Dogecoin is one of the most sought after cryptocurrencies right now, but is Dogecoin the right asset to make a long-term investment?
There are over 11,000 cryptocurrencies currently on the marketplace. It is hard to predict which one will have a bright long-term future.
The Motley Fool states that it’s difficult to assess the fundamentals of cryptocurrencies as the market is new, which is different from when you invest in stocks. It is also difficult to know if people are telling truths because there are few rules.
Experts predict that many cryptocurrencies may fail in the next stage of cryptocurrency technology. It is clear that cryptocurrencies with solid leadership, strong foundations, and a credible, long-term vision are more likely to be successful in the long-term.
Dogecoin is gone!
Before we go into the list with coins with a brighter outlook, it’s worth explaining why Dogecoin should avoid.
- Dogecoin has no whitepaper or full-time employees. Dogecoin enjoys a loyal fan base, but no one is the leader.
- Elon Musk’s tweet heavily influences the price. Dogecoin has seen a significant price increase due to the Musk effect. However, it is not a factor in sustained growth.
- There is a lot to choose from in the digital payment space. Although digital currencies are fast and affordable, government-backed currencies and stablecoins could make it less attractive.
Elon Musk’s tweets are a key factor in the price. Dogecoin has seen a significant price increase due to the Musk effect. However, it is not a factor in sustained growth.
Most importantly, there’s a lot to be excited about.
Here are three cryptocurrencies which have a bright outlook:
1. Ethereum (ETH)
Vitalik Buterin (crypto visionary) is the man behind Ethereum. He has created a community of developers and coders.
Ethereum is the second most valuable cryptocurrency, according to market capital. It is also the first crypto to launch smart contracts.
A smartcontract is a small piece self-executing code that exists on blockchain. They transformed it from a system that only records transactions to a programmable network capable of running applications. It was the basis for nearly 3,000 applications, as well many other cryptocurrencies.
2. Cardano (ADA)
Charles Hoskinson co-founder of Ethereum, founded Cardano. It is a third-generation cryptocurrency.
Cardano opted to upgrade to address scalability, energy consumption and other issues. Instead, he used lessons from Bitcoin (BTC), Ethereum and the rest of the blockchain community to design a completely new one. It’s designed to be faster and longer-lasting from the beginning.
Cardano’s real-world abilities have also been proven. This cryptocurrency has many projects in emerging countries, including a partnership in Ethiopia with the Ministry of Education. Cardano blockchain will be used by the pilot program to record 5 million students’ academic progress. It will also give them all of their education credentials, which cannot be altered.
3. Aave (AAVE)
Decentralized financing (DeFi) refers to applications that remove banks and intermediaries from financial transactions. One example is using cryptocurrencies as collateral for a loan. This allows you to avoid credit checks and paperwork.
Aave, in essence, is a DeFi loan lender. Investors can earn an interest by donating their crypto-assets to a loan pool fund. They get the interest the borrower charges on their loan. It has strong partnerships and a solid reputation. DeFi is a new industry that has the potential for transforming the way we look at banks.