- Helium and Livepeer both use blockchain technology to solve real world problems.
- Cardano's mission is to make a better reality through its blockchain.
- The Sandbox is an exciting metaverse project.
Some of my top cryptocurrencies could change the world.
There are many different reasons for buying crypto. For example, some investors want to hold a bit of Bitcoin (BTC) in their portfolios as a hedge against inflation, while others chase the hope of short-term gains from trading meme coins. Others see blockchain's potential to change the way we do things and want to be part of this emerging industry.
Personally, I look for projects I think will perform well in the long term. Though, with over 17,000 cryptos on the market, it can be hard to pick out the gems. Several of the projects that get me excited are the ones that have real world use cases. Here are four of my favorite cryptos right now.
1. Helium (HNT)
Helium uses blockchain technology to power a network of hotspots for Internet of Things (IoT) devices. IoT encompasses various devices connected to the internet, such as smart pet collars or driverless cars. Individuals can set up hotspots and earn HNT tokens as a reward for the coverage.
Our household is still eagerly awaiting the arrival of our Helium hotspot. Sadly, production has not been able to keep up with demand -- we ordered the router at the end of September and are hoping to get it in April or May. Depending on covid-related production shutdowns and other supply chain issues, it might take longer to arrive. We think it'll be worth the wait.
2. Livepeer (LPT)
Livepeer is another great example of the way cryptos can transform the way we live and work. There's a growing demand for video streaming online. Each video needs to be formatted for different devices and bandwidths through a process called transcoding. But this process is expensive, at times prohibitively so for small businesses.
Instead of using expensive infrastructure, Livepeer lets individuals contribute their unused computer resources to the video transcoding and distribution process. They earn crypto rewards, and companies get high-quality videos at a fraction of the cost. Like Helium, the token is available from most top cryptocurrency exchanges, and if you want to participate, you can visit Livepeer's website.
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3. Cardano (ADA)
Cardano is a bit of a love-it-or-hate-it crypto. It doesn't behave in the same way as other crypto projects, which has frustrated some investors. However, I am firmly in the love-it camp. Cardano takes a slow and steady approach to development, which means it peer reviews its technology and tests each step carefully. This means it's been much slower to roll out things like its smart contract functionality. But it should also mean the blockchain network is more reliable and secure in the long run.
The reason Cardano continues to be one of my favorite cryptos is that it wants to use blockchain to change the world. According to its website, the Cardano Foundation exists to make a better reality. It already has a number of partnerships in the developing world, including one with the Ethiopian Ministry of Education to store the educational achievements of 5 million students on the blockchain. This tamper-proof record could help those students get better jobs or go to university abroad.
There's a lot of craziness in the crypto universe, including scams, indiscriminate bandwagon jumping, and a plethora of tokens that don't add any value. Cardano's unwavering commitment to its vision is a reminder the underlying technology can be a force for societal good.
4. The Sandbox (SAND)
The Sandbox differs from several projects in this piece -- it's a virtual world, while Helium and Livepeer are focused on the real world. However, metaverses may play an important part in our future, which is one reason to have them on your radar. There's a lot of uncertainty around metaverse tokens. Even if you agree with Ark Invest's Cathie Wood who says metaverses will be worth trillions, it isn't clear which projects will succeed. Plus, with big players like Facebook/Meta entering the fray, the future of virtual worlds may be more centralized (run by big business) than decentralized (powered by individuals via crypto).
Nonetheless, Sandbox is one of my top cryptos right now. Not only do I think it is one of the most interesting metaverse projects, I also have my SAND tokens staked on its platform to earn an APY of over 20%. This won't last forever, and staking does carry additional risk. However, it is a solid return on a token I plan to hold for several years to come.
The cryptocurrency industry is relatively new and unregulated, and sadly some of today's favorites could be tomorrow's failures. This is a fast-paced industry, and as the technology develops, there's a chance the cryptos above could get overtaken. Plus, increased crypto regulation could have a big impact on the whole market.
Nonetheless, as we saw last year, some cryptocurrencies could generate big returns. Do your own research to understand the long-term potential of any crypto investment and only invest money you can afford to lose. That way you can invest in your favorite cryptos without risking financial disaster if a particular project does not succeed.
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