Everyone talks about Bitcoin (BTC) and Ethereum (ETH,) and rightly so. The behemoths dominate the market, and certainly attract enough attention between them. But smart traders and investors understand that it is the lesser currencies where real gains can be made. It is, therefore, essential to look past the giants to the up and coming gems.
Here are a few lesser known cryptos that smart investors and traders should be keeping an eye on.
Stablecoins are taking the market by storm, standing apart for having their value tied to a traditional currency. Tether is pegged to the United States dollar, meaning that it will have a near identical value. The idea is to provide investors with desperately wanted stability, mostly sidestepping the volatility seen elsewhere. Traditional dollars and bonds are used as cryptocurrency collateral, ensuring that what Tether is worth today should be the same as its worth tomorrow. Or even in a year.
Tether is the biggest stablecoin at the moment, and stands as an excellent investment opportunity. After all, as traders and investors lean more towards wanting stability, this is the obvious solution.
BNB was originally established on the Ethereum blockchain, designed to allow uses to avoid paying trading fees. After an initial incredible performance investors were soon enjoying early returns of 1,300%. Since being established BNB has grown rapidly, acting as the glue that helps the crypto ecosystem function. BNB has become essential for all smart traders, making it a potentially massive investment. As some traders like to point out, as long as there is crypto there is going to be BNB.
Bring up Dogecoin and investors will automatically talk about Elon Musk. After the billionaire adopted the currency as his favourite the predictable value increase occurred, raising numbers by absurd amounts. After Musk tweeted early investors enjoyed returns of thousands of percent; a benefit that speaks for itself. Similarly between October and November 2022 the DOGE market cap jumped by another 144%. Analysts will point out that previous performance is no guarantee of the future, but it seems safe to say that Dogecoin at least deserves a serious look.
Another stablecoin similar in structure to Tether, USD Coin is a potentially sound investment opportunity. As with Tether, the value of USDC is directly tied to the real world dollar. As USDC is purchased the real world cash is deposited and stored, acting as part of the reserves. When USDC is sold that cryptocurrency is burned, meaning that a theoretical balance is maintained. It’s a sound system, especially since the currency as a whole is backed by United States regulated reserves. USD Coin has been gaining major traction lately, acting as a perfect trading currency in the crypto-sphere. The only thing to keep in mind, as with Tether, is that while stablecoins avoid crypto fluctuations, they are subject to real US dollar fluctuations.
All of these cryptos are well worth a look, though which a trader or investors chooses is, of course, entirely up to them.
