Cryptocurrencies are on everyone’s lips. Bitcoin in particular is reported almost daily in the media. The mother of all cryptocurrencies has gained over 1 700% in performance in 2017. This awakens greed and calls critics on the scene. In this article, I’d like to focus on digital currencies that are not yet enjoying the same spotlight as Bitcoin how to store cryptocurrency.
Where is the journey going?
Many investors are wondering if cryptocurrency is a bubble or if we are just beginning to see unprecedented growth. However, this is not about clarifying this fundamental issue. If you believe in the future of cryptocurrencies then you may find some valuable tips in this article. If you are unsure, I advise you against an investment. It is also not about buying recommendations. Personally, in 2018, I expect further price rises and own nine of the ten currencies presented here.
1) Iota (IOT)
Iota is one of my favorites for 2018. It’s one of the few currencies that do not use blockchain, but a network called Tangle. This can solve three major problems of Bitcoin. It is incredibly fast, has no scaling problem and is absolutely free.Especially the latter point is a huge competitive advantage. While the network of Bitcoin is often overloaded and transfers can take as long as 30 or 60 minutes, Iota cannot do that because of Tangles. There can be virtually no traffic jam on the digital highway. Iota wants to make the “Internet of Things” possible. The point is that machines bill each other autonomously in real time. Imagine you are driving your car into a parking space and this calculates the fee for the corresponding parking ticket within a few seconds. Iota’s approach is very promising and companies could benefit massively. On 19 December 2017, for example, Bosch invested heavily in Iota.
2) Cardano (Ada)
Cardano has received a tremendous response in recent weeks. The team wants to create a kind of third generation of cryptocurrencies that fix the speed and scale problems of the first generation (Bitcoin) and the second generation (Ethereum).Charles Hoskinson, one of the co-founders of Ethereum, is part of this team. It is also advertised, among other things, that the leading figures behind Cardano have an academic background (scientists and engineers). Cardano also wants to be a link between the demands of users and the need for regulation. So the goal is to place the Cardano platform directly with larger organizations. Transactions can then be made via the Cardano platform using the Coin Ada. Also so-called Smart Contracts, as with Ethereum, should follow.
3) Bitcoin (BTC)
Bitcoin is now technically significantly inferior compared to other crypto currencies. The network is slow and overloaded. Nevertheless, I trust Bitcoin very much in 2018 too. Bitcoin is an official form of payment in some countries (Japan, Australia), most Bitcoin ATMs are already in most European countries, you often need Bitcoin to buy other crypto currencies, and Bitcoin is likely to become established as an investment. To reach the market capitalization of gold, the price of 1 bitcoin would have to increase by a factor of 25. The mother of all cryptocurrencies belongs in every crypto depot.
4) Lisk (LSK)
Lisk wants to make it possible to develop decentralized apps, so-called dApps. Lisk works much like Ethereum. However, there is not just a blockchain, but next Mainchain sidechains. This makes Lisk more flexible, scalable, and it does not always require hard forks. The huge advantage of Lisk, however, is that it uses Java Script. This is one of the most common programming languages. IT people do not have to get used to it, so they get much easier access to develop dApps.
5) Omisego (OMG)
Omisego is a kind of decentralized payments network that wants to connect the world of cryptocurrencies with the world of common Fiat currencies. It therefore allows worldwide transfers within a few seconds in all currencies. In addition, other assets, such as stock portfolios or real estate, are also to be managed via this. It could be said that Omisego is your own individual and decentralized bank. Ripple is following a similar approach. However, both differ in terms of decentralization. While Ripple needs some centrality, Omisego does not need it.
6) Golem (GNT)
Golem claims to be a decentralized supercomputer whose computing power you can offer, rent or use yourself. Imagine you lack the computing power in your business or science business to complete a particular project. Then you can use this computing power through the Golem network. Often Golem is therefore regarded as AirBnb for computing power. You can rent unused, empty computers or use them yourself.
7) Ark (ARK)
Ark arose from a hard fork of Lisk and wants to build a bridge between all common crypto currencies. For this purpose, so-called smart bridges are used. In other words, the platform will allow you to: If you want to send Bitcoin to someone, you can send your Ark Coins and they will automatically convert to Bitcoin at the other end. In addition, the Ark team wants to enable cloning. Based on the technology everyone should be able to add their own blockchain as a sidechain (similar to Lisk). This will be part of the main chain. I think that especially the smart bridges sound very interesting.
8) Ethereum (ETH)
Ethereum is currently number two behind Bitcoin. At the heart of the company are smart contracts, but also dApps. For the data hosting or the monitoring of the fulfillment of contracts often central Internet giants are needed eg Amazon. They would be superfluous when using smart contracts. Likewise, when using dApps you would have the necessary data back in your own hands due to decentralization. Ethereum’s course has taken a big leap in recent weeks. This can be attributed to the appearance of cryptokitties . Since Ethereum is currently the number two behind Bitcoin, the currency belongs in every crypto depot.
9) Ripple (XRP)
Ripple allows, similar to Oimsego, a kind of financial network. It is therefore often referred to as bitcoin for banks.Ripple wants to exchange financial assets in real time. For example, banks could issue and save promissory notes through the Ripple Network. Ripple also has a speed and cost advantage over Bitcoin because of its blockchain or ledger. In order to make the ripple network functional, so-called gateways are used to install bridges between eg Bitcoin and the real world. Within the ripple network, no values are transferred, but only placeholders (promissory notes) for these values. So that a real equivalent can be transferred, it needs these gateways. Actually, these gateways are a kind of financial service providers that use the ripple network and ensure that in the end can be exchanged again in Fiat currency. Often this is seen as a criticism by the community, as it puts the decentralized character into question. Thus, Ripple differs in terms of, for example, Omisego.
10) Eos (EOS)
Eos, like Omisogo, is based on Ethereum technology. The project uses the modest slogan “Decentralize Everything” and wants to become a serious competitor to central companies like Ebay or Facebook. In order to enable the corresponding speed of the transactions, the so-called proof of stake is used, as in Omisego. Blocks and coins are no longer generated on hardware as in Bitcoin, but via coins in the blockchain. Eos was launched in July 2017 and was founded by Dan Larimer, who also launched BitShares and Steem.
How can you buy cryptocurrencies?
To buy a currency, you need a stock market or cryptocurrency marketplace. However, you should know that it is not possible to buy all of these currencies through a provider. Coinbase is currently the largest stock exchange in the market. However, it only offers three cryptocurrencies: Bitcoin, Ethereum and Litecoin. In addition, you can buy many alternative currencies (Altcoins) only with Bitcoin or Ether. If you are interested in making a purchase, I recommend using a stock market or a marketplace as a sort of base. You could eg over bitcoin.de * or coinbase.de* Buy Ether and immediately transfer the acquired Ether to another exchange that Altcoins offers. There you can transform the transferred Ether e.g. in Iota, Cardano or Lisk. I recommend you prefer Ether Bitoin for the transaction as it is faster and costs less.
How can you secure cryptocurrencies?
To secure cryptocurrencies, you need a digital purse, called a wallet. You can also get the work off a cryptocurrency stock exchange. Your coins are managed directly by the provider. Some providers save the coins online (hot wallets), others save them on hardware or paper (cold wallets). However, you must remember that you can lose your coins if the provider goes bankrupt or you lose your storage medium.If you want to manage your coins from the provider, I recommend you to distribute the coins on several stock exchanges. To create your own wallets you can find a whole series of instructions on the Internet. Suitable are all common data storage devices (USB sticks, hard disks, etc.). Statistically, the safer version (Cold Wallet) has so far lost more money because some shoppers have simply lost their digital wallets. If you decide to keep your coins from a stock exchange, it is very important that you follow carefully the security instructions on their home page. Usually, a two-factor authentication is offered, which you should definitely activate.