Cryptocurrency: The Next Generation
Cryptocurrencies have proven that they’re more than just a fad, having been around since the inception of Bitcoin in 2009. While they may have been receiving a lot of attention recently, as billionaire celebs make crypto noise on social media, the digital currencies have already become a mover and shaker in the markets and have been proving that they’re here to stay, with the acceptance of Bitcoin into some mainstream financial institutions. Bitcoin and Ethereum have become household names as two of the largest cryptocurrencies in the world, and both Bitcoin and Ethereum price changes get the attention of investors.
The crypto rollercoaster has continued into 2021, with cryptos reaching extreme highs and plummeting down to serious lows. We’ve even seen changes in recent Bitcoin prices and Elon Musk’s statements of support. However, even in this chaos, there are some new cryptos that are gaining traction and popularity. So move over Bitcoin, step aside Ethereum, because we’ve got some newcomers that are making waves for some very interesting reasons. The battle for crypto dominance in the markets is firing up with the likes of Cardano and Dogecoin coming up in the ranks. If you’re thinking to start trading now in global virtual currencies as CFDs, you may want to keep reading first.
Crypto’s Greenest Coin
The change in recent Bitcoin prices and Elon Musk’s statements about Tesla no longer accepting Bitcoin have shed light on the fact that cryptocurrency mining can be negative for the environment. Enter Cardano (ADA), which defied the Bitcoin crash, and even rose by 20% amidst the crypto market turmoil that ensued from Elon Musk’s announcement. Cardano has risen by 1,000% in 2021 so far and there’s one good reason why the crypto is making headway in these tumultuous times. Cardano’s blockchain technology uses Proof of Stake (PoS) instead of Proof of Work (PoW), unlike Bitcoin, which means that ADA can be mined without the use of computers that have a huge electricity requirement.
Charles Hoskinson, Cardano founder, has estimated that his crypto uses less than 0.01% of the amount of energy that Bitcoin uses. While Cardano isn’t the only crypto using the PoS blockchain technology, it is the biggest. Nigel Green, CEO of financial advisory firm deVere Group, said: “Cardano is likely to be a challenger to Ethereum as not only can it be used as currency, but its blockchain can also be used to build smart contracts, protocols and decentralised applications. Plus it is significantly more scalable than Ethereum.” Cardano is currently the fourth largest cryptocurrency in the world with a market cap of over $70 billion, which makes Cardano a force to be reckoned with.
Crypto’s Biggest Joke
Dogecoin was meant to be a joke when it hit the markets in 2013, featuring the face of the Shiba Inu “Doge” meme, which was popular at the time. Since then, however, Dogecoin is having the last laugh, as celebrity billionaires like Mark Cuban have shown support for the crypto and driven prices through the roof. In fact, after recent Bitcoin prices and Elon Musk’s statements supporting Dogecoin, the latter’s market cap eventually neared the $90 billion mark in April. Dogecoin overtook Bitcoin’s price increases by far between December 2020 and February 2021, with a massive 2,330% rise in price. Social media has been a big proponent in the rise of Dogecoin, as retail investors jump on the bandwagon so that they don’t get left behind in the fuss being made about the world’s first “memecoin.”
Looking to Start Trading Now in Global Virtual Currencies as CFDs?
The inherent volatility of the crypto market can provide both opportunities and risks for those who invest in CFDs, or Contracts For Difference. CFDs allow you to take advantage of price movements in both directions—increases as well as decreases—of a wide variety of cryptocurrencies, such as Ethereum price changes, without having to purchase the underlying asset and with no e-wallet required.