Cryptocurrency is synonymous these days with words like uncertainty, volatility, and risk. Yet these coins may actually work to keep your portfolio safe if 2023 takes an economic downturn like many experts are predicting.
The cryptocurrencies on this list may not be as well-known as Bitcoin, Cardano, Ethereum, Polygon, and Tether. But a diverse portfolio is an excellent way to protect your assets if a recession hits. Do yourself a favour and find out more about these soon-to-be-big players.
The main reason Litecoin is a potential recession hedge is that its generation rate has been set up to run faster than Ethereum and Bitcoin. This followed on from the goal of making Litecoin a day-to-day payment system where it would replace your credit and debit card apps on your smartphone and tablet.
We may still be far away from a world in which Litecoin is the go-to payment option. But the head start it has is why it’s on this list. Ironically, a recession may be just the kickstart this cryptocurrency needs to become more entrenched in daily transactions.
Polkadot is so much more than a simple cryptocurrency because it solves one of the biggest challenges this industry faces: interoperability, or lack thereof. Polkadot’s ecosystem is a decentralised portal to what app developers may describe as heaven on earth. This is because its coding platform makes it possible to pick and choose the finest qualities of a range of blockchains.
Polkadot facilitates these individual chains interacting with one another.
Although it’s still in the very early developmental stage, the expert view is that it may go on to become a powerful player in the cryptocurrency sector.
Solana has been rather forebodingly nicknamed Ethereum Killer because of the extraordinary speed at which it can process smart contracts and transactions. Although it’s unclear whether Solana will topple Ethereum from its throne, the market is getting large enough to support another smart contracts platform. And Solana is an excellent contender.
Solana unites benefits that initially seem like they would not suit one another. For instance, it has a totally decentralised system for processing transactions, which one would think slows everything down and invites security issues.
But it also has a hybrid consensus process. This can run two blockchain ledgers side by side. And the unique Proof-of-History keeps totally accurate time for the composite system. This allows the Solana Proof-of-Stake chain to handle the safety evaluation of multiple pending transactions in an unpredictable sequence. Thereafter, the PoH timing signal system can reassemble the scrambled pieces of the puzzle in the order they should be in.
You need to make cryptocurrency investments in such a way that you make money. Regardless of which direction any token is moving on any day. Diversify your portfolio with this in mind. The whole point of cryptocurrency is to generate an alternative system of finances that isn’t subject to the perils of our current one.
