The Top Cryptocurrencies for 2018. If you’re looking to invest in Cryptocurrencies in 2018, this is the article for you.
After significant research, we’ve produced our list of the top 7 Cryptocurrencies to invest in plus a bonus one at the end. We’ll be explaining why we love each of these projects and we’ll also be covering why we wouldn’t invest in Ethereum.
YOU WILL LEARN:
The Top Cryptocurrencies for 2018
Why We Aren’t Investing In Ethereum
Why IOTA Could Have An Incredible 2018
1. IOTA (MIOTA)
What Is IOTA?
IOTA is a cryptocurrency which is unique to all others in the market in many ways. While the majority of Cryptocurrencies use the blockchain technology, IOTA uses tangle technology.
Theoretically, this provides IOTA with the following advantages:
- Infinitely Scalable
- Zero Fees
- Unhackable by quantum computers
To say that this is a big advantage would be a massive understatement – these benefits solves many of the biggest problems that the biggest Cryptocurrencies – Bitcoin, Ethereum – are facing.
Internet Of Things
IOTA state that their goal is not to replace Bitcoin but to work alongside them; focusing on the millions of micro-transactions necessary for the Internet of Things.
In all honesty, we don’t buy it – if IOTA are able to carry out millions of transactions with zero fees, why would they only be used for the Internet of Things when they can be used for any regular transaction?
We believe that they might only be pitching themselves as a supplement to Bitcoin, rather than a replacement, in order to not put off die-hard Bitcoin investors.
What we’re saying here is that IOTA may carry even more potential than they even claim at this point in time.
Too Good To Be True?
It’s time for a reality check – if IOTA really is as incredible as it first appears, why would they be outside the top 5 (at time of writing)?
There have been some concerns surrounding IOTA – very recently, they used some very confusing wording in an announcement which led investors to believe they had formed a partnership with Microsoft. This turned out to be untrue.
Therefore, while we are very keen on IOTA overall, we do still have a few concerns about them in the long-term.
Why Will IOTA Have A Great 2018?
We’ve just been discussing some long-term concerns we have with IOTA so it must seem pretty counterintuitive for them to be on our top 10 Cryptocurrencies for 2018 list, right?
The simple answer is that hype alone will carry IOTA to incredible heights in 2018.
IOTA promises more potential than virtually any Crypto out there and this market is driven pretty much entirely by speculation.
With IOTA possibly becoming the currency used for the Internet of Things – a radical technological development coming over the next decade – we believe that investors will pile money into IOTA over 2018.
What Is IOTA’s Coin Used For?
IOTA is a currency. Therefore, the price of the coins is entirely linked to the success of IOTA.
2. QUANTSTAMP (QSP)
What Is Quantstamp?
Quantstamp is a project designed to audit smart contracts.
Remember the huge problems caused by errors in smart contracts in the past which led to the DAO failure in 2016 and recent parity wallet hacks, causing investors to lose millions?
Quantstamp will be providing an automated, scalable solution that can check through smart contracts to find errors.
What Is The Quantstamp Token Used For?
The Quantstamp token, QSP, is an access token.
Therefore, if a project wishes to use Quantstamp’s solution, they will first have to buy tokens from the exchanges.
If Quantstamp are successful, demand for their token should rise and thus token prices should also increase.
Why Will Quantstamp Have A Great 2018?
We believe that smart contracts will be one of the most revolutionary things to come from the Cryptocurrency revolution over the next few years.
The number of smart contracts should increase rapidly over the course of 2018 due to the many benefits that they provide – greater efficiency, reduced costs, trustless systems and more.
However, if we continue to see such fatal errors in the code causing these smart contracts to damage the wallets of investors, how can anyone trust them? They can’t.
Therefore, Quantstamp will be providing an incredibly important service which virtually every smart contract platform will want to use.
Check out our article review here our video review below for more details on the Quantstamp project:
Best On The List?
Combine this with the fact that Quantstamp have already audited their first smart contract (Request Network), they’re priced stupidly low – outside the top 100 – and have the first mover advantage, we think Quantstamp could be the biggest gainer on the list over the next year in percentage terms.
3. NEO (NEO)
What Is NEO?
NEO is a smart contract platform, similar to Ethereum. It does have many differences though e.g. the much higher transaction speed – 1,000 per second for NEO compared to 15 for Ethereum.
NEO also carries another benefit over Ethereum – their smart contracts can be coded in many languages whereas Ethereum can only be coded in Solidity.
To simplify, this means that when people wish to use NEO’s platform, they can begin right away. With Ethereum, on the other hand, they will have to learn the Solidity programming language first.
Is NEO Better Than Ethereum?
Reading this, you’re probably thinking that we are bullish on NEO for 2018 because we believe it’s better than Ethereum. In truth, Ethereum has many advantages over NEO and these shouldn’t be discounted.
We’ll explain below the real reason that we’re bullish on NEO.
China’s Answer To Ethereum?
When NEO launched, it was touted as being ‘China’s answer to Ethereum’. Soon afterwards, China announced severe restrictions; banning ICOs and Cryptocurrency exchanges.
With NEO being a platform designed to host ICOs, this was a devastating blow and NEO’s price crashed accordingly.
Subsequently, NEO rebranded in an attempt to distance themselves from the harsh regulations of China. In spite of this, the majority of investors still view them as inextricably tied to China.
Therefore, if China lifts their ban, we would undoubtedly witness a huge surge in NEO’s price – most likely doubling in value, at least.
Why Will NEO Have A Great 2018?
Many people – including us – believe that the Chinese bans are temporary; they are only in-place until China formulates their permanent regulations.
As a result, we fully expect to see China’s bans lifted at some point during 2018. In turn, this will cause a huge spike in NEO’s price.
This turns NEO from a great buy into an incredible one.
What Is The NEO Token Used For?
By holding NEO tokens, users will receive GAS tokens as a form of passive income, with GAS tokens being the native token of the platform.
Should I Buy GAS Instead?
You might be thinking: ‘If GAS tokens are the currency used on the NEO platform, why wouldn’t I just buy GAS instead of NEO?
We believe that this is a perfectly valid question and, in fact, either choice would be an equally solid addition to any portfolio – if you prefer GAS to NEO, this could be the buy for you instead.
4. OMISEGO (OMG)
What Is OmiseGo (OMG)?
To quote OMG’s website “the OmiseGO Blockchain comprises a decentralized exchange, liquidity provider mechanism, clearinghouse messaging network, and asset-backed blockchain gateway”
In other words, OmiseGo is a project with many purposes. While OMG is focusing heavily on the remittances market, there are also many other projects with a similar goal.
Therefore, when describing why OMG will have a great 2018, we will be discussing what we believe is their stand-out feature – their decentralised exchange.
Why Will OmiseGo Have A Great 2018?
In this list of the best Cryptocurrencies of 2018, we’ve included 2 different decentralised exchange platforms because we believe that 2018 will be the year of the decentralised exchange.
Why Do We Think This?
With the ban brought in by China last year and the incoming regulations from few other countries, we expect that 2018 will be the year that governments all around the world will begin introducing their Crypto regulations.
Many of these countries may entirely ban Cryptocurrencies – like China – until they’ve drawn up their regulations. In these scenarios, investors and traders won’t be able to use centralised exchanges.
Instead, they’ll be forced to use decentralised exchanges in order to circumvent regulations.
We also believe that many investors and traders will choose to avoid centralised exchanges in order to pay less tax.
While we do not condone this behaviour, we feel confident that many Crypto investors/traders will do this anyway.
Because of these two reasons and many more, there will be a huge demand for decentralised exchanges throughout 2018.
In fact, we believe 2018 will be such a good year for decentralised exchanges that investors could pick many different options for investing.
However, there are many specific benefits to the OmiseGo platform which make it a particularly good investment.
We’ll talk about these and why OmiseGo is a good investment next.
There are several reasons we could discuss as reasons why OmiseGo should be a great investment, including:
- Strong Advisory Board – Vitalik, the founder of Ethereum, is an advisor!
- Existing Company – The company have had real success in the past
However, we want to focus specifically about the exchange and how OmiseGo are solving the problems seen by current decentralised exchanges.
Decentralised exchanges are great as a concept but they aren’t a viable option in their current state due to the following issues:
- Low Liquidity – A lack of buyers and sellers makes it very difficult to buy or sell
- Unfriendly Interfaces – With less intuitive interfaces than centralised exchanges, users are often put off
- Transaction Speeds – As an exchange grows, it must have fast transaction speeds in order to keep up with demand
Liquidity – OmiseGo will hold large stores of Ether at all times and allow everything to be traded against Ether. As a result, OmiseGo should be able to offer high liquidity on all trading pairs.
Unfriendly Interface – OmiseGo will be building their exchange from scratch with the user experience in mind
Transaction Speeds – OMG will be the first Cryptocurrency to make use the much anticipated upgrade called Plasma. This should allow incredible scalability for OmiseGo, allowing “support for all the world’s currencies plus crypto for >1 Billion users simultaneously”
With such an incredibly promising future – especially as the decentralised exchange is just one element of OmiseGo’s plans – we believe that investor hype will drive OMG’s price up to new heights in 2018.
What Is The OmiseGo Token Used For?
The OMG token is used to validate the network in a Proof-of-Stake manner.
5. SALT (SALT)
What Is SALT?
Salt is a lending platform where you can use your Bitcoin/Ethereum or other top Cryptocurrency as collateral.
In other words, SALT will allow you to take out a loan by offering up your Cryptocurrency in case you can’t make your payments – similar to taking out a mortgage on a house and putting the house up as collateral.
You’ll be able to take out a loan of up to 80% of your Crypto value. For example, let’s say you have $100,000 of Bitcoin and require cash for your everyday life but don’t want to sell your Bitcoin.
With SALT, you’ll be able to take out a loan of $80,000. As long as you keep making your payments, your Bitcoin will be released back to your wallet at the end of the contract.
What Is The SALT Token Used For?
The SALT Token is an access token. In other words, in order to use SALT’s platform, you first have to buy tokens from the exchanges. The higher the loan you require, the more tokens you must buy.
Therefore, if the SALT platform is successful, the token price should rise.
Why Will SALT Have A Great 2018?
We believe that the following situation will occur:
- People will use SALT to take out a cash loan using their Bitcoin/Crypto as collateral
- With their cash, people will buy more Bitcoin/Crypto
As SALT won’t require people to have good credit or go through any check others than KYC, regular people from all around the world who wouldn’t be able to get loans from banks will be able to use SALT and effectively leverage their Crypto position
Is This A Good Idea?
We would say that this is a bad idea for virtually everyone. However, if this market is one thing, it’s irrational and it’s for this reason that we believe this situation will undoubtedly occur.
Why Not Use Regular Leverage?
You may be thinking at this point that people can simply leverage their Bitcoin position on certain exchanges so why would they use SALT lending?
The reason is that it’s currently pretty much only possible to leverage Bitcoin – you can’t leverage an entire portfolio.
With SALT, you receive cash which means you can buy more of any Cryptocurrency that you wish.
Another positive to back up our previously mentioned points about SALT is that the platform will be released very shortly
6. KYBER NETWORK (KNC)
What Is Kyber Network?
Kyber Network is a decentralised exchange which makes use of smart contracts to carry out trades. If you’d like to see more information, check out their explainer video below – it very effectively summarises their project.
What Is The Kyber Network (KNC) Token Used For?
The Kyber Network (KNC) token will be used to pay for fees on the exchange. These fees – paid in KNC tokens – will be burnt after their use which should reduce the total supply over time and lead to higher token prices.
On top of this, Kyber discuss that users first purchase tokens in order to use the platform.
With these two aspects in mind, the price of tokens should increase as long as the platform is successful.
Why Will Kyber Network Have A Great 2018?
During our explanation about why OmiseGo will have a great 2018, we covered why we believe all decentralised exchanges could have an incredible year.
With Kyber Network being another decentralised exchange, the same principle applies here so there is little point us wasting your time by repeating the reasons already given for OMG.
Instead, we’ll cover how Kyber Network will tackle the issues currently faced by decentralised exchanges:
- Liquidity – Kyber will hold a reserve of all currencies in order to ensure sufficient liquidity at all times
- Unfriendly Interface – Kyber will be designed with the user experience as a very important factor
Above, we haven’t mentioned the issue of transaction speed as we have found little reference made to that through our research online.
If Kyber were a more expensive project, we would view this as a potentially off-putting issue.
However, as Kyber Network is currently placed at 70th in the market, it’s a very cheap price and we believe that the massive potential upside certainly justifies a small risk in this sense.
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7. BITCOIN (BTC)
We couldn’t really have a top Cryptos of 2018 list without including Bitcoin now could we?
What Is Bitcoin?
Bitcoin is the first digital currency; the pioneer and leader of the Cryptocurrency revolution.
What Is Bitcoin’s Coin Used For?
Bitcoin is a currency. Therefore, the price of the coins is entirely linked to the success of Bitcoin.
Why Will Bitcoin Have A Great 2018?
With the recent release of Bitcoin futures and the news that Coinbase briefly became the #1 downloaded app (on the app store) in the US, it’s fair to say that the end of 2017 was a big step forwards for legitimising Bitcoin.
Many people may say that Bitcoin is overpriced. They might even be right. However, even if they are right in the long-term, Bitcoin’s price will still go considerably higher in the meantime.
Why do we think this?
One word; Funds.
Funds Could Be Huge For Bitcoin
Currently, fund managers have no easy way to include Bitcoin in their funds and the purchasing power of global funds should not be underestimated.
Once fund managers are able to add Bitcoin to their funds in an easy and cheap method, it could cause the price to soar – assuming that these funds have to buy the underlying asset i.e. directly buying Bitcoin.
We don’t want to go too technical here but we think it’s necessary to at least mention why fund managers will be so keen to add Bitcoin to their fund portfolios.
The most obvious reason is simply that Bitcoin has been producing incredible profits for investors. The second reason is that Bitcoin is not correlated to the price of regular assets e.g. if the price of real estate goes up, it has no impact on Bitcoin.
To keep it simple, this is incredibly rare and provides a fund manager with an incredible opportunity to increase their potential reward while minimising risk.
This kind of opportunity is very rare and we would be incredibly shocked of fund managers choose to miss it.
The Least Impressive Upside?
We want to be clear here – Bitcoin may have great upside potential but it arguably has the least of all the currencies on this list. On the flip side though, it’s also the safest pick as it is usually the least affected by market swings compared to other Cryptocurrencies.
Personally, we believe that there is greater potential for profits by spotting the undervalued altcoins in the market so we aren’t heavily invested in Bitcoin. However, we still recognise that any strong portfolio should include Bitcoin also.
BONUS PICK #1 – LITECOIN (LTC)
What Is Litecoin?
Litecoin is a currency, often described as the ‘Little Brother of Bitcoin’. Originally a hard fork of Bitcoin, Litecoin regularly implements upgrades before Bitcoin does.
What Is Litecoin’s Coin Used For?
Litecoin is a currency. Therefore, the price of the coins is entirely linked to the success of Litecoin.
Why Will Litecoin Have A Great 2018?
Due to Litecoin choosing to work with Bitcoin instead of aiming to replace them, the future of these two currencies is linked to each other… except Litecoin is much cheaper and therefore has a far greater potential upside than Bitcoin.
In other words, if Bitcoin is successful over the next year, we expect Litecoin to share in this success and potentially increase a greater amount in percentage terms than Bitcoin.
What About The Lightning Network?
The lightning network is a future upgrade that Bitcoin could implement in order to improve on their scalability issues.
Some people in the community argue that Bitcoin adding the Lightning Network would be the end of Litecoin – after all, why would Bitcoin need Litecoin to assist with scalability issues when they have Lightning?
While some people argue this, Charlie Lee – Litecoin’s founder – has spoken of a future where both Bitcoin and Litecoin have Lightning and Atomic Swaps (a method of converting one currency for another without using an exchange).
In this likely future, there would actually be more of a need for Litecoin than ever before.
Without getting too technical, the Lightning Network doesn’t fully solve Bitcoin’s scaling issues but the addition of a second blockchain – i.e. Litecoin – to assist along with Lightning could be a big step forwards.
BONUS PICK #2 – COSS (COSS)
What Is COSS?
COSS is a profit-sharing exchange whereby token holders receive 50% of fees charged on the exchange.
What Is The COSS Token Used For?
The COSS token is a profit-sharing token. In other words, holders of the token receive fees collected on the exchange
Why Will COSS Have A Great 2018?
The idea of a profit-sharing exchange is somewhat unique – with only a few competitors such as KuCoin. COSS are also working towards building a decentralised exchange while some of their competitors are not.
While it should be noted that KuCoin is arguably better than COSS, KuCoin is also vastly more expensive and thus has lesser upside potential.
COSS spent several months during their development focused on attempting to create solutions for virtually every issue in Cryptocurrencies.
Recently, however, COSS announced that they would begin spending 100% of their time focused on their exchange – a move that we celebrated – and have demonstrated the future potential of the project as we have seen solid progress since
KuCoin vs COSS
Check out our video below for our comparison between the two projects.
High Reward = High Risk
Viewers should be aware that COSS is the cheapest of all our picks which means it has the greatest upside potential but it also has the highest associated risk.
Therefore, while we are personally invested in COSS, we are also well diversified.
WHY NO ETHEREUM (ETH)?
Many of you were probably expecting to see Ethereum on this list and may have been surprised at our decision to leave it off.
The reason that we’ve chosen to do so all comes down to risk vs reward.
Risk vs Reward
The potential reward for Ethereum is remarkably high in comparison to regular investments but it is considerably less than other smart contract platforms.
For example, Ether has a market cap 15x higher than NEO. Therefore, if we were to invest in Ether instead of NEO, we would expect to be taking on considerably less risk – 1/15th of the risk to be precise.
In reality though, we foresee considerable risk for Ethereum for the following reason:
Seemingly, there is a new Ethereum based project launched every day, yet the network is still a long way from being able to handle the transaction speed required – look at the recent problems with CryptoKitties for a great example.
In other words, Ethereum is nowhere is near as fast as it needs to be.
At the moment, the majority of projects hosted on Ethereum are in the development stage i.e. their platforms haven’t been built and they aren’t attempting to use Ethereum’s currently slow platform.
For us, this is where the concern enters:
What happens when many of these Ethereum-based projects launch? If Ethereum haven’t upgraded in time, they won’t be able to handle anywhere near the speed required.
As a result, ALL of these projects could suffer from incredibly slow speeds and their products may not even work as a result.
A PR nightmare causing investors to lose major confidence in Ethereum – in the short-term, at least.
Will Ethereum Upgrade?
Let’s be very clear on this; it’s entirely possible that Ethereum will upgrade their platform in time and not encounter similar issue to the recent Crypto-kitties problems.
If Ethereum was a cheap project with a low market cap, the potential gains would outweigh the potential losses. The problem is that Ethereum is an expensive project which should mean lower potential rewards but lower risk also.
As an investor, the risk/reward ratio for Ethereum is simply too high.
As we mentioned before, this might include the top Cryptos that we would invest in but that doesn’t mean there aren’t many other great investments out there.
Therefore, we’ve decided to include a few extra which could also potentially be great opportunities:
- EOS – Smart Contract Platform
- Komodo – Decentralised Exchange Using Atomic Swaps – We recommend looking further into this project
- Cardano – Smart Contract Platform
- Lisk – Smart Contract Platform
- Bitshares – Decentralised Exchange
- Populous – Invoice Trading Platform
- Golem – Decentralised Supercomputer
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