Most people who hold cryptocurrency hold Bitcoin only, however, did know that you can make a lot of money by investing wisely into other cryptocurrencies?
There are a variety of different coins to choose from, each with their own unique and interesting traits.
I can make more Bitcoin with my Bitcoin?
In times of uncertainty in the Bitcoin world, it's not a bad idea to "bet against" Bitcoin's price, by investing some Bitcoin into other coins. This is known as hedging your money.
Disclaimer: This is not financial advice or an investing strategy, it's just a few tips on how to hedge your Bitcoin into other coins to potentially make some profit. Nothing is guaranteed, and you invest money at your own risk.
Where to start?
Look for potential and value
Some people, when investing their Bitcoin into other coins, know nothing about these coins other than the fact that "they've been going up recently." This is the wrong approach when looking to invest you money, as chasing the crowd and the price are never good ideas.
Of the many coins out there, only a few of them have real-world applications and prospects, making them a good bet for the future. These are the ones you want to buy and hold on to. I will explain below which coins I think will do well in the short term, and the reasons why:
Litecoin
Litecoin is one of the older cryptocurrencies, and has been around for quite some time now. Litecoin is essentially the same as Bitcoin, and is based on similar code. However, the Litecoin network has been designed to have faster transaction times than Bitcoin, with lower fees.
Some people like to think of Litecoin as Bitcoin's little brother, and often make the comparison that Litecoin is to Bitcoin as Silver is to Gold. Litecoin, in conclusion, is a smaller and quicker version of the Bitcoin network, designed mainly for speedy and low-cost transactions.
This is where Litecoin's value lies.
With all of the scaling drama and uncertainty surrounding a hard-fork in the Bitcoin world, Litecoin seems like a safe place to wait out the storm. Litecoin's developer, Charlie Lee, recently quit his full-time job to pursue developing the coin.
Recently, Litecoin has been in the spotlight because it managed to successfully implement Segregated Witness, without hard-forking. This proved a number of things:
- Litecoin has a solid, united community.
- Litecoin is ready to take over Bitcoin's role as the "transaction coin", because of the now cheaper and faster transactions.
- In future, Litecoin could be very valuable, because of the role it plays in being a "test-net" for Bitcoin.
Ethereum Classic
Most people are confused by the fact that 2 forms of Ethereum or "Ether" exist. Some are not even aware that Ethereum Classic is even a cryptocurrency to begin with.
To understand the difference between Ethereum and Ethereum Classic, a quick history lesson is needed:
In the beginning, there was only one Ethereum - simple, right? Okay, so without going into to much detail, I will explain what happened.
Hackers managed to find an exploit in Ethereum, and stole a whole lot of it from many people. Of course, those people were outraged, and turned their frustration toward the Ethereum community and developers.
The developers, in trying to decide what to do about the hack, formed two different schools of thought:
One group, containing a majority of developer support, decided to split off of the current chain and created their own, new chain. This would render the hacker unable to use the coins he stole, because they would now be stored on the "old chain". This group eventually forked off, and this is when Ethereum, as we know it today, was born.
The second group, the minority, decided to stand by the principals of cryptocurrency: Immutability and decentralization. This group decided it would be unethical to refund everyone who had coins stolen, as this would go against another rule of cryptocurrency, which is that "code is law".
In other words, the second group agreed that "what has happened has happened, and we should stick by our principles and not change it." This group remained on the chain where the coins were stolen, and this chain, today, is known as Ethereum Classic.
Okay, but where is the value in Ethereum Classic?
For me, the value in Ethereum Classic lies in the fact that it is the real version of Ethereum, and it stands by the principles that cryptocurrency was created upon - true decentralization and immutability.
What do I mean by this?
Immutability - This means that the chain that the coin operates on is completely immune from being edited or changed. It is the belief that the blockchain should remain the way it is, and transactions should not be added or deleted, under any circumstances - even in the event of a hack.
Decentralization - This means that the coin is immune from being forced in a particular direction by a centralized (close group of people) authority. Ethereum, the chain that deleted the hacked coins, did so because the developers were pressured by the public. This is something that Ethereum Classic aims to prevent - being manipulated by outside forces, whether for good or for bad.
For these reasons, I feel that Ethereum Classic will be the real winner when it comes to smart contract platforms in the future.
In conclusion
These are the coins that I feel show massive potential in the near future. Litecoin as a replacement for Bitcoin's transactional features, and Ethereum Classic because it is a truly decentralized and immutable smart contract platform.
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