Digital Coins That Will Survive Different Market Seasons
Byline: Hannah Parker
Digital currencies are gaining traction and becoming increasingly popular with the general public, established industries, and organisations. This is because, despite being a developing concept, the fundamental functions and cutting-edge technologies of cryptocurrencies are significantly altering the course of economies around the world and daily life, further opening up a wide range of equal opportunities for all people to achieve financial independence. Given the billions of individuals who now use crypto and its technology for differing reasons, the hype around digital currency is justified by looking at how people are diversifying their portfolios, accumulating savings, and having multiple streams of income which they can use for their education, travel, or to expand their investment options.
However, in light of this, it is important to note that there are different seasons. For instance, a coin or the industry could go through a bull season (where assets and securities are rising) and a bear market (a season where the value of digital assets and securities declines for an extended period, as defined by Bitsoft 360 AI.
Every cryptocurrency enthusiast and investor needs to be aware of certain tendencies. This includes the fact that a variety of factors affect the volatility of cryptocurrencies, which in turn results in bearish markets or seasons when the market value and price of a currency declines or bullish markets when the market value and cost of a currency increase sharply and when most people see an increase in their profits. The catch is that one must know when and how to analyse the markets to hang onto their digital assets and investments during a bear market season or postpone their decision until the crypto economy experiences another bull market season. With that said, there are digital tokens which have proven to thrive during a bull season and also survive after the worst of bear market seasons.
The three most sustainable digital currencies
Bitcoin is the first-ever digital currency created, making it the industry’s father. It is a decentralised currency that functions without the involvement of central authorities. The currency operates freely without governments, banks, or any other central control. Furthermore, Bitcoin uses peer-to-peer software and cryptography, a network where a decentralised ledger is used through a computer that verifies the authenticity of nodes of data regarding one or more digital assets while ensuring that the data is accurate.
Since its launch, the currency has consistently remained the number one leading cryptocurrency dominating the crypto markets. This is because of the currency’s blueprint and core functions that make it sustainable, durable, scalable, and profitable, along with innovations interlinked with the currency that propel its expansion and increase in market value. All of the aforementioned has made it possible for the currency to survive regardless of declines in market value and price and the overall bear seasons.
Known as a decentralised blockchain platform, Ethereum offers a peer-to-peer network for the secure execution and verification of application code, or “smart contracts,” on the internet. In contrast to conventional banks and currencies, smart contracts enable parties to interact with one another without the need for a central authority. Ethereum is a network of validators, miners, smart contracts, and users that do not generate revenue in the traditional sense. Applications, worldwide payments, and the use of digital currency are all part of Ethereum technology. The digital community has established a dynamic, thriving digital economy that has produced and continues to produce new opportunities for creators to make money online. As a cryptocurrency platform, Ethereum employs a more equitable financial system that operates without bias.
The usage of a decentralised financial system allows for the sending, receiving, borrowing, earning interest, and even streaming of funds from anywhere in the world with only an internet connection.
Ethereum is not merely for use as cryptocurrency. It is a platform that enables anyone to represent, trade, and use everything they own as Non-Fungible Tokens (NFTs). For instance, you may tokenise your artwork to ensure that you always get paid royalties when it is sold again. The token can also be applied to whatever a person owns and used to obtain a loan, transforming the technology into an “internet of assets.” The digital platform and its apps’ currency is known as ETH.
The Cardano platform uses a decentralised Proof of Stake blockchain — a more effective blockchain than Proof of Work networks. With the help of the Cardano ecosystem, other programmers can build scalable blockchain networks, tokens, decentralised applications, and other use cases. Due to its flexible network and low energy requirement, this blockchain platform’s primary goal is to assist “changemakers, innovators, and visionaries”, as defined by the Cardano team, in bringing about positive global change, as mentioned by Cardano on their website. As a result, the blockchain is gaining popularity among investors.
Similarly to traditional stock markets, where the market fluctuates due to various factors, the same concept can be applied to cryptocurrencies, though central authorities do not oversee the industry. Different seasons exist, including the bull and bear market seasons. The factor that makes currencies distinct from one another and those that enable digital currencies to stand the test of time regardless of the market seasons are the core functions of the digital currency and the technology that not only sustains that specific currency but impacts the industry as a whole. Before investing, it is important to conduct research, make observations and do your own analysis regarding whichever digital token or technology you’re interested in and ensure that it has a proven track record of efficiency, sustainability, scalability, security and profitability. Bitcoin, Ethereum and Cardano are proof of this.