Dogecoin is one of the cryptocurrencies that the market is interested in, but is Dogecoin the right asset to be a long-term investment?
At the moment, more than 11,000 cryptocurrencies are on the exchange. It is difficult to predict which one will be the brightest in the long-term.
According to The Motley Fool, it is hard to analyze the fundamentals when you buy cryptocurrency because the market is still so new. There are very few rules that can be trusted to ensure truthfulness.
Experts predict many cryptocurrencies will fail as we move into the next phase. The cryptocurrencies most likely to succeed over the long-term are those that have strong leadership, solid foundations, and a long-term vision.
Dogecoin should be forgotten
Before we dive into the list of coins with a brighter future, it’s worth explaining why Dogecoin should be forgotten.
- Dogecoin does NOT have a whitepaper and a full-time staff. Dogecoin has many loyal fans but no leader.
- Elon Musk’s tweets heavily influence the price. Dogecoin’s price rise has been largely driven by the Musk Effect, although it isn’t a major driver of continued growth.
- There is much competition in the space of digital payments. The attractive aspects of digital currencies include fast and cheap transactions. However, the introduction of stablecoins as well as government-backed currency could threaten this market.
Elon Musk’s tweets heavily influence the price. Dogecoin’s price rise has been largely driven by the Musk Effect, although it isn’t a major driver of continued growth.
Most importantly, there is a lot of exciting projects that use blockchain to do amazing things.
These three cryptocurrencies have a bright future
1. Ethereum (ETH)
Vitalik Buterin, a crypto visionary, is the man behind Ethereum. The project has attracted a vibrant community of coders as well as developers.
Ethereum is second in cryptocurrency market cap and first to offer smart contract capabilities.
A smart contract can be described as a piece of self-executing code that is stored on the blockchain. The system was originally designed to log individual transactions but could be upgraded to run applications. Nearly 3,000 applications were created on the Ethereum platform, along with many other cryptocurrencies.
2. Aave (AAVE)
Decentralized finance (DeFi), a term that covers applications that remove banks (intermediators) from financial transactions, is also known as an umbrella term. To borrow money without the need to check your credit or fill out paperwork, you could use cryptocurrency as collateral.
Aave can be described as a DeFi lender. Investors have the opportunity to earn interest by donating crypto funds to loan pools. They receive the interest that the borrower has paid on their loan. It is well-respected and has strong partnerships. DeFi has the potential to transform the way we think about banks.
3. Cardano (ADA)
Charles Hoskinson (co-founder of Ethereum) founded Cardano. It is a third-generation cryptocurrency.
Cardano used the lessons learned from Ethereum (BTC), and instead of upgrading to address issues such as scalability or energy consumption, to create a completely new blockchain. It is designed to be more reliable and faster from the very beginning.
Cardano has also demonstrated real-world capabilities. This cryptocurrency is involved in various projects in developing nations, including a partnership with Ethiopia’s Ministry of Education. Cardano blockchain will be used in the pilot scheme to track 5 million students’ academic progress. They will also have all the credentials that cannot been altered.