Cryptocurrency investors have had a challenging year. Many people’s portfolios have been wiped out, and even the most popular cryptocurrencies are down as much as 90% from their all-time highs. Sadly, prices are likely to remain low for some time to come. That may represent a buying opportunity for some. However, there is also the possibility that many projects, particularly those with little value, will fail before the market improves.
Assuming that you’re thinking about putting resources into digital currency, it’s critical to completely investigate each task and contemplate how it could perform long haul. Pay attention to the leadership, how it compares to the competition, what it does, and who will use the product.
Mark Cuban, a crypto enthusiast, and billionaire investor made the point that just being a cryptocurrency is not enough. Still, these projects must be able to generate revenue, attract users, and be useful for them to be successful.
Here are four that have already been put to use in the real world.
1. VeChain (VET) Initially, VeChain utilized the blockchain for supply chain management, but it has since expanded to include other business applications. Take, for instance, the luxury handbag industry. VeChain can monitor every stage of the handbag’s production and sales on the blockchain, ensuring that the final purchaser receives the genuine thing and not a copy.
In addition, VeChain has collaborated with Walmart China to track fresh vegetables and meat from the farm to the store. If a particular batch of food has a problem, it will be simpler to quickly contain and control it thanks to increased traceability. VeChain, like other cryptocurrencies on this list, is available from some of the best U.S. crypto exchanges, but not all of them.
2. Livepeer (LPT) Video streaming is getting more and more popular, but it costs a lot. To be accessed on a variety of devices with varying bandwidths, video content needs to be processed. This is called transcoding, and it requires a ton of PC handling power.
Livepeer transcodes videos by gathering unused computer resources from a network of individuals. Livepeer doesn’t have to buy expensive infrastructure, content producers get scalable, low-cost transcoding, and network participants get LPT tokens that have real-world value.
3. Helium (HNT) Helium is a long-distance hotspot-based, decentralized wireless network. Helium is now expanding into 5G and WiFi connections, initially targeting Internet of Things devices like smart pet collars, self-driving cars, and fitness devices. Participants in the network manage a Helium hotspot and are compensated for providing connectivity.
An intriguing aspect of blockchain is the idea of rewarding participants with crypto tokens. By utilizing a network of individuals to carry out the heavy lifting, projects like Livepeer and Helium are two of many that reduce a company’s initial infrastructure costs. In this more community-centered, decentralized business model, those individuals receive a portion of the fees.
4. Cardano (ADA) Cardano is a crypto that some people either “love or hate” and may be questioned in terms of its actual value. It is a blockchain-based ecosystem similar to Ethereum (ETH) that can host additional cryptocurrency projects. Its critics point out that the ecosystem does not yet have as many apps as other cryptos that are similar to it and that the launch of its smart contract functionality was delayed.
Cardano, on the other hand, has something else going for it: It’s a great illustration of how blockchain can be used in real life. To record the academic credentials of five million students on the blockchain, Cardano partners with the Ethiopian Ministry of Education.
This would make it harder to cheat the education system and possibly make it easier for students to get into universities or get jobs overseas. Empowa, a Cardano network project, aims to provide underbanked individuals with access to home-building funds.
In conclusion, blockchain technology has the potential to transform entire industries if it achieves even a fraction of its promise. The blockchain could secure the storage of medical records and give you, the patient, control over who has access to them. When certain conditions were met, insurance claims could be paid out automatically. The deed to your home may even be able to be stored on the blockchain.
The problem is that the industry is still in its infancy, and we don’t know much about how it will develop or even whether it will survive the crypto winter. It’s similar to the beginnings of the internet. Everyone wants to be the next Amazon, but there will be hundreds of failures for every success story.
As an investor, a great place to start is by looking for useful cryptocurrencies. Nevertheless, it is essential to only invest money that you can afford to lose and to ensure that cryptocurrency accounts for a small portion of your overall portfolio. This way, you can still put money into smaller, more risky projects without risking financial ruin if they don’t succeed.