These two cryptocurrencies could detract from Bitcoin
If you think that Bitcoin is the best cryptocurrency to invest in, you should know that there are altcoins with much more usefulness that could detract from the first cryptocurrency.
Bitcoin (BTC) is the $ 720 + billion colossus in the cryptocurrency market and has been considered in many things, including one hedge against inflation and the future of digital currency. But I think right now the best scenario for Bitcoin is that it is digital goldor a store of value for turbulent times.
Whether or not you are bullish on Bitcoin, I think the use cases for this digital currency have turned out to be limited in recent years. But there is a growing number of use cases built on cryptocurrencies like projects of decentralized finance, NFT and entire ecosystems of protocols that could disrupt established industries. It is these use cases that make me think that Ethereum (ETH) e Solana (SOL) could eventually dwarf Bitcoin in their total market capitalizations. Let’s see what advantages the two cryptocurrencies have against BTC.
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The growth potential of Ethereum
The most valuable cryptocurrency ecosystem today is Ethereum, which has most of the high-value assets, such as NFTs, and more mature development projects. Worlds like Decentraland, The Sandbox And Axie Infinity they are all based in some way on Ethereum and there are millions of dollars invested in these projects alone. In 2021, the NFT value on the blockchain reached $ 41 billion, according to Chainalysis, and most of it was on Ethereum.
Not only is Ethereum itself valuable, it is also tier 1, or primary decentralized blockchain, for other extremely valuable tier 2 protocols that are third-party integrations that live on top of the underlying tier 1 blockchain and provide greater scale. Polygon (MATIC), Arbitrum And Looping (LRC) are just some of the projects built on Ethereum.
To be fair, the Ethereum network is currently extremely slow and expensive and that is holding back growth. But a Ethereum 2.0 planned update this year and other updates in the coming years are needed to make the network even faster and drastically reduce costs. Without these updates, Ethereum could be in trouble, but if the update goes as planned, there is no growth cap for this digital ecosystem. Here’s why Ethereum is one of the cryptocurrencies that could detract from Bitcoin.
Read also: Bitcoin vs Ethereum. What is the best investment?
Ethereum (ETH) Live Chart
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Solana brings low costs to the blockchain
One cryptocurrency that does not suffer from high fees is Solana, which was created for high transaction volume and low fees from the start. This is also a level 1 blockchain, just like Ethereum.
What I like about Solana is how fast the network is and how cheap it is to transact. An NFT that sells for $ 20 would make sense on Solana because the transaction costs are one fraction of a centbut it would never work on Ethereum because gas fees (fees paid to validators to complete transactions) can be $ 100 or more for a transaction.
The investment in projects for Solana is also impressive. At least two funds totaling $ 250 million have been raised in recent months for investments on the Solana blockchain. This type of investment will create new infrastructure and services that developers can build on.
Innovation is happening rapidly on Solana, especially considering that the blockchain has just reached a critical mass of users in the fall of 2021. The future is bright for Solana and ultimately the value of its ecosystem may be worth more than Bitcoin.
Solana Live Chart (SOL)
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Utility is the future of cryptocurrencies
The growth of cryptocurrencies over the next decade will be driven more by utility than from trading the same cryptocurrencies. THE Metaverse projects are being built on Ethereum and Solana, and financial and gaming projects are being built with Solana as a medium of exchange.
This is where theinnovation for the next generation of the Internet, which is why I am extremely optimistic about the two cryptocurrencies. They are just starting to show their true potential to investors.
Invest with the help of the experts
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How to invest in cryptocurrency CFDs
For investing in cryptocurrencies (Bitcoin, Ethereum, Cardano, Solana, Dogecoin, Litecoin, etc …) there are more possibilities, but certainly the simplest one is through the cryptocurrency CFD trading.
Among the advantages of trading cryptocurrencies through CFDs is being able to trade 24 hours a day, even on weekends. Also with CFDs it is possible to ‘bet’ both upside and downsidethus having the possibility of gaining (or losing) both during the bullish and bearish phases.
Furthermore, CFDs on cryptocurrencies can count on leverage of 1: 2 for retail investors. This means that by investing € 1,000, the position on the market will be double, € 2,000. Leverage has the advantage of doubling your profits but exposes you to greater risk if prices go in the opposite direction to that chosen.
Where to invest in cryptocurrencies with CFDs
Investing in cryptocurrencies is a favorite activity of many people who wish to ride the enthusiastic rally of digital currencies. Thanks to CFDs, anyone can easily access the financial markets and buy cryptocurrencies (or other types of assets such as stocks, currencies, commodities, etc …), even with a small starting capital.
If you want to start investing in cryptocurrencies we recommend that you do it with a demo account, which many brokers offer for free, such as eToro (see here eToro review).
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