3 Cryptocurrencies to Grow Your Portfolio

From the meteoric rise of the meme-inspired cryptocurrency Dogecoin to the introduction of Bitcoin as legal tender in El Salvador, cryptocurrencies enjoyed a banner year in 2021.

While the industry has seen tremendous growth, with over 6,500 cryptocurrencies now available, the crypto development is still in its early stages, providing investors with numerous options to participate.

Here are three cryptocurrencies that can help you diversify your investments.

1. Ethereum

Ethereum (CRYPTO: ETH) is the second-largest cryptocurrency after Bitcoin, with a market cap of about $407 billion. It is also the second most well-known cryptocurrency. Ethereum is the name of the decentralized blockchain technology network that keeps a digital ledger of transactions, while Ether tokens are the cryptocurrency tokens that run on top of the network.

Ethereum, like most cryptocurrencies, may be used to send money to anyone, which is ideal for folks who do not have bank accounts. The biggest attraction for investors, however, is that applications can be coded on the network, as can smart contracts, which are simply contracts that are automatically carried out in a very safe manner and cannot be changed after they have been completed and certain conditions are satisfied.

A landlord, for example, may construct a smart contract with one of her tenants in which the rent is automatically transferred to the landlord on a specific day each month as long as all of the contract’s criteria are satisfied.

Another intriguing aspect of Ethereum is that developers are currently hard at work on a series of major network updates known as Ethereum 2.0. The modifications, which have been in the works for years, will move Ethereum from a proof-of-work idea, which employs the energy-intensive practice of mining new Ethereum tokens, to a proof-of-stake approach, in which Ethereum holders spend their existing tokens to produce new ones.

The enhancements will not only make Ethereum more sustainable, but they will also make the network speedier and capable of processing up to 100,000 transactions per second. Ethereum has already topped $4,000 per token at one point this year and has the potential to go considerably higher, especially if Ethereum 2.0 is successfully integrated.

2. Cardano

If you like the notion of investing in Ethereum, you’ll most likely find a similar opportunity in Cardano (CRYPTO:ADA). Cardano, which was created by an Ethereum co-founder, also allows programmers to construct apps and smart contracts on its blockchain technology, and it just made this feature available to the public.

Cardano is already using a proof-of-stake methodology, and there is speculation that it will eventually be able to execute 1 million transactions per second. Even with its major upgrade, Ethereum will be limited to 100,000 transactions per second.

While Cardano appears to be superior to Ethereum, it can be difficult to grab those early adopters, particularly in the cryptocurrency sector. There are several cryptocurrencies that are faster and have superior technology than Bitcoin, but as the pioneer of blockchain technology, Bitcoin will almost certainly always hold the top spot.

It might be a similar tale for the Ethereum-Cardano dynamic, but with Cardano only having a market valuation of about $71 billion, there is surely lot of space for development in the future years.

3. Theta

Theta Token (CRYPTO:THETA), which is less well-known than Ethereum and Cardano, is distinct from many other cryptocurrencies. Theta is a blockchain network that permits peer-to-peer video streaming rather than payments.

Today’s video hosting is frequently of low quality, and it can be rather costly for businesses because they need to purchase a large number of servers to meet all of the demand from viewers. The Theta network thinks that letting users share excess bandwidth from their own personal devices when they are not in use, it may significantly increase video streaming in a cost-effective manner.

Users who provide bandwidth to the network can earn money in the form of tokens. Theta.tv is a platform that allows people to stream a wide range of entertainment while earning money by pooling bandwidth. Theta has been trading about $6.36 per token in recent months, but has traded as high as $14 in April and was less than $1 just one year ago.

This one in particular appeals to me since it appears to have a distinct real-world use in its ability to enhance video streaming.

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