Consider adding these two cryptos to your portfolio for long-term returns.
Despite its popularity, Bitcoin is not the only cryptocurrency that can help do this. Innovators and spinoff currencies have emerged in large numbers, and more than 15,000 cryptocurrencies are available in the market today. Experts believe Solana (SOL) and Avalanche (AVAX) to be the 2 cryptocurrencies that will help grow your portfolio. So let us learn about these assets and understand what makes them suitable candidates for investment right now.
Solana (SOL)
Solana is a fourth-generation permissionless, decentralized, and programmable blockchain-based platform with the native token SOL. Launched in 2019, it is one of the fastest-growing blockchain-based platforms in the world and has experienced rapid adoption in the decentralized application (dApp) ecosystem. A Solana investment can positively grow your portfolio for many reasons, as listed below.
Unlike many other cryptocurrencies, Solana uses a consensus mechanism that combines two validation protocols: Proof of History and Proof of Stake. While the former makes the transaction more secure, the latter reduces energy consumption to a minimum. However, unlike Bitcoin and Ethereum, you cannot mine SOL tokens. Instead, validation is carried out in proportion to the tokens you own.
The network verifies the time interval between two transactions using a cryptographically secure function, meaning it stays secure while processing transactions without awaiting a global consensus. Like Ethereum, Solana also has smart contract functionality, making it one of the top 2 cryptocurrencies to grow your portfolio.
One of the main purposes of Solana is to make Decentralised Finance (Defi) accessible to everyone, including non-traders which the project has rapidly achieved.
Within just a couple of years, the protocol has attracted plenty of investors because of its innovative qualities. For example, Solana has great potential to support 65,000 transactions per second (TPS) with non-zero fees, minute gas fees, and transaction speed. Grow your portfolio with a Solana investment.
In addition, Solana's trustless and distributed nature makes it ideal for day-to-day commerce. You can conduct global transactions in seconds for a fraction of the cost of the most popular cryptocurrencies. Best of all, since there is no centralized control over the network, there is no one to stop, block, or confiscate your transactions like fiat currencies.
Notably, Solana is a Delegated-Proof-of-Stake (DPoS) network. DPoS networks differ from PoS networks in some ways, even though both utilize Validators to process transactions. Validators are chosen based on their overall holdings in the network. The more SOL you hold, the higher the chances you get chosen as a validator. This strategy ensures that only those vested in the network hold this position. Therefore, it should be one of the cryptocurrencies you invest in to grow your portfolio.
Validators earn rewards when they approve transactions and add them to the blockchain. Those who aren’t Validators can still secure some easy profits by delegating their holdings to one of them. This system allows everyone to participate in securing the network and allows the users to decide what nodes deserve to validate transactions.
Solana is one of the most advanced blockchains in operation currently. The developers behind this project succeeded in creating a network that could surpass today’s payment processors in terms of tps and functionality. As such, you can expect to see more developers switch over to Solana as their original blockchains continue to suffer scalability concerns. These factors make SOL one of the 2 cryptocurrencies that can grow your portfolio.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Avalanche (AVAX)
Another crypto that can help grow your portfolio is Avalanche (AVAX). It is a blockchain ecosystem that was designed to function as a secure, globally distributed, decentralized network. The project has been referred to as a “platform of platforms” by its developers. It had been in the works for over a year before it launched its mainnet in September 2020. The platform’s public token sale raised $42 million in 4.5 hours.
Experts believe this crypto could be a valuable addition to your investment portfolio, mainly because of the Avalanche Consensus Protocol. It helps the network combine fast transactions with a highly scalable trading experience. It can also process up to 4,500 transactions per second. Therefore if you want to include only two cryptocurrencies in your portfolio, AVAX better be one of them.
The native token of this blockchain is AVAX, which covers the network transaction fees of the users. Unlike Ethereum, where the cost of gas is shared among miners and then burned, Avalanche’s fee is wholly burned. The platform addresses many blockchain issues like combating centralization by providing a viable alternative to networks like Ethereum. It also builds upon some of the shortcomings of that network with more programmability, features, and functionalities. Its multiple use-cases make it one of the cryptos to invest in if you want to grow your portfolio.
The network’s developers primarily wanted to allow businesses to create application-specific blockchains and dApps. The network can execute multiple custom virtual machines in addition to instances of the Avalanche Virtual Machine (AVM).
Network participants can easily create and trade digital smart assets. These newly formed tokens can be tailor-made to suit the developer’s technical and regulatory requirements. In this way, Avalanche is ideal for the creation of DeFi platforms.
Notably, Avalanche recently received a boost with the joining of the Superfluid Protocol into the network. With this partnership, Avalanche will certainly grow rapidly and will give other blockchains a run for their money, making it one of the best 2 cryptocurrencies to grow your portfolio.
Avalanche provides a unique feature set that makes it ideal for enterprise-level blockchain creation. The inclusive nature of the blockchain, coupled with its technical aspects, makes it stand out in the sector.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Read More:
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