but was later shortened to Monero. Monero is a decentralized cryptocurrency based on CryptoNote algorithm, with new block added every 2 minutes, which means it provides faster transactions than Bitcoin.
Monero is also fungible, so transactions are private, and it offers on tainted coins. Also, Monero is resistant to ASIC mining, making it hard for professional mining companies to mine and therefore keeps it decentralized.
5. IOTA (MIOTA)
IOTA has started attracting attention following its release as the alternative cryptocurrency bank in 2014. This virtual currency was developed for the future IoT devices to trade their resources and services directly with each other so that IOTA is used for the payment. This cryptocurrency was designed to provide efficient, low-cost microtransactions.
While other virtual currencies are based on the blockchain, IOTA deal via a Directed Acrylic Graph (DAG) called Tangle. To perform a transaction via IOTA, you need to participate in the network, which you should do by verifying your last 2 transactions. This gives IOTA the opportunity to provide free transactions and allows it to scale so that as it becomes famous, more folks will want to verify transactions.
The world of cryptocurrency is getting matured, and transitions from just investment vehicle to being used to make payment in the real-world, IOTA approach and free transaction fees, particularly for micropayments make it well positioned. Also, IOTA cannot be mined because it was all created in a single original transaction.