2019 promises to be an exciting year for cryptocurrencies. In this guide we’ve highlighted what we believe are the best cryptocurrencies to invest in this year and beyond.
When it comes to deciding on what crypto to invest in, the choice can be challenging. There are over 1,600 different cryptocurrencies to choose from. TotalCrypto understands that it is difficult and time-consuming to sort the wheat from the chaff. That’s why we only focus on sharing our insights on the biggest and most promising cryptocurrency projects.
By the end of this editorial, you should have:
- A good understanding of cryptocurrency markets
- Know the most promising cryptocurrency projects of 2018
- Learn strategies to help you find next big crypto
- Understand the history of cryptocurrency markets
It’s a tall order to do this in a single article. But we will kick things off with going into the history of cryptocurrency markets and explain how this impacts on the cryptocurrency markets today.
- 1 A Whirlwind History Of Cryptocurrency Markets
- 2 Am I Too Late To Invest In Crypto?
- 3 The Cryptocurrency Market In 2019
- 4 The Price Of Bitcoin Actually Drives Altcoin Valuations
- 5 The Different Types Of Cryptocurrency Project
- 6 What Is The Most Promising Cryptocurrency To Invest In?
- 7 Ethereum Is The Most Valuable Application Developer Platform – So It Must Be The Best?
- 8 The Best 5 Cryptocurrencies to Invest In
- 9 Conclusion
A Whirlwind History Of Cryptocurrency Markets
The first thing to know is that pre-2017 was a simpler time in cryptocurrency markets. In the 9 years since Bitcoin’s invention, Bitcoin was really the only game in town and accounted for over 85% of the market. Bitcoin was dominant for so long that cryptocurrency investors used the term ‘altcoin’ to describe every cryptocurrency that was not Bitcoin. In case you didn’t know, ‘Altcoin’ just means an alternative coin to Bitcoin.
With Bitcoin being so dominant for so long, it is no wonder that media outlets mainly talk about Bitcoin. However, today Bitcoin only accounts for 39% of the entire cryptocurrency market, with altcoins making up the other 61%. So where has the main growth been in the cryptocurrency markets since 2017? It’s actually been in the altcoin markets. Sure, Bitcoin stole the show and got all the media attention. But did you know that Bitcoin didn’t even make it into the top 10 cryptocurrency returns of 2017?
TotalCrypto loves Bitcoin and does see it as playing the role of digital gold. However, you should understand that newer altcoins are taking market share away from Bitcoin and that the best investment opportunities are often found in this altcoin space.
We have condensed the entire history of cryptocurrencies into a single visualization:
Am I Too Late To Invest In Crypto?
Many people think they have missed the boat on cryptocurrencies and that the astronomical gains of the past will never be repeated. Did you know that you are still early enough to be classified as an early cryptocurrency adapter? How so, might you ask?
Although many people are now aware of Bitcoin, few have actually gone out and bought any. Bitcoin is by far the most highly adopted cryptocurrency and only 22 million Bitcoin wallets exist. There are around 7.6 billion people on the planet right now, so around 0.29% of the people in the world have a Bitcoin wallet. That’s also assuming that each Bitcoin investor only has a single wallet.
That’s right; if you were to randomly select 1,000 people from anywhere in the world:
- 3 would have a Bitcoin wallet.
- 1.5 of those people would own 0 to 0.001 Bitcoin.
- The other 1.5 people are exceptionally likely to own less than 0.1 Bitcoin.
What’s even more exciting is that altcoin adoption is even lower. So even though you think many people own cryptocurrency, the truth is that few have taken the plunge and actually invested. Many people believe blockchain will kick-start the new industrial revolution and that the technology will be widely adopted. If this is true, then after looking at the adoption levels of other major technologies we can expect cryptocurrencies to hit over 50% adoption levels.
The point is that massive growth in cryptocurrency markets is still possible. Even if we look at where we are now, it can be argued that we are still in the first innings.
The Cryptocurrency Market In 2019
The first half of 2018 saw a big pullback in cryptocurrency valuations. Since January 2018, the cryptocurrency market has seen a reduction in the overall market cap from over $800 billion in early January to $340 billion today. Even though valuations have taken a battering, we must remember that it was only in July 2016 that we saw an overall market cap of $65 billion.
What’s holding back cryptocurrency markets? Currently, the cryptocurrency community is waiting for for the following check boxes to be ticked:
- Regulatory clarity – Cryptocurrency regulatory recommendations continue being discussed by World leaders.
- Institutional money to flow into the markets in 2019. There is great interest in cryptocurrency amongst institutions. Investment firm Fidelity is the latest financial institution to reveal their interest in cryptocurrency market. Their plan is to build a cryptocurrency exchange within the next year. In case you have never heard of Fidelity, they manage $2.4 trillion dollars of client assets. The main barriers to institutional involvement in cryptocurrencies are a lack of custody solutions and regulatory clarity.
- Cryptocurrency ETFs – An ETF is shorthand for an exchange-traded fund. Cryptocurrency ETFs are a big deal because they provide an easy way for institutions and retail investors to invest in cryptocurrencies. Currently, the overall ETF market is worth $5 trillion, so crypto investors expect significant fund flows into cryptocurrency if a Bitcoin ETF is launched. A new proposal for a physically backed Bitcoin ETF has just been submitted. The truth it is designed for institutions and the proposed minimum investment is $200,000. However, institutions could potentially invest a lot of money into Bitcoin this way and that’s good news for cryptocurrency investors.
The Price Of Bitcoin Actually Drives Altcoin Valuations
Even though Bitcoin has given up a lot of its market share to altcoins, it is still the biggest cryptocurrency in the world. Bitcoin heavily influences the price of altcoins outside of the top 20 because these coins don’t have a direct price in conventional currency. Instead, they are bought and sold with Bitcoin and therefore only have a price in BTC. This means that if the price of Bitcoin increases, so does the value of many altcoins.
At TotalCrypto we think this is such an important concept to understand that we have written a dedicated article on the topic. If you have 10 minutes to spare we are sure it will be time well spent.
The Different Types Of Cryptocurrency Project
When 99.99% of people think about cryptocurrency, they think of it only as a store of value which can be used like conventional currency. This is not correct. In truth, there are many different categories of cryptocurrency. Broadly, crypto can be broken down into two main types:
- Transactional Cryptocurrencies: These cryptos are used as a store and transfer of value (similar to conventional currencies). Examples include Bitcoin, Litecoin and Decred.
- Utility Tokens: These are cryptocurrency projects that are building a product or service using blockchain technology. The tokens are to be spent by customers in the ecosystem or on the service they are creating. Utility token cryptocurrencies are creating new blockchain solutions for pretty much any industry you can imagine.
Before we move on, some of you may have heard from friends that many cryptocurrency projects don’t actually have a working product. The truth is that this is completely correct. The reason why these tokens still have value is due to future expectations. Yes, the gap between expectations and the actual technology needs to close at some point. However, valuations based on future expectations are perfectly normal in technology.
A simple way of explaining why productless crypto projects have value is if we consider Walt Disney. Imagine Walt needed to raise money to build Disney World. Walt may issue his own Disney token called the Disney Dollar, a token that could be spent in Walt Disney World once the product has been completed. The investor who has bought these Disney Dollars before the theme park opens gets them at a discount. If Disney World successfully opens then all investors that bought discounted Disney Dollars have made a profit. A similar thing is true in cryptocurrency.
What Is The Most Promising Cryptocurrency To Invest In?
TotalCrypto believes that the most promising cryptocurrencies 2019 are utility token projects. In the graphic below you can see a breakdown of the different types of cryptocurrency projects investors have bought in the first quarter of 2018. Investments are broken down by project type.
So you have looked at the chart and concluded that communications crypto projects are the best new cryptocurrency to invest in and you should go all-in, right? Don’t be so hasty.
Did you know that a significant number of the highest valued cryptocurrency projects are application developer platforms? What is an application developer platform? It is a platform with a blockchain, that developers can build apps on top of. You can think of it as being similar to IOS and Android allowing developers to build apps like Temple Run using their platform. In the cryptocurrency space, instead of apps being built on IOS, they are built on top of developer platforms like Ethereum.
Sure, Apps can be very valuable. But the platforms the apps are built on are always more valuable. If you are interested in buying the next Apple to come out of the cryptocurrency space, then you want to invest in application developer platforms.
Ethereum Is The Most Valuable Application Developer Platform – So It Must Be The Best?
Ethereum is currently the most valuable application developer platform in the world right now. Out of the 1,600 different cryptocurrencies, around 500 of them are built on Ethereum. However, did you know that Ethereum can only process 15 transactions per second? This may not sound like a lot and it isn’t.
In December 2017 the whole Ethereum network ground to a halt due to the app CryptoKitties being launched. That’s right, Ethereum could not handle a single popular app on its network. Ethereum is trying to solve the issue and make the Ethereum blockchain much faster. However, application developer platforms like NEO already have a working product and can process 1,000 transactions per second. Other application developer platforms like EOS are set to launch soon and are anticipated to be even faster.
Ethereum, as the first ever application developer platform, has first mover advantage. But it still remains to be seen if it can continue being the most valuable one in 2018 and beyond. Many people ask what is the best new cryptocurrency to invest in? The answer is almost always, whatever is the ‘next Ethereum’.
The Best 5 Cryptocurrencies to Invest In
This is what we’re running with in 2019 for our crypto portfolio.
For full disclosure, the TotalCrypto Team have personally invested in every cryptocurrency mentioned in this list.
#1 EOS – Application Developer Platform
Our number one pick for the best cryptocurrency to invest in 2018 is EOS. At the time of writing EOS is launching their main net and conservative rumors put the number of transactions per second at 20,000 to 50,000. This blows Ethereum out of the water and TotalCrypto expects to see a high number of crypto projects switching from Ethereum to EOS once the main net has been properly launched. If EOS can attract a large number of crypto projects to its platform then it will certainly be a top cryptocurrency 2018.
EOS could very well be the Ethereum killer that so many investors are looking for. What’s even better is that at the time of writing EOS is valued at around a quarter of Ethereum’s market cap. That’s in a down market too.
- In January 2018 Ethereum reached a valuation of $133.5 bn.
- June 2018 EOS market cap is $12.5 bn.
- If EOS achieved Ethereum’s January 2018 valuation then investors getting in at the time of writing would enjoy 1,068% returns.
EOS: Key Person – Dan Larimer
With every cryptocurrency project, investors like to see project leaders that have a track record of success. During the first year of the EOS project, Dan Larimer held the position of CTO. Dan has seen past success in the cryptocurrency space after being CTO at $1bn projects such as Steemit and Bitshares. Indeed, Larimer has maybe built more billion-dollar cryptocurrency projects than anyone else in the space. You will certainly struggle to find anyone with a better track record in cryptocurrency projects and TotalCrypto believes that investors will be well rewarded if they back his latest project.
Do You Agree That EOS Is The Best Cryptocurrency 2018?
EOS certainly has the potential to become the best application developer platform out there. Before making any moves, we recommend you read through our detailed guide on EOS. This will give you an even better understanding of the project. Right now, you cannot buy EOS directly through a single exchange and will have to create accounts at Coinbase and Binance to get your hands on it. Need a step by step walkthrough? Fortunately, we have put together this extensive step by step guide.
Top Tip: With cryptocurrencies, it is always good to ensure you are not buying at all-time highs. Cryptocurrency markets can be exceptionally volatile and be getting a good discount on the all-time high can mean bigger returns. We recommend checking EOS’s all-time-high and the current price on TotalCrypto. To do so, select ‘Graph’ and set the time frame to ‘All’.
#2 NEO – The Ethereum Of China
NEO is a Chinese Ethereum competitor. The project already has a working product and has applications being built on it right now. As things stand Ethereum can process 15 transactions per second, whilst NEO can manage 1,000. That’s a big difference and TotalCrypto find it incredible that Ethereum is valued 16.5 times higher than NEO.
Valuation growth for application developer platforms is strongly linked to the number of quality apps being built on them. After all, what’s the point of a great platform if no one is using it? Some may think that NEO is valued significantly lower than Ethereum due to a lower quality of cryptocurrency projects being built on it. This is actually incorrect and a NEO based project called Ontology has already reached a billion dollar valuation.
NEO also has some other major advantages over Ethereum. Developers on NEO are able to build applications using common coding languages like Java and Python. This means that a developer doesn’t need to learn a new coding language and that makes developing on NEO faster and cheaper. Ethereum on the other hand only uses their own language called Solidity.
Another major plus for NEO is that it’s two co-founders actually own a private blockchain company called Onchain. Onchain specializes in providing private blockchains to the Chinese government and businesses. This is a massive deal as one of the biggest headwinds for cryptocurrencies is regulation. The fact that NEO’s founders already have contacts in the government should be good news for NEO. Also, the Chinese government is likely to want public blockchain solutions in the future and we bet they will use NEO.
Why Could NEO Be One Of The Most Promising Cryptocurrencies 2018?
In cryptocurrency markets, it is very easy to think of things globally. The truth is that when it comes to technology, the Chinese tend to use their own homegrown alternatives. This is why there is no Facebook, Twitter or Google in China. Ethereum is the dominant application developer platform right now, but we must remember it is a Western product. Like other technology niches, TotalCrypto believes that China will opt to support a homegrown application developer platform and we believe this will be NEO.
The Chinese market is huge and even if all NEO achieves is being the chosen platform in China, we believe that investors will be well rewarded. There is the possibility that NEO can make inroads into countries friendly with China and globally too. NEO is quite unique in the sense that it seems to have regional protection that other cryptos do not have. It is for these reasons that TotalCrypto believes NEO to be one of the most promising cryptocurrencies in 2018.
- In January 2018 Ethereum reached a valuation of $133.5 bn.
- June 2018 NEO market cap is $3.2 bn.
- If NEO achieved Ethereum’s January 2018 valuation then investors getting in at the time of writing would enjoy 4,171.87% returns.
NEO Is A Passive Income Machine
Passive income is hard to find in a world where your local banker might be offering you 0.5% interest per year. For those that want a better return then NEO could the cryptocurrency for you. If you store your NEO in a NEON wallet, you will earn NEO Gas – the fuel of the NEO network. Right now, this gas dividend you earn yields a pretty solid 3.36% per year. You can find out how much NEO gas you will receive by checking out the NeoToGas Calculator.
NEO: Key People – Da Hongfei & Erik Zhang
Da Hongfei is the CEO of NEO and is one of the most well-respected people in the cryptocurrency space. Not only has Da Hongfei spent 9 years learning the craft of a CEO at IntPass, but he founded Onchain with Erik as well. Erik Zhang is the CTO of the NEO project and there is little doubt that he knows his way around a keyboard. Both founders are key to the future of NEO, not only for their vision but also due to their contacts in the Chinese government.
Do You Think NEO Is The Next Cryptocurrency To Invest In 2019?
Convinced that NEO will be a top cryptocurrency 2018 and want to get exposure to it? The best exchange to pick up NEO is Binance. It’s the world’s largest exchange after all. The thing to be aware of is that you cannot deposit conventional currency on the exchange. To get your NEO on Binance, you will need to use Coinbase to buy Bitcoin and send this to Binance to trade for NEO. TotalCrypto understands this sounds confusing and that is why we have a dedicated walkthrough to show you all the steps.
Before buying your NEO, it is worth checking the historical price history and making sure you are getting a reasonable all-time high discount. Just head over to the NEO coin page, select ‘Graph” and filter the time-frame to ‘All’. Here you will also be able to find the best options to store your NEO once you have bought it.
#3 ICON (ICX) – Infrastructure
ICON has only been about since the end of October 2017 and TotalCrypto believes it to be a contender for the best new cryptocurrency to invest in. ICON is a blockchain ecosystem in which different industries operate their own industry blockchain. For example, there might be blockchains for healthcare providers, insurance companies, and banks. The ICON ecosystem is what allows these different blockchains to communicate with each other. The way of looking at ICON is that it is a bridge that connects different industries together and enables them to communicate on the blockchain.
ICON may sound abstract so we will show you a working example. Hospitals are an industry of their own and can store health data more efficiently on a ‘the health blockchain’. However, industries never operate independently and need to communicate with other industries. So a patient presents at a hospital, it is likely that an insurance company needs to become involved and a claim is processed. ICON allows the hospital to communicate with the insurance company automatically and process the claim via smart contract. In essence, ICON allows for the automation of processes that were previously impossible to automate.
Why Could ICON Be The Best New Cryptocurrency To Invest In?
The South Korean government supporting ICON is a big plus. However, one of the most exciting things is that initial coin offerings can be launched on the ICON blockchain. Initial coin offerings are a big deal and are one of the main use cases for Ethereum. Seeing that ICON is a South Korean project and ICOs were banned in the country in 2017, most people overlook ICOs as a valuation tailwind ICON. However, a bill aiming to relegalize ICOs in South Korea is being drafted and TotalCrypto is confident that it will pass. ICO legalization should see ICON take the role of the Ethereum of South Korea.
Are you tired of sending in scans of your passport to different companies? Well, the ICON ecosystem could make this history. ICON have something called a Blockchain ID, which allows different industries using ICON to verify people’s digital identities. This is exciting stuff and if ICON can execute, it will no doubt make people’s lives easier.
If you like the idea of artificial intelligence, the thing to know is that most blockchains do not support AI. However, ICON does support this technology and even have their own AI solution called DAVinCI.
ICON provides a pretty unique opportunity for cryptocurrency investors to gain exposure to a cryptocurrency project that offers:
- An ecosystem with government support.
- The solution allows communication between different blockchains.
- Ability to launch ICOs and positive newsflow.
- Digital identity.
- Artificial Intelligence support.
If anyone asks TotalCrypto “what is the best cryptocurrency to invest in 2018?”, we have to mention ICON.
Interested In Making ICON (ICX) Your Next Cryptocurrency To Invest In 2019?
TotalCrypto believes that ICON is one of the best new cryptocurrency to invest in. If you are interested in buying ICON, then the best cryptocurrency exchange to use is Binance. It’s the largest exchange and also accounts for 60% of ICON’s entire trade volume. You should know that you cannot deposit normal money directly on Binance and will need to use Coinbase. For most people, this will sound tricky and that’s why we have created a comprehensive guide showing you exactly how to buy ICON (ICX).
Once you have finished getting your ICON, just check out our ICON coin page to find out the best wallets to use.
#4 Power Ledger – Green Energy Trading Platform
For ethical investors, Power Ledger might be the best cryptocurrency to invest in 2018. The project actually got some funding from the Australian government. Power Ledger aims to create a global green energy trading platform. So far, they have not only got a working product but have made partnerships with:
- Thai Government backed BCPG – which is a renewable energy developer who has partnered up with Power Ledger to bring green energy trading to Thailand.
- Not For Profit Helpanswers – Which is an organization founded by Mark Johnson, who has led multi-billion dollar programs with the US Department of Energy. This partnership was established with the goal of bringing clean energy trading to the US.
- Liechtenstein Institute for Strategic Development – The partnership was established to grow Power Ledger’s presence in Europe.
- Origin Energy – Is one of Australia’s biggest energy providers. They are exploring how Power Ledger’s technology might be used to enhance the experience of their own customers.
Power Ledger’s massive partnerships, government backing, working product and eco-friendly mission statement make it a top pick for any ethical crypto investor.
Want To Make Power Ledger Your Next Cryptocurrency To Invest In 2019?
Power Ledger has one of the most impressive teams, list of partnerships and mission statements in the entire cryptocurrency market. We really do recommend you learn more about the project in our detailed guide.
For those wondering how to buy Power Ledger, the easiest way is through using Coinbase and Binance. You will need an account at both exchanges and our detailed how to buy walkthrough will tell you everything you need to know.
#5 Wabi – Supply Chain & Loyalty Program Solution
Wabi could be the best cryptocurrency to invest in now. The reason is that it’s incredibly small market cap of $28.5 million leads TotalCrypto to believe that it is significantly undervalued. Other supply chain plays like VeChain have managed to achieve valuations in excess of $2 billion. Although Wabi is unlikely to be catapulted to such heights, we do believe there is a strong potential for investor gains.
Wabi also falls into the category of being an ethical cryptocurrency investment. The reason why is that their supply chain solution is all about taking on counterfeiting. This is a massive problem in Wabi’s home market (China). Chinese counterfeits are not restricting themselves to knock off handbags or football shirts; products like baby milk and medicine are commonly faked. The grim reality is that counterfeiting causes deaths. In 2014, when fake baby milk entered the Chinese supply chain, 63 babies were killed. The same thing happened again in 2008 and resulted in 300,000 hospitalizations and 6 deaths.
Wabi is tackling the counterfeiting problem by using tracking labels on products, which are stuck on by the manufacturer. Every stage of the products supply chain journey is recorded on the blockchain. A customer in a shop can scan the label through a special app and see the entire journey of the item in their hand. If something is not right, then the app will alert the customer that the item held is compromised.
The Wabi cryptocurrency is also used by retailers as their loyalty program. Customers collect Wabi coins for their loyalty and can spend them on other Wabi protected products. This means customers can use their loyalty coins at a network of stores rather than being restricted to a single one.
Interested In Taking A Deeper Look At Wabi?
TotalCrypto recommends you check out our detailed guide on Wabi, we really do believe it is one of the most impressive and undervalued cryptocurrencies out there. Wabi’s solid product and low valuation could make it the best cryptocurrency to invest in 2018.
If you are interested in buying Wabi you will need to use the Binance exchange. Wabi does no trading volume anywhere else. Fortunately, Binance is the best cryptocurrency exchange in the world and our detailed how to buy guide will show you all the steps to buy Wabi.
There you have it: TotalCrypto’s top 5 picks for the best cryptocurrency to invest in 2018. Although it is nice to dream of all the amazing gains we might make, you must bear in mind that cryptocurrencies can go down in value. Sometimes, they can fall off a cliff.
What makes cryptocurrency so interesting is that no one knows what the future may bring. As with any investment you should not invest more than you are comfortable losing. Sure, you might be able to afford to lose $10,000, but this doesn’t mean you won’t have sleepless nights thinking about a $10k loss.
TotalCrypto hopes you have learned something from this editorial and that you can provide your friends with an amazing answer when they ask: what is the best cryptocurrency to invest in?