By .This is a very difficult question to answer with any level of certainty. Though the entire sector is going through a rapid growth and capitalization phase, 3 years in cryptocurrency is a lifetime or perhaps many lifetimes.
For example, three years ago, a single BTC could be purchased for under $100. Today, a single BTC under $6,000 would be considered a steal. Additionally, three years ago, NEO, CARDANO, and IOTA – all top 10 currencies – didn’t even exist. That being said, we will attempt to give you our top three picks and why we think they have a lot of potentials.
While most cryptocurrency projects were created to either act as smart contract platforms or tokens to be used on a specific platform, others were created to be Bitcoin rivals or alternatives. Litecoin is none of those things and was actually created to work alongside Bitcoin as a daily-use alternative to the Bitcoin “reserve” status.
Think of it like Litecoin being the twenty-dollar bill and Bitcoin being a treasury bond.
While both of them have a face value, one is much more easily transferable and usable on a day to day level. Litecoin is that $20 bill in the cryptocurrency sector and, in our opinion, is highly undervalued. It is faster, cheaper to use, and has 4 times more supply than Bitcoin. If Bitcoin becomes the digital gold standard or treasury bond of the digital asset sector, Litecoin may become the smaller, more usable cryptocurrency that helps people actually use Bitcoin. Through atomic swaps, it is possible to transfer Bitcoin directly to Litecoin, and vice versa. These features all point to Litecoin one day being worth 25% of BTC’s value and that may happen within the next 3 years.
Monero
While governments and central banks begin to regulate, tax, and undermine the cryptocurrency sector, we can see privacy coins like Monero becoming much more useful and widespread in the sector. If these regulations are as far-reaching as many assume they will be, privacy coins will play an important role and may one day be more valuable than Bitcoin itself.
Monero, as the most widely known and arguably most secure of these privacy coins, could become the new Bitcoin and with a price to match, should privacy become an important factor that drives the sector in that direction.
With its revolutionary hashgraph technology that looks to be a better, more scalable ledger system and improves on blockchain technology, IOTA has a lot of potentials. Also, as the only coin to have a proven proof of stake (POS) system and no transaction fees, if IOTA fulfills its potential and claims, it will likely be one of the top digital assets of the future. If all those things come into fruition, we think IOTA may be a major player and take a lot of the sector’s market cap for its own.
It’s All Speculative
Though these are our picks, the truth is, no one can pick with certainty which coins will gain the most value in 3 months, let alone 3 years. Most traders choose a variety of coins in order to diversify and improve their chances of finding that diamond in the rough. Also, the hodl approach, in our opinion, is vastly overvalued in the sector.
While buying and holding an asset may see decent long-term gains, it fails to use the market’s volatility to make the best use of your capital. Trading for profit, whether for more USD or the coin of your choice, can ultimately make far more money and ensure you are well positioned in 3 years to invest into whatever coin becomes dominant at that time.
Most people, however, are unaware of how to actively trade or build a well-diversified investment strategy.
One of the most important things is access to information that will help you stay ahead of the informational curve. CoinBeat aims to gives its readers that edge and access to the information that matters most sector-wide. Be sure to check out our daily market recap for tips and the latest from around the sector.
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