In this article, we discuss 5 best cryptocurrencies to invest your $1000. If you want to read our detailed analysis of these currencies, go directly to 10 Best Cryptocurrencies To Invest Your $1000.
5. Polygon
Polygon is the rebranded version of the MATIC blockchain network. The network was developed by three Indian engineers who were seeking a solution to problems on the Ethereum blockchain that included low throughput, high fees, and limited developer options. Polygon is a layer two scaling platform that allows Ethereum-based applications to run with more flexibility. The success of this network is evidenced by the fact that more than 3,000 DeFi apps now run on the system, including 80 big names that migrated from the Ethereum network.
The Polygon network is fully compatible with the applications developed for Ethereum. The network utilizes a proof-of-stake consensus mechanism. It does this by using a side-chain on the Ethereum blockchain, a method also being used by other coins to bundle data more efficiently in order to solve Ethereum’s high fees and low transaction speeds problem.
4. Loopring
Loopring is a decentralized exchange platform that is based on the Ethereum blockchain. The main purpose of the platform is to allow users to trade broadly across various systems and exchanges. It offers greater liquidity for trades than other platforms. To make trades, users place orders using the Loopring wallet. These orders are referred to the Loopring blockchain that uses smart contracts and off-chain relay nodes. Ring miners ensure these orders can be filled and are compensated for their troubles through native coins or split margins from different orders.
Loopring is different from other exchanges since it uses a careful process of stringing orders together and fulfilling them by ring-matching. Ring-matching can involve more than two parties. It makes the order validation process quicker and easier. Loopring essentially allows users to build high throughput and non-custodial exchanges on the Ethereum network.
3. Harmony
Harmony is a blockchain platform that aims to provide a cryptocurrency that is infinitely scalable. Scaling coins usually involves a compromise in terms of security or decentralization but Harmony solves this by combining data sharing and scaled decentralization. Harmony also runs a marketplace for fungible and non-fungible assets. One of the primary aims of the network is to build an online community strong enough over time to be a viable alternative to the centralization of present-day society.
Harmony uses a proof-of-stake mechanism to validate transactions and also makes use of “sharding” for secure and fast transfers. Over the past few months, it has been one of the prominent crypto gainers amid a broader lull around the growth market. Since January 2021, the price of one Harmony coin has increased by around 4,000%. The coin presently has a market value of close to $3 billion.
2. Curve
Curve is a cryptocurrency that was launched in January 2020. It is a decentralized exchange that uses the Ethereum blockchain for transactions. This exchange is different from other exchanges since it allows users to complete orders even if there are no other buyers and sellers on the platform for that particular trade. This is made possible through the liquidity pools of Curve. Users contribute to the liquidity of the exchange and are afterwards compensated through a percentage of the platform’s trading fees.
Curve also allows users to earn rewards from contributions to other liquidity pools. Curve has become famous for prioritizing trades in stable assets and thus does not suffer from the volatility associated with the overall crypto market that often results in “failed trades” on other exchanges. Other platforms also make use of the stable coins market of Curve to trade in these assets.
1. Algorand
Algorand is a cryptocurrency that was created in 2017 by a team led by Silvio Macali, a professor at MIT and an expert in cryptography. The currency was adopted as the first national digital currency by the Marshall Islands in 2020. The use of Algorand makes it easier for the finance institutions of Marshall Islands to be a part of the global economy since the network allows them to move money at higher speeds and for lower fees than traditional banks. The Algorand network is a faster, more efficient chain based on the Ethereum protocols.
Algorand has a strong focus on increasing the transactions per second on the chain to 1000. Presently, the Ethereum network can only support upto 30 transactions per second, a problem that is also the cause for higher fees on the platform. Algorand also aims to finalize transactions on the network to a maximum time of less than five seconds.
You can also take a peek at 15 Most Valuable Data Companies in the World and 10 Best Japanese Stocks To Buy Right Now.
