The continued evolution of the economy in the 21st century has given rise to new investment opportunities in many different areas. Cryptocurrencies are among the newest and most modern investment trends, and as time goes on and the market grows, more and more options are created. This whole canvas of opportunities may seem daunting to new investors, which begs the question, Which crypto has the most potential? Currently, BNB is one of the cryptocurrencies with the highest potential for the future, given that it answers the fundamental concepts that make a coin have great potential, such as its big market capitalization share, high liquidity, high trading volume, etc. In this article, we will introduce you to the parameters that make a cryptocurrency have a big potential, and some of the current cryptocurrencies that answer these parameters.
The Pillars of a Coin’s Potential
Before we delve deeper into our analysis of crypto investment opportunities, we must clarify and understand the parameters that dictate the stability and profitability of all the different cryptocurrencies available in the market. For this reason, we will introduce you to seven fundamental concepts for our analysis: Market Capitalization, Trading Volume, Liquidity, Tokenomics, the Development Team, the Technology Behind the Coin, and its Active Community Support.
Market Capitalization
Market capitalization refers to the total value of all company shares in US dollars. In the case of BNB, or any other crypto, it’s not shares, but the total amount of coins in circulation. In the crypto world, market capitalization is calculated by multiplying the total amount of coins times the value of one coin at a specific time.
Let’s imagine that market capitalization is an indicator that measures the probable stability of a particular asset. In the same way that a bigger ship can navigate more safely through a storm, it’s more likely for a cryptocurrency with a bigger market capitalization to be a more stable investment option. On the other hand, cryptocurrencies with a lower market capitalization value are susceptible to the whims of the market, ergo, they can generate big profits, but also big losses.
Trading Volume
Trading volume measures the total amount of coins successfully traded. All cryptocurrencies keep a daily record of these transactions in their blockchain. A specific cryptocurrency's trading volume and price can be checked through our online price section; we offer accurate, up-to-date information on crypto prices and daily trading volume. Let’s also keep in mind that the number of coins traded in the last 24 hours is called the Daily Trading Volume. This information is crucial for crypto investors, as it shows the amount of money that is moving in a given platform. The exchange is more liquid if the value is higher.
Since this measure takes into account multiple elements to determine its value, the trading volume is a more precise value indicator than market capitalization, as it not only evaluates offer and demand, but the active usage and potential growth of a coin.
Liquidity
Think of the crypto market as a vast open land with many different lakes. Each lake represents a different coin, and the fish in the lakes represent the transactions.
When we talk about liquidity, we refer to how easy it is to buy or sell a specific coin, without affecting its price. In a lake with many fish (high volume), it’s easier to fish (to buy or sell). If there are few fish (low volume), fishing might alter the ecosystem of the lake (the price of the coin).
Tokenomics
A portmanteau of “Token” and “Economics”, tokenomics is a key part of the fundamental research for a crypto project. It’s a term that encompasses the elements that make a cryptocurrency valuable and interesting for investors. This term includes all aspects, like emission, utility, offer, distribution, and demand.
Development Team
In cryptocurrencies, the development team refers to the group of professionals who work on the design and maintenance of a cryptocurrency or blockchain platform. Without a reliable and transparent team to back it up, a cryptocurrency cannot keep up with the fast and constant evolution of technology, making it less stable, secure, and valuable.
Tech Behind the Coin
Solid technology backing a cryptocurrency is a must for it to be profitable for several reasons:
· A strong technological foundation ensures safety and security, protecting the coins against hacking, fraud, manipulation, and more. Advanced encryption techniques and protocols protect the integrity of both users and transactions.
· A reliable technological infrastructure ensures that the network of a particular cryptocurrency operates without frequent disruptions and/or downtimes. This also helps foster trust among its users and investors, increasing the long-term viability of that cryptocurrency.
· As a cryptocurrency becomes more popular, the user base and transaction volume go up. This means that its technology must be able to scale and adapt accordingly to accommodate the increased demand.
· Solid technology is the catalyst of innovation. It enables developers to create new features for a particular cryptocurrency, like new functionalities and decentralized apps, thus enhancing the utility and versatility of that cryptocurrency.
· The cryptocurrency market is extremely competitive, and superior technology gives a crypto project a huge advantage over its competitors. Investors have a higher chance of supporting a cryptocurrency that shows technical excellence and a clear future roadmap.
Active Community Support
Crypto communities are groups formed by people who share a common interest in knowledge about cryptocurrencies and their technology. Building crypto initiatives, investment, and other goals form the core objective of these communities. They are often hosted on online messaging platforms such as WhatsApp, X, and Reddit, and there are even communities based around content creators, such as Youtubers, that focus on crypto information.
The main appeal of these communities is the possibility of sharing and receiving information from more experienced people, as they have become information hubs for the crypto world.
Now that we have cleared up the terms, it’s time to go on to the main event of our analysis.
Future Potential: Top 5 Cryptocurrencies
The following list takes into account all the aforementioned parameters, to provide a concise and clear analysis of the possible future profits, in short, showing which crypto has the most potential. Without further ado, let’s begin.
BNB
Binance Coin from Binance Exchange began as an asset sold as part of the Initial Coin Offer (ICO) in July 2017, becoming a means for their users to pay less trading fees on this platform, once it was launched. The BNB tokens were split between several parties, including angel investors (10%, around 20 million BNB), Binance’s founding team (40%, around 80 million BNB), and the final part of the share was sold publicly, each token costing 15 cents of a dollar.
In 2019, Binance launched its native Blockchain, named Binance Chain (BC). With the arrival of BC, BNB appeared as its native coin. The users received the new BNB coins in exchange for the tokens they had previously purchased during the ICO, through a token swap program in the same year.
On a technical level, BNB works in tandem with two specific blockchains: Binance Chain and Binance Smart Chain (BSC). BSC is an independently built blockchain that is different from Binance Chain but works in tandem with it, having different features, such as the capacity to support smart contracts.
In regards to its community, BNB has an official subreddit with over 70k active members, ready to share information on the current crypto trends, along with up-to-date videos and content creators.
Currently, BNB holds position #4 in the market cap, with a market share of 3.5273% and a value of 614.47$ per BNB.
Solana
This blockchain project bets on boosting the development of Decentralized Apps (DAPPs), offering a growing and safe platform that aims to be as decentralized as possible. One of its key features is that it doesn’t need hardware or nodes, which greatly lowers energy consumption, something that many other cryptocurrencies are known for. Whenever a transaction is carried out, it needs to be verified by the nodes.
For many other cryptocurrencies, “miners” are the ones who carry out this labor. Solana bets on automation, as it’s capable of supporting many more transactions per second than other blockchain networks.
We need to add that Solana is still in its development stages, as it was created in 2017, but wasn’t launched in the market until 2020, and it’s currently functioning in the Beta phase.
Talking about market cap, Solana holds the 5th position, with a value of 178.32$ and a market share percentage of 3.1152%.
Community-wise, Solana has one of the biggest crypto communities outside of Bitcoin and Ethereum, with many dedicated content creators and an official subreddit with over 230k members.
Toncoin
Toncoin (TON) is a first-layer blockchain created in 2018, also known as “The Open Network”. At the time of writing, TON holds 0.8799% of the total market cap share, with a price of 6.46$, taking up the 9th position in the leaderboard. As we mentioned, Toncoin’s story began in 2018, when Russian brothers Nikolai and Pavel Durov launched the popular social network Telegram. Toncoin’s narrative is linked to Telegram’s initial project of creating a chain token called “Gram”.
After fighting through some legal challenges, the Telegram team put all their effort into developing Toncoin. At the beginning, the blockchain was called “Telegram Open Network.” In 2020, Telegram’s CEO abandoned the project, and the development of the blockchain project was transferred to the community, adopting the name “The Open Network”. Currently, the TON Foundation is in charge of continuing the development of the blockchain.
Cardano (ADA)
A third-generation blockchain network created to solve the problems of Bitcoin and Ethereum, it is considered by many a possible replacement for Ethereum. The platform is open source, offering good scalability and security thanks to its design. It has been considered the first scientific blockchain.
Cardano’s focus is on carrying out a high volume of transactions, guaranteeing security thanks to its cryptography. At the time of writing, Cardano currently holds 0.6391% of the market cap share and has a price of $0.46, positioning itself as the 10th placer on the leaderboard.
XRP
XRP is the cryptocurrency native to Ripple, a crypto payment system created by Ripple Labs Inc. XRP is their “digital asset created for global payments,” implying that Ripple’s plan is to rival the money transfer systems generally used by banks. One of Ripple’s key proposals is their minuscule transaction costs, while at the same time offering a waiting period of less than 5 seconds.
The company was founded in 2012 by Chris Larsen and Jed McCaleb, and it’s based on the work of Ryan Fugger, who created XRP Ledger in 2012. XRP Ledger is a major cryptographic open-source ledger; its technology is based around node pairs.
XRP holds 1.1548% of the market cap, positioning at number 7 with a value of 0.533$. Being a bit on the lower side of the price scale, XRP is an easy-to-access, low-risk option for investors who like to play it safe.
The Hidden Dangers of The Crypto Market
We at PlasBit value the safety of our users above all, so just as we analyze the possible investment options for your reading pleasure, we also want to warn our customers as to the dangers that lurk beneath the waters of the crypto sea. While no investment is a sure bet, there are many risk factors involved in the smaller cryptocurrencies on the market, such as scams, volatility, or the lack of technology supporting the coin.
Volatility
As we previously mentioned, cryptocurrencies that have a small market cap are more likely to suffer the ups and downs inherent to the market. This means that as the percentage of the market cap goes down, the volatility, theoretically, goes up. While this may sound scary, as most of the previous cryptocurrencies we discussed hold little over 1% of the market share, we must also consider the top 2 coins in the market.
Bitcoin alone holds over 53% of the market cap share, while Ethereum holds a little over 17%. This means that these two hold at least 70% of the market, which explains why the share percentages of the other cryptocurrencies are so low. What we must always keep in mind is that percentages lower than 1% are a good indicator of unpredictability in a specific cryptocurrency; nonetheless, thanks to the firm grip that Bitcoin and Ethereum hold in the market, lower-value cryptocurrencies can still be quite profitable.
The Dangers of Memes
When thinking about which crypto has the most potential, meme coins might come to mind, yet popularity does not equal profitability. Meme coins are a fairly new cryptocurrency, born from internet memes or pop culture. These digital assets are known for their high volatility and speculative nature. This concept was born in the community as a way of combining popular trends with blockchain technology. Dogecoin, one of the most popular cryptocurrencies on the market, was the first meme coin in history.
One of the main features of meme coins is their ability to go viral quickly, due to the humor and attractiveness of memes. Nonetheless, we must keep in mind that:
· The price of meme coins fluctuates significantly, making it a high-risk investment.
· In contrast to other more traditional cryptocurrencies, meme coins lack clear economic support or practical uses; therefore, they lack fundamental value.
· Due to their popularity, meme coins can be the object of market manipulation, leading investors to make mistakes
Beware the Scams
The most dangerous and sometimes insidious enemy in the crypto world, are the different scams that digital thieves come up with to take advantage of the lack of knowledge of new investors or the volatility of a certain market period. PlasBit wants each one of your crypto transactions to be as secure, profitable, and pleasant as possible, so let’s take a quick look at some of the most common scam setups to be on the lookout for.
Fake Websites
Scammers sometimes create phony crypto trading platforms or fake crypto wallets to cheat unsuspecting victims. These websites tend to have similar domain names to the ones they try to copy, with subtle differences. They even look similar to the actual websites, which makes identifying them difficult.
Fake crypto sites usually operate in one of two ways:
· As phishing pages, all information entered, such as passwords, security questions, and financial information, is used by scammers.
· As direct robbery: In the beginning, the website allows small withdrawals. Then, your investment shows good profits, tempting you into investing more. Finally, once you attempt a big withdrawal, the website closes or rejects the process.
Phishing Emails
Similar to the websites we previously mentioned, this method aims to steal the private information of unsuspecting users. An email is sent with enticing information, luring users to a fake website that’s specially designed to steal their information. Once the information is stolen, scammers log into the digital wallets and then steal the cryptocurrencies.
Inflate and Sell
Scammers use social networks like Facebook or X, or emails to promote a particular token or coin. To not be left out, investors jump in to buy them, this way inflating the price. Once inflated, scammers sell their active assets, causing a drop in the active value. The scary part is that this can happen in a matter of minutes.
Fake Apps
Scammers publish fake apps on Google Play Store and Apple App Store to lure unsuspecting victims. These apps employ a wide range of tactics to lure users and gain sensitive information. One common tactic is to impersonate legitimate online platforms by using similar logos, branding, and names to create trust in the user. Phishing scams are also fairly common in fake apps, prompting users to enter their personal information and gain control over the victim’s cryptocurrencies, digital assets, and wallets. These apps tend to be identified fairly quickly and are promptly eliminated by the security teams. Nonetheless, we must be extra careful when downloading a crypto-related app.
Fake Celebrity Support
Sometimes scammers disguise themselves as celebrities, businessmen, or influential people, or claim to have their support. It may also include supporting phantom tokens to inexperienced investors. These scams can be sophisticated, using flashy websites and flyers simulating backup from celebrities, like Elon Musk.
Fake ICOs
An ICO (initial coin offering) is the way new, rising crypto companies aim to obtain funds from future investors. Generally, clients are promised a discount on the new token or coin in exchange for active cryptocurrencies, like Bitcoin, Solana, or any other popular cryptocurrency. While these offers might seem enticing, scammers will do anything to prove themselves legitimate, like renting fake offices and creating high-level marketing material. Many ICOs have resulted in people getting scammed, so always do your research before taking up an ICO.
Telltale Signs of a Scam
Now that we’ve looked at some of the dangers crypto investors face let’s talk about the means to identify and defend ourselves from crypto scams. Keep in mind that when choosing which crypto has the most potential as an investment option, you must also look for the following signs.
Promises of High Yield Investments
No financial investment can guarantee future profits; investments can go up or down. Any crypto offer that promises you will earn money is a warning sign.
Mediocre or Inexistent Whitepaper
Every crypto must have a whitepaper, as it is one of the most important aspects of an ICO. This document must contain an explanation of how the crypto was designed and how it will work. If the whitepaper is mediocre, or worse, non-existent, be careful.
Excessive Marketing
All companies promote themselves, yet one of the most common ways crypto scammers attract victims is by investing in tons of marketing, like online advertising, paying influencers, offline promotions, and more. The aim is to reach as many people as possible in the shortest amount of time, thus collecting money quickly. If you think a cryptocurrency has an excessive amount of marketing or includes baseless extravagant promises, take some time and investigate further.
Anonymous Team Members
In most investment companies it should be possible to investigate who’s behind them. Generally speaking, the information of the people who run the company should be available easily, and they should be active on social media. If you can’t find out who’s behind a crypto, be careful.
Free Money
Either in cash or cryptocurrencies, any offer that promises free money it’s likely false.
Our Beliefs
PlasBit’s answer to which crypto has the most potential is always Bitcoin. We, as a company focused on providing safe transactions to our clients, believe only in Bitcoin as a cryptocurrency with a clear goal and solid technology supporting it, hence its position as the leading crypto in the market.
We believe Bitcoin is the only cryptocurrency that is truly decentralized, as there is no organization behind it. These are the reasons behind Bitcoin’s unstoppable and unbreakable grip on the market and our firm belief in it. According to our worldview, there is only Bitcoin
Conclusion
As we have seen during this analysis, the crypto market offers many investment opportunities for new investors and also for veterans in the field. However, before choosing any cryptocurrency to invest in, it is important to consider the many factors that contribute to a coin's future success or downfall, like its market capitalization share, trade volume, liquidity, etc. A future investor must also consider the dangers that lurk in the market, as scammers will go out of their way to find new victims and steal their assets, so vigilance and individual research before investing is a must. So keep your research up, your wallets closed, your assets safe, and whenever you are ready, invest in the crypto you consider the best investment option.
