Blockchain technology and cryptocurrencies have disrupted the fintech industry. As these virtual currencies continue to gain traction in the market, more and more options become available. There are currently more than 7,000 cryptocurrencies on the market.
While you can use cryptocurrency to make purchases, most people treat it as a long-term investment. However, investing in cryptocurrency can be risky if you don’t know where to begin. Nevertheless, well-informed investment decisions have helped investors earn massive returns over the long haul. So what are the three cryptocurrencies that could turn $1000 to $5000 (or more)? Let us find out.
3 Cryptocurrencies That Could Turn $1,000 Into $5,000 Or More:
- Cardano (ADA)
- Shiba Inu (SHIB)
- Dogecoin (DOGE)
1. Cardano (ADA)
The Cardano (ADA) team aims to create a blockchain platform that will process a large number of transactions at a low cost. This project also aims to provide financial services to the unbanked population.
Cardano is one of the fastest-growing blockchain assets in the crypto space, which is attracting new investors. It is also among the very few blockchain networks used by enterprises and government bodies.
The Cardano blockchain allows users to create smart contracts without entering into a third-party agreement. The team’s goal is to stabilize the dApp sector and provide security to decentralized applications, systems, and societies. Additionally, the project offers numerous technological enhancements over Ethereum and other existing cryptocurrencies. It also aims to create a scalable, interoperable third-generation blockchain.
Bitcoin can scale up to 3-7 transactions per second (TPS) and Ethereum around 10-20 TPS. The solution to this problem is Cardano’s Ouroboros proof-of-stake (PoS) algorithm which can process around 1,000 TPS. Bitcoin networks follow the proof-of-work protocol. However, Cardano relies on the proof-of-stake (PoS) mechanism, which costs less in energy consumption and helps to minimize the transaction fees.
Cardano: Unmatched Security
Cardano has a distinctive two-layered architecture for safety and scalability. First, the Cardano Settlement Layer (CSL) handles all dealings with minimal transaction fees. At the same time, the Cardano Computation Layer (CCL) is a set of protocols that facilitate smart contract optimization. Additionally, It enables developers to create DeFi apps with high security.
The native token of Cardano is ADA. It is named after Ada Lovelace, who was a 19th-century mathematician and the first computer programmer. Cardano also has its official wallet called Daedalus. It is a universal wallet with features such as automated trading, exchanges integration, and crypto-to-fiat transactions. In addition, ADA is also compatible with other wallets, such as Yoroi, Ledger, and Trezor. Buying ADA now could potentially help investors double their investment in the future.
Investors who invested $1,000 in Cardano at the beginning of the year would hold a position worth nearly $15,500 as of the time of this writing.
2. Shiba Inu (SHIB)
Shiba Inu (SHIB) is a recent breakout meme token that captured the interests of the blockchain investment community. Many see this token as a knock-off of Dogecoin since both borrow inspiration from the famed Shiba Inu.
Despite being created with a light-hearted approach, the Shiba Inu token provides users with more earning potential. The main goal behind the project was to create an ERC-20 token and ecosystem that was priced low enough that anyone could own millions of them. Therefore, the creators deliberately launched the project’s tokens priced well below a penny. The strategy is to make the platform profitable just by hitting $0.01. To that extent, the developers have succeeded so far.
Shiba Inu (SHIB) is an Ethereum-based token. As an ERC-20 token, it enjoys the security and support of the Ethereum ecosystem.
SHIB is also the chief utility token of the Shiba Inu ecosystem. This token serves multiple purposes, such as paying fees and rewards. You can also use it as a cryptocurrency. Users can send value globally in seconds using SHIB. It’s secure and reliable because it leverages Ethereum’s blockchain. SHIB was launched with 100 billion tokens.
While Dogecoin retains a significantly larger market capitalization and user base, Shiba Inu has the option to expand its functionality. Although Shiba can’t do much more than Doge can, smart contracts on the Ethereum network provide more opportunities to the Shiba developers.
ShibaSwap will introduce new ways to use Shiba tokens, providing more value to its users. For example, it will incentivize new users to buy Shiba tokens and stake them in liquidity pools, hopefully driving the price up. Considering these factors, investing in SHIB now could help you generate massive returns in the future.
Investors who invested $1,000 in Shiba at the beginning of the year would hold a position worth nearly $18,550 as of the time of this writing.
3. Dogecoin (DOGE)
Dogecoin is a first-generation cryptocurrency that can be used to transfer value globally in a secure manner. Famously, Dogecoin features the Shiba Inu from popular internet memes. The developers used this character to keep the project light-hearted. Like Bitcoin and Litecoin, the purpose of this coin is to allow for peer-to-peer transactions to occur in a censorship-resistant manner. As of late, Dogecoin has seen considerable coverage in the media due to notable price hikes.
Dogecoin shares many technical characteristics with the world’s first crypto, Bitcoin. Consequently, the network is secure and provides real-time consensus. Like Bitcoin, hackers would need to control 51% of the network’s hashing power to alter the state of the blockchain. Considering the current Dogecoin hashrate is 203.97 TH/s, this is very unlikely.
Dogecoin uses a Proof-of-Work consensus algorithm to keep the network secure. However, this PoW system is not the same SHA-256 version used by Bitcoin. Instead, the network relies on a scrypt technology in its PoW mechanism. This prevents the use of high-powered Bitcoin mining rigs. Instead, you can only mine Dogecoin using dedicated FPGA and ASIC devices.
Unique Features of Doge
A prominent feature that separates Dogecoin from most other altcoins available today is inflation. Bitcoin and several other cryptocurrencies are deflationary in nature, formulated to have a supply cap of currencies. The problem here is that once the cap is reached, it might cease to be a profitable asset for miners. Eventually, the price of the token might rise enormously high. While Dogecoin, rather than trying to beat deflation, depends on it.
New DOGE can still be mined even if there is a massive drop in its value. These newly mined coins will eventually replace the lost ones to sustain a steady supply of about 100 million active Dogecoin tokens. This mechanism will benefit Dogecoin as it can be accepted as a viable medium of exchange worldwide, leading to mass adoption. If you are planning to buy DOGE, now could be a good time, given the affordable prices of the token.
Investors who invested $1,000 in Dogecoin at the beginning of the year would hold a position worth nearly $6,660 as of the time of this writing.
Like most investment choices, cryptocurrencies can be volatile and risky. However, investing after thorough research has helped various investors turn their fair capital into millions of dollars. Based on key considerations, we believe ADA, SHIB, and DOGE are three coins that could turn $1,000 to more than $5,000.
Investors are advised to perform due research before investing.
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Virtual currencies are highly volatile. Your capital is at risk.