Seven Most Predictable Cryptocurrencies
Cryptocurrencies are notoriously volatile, with their price rising or falling within the span of a few hours to a few days. This is what makes investing in cryptocurrencies such a tricky affair because there is no telling which way the price would go.
The price could be in the clouds one day and in the dumps the other. Volatility is part and parcel of the cryptocurrency space, and it takes a special nuance to invest in cryptos.
However, if you look closely, there are patterns and telltale signs that could help investors predict a cryptocurrency's price. For all the volatility, there are several cryptocurrencies in the market. Predictable cryptocurrencies that slow down when they encounter resistance or surge and make a break for it when they have strong momentum.
These are the more predictable coins. Investing in these cryptocurrencies can help investors make a significant profit if they can time their investment right and read the market signals.
Here are the top 7 most predictable cryptocurrencies in the market today.
1. Ethereum (ETH-USD)
Founded in 2015 by Vitaly Buterin, Ethereum is an autonomous, decentralized platform where users can carry out transactions and developers could develop and launch decentralized apps and smart contracts. Even though the "Flippening" has still not happened, Ethereum is one of the most stable cryptocurrencies in the crypto space.
Ethereum is the second-largest cryptocurrency, second only to Bitcoin. It enables users to carry out transactions and buy or sell services without any third party's interference. The digital asset also supports decentralized applications, known as dApps and smart contracts.
During a price surge, ETH always marks the top or the button of the range. The coin then almost trades between the previous line and the new line.
Ethereum has a good memory and remembers old price lines.
Read More: Can You Profit On Ethereum?
2. Litecoin (LTC-USD)
Litecoin is currently the 13th largest cryptocurrency, with a market capitalization of $10.7 billion. Founded in 2011 by Charlie Lee, the cryptocurrency is a result of a hard fork in the original Bitcoin blockchain.
The main reason behind the creation of Litecoin was to create a cryptocurrency that was miner-friendly and could be mined without the use of energy-intensive and expensive hardware.
Litecoin has become one of the most popular cryptocurrencies for cross-border transactions, thanks to faster transaction speeds and low transaction speeds. It has also become a popular investment asset. The cryptocurrency is significantly faster than Bitcoin, processing a block in 2.5 minutes.
LTC is also an extremely predictable cryptocurrency that tends to move to the upside or downside. Any sharp moves tend to indicate the trends through lower highs and higher lows.
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3. Bitcoin (BTC-USD)
Bitcoin is the largest and most popular cryptocurrency in the world. Created after the 2009 financial crisis by Satoshi Nakamoto, Bitcoin works on a public ledger known as the blockchain.
Miners confirm the transactions on the blockchain and add them to the blockchain as a block. Miners confirm transactions by solving complicated mathematical problems; this process is called mining.
Miners receive a reward in the form of new bitcoins for verifying the transactions and adding them to the blockchain. The current reward stands at 6.25 BTC.
BTC has a long history and high volumes when it comes to trading. This makes it somewhat predictable. Bitcoin's trends are relatively straightforward to follow, and it usually stays within range. However, Bitcoin's popularity does seem to undermine it, and panic sell-offs also hurt its reputation.
Bitcoin performs well away from the limelight.
4. Bitcoin Cash (BCH-USD)
Bitcoin Cash was created in 2016 by miners who were concerned about Bitcoin and the problems plaguing the cryptocurrency, mostly the cryptocurrency's ability to scale and the slow speed of transactions on the network. With the number of users on the Bitcoin network growing, the time taken to verify transactions kept increasing because the underlying technology remained the same.
The issues plaguing Bitcoin could be solved in two ways. Developers could reduce the amount of data in each block, or the block size could be increased. Bitcoin Cash increases the block size to 8MB, allowing more data to be processed at faster speeds.
Even though Bitcoin Cash is relatively new, its overall performance has been quite good. Like Ethereum, Bitcoin Cash marks the top or the bottom of the range. Bitcoin Cash does not remember older lines well.
5. Ripple (XRP-USD)
Ripple was created in 2012 by Chris Larsen and Jeb McCaleb. It allows users to make quicker transactions at relatively lower transaction costs. Operating on an open-source, peer-to-peer, decentralized platform, the platform enables users to transfer funds in the form of traditional fiat currencies or in the form of other cryptocurrencies.
Ripple is more than just a cryptocurrency. It was created primarily as a payment protocol that banks and other financial institutions can use. Ripple users can process transactions instantly to any corner of the world, making remittance, currency exchange, and real-time gross settlement a possibility.
Ripple has partnered with over a hundred financial institutions to cultivate an ecosystem of seamless cross-border payments.
Ripple is somewhat predictable when it comes to its price. The crypto asset encountered a sharp rise in its price, but then its price fell off a cliff. It has encountered a considerable amount of volatility lately.
Check Out: Ripple Price Prediction
6. Cardano (ADA-USD)
Similar to Ethereum, Cardano is a cryptocurrency and smart contract platform. Its founders describe it as a third-generation cryptocurrency that improves upon and solves the issues faced by first and second-generation currencies like Bitcoin and Ethereum.
Cardano is the third-largest cryptocurrency, behind only Bitcoin and Ethereum.
Cardano's native cryptocurrency ADA allows users to send and receive funds and carry out transactions.
Cardano is also the first blockchain in the world that is peer-reviewed, with all protocols being reviewed by academics and scientists from institutions like the Tokyo Institute of Technology and the University of Edinburgh.
Transactions on Cardano are secured through the use of cryptography.
Don't Miss: What Will Cardano (ADA) be Worth In 2030?
7. Stellar Lumens (XLM-USD)
Jed McCaleb founded Stellar Lumens. He is also the co-founder of Ripple and the founder of Mt. Gox. Stellar gained significant popularity in 2017, increasing its market capitalization and becoming one of the most trusted cryptocurrencies in the crypto space.
The Stellar Foundation supports the development and the adoption of the Stellar Lumens network. Stellar has become a popular solution for cross-border payments, giving unbanked individuals access to a store of wealth and a system to transfer funds with minimal transaction fees.
Stellar is also famous for its partnership with IBM and creating IBM World Wire, a global network for financial institutions to clear and settle cross-border payments simultaneously, in real-time.
If you look at Stellar Lumens' price chart, you will understand why it has been included in this list. XLM's price has been relatively predictable, and it is only recently that the cryptocurrency has seen a significant increase in price.
Read More: Stellar Lumens Price Prediction
In the notoriously volatile cryptocurrency market, where prices of cryptocurrencies are wildly unpredictable, these currencies allow you to study their price movements and time your investments. Of course, there are still risks involved, as is with any investment. However, these cryptocurrencies mitigate the risk to your investment to a certain degree.
It should be noted that no investment should be made without adequate research, and the same reasoning applies here as well.
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Virtual currencies are highly volatile. Your capital is at risk.