Investors are always looking for new opportunities in the growing cryptocurrency industry. While Bitcoin and Ethereum are the most popular cryptocurrencies, there are other undervalued cryptocurrencies that have potential for strong returns. In this article, we will introduce you to the top 5 undervalued cryptocurrencies that you need to know about in 2021.
The Invention of Cryptocurrency
Before we dive into the world of undervalued cryptocurrencies, it’s important to understand how this technology came into existence. Cryptocurrencies are a type of digital currency that utilizes encryption techniques to regulate the generation of units of currency and verify the transfer of funds. The very first cryptocurrency, Bitcoin, was launched in 2009 by an anonymous individual or group operating under the pseudonym Satoshi Nakamoto. Bitcoin’s primary aim was to develop a decentralized form of currency that could be used without the need for intermediaries such as banks or governments.
The Growth of Cryptocurrency
Since the inception of Bitcoin, the cryptocurrency market has grown exponentially. Currently, there are over a thousand cryptocurrencies in the market with a total market capitalization of over $1 trillion. Despite the popularity of cryptocurrencies like Bitcoin and Ethereum, there are several undervalued cryptocurrencies that have the potential to generate significant returns.
Top 5 Undervalued Cryptocurrencies
1. Cardano (ADA)
Cardano is a decentralized platform that uses blockchain technology to create smart contracts and decentralized applications. The platform was created by Charles Hoskinson, one of the co-founders of Ethereum. Cardano is often referred to as the “Ethereum Killer” because it aims to solve many of the scalability and security issues that Ethereum currently faces. Despite its potential, Cardano remains relatively undervalued with a market cap of around $40 billion.
2. Stellar (XLM)
Stellar is a decentralized platform that allows for the transfer of money across borders. The platform was created by Jed McCaleb, one of the co-founders of Ripple. Stellar is often referred to as the “poor man’s Ripple” because it aims to provide similar services to Ripple at a lower cost. Despite its potential, Stellar remains relatively undervalued with a market cap of around $10 billion.
3. Chainlink (LINK)
Chainlink is a decentralized oracle network that connects smart contracts to real-world data. The platform was created by Sergey Nazarov and Steve Ellis in 2017. Chainlink is often referred to as the “middleware of the blockchain” because it aims to solve the problem of how to connect smart contracts to external data sources. Despite its potential, Chainlink remains relatively undervalued with a market cap of around $12 billion.
4. VeChain (VET)
VeChain is a decentralized platform that uses blockchain technology to track supply chain information. The platform was created by Sunny Lu in 2015. VeChain is often referred to as the “blockchain for business” because it aims to provide solutions to problems that businesses face when tracking their supply chains. Despite its potential, VeChain remains relatively undervalued with a market cap of around $7 billion.
5. Theta (THETA)
Theta is a decentralized video streaming platform that uses blockchain technology to reward users for sharing their bandwidth. The platform was created by Mitch Liu and Jieyi Long in 2018. Theta is often referred to as the “Netflix of the blockchain” because it aims to provide a decentralized alternative to traditional video streaming services. Despite its potential, Theta remains relatively undervalued with a market cap of around $3 billion.
The Future of Cryptocurrency
Absolutely, the world of cryptocurrency is constantly evolving, and undervalued cryptocurrencies have the potential to deliver strong returns. However, it’s crucial to conduct thorough research and make informed decisions before investing in any cryptocurrency. While Bitcoin and Ethereum are popular choices, there are many other cryptocurrencies with unique solutions to problems that individuals and businesses face. It’s important to keep an eye on the market and stay informed to make the best investment decisions.
Conclusion: The Fascinating World of Undervalued Cryptocurrencies
That concludes our discussion on undervalued cryptocurrencies to watch in 2021. These digital assets have the potential to provide strong returns, but it’s important to remember that the cryptocurrency market is highly volatile and unpredictable. As with any investment, it’s important to do thorough research, assess the risks, and make informed decisions. With careful consideration and a long-term investment strategy, investors can potentially reap the rewards of these undervalued cryptocurrencies.