I think it’s a good idea to start paying attention to crypto. And start incorporating it into our investments in a strategic, thoughtful way. So there are six best starter coins through which we can jumpstart our crypto journey. And these six and the best coins are great starting points.
So I want to explain crypto coins with an example from the story of the Dutch Tulip Mania. So back in the 17th century, Holland people started crazy over the colorful and exotic tulip bulbs, which were trendy. Tulip bulb prices went up so fast that anyone could make a quick buck by buying and selling them. And at one point, the bubble got so big that people were mortgaging their houses to speculate on tulip bulbs.
Then, in 1637 a couple of years later, almost overnight, the tulip bubble burst, leaving behind lost fortunes and bankruptcy for a bunch of ordinary dutch families. I find this Tulip Mania story fascinating because it is an admirable study of human behavior whenever there is a chance to earn obscene money.
What went on in crypto back in 2017-2018 was similar to the tulip bubble. So many coins bubble up like crazy and then basically become zero. So, now in 2022, the cryptocurrency is making an all-time new high. Yet again, how do we approach this time with sound investment principles versus speculative mania? The solution is to purchase coins with a real-world application. That solves an actual problem of society and, therefore, will always have a source of underlying demand.
So in this article, we will discuss the six best starter coins to jumpstart our crypto portfolio. They are:- DeFi Coin, Bitcoin, Ethereum, Cardano, Solana, and Polkadot.
1- DeFi Coin
DeFi Coin (DEFC) is an immense new cryptocurrency to invest in right now. Whereas- the rest of the crypto market is sinking. The coin has just risen by over 500% on the news that it has announced a DeFi swap. The infrastructure that powers DeFi Coin has now opened its long-awaited crypto exchange.
Anyone can now buy DeFi Coin by exchanging it for another coin. When you stake DeFi Coin, DeFi Swap also acts as a DeFi staking platform, with rates ranging from 30% to 75% APY. You need to lock your DeFi Coin for 360 days to get the best rate.
Notably, DeFi Coin is- designed to encourage long-term investment. Each DeFi coin sale is subject to a 10% fee, which motivates investors to hold even when the price rises. As a result, DeFi Coin investors could expect to stick to this token for some time.
Cryptocurrency is a type of digital money that a centralized system does not govern, such as the government. It is- instead based on blockchain technology, the most well-known of which is bitcoin. Bitcoin has the most influential history of any cryptocurrency. With a far greater price and market size than any other crypto investment choice, it’s clear to see why it’s the leader.
Many businesses now accept bitcoin as payment, making it an excellent investment. Visa, for example, accepts bitcoin transactions. Stripe will now allow clients to accept bitcoin payments after a four-year break. Larger banks have also included bitcoin transactions in their offers.
Bitcoin got another boost in May when the Luna Foundation Guard said it would make $1.5 billion on bitcoin-denominated loans. According to Fortune, terra USD will stabilize the latter. VanEck, an investing business, wants to create a bitcoin exchange-traded fund. But the Securities and Exchange Commission rejected the company’s first application.
Ethereum (ETH) is a decentralized software platform that allows the creation of smart contracts. And decentralized apps (dApps) have to- be designed and run without downtime, fraud, control, or third-party interference. Ethereum’s purpose is to develop a decentralized suite of financial commodities. That- anyone in the world, regardless of race, ethnicity, or belief, can freely access it.
This element strengthens the ramifications for those in some countries. Because- those who lack state infrastructure and identity can get bank accounts, loans, insurance, and other financial items.
Ether powered Ethereum applications, the platform’s exclusive cryptographic token. Ether (ETH) functions as a vehicle on the Ethereum platform. And developers trying to build and execute apps within Ethereum mainly sought after it. Or, more recently, by investors trying to buy other digital currencies with ether.
Cardano’s network has a smaller footprint, which appeals to investors for diverse reasons. Cardano requires less energy to conduct a transaction than a substantial network, such as Bitcoin. It means that transactions are speedier and less expensive.
Cardano released a “hard fork” last year, which improved functionality. It also enables agile contract implementation in this situation. It has also recently created a beta version of a platform called AdaSwap. Where- developers can build decentralized money applications. AdaSwap has the potential to elevate Cardano’s reputation as a Web3 network and push up the value of its token.
Cardano aims to be the most eco-friendly blockchain platform. It employs a one-of-a-kind proof-of-stake consensus technique known as Ouroboros. In contrast to the existing energy-intensive proof-of-work approach utilized by Bitcoin and Ethereum.
Solana is a blockchain platform for decentralized apps (dApps). Solana, often known as an ‘Ethereum killer,’ executes significantly more transactions per second than Ethereum. It has reduced transaction fees than Ethereum.
Good contracts are required to power novel applications, such as decentralized finance (DeFi). And Solana and Ethereum (NFTs can use non-fungible assets). However, there are some significant differences between the two.
Ethereum employs a proof-of-work (PoW) blockchain, so miners compete to solve complicated puzzles to confirm transactions. Making this technology more energy-intensive and, hence, more environmentally destructive. Solana uses Proof of Stake (PoS), which is- claimed to be less offensive than PoW.
Polkadot (DOT) is a one-of-a-kind PoS cryptocurrency that aims to provide compatibility with other blockchains. The protocol it uses connects permissioned and permissionless blockchains. And oracles, which allow the system to work together under one roof. Polkadot’s key component is its relay chain, which facilitates network interoperability. It also assigns parallel blockchains with their native currency for specific use cases, known as para-chains.
The Polkadot protocol should allow independent blockchains to communicate safely with one another. As a result, it can transfer direct value or data between the Ethereum and Bitcoin blockchains. It’s also intended to be fast and scalable, thanks to the utilization of many parallel blockchains. This shifts- a significant portion of the processing load away from the main blockchain.
Gavin Wood designed Polkadot, another of the Ethereum project’s primary creators. Who had opposing views on the project’s future. Polkadot has a market capitalization of approximately $6.9 billion as of July 8, 2022, and one DOT is worth $7.12.