TOP 5 CRYPTOCURRENCIES TO INVEST

TOP 5 CRYPTOCURRENCIES TO INVEST

The top 5 cryptocurrencies to invest in right now I've been getting a little bit more into cryptocurrencies. I'm excited to share with you guys my list, so when it comes to investing in cryptocurrencies. I've been looking at it with the following investment philosophy and mindset.

Number one, I'm only putting a portion of my overall portfolio dedicated to cryptocurrencies. That portion of my overall portfolio. I'm willing to lose to look at a cryptocurrency's fundamentals and see if I agree with it. Then invest accordingly. I want to preface this with the fact that I am not the most technical guy out there. But I do pride myself in the ability to fundamentally understand cryptocurrencies. Whether or not, they'll be here for a very long time so with that being said in this Blog. I'm going to go over how I like to research cryptocurrencies the top 5 cryptocurrencies to invest in right now. Explained in a very simple manner from my understanding.

As always, timestamps will be available and as chapter markers, if you just want to skip around to see. What are cryptocurrencies? I will talk to you definitely if you do read this blog. The way through it does help my blog tremendously so, thank you if you do that.

Five steps for researching a cryptocurrency

1^st step- I take whenever I'm researching the cryptocurrency that I'd love to share with you. Today, before we get into list number one, if you are interested in cryptocurrency. You want to try to read the whitepaper. Now the whitepaper for any said cryptocurrency is like stocks 10k or 10q or even a fund's prospectus. It gives you a summary of what cryptocurrency is about and what it's trying to achieve?

2^nd Step- What you can take is just to read the website of that cryptocurrency. So, on the website, it's a little bit more done in layman's terms, so that you can understand it. And also cryptocurrency a website typically will list out the roadmap of the cryptocurrency. What cryptocurrency is trying to achieve and the certain vision for that cryptocurrency itself? sometimes it even goes into the supply considerations of how the tokens are created.

3^rd Step- speaking of supply that's my number three-step whenever I'm researching a cryptocurrency. I want to figure out, how that token is being created? how it's being consumed? If there is a cap on the supply of what it is?

4^th Step- I like to figure out, how the good team is doing. You trust the team. Do you trust their backgrounds? are you all about what the founders are about? sometimes you can tell a lot, by how a cryptocurrency project is going to do. Just based on how good the team is also just like investing in the stock of a company. Do you want to know who the leadership is?. Because that's going to drive the overall vision and progress of that cryptocurrency.

5^th Step- I like to take it just to look at some websites or forums or just kind of figure out what people are saying about the cryptocurrency both on the pros and cons side of it. now there are some other factors that we can look at when researching a cryptocurrency but I like to stick to those steps I'm sure I'm missing some of them but if you are interested in a fully comprehensive guide on how to research cryptocurrencies yourself and finance has a pretty good one which I link {CLICK HERE } for you.

# 1 BITCOIN

BITCOIN IS NUMBER ONE OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

BITCOIN IS NUMBER ONE OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

On the list is bitcoin, no surprise there. Bitcoin is the cryptocurrency king. It's known as digital gold. Bitcoin has been around the longest out of all the cryptocurrencies. It's the pioneer of blockchain technology itself. Bitcoin currently hovering around a 1 trillion market cap. It's definitely because it's been around the longest. There's a lot of institutional adoption and most people whenever you talk to them understand. What bitcoin is or at least have heard of it.

Now bitcoin has been on a tear as of recent this year to date alone. It's up over 60% this year It's currently trading at about 55000 USD per coin at the time. There are 18.9 million bitcoins in circulation. Right now with a total max cap of 21 million bitcoins that will ever be created. Now if you are a little bit confused on how bitcoin or decentralized currency or how the blockchain works.

Terms of investing in cryptocurrencies bitcoin are one of the best places to start. If you're a beginner, because of how straightforward and easy it is to understand. Also, bitcoin isn't going to be as volatile, as some of the other cryptocurrencies are out there. It's probably going to be the least volatile out of all of them. I don't think, bitcoin is going to go anywhere in the future. If anything, I see more organizations institutions and even governments adopting it. Especially because it was the first cryptocurrency and it's very straightforward to understand.

#2 ETHEREUM

ETHEREUM IS NUMBER TWO OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

TOP 5 CRYPTOCURRENCIES TO INVEST

Number two is ethereum. So, ethereum is a smart contract platform and is our number two pick of the day. Now, ethereum is the second-largest coin by market capitalization with over 400 to 450 billion dollars in market cap. It's important to note that ethereum is the platform. But, Ether is the currency that you will be investing in. When you're buying ethereum, ether is used to pay, the gas fees on the ethereum network. As my friend Brian john likes to say if bitcoin is digital gold then ethereum is more like electricity.

Ethereum's goal is to be a platform for smart contracts to execute. Having other cryptocurrencies built on its platform. Ethereum's main differentiating factor from bitcoin is the fact, that it runs smart contracts. So smart contracts are lines of computer code that automatically get executed. Whenever certain conditions are met, developers are making apps on the ethereum network to run smart contracts. Ethereum smart contracts could replace, how real-world transactions are currently being done just on the ethereum network.

For more information on smart contracts, because I know it's a little bit confusing I do have a beginner Blog that describes exactly what they are in my what is ethereum, I also link right here {Link}.

Currently, ethereum is trading at about 4000 to 4100 a coin which is pretty crazy considering a year ago it was trading for maybe 130 200 a coin. right now the current market capitalization of ethereum is around 460 to 470 billion dollars.

It's interesting to note that the ethereum supply is currently at around 115 million tokens in circulation. but the interesting thing about ethereum right now is that tokens can be infinitely created, which I don't love about ethereum. there are going to be some updates made with ethereum in the form of ethereum 2.0. now that's supposed to release sometime this year I think it is a little delayed but ethereum 2.0 is going to address some of the supply issues that ethereum currently has.

#3 CARDANO

CARDANO IS NUMBER THREE OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

CARDANO IS NUMBER THREE OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

Number three is one of my new favorites cryptocurrencies out there and it's Cardano or the token is ADA.  Cardano is another smart contract platform but it aims to be a little bit better than ethereum in terms of scale speed and energy efficiency.

Cardano was founded by one of the ex-founders of ethereum by the name of Charles Hodkinson and the project was launched in 2017. the main differentiating factor between bitcoin ethereum and Cardano is that Cardano operates using what's called a proof-of-stake consensus model what that means in a quick second is that Cardano allows the people that are holding Cardano the stakeholders to verify and validate transactions. so the more Cardano you hold the better of a chance that you have to get these tokens back through what's called proof of stake and so it incentivizes the stakeholders to stay on the Cardano network.

And the bitcoin and ethereum model you have what's called proof of work, so in proof of work you have miners, and miners are solving computational puzzles using their computers to verify and validate transactions on those blockchain networks the proof of work model is just not as great as the proof of stake model because it doesn't incentivize people to stick around on those blockchain networks.

Cardano is a really good hedge against ethereum because we're still not too sure what's going to become the de facto smart contract platform of the future there is a possibility in which Cardano and ethereum just coexist that's a very real possibility but having some Cardano in your portfolio is going to hedge your risk a little bit against ethereum.

Another reason I like Cardano is that they're seeking to be the internet of blockchains later on in their roadmap so what that means is that they're trying to connect different blockchains, allowing you to transfer assets from one blockchain to another. currently, more than 70% of all ADA tokens are being staked in the Cardone network itself, resulting in a smaller supply and lower price volatility for Cardone as a whole. ADA has a max supply of 45 billion tokens and right now there are about 31.9 billion that exist in circulation right now.

Cardano's currently trading at 1.75 per coin at the time of this recording which means that it has a market cap of around 55 to 56 billion dollars to give you some context into where the price of Cardano could be in the future well bitcoin's market cap is one trillion dollars ethereum is 460 billion that we said earlier and gold sits at around 11 trillion dollars in market cap.

If you think Cardano could get to around a 500-billion-dollar market cap one day which is around half the size of bitcoin or roughly the equivalent market cap of ethereum then the current price of a dollar 75 per token could become closer to 16 per token.

#4 INTERNET COMPUTER/ DFINITY

INTERNET COMPUTER IS NUMBER FOUR OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

INTERNET COMPUTER IS NUMBER FOUR OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

The number four cryptocurrency to invest in is the internet computer and you're probably thinking what the hell are you talking about I've never heard of an internet computer before the internet the computer is a coin that I learned about through a friend of mine because she used to work at dfinity which was the foundation that created the internet computer coin.

The dfinity foundation which is a non-profit scientific research organization raised 121 million dollars from popular venture capitalists like Andreessen Horowitz and SV Angel. what's crazy is that dfinity has been working on the internet computer silently for the past five years, so silently in fact that it went initial coin offering this past Monday, May 10^th, not only that on its ICO day it was immediately trading on coinbase pro which is extremely hard to land, usually coins have to be around in existence for a while before coinbase adopts it. but in this case, it was initially listed right away on coinbase.

So what is the internet computer and why is there so much hype around it let me explain right now the internet is a network that connects everyone and everything, but as a result, the internet right now is extremely privatized so everything runs on private infrastructure, if you want to connect to a website that website is most likely run by a data center which is most likely controlled by amazon, amazon web services, dfinity, and the internet computer is looking to decentralize that whole experience for not only developers but entrepreneurs as well.

The founder of dfinity said it best if you're trying to create something as an entrepreneur right now on the internet you have what's called platform risk so the internet computer is looking to just get rid of platform risk entirely let's use the example of an app on the Apple app store right now you can put your app on the Apple app store, and every time you make a sale apple will take a 30% cut of your revenue now if Apple wants to change that rule and make it 35% you have no say in the matter if they want to make it 50% you have no say either.

Similarly, if you're a content creator like I am if you're on the vine for example as a platform or say TikTok and one of those platforms go down, then your entire business is shut down by this platform risk. the internet computer wants to give people a place to develop apps and websites which aren't going to be subject to platform risk. as a result, it's looking to open up the internet to host more things and more services in a decentralized way.

Right now a lot of how you experience the internet is in the hands of big tech so the google, Facebook, and Amazon of the world and the internet computer is what it's looking to do is level that playing field and make it open for everyone. that's why I like it the other reason why the internet computer is cool is that it runs in 48 different independent data centers so in case one of them gets hacked or compromised you still have 47 others that are running the ecosystem. by the end of the year, the internet computer seeks to have 123 different data centers up and running currently.

The ICP coin is trading at around 367 a coin but it's extremely volatile and as of right now they're the eighth largest cryptocurrency by market cap. now there were 469 million coins created but as of right now only 26 of them are actually in circulating supply so it's about a total of 123 million. this is one of the coins that I bought on day one May 10th and I'll be dollar-cost-averaging as I see fit throughout the next few months of course with any new ICO it's going to be extremely volatile so make sure you do your research when it comes to the staff don't simply just copy what I do just for the sake of doing that. but ICP is one of the more interesting plays out there as of right now because it is so new.

#5 CHAINLINK

CHAINLINK IS NUMBER FIVE OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

CHAINLINK IS NUMBER FIVE OF THE TOP 5 CRYPTOCURRENCIES TO INVEST

All right let's talk about the last cryptocurrency on our list today and that's going to be chain link so chain link looks to connect smart contracts to the outside world and I think it's making for a great use case right now. for example, let's say you had a smart contract between you and a friend you both bet on the NBA championship and who was going to be the eventual winner you believe that the golden state warriors are going to win the NBA championship and if you do win then your friend's going to owe you a thousand dollars through that smart contract.

The problem is that the smart contract doesn't know who wins the NBA championship so chain link is looking to connect those dots and input that data from the outside world who the winner of the NBA championship is into the smart contract so that the smart contract automatically executes when the NBA championship is eventually won by the golden state lawyers.

One of the main features of a chain link is what's called an oracle, and an oracle is a third-party service that's inputting the outside data into the blockchain, to make sure that the data isn't corrupt and accurate or dishonest chain-link gets that data from several different oracles, and what it does then is it discards any outliers and it ensures the validity of that data through the blockchain.

It's a pretty interesting concept and right now chainlink is still one of the cryptocurrencies. I've been researching but so far. I've been resonating with chainlink more than some of the others the total supply of linked tokens is capped at 1 billion tokens. And right now there are about 419 million of them in circulation, the current price is around 47 per link coin and out of all the cryptos listed today, this will probably be my smallest position the other four cryptos listed in today's blog, which are bitcoin ethereum ADA and internet computer comprises 95 of my total crypto portfolio.

So chain link is my smallest position but if I do increase it. I will be sure to let you know now as always guys with cryptocurrency it's extremely volatile not only could it go up 20x could also go down by 80% in a single day.

So just keep that in mind when you are investing in cryptocurrencies and doing your research. Finally thank you to all my patron supporters if you want to see what is alright guys. I hope you enjoyed the blog, I will see you in peace next one for that cryptocurrency as well as the occasional supply of it. Thoughts also go into how tokens are made when it comes to supply, this is my number three-step. Whenever I am researching a cryptocurrency, I want to find out how the token is being created. How anyone consumes and if there is a supply cap then what is number four? It is like finding out how good the team is. Do you trust the team? and their background? Do you trust all the founders?

Are about. Sometimes you can tell a lot about how good a team is going to do, depending on how good a cryptocurrency project is going to be. It's also like investing in a company's stock that you want to know who the leadership is because This is going to drive the overall vision and progress of that cryptocurrency, the fifth step I want to take Some websites or forums have to be seen. To find out what people are saying about cryptocurrency in both pros and cons, now there are some other factors that we can look for when researching cryptocurrency, but I like sticking to those five steps, I'm sure.

That I’m missing some of them. but if you're the totally interesting comprehensive guide on how to research cryptocurrencies? All right with that being said let's get into the top 5 cryptocurrencies to invest in and number one on the list is actually bitcoin. No surprise their bitcoin is the cryptocurrency king it's known as digital gold. Actually, it's been around the longest out of all the cryptocurrencies. Bitcoin is the pioneer of blockchain technology itself it's currently hovering around a 1 trillion market cap. And it's definitely because it's been around the longest there's a lot of institutional adoption.

And most people whenever you talk to them, understand what bitcoin is or at least have heard of it. Now bitcoin has been on a tear as of recent this year to date alone it's up over 60 this year. And it's currently trading at about 55 000 per coin at the time of In this recording. There are 18.9 million bitcoins in circulation right now with a total max cap of 21 million bitcoins that will ever be created. Now if you are a little bit confused on how bitcoin or decentralized currency or how the blockchain actually works. I have a lot of beginner videos on that subject that. I will link for you guys in the description below as well as right up here in terms of investing in cryptocurrencies.

More very important information about cryptocurrency is available as some e-book names on Amazon are provided below.

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TOP 5 CRYPTOCURRENCIES TO INVEST: Five steps for researching a cryptocurrency Kindle Edition

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