The Next Big Thing in Crypto

|January 16, 2021

Question: How many of the top 10 cryptocurrencies can you name? (And no, you can’t say Bitcoin.)

Sure, the word “crypto” is synonymous with Bitcoin. It is, after all, the one that started it all… It’s the poster child for a decentralized digital currency revolution.

And while it makes up a stunning 75% of crypto’s newly minted $1 trillion market cap… and fills news feeds with breathless coverage… it’s easy to overlook that it’s not the only game in town.

Far from it…

In all, there are 7,800 different cryptos trading each day.

Each has its own unique story… and investors who think it’s the next big thing.

And they have the potential to bring you outsized gains.

Solving Real Problems

You may not have heard of Polkadot (DOT)… Stellar Lumens (XLM)… or Chainlink (LINK)… but you’ll quickly see why they should be on your radar.

These alternative coins (altcoins) are among the cryptos with the 10 biggest market caps, ranging from $6 billion to more than $11 billion.

And in 2021, they’re up by double or triple digits already.

Chart Stellar Lumens

While the world was watching Bitcoin hit $40K, these coins were outpacing its gains.

But here’s the thing about them…

Just because they don’t get nearly as much media attention doesn’t mean they’re not worth a look. In fact… that’s one of the reasons you should take a look – while they’re still flying under the radar.

They’re trying to solve real problems to make all sorts of digital transactions safer, cheaper and more reliable.

Better, Faster, Cheaper

Polkadot, for instance, is making it possible for multiple blockchains to communicate at once.

That’s huge because the big challenge faced by major coins is transaction speed and network load. Bitcoin can process just five transactions per second. (Compare that with Visa’s 1,700 transactions per second.) That means it can take upward of 10 minutes before a transaction is verified.

Imagine if it took 10 minutes for a credit card transaction to go through when you’re in line at the grocery store.

Polkadot is enabling data to travel the blockchain much faster and more efficiently (and thus more cheaply), solving one of crypto’s biggest issues.

Stellar, on the other hand, is an open-source blockchain payment system. It connects financial institutions via the blockchain and provides cheap transactions in developing markets.

The coin has started the year off with a bang (see the chart).

This week, Vonovia, a major German real estate group, announced that it now has $24 million worth of digital bonds on the Stellar blockchain. The newly launched three-year bond will use Stellar blockchain technology for the transfer of real estate rights.

Stellar also recently inked a deal to provide Ukraine with a central bank digital currency. The news fueled a massive one-day spike in the coin.

These are big signs that Stellar’s mission to create more access to the global financial system is gaining traction.

Not to be outdone… Chainlink allows real-world data to be connected to “smart contracts” on decentralized blockchain networks. Smart contracts help users exchange money, property, shares or anything of value without the need of a middleman. Chainlink makes the process secure, transparent and reliable.

It was recognized as one of the most pioneering technology projects of 2020 by the World Economic Forum. And a growing list of customers shows this technology is proving its value.

And That’s Just Scratching the Surface

There’s more to crypto than just Bitcoin. A lot more.

In fact, the best-performing cryptos of the past 12 months are up thousands of percentage points… and, unless you’re following the space, we doubt you’ve heard of any of them.

We’ll be shining a light on them in the week ahead – and how you can get in on coins like them (before they take off).

And if you have questions about how to get into these smaller coins, send them to mailbag@manwardpress.com.

Amanda Heckman
Amanda Heckman|Editorial Director

Amanda Heckman is the editorial director of Manward Press. With unrivaled meticulousness, she has spent the past dozen or so years – give or take a few sabbaticals – sharpening Andy’s already razorlike wit. A classically trained musician and a skilled writer in her own right, Amanda takes an artistic approach to the complex world of investing. Her skill has led her to work with numerous bestselling authors, award-winning financial gurus and – lucky for us – the fine folks at Manward Press.