Chapter 1: Introduction to Cryptocurrency Investment

If you're channeling funds into cryptocurrency merely on someone else's word, you might just be speculating. Investing in crypto inherently means you're guessing about future possibilities, which typically revolves around how much demand a certain network may garner over time. This principle applies across all investments; you're essentially betting on their future worth.

Before diving into my suggestions, it's vital to consider the framework laid out by Casey Caruso from Paradigm Investment Partners, which offers valuable insights on what to evaluate before making an investment. You can check her tweet that outlines the various categories.

Casey's seasoned perspective serves as a guide for assessing potential investments before allocating your resources. Utilizing these criteria is prudent when selecting your next cryptocurrency. Below are four cryptocurrencies that deserve your attention and research before parting with your hard-earned money. They are ranked from least risky to most risky, though it's important to note that all investments carry risk. I've also suggested how much of your portfolio could be allocated to each.

1. Ethereum (40%)
2. Bitcoin (40%)
3. Solana (10%)
4. Immutable X — IMX (10%)

Chapter 2: A Closer Look at Each Cryptocurrency

Section 2.1: Immutable X

Let’s begin with the most speculative option: Immutable X. This layer two solution operates on Ethereum and is recognized for its Zero Knowledge roll-up (ZK-Rollup) technology, which efficiently compresses transactions akin to a zip file and processes them almost instantaneously. Immutable X boasts the capacity to validate over 9,000 transactions per second with minimal gas fees.

Transactions involving NFTs on Immutable X are celebrated for being entirely carbon-neutral, thanks to its data compression technology that significantly reduces energy consumption. As the first Layer 2 scaling solution aimed at NFTs on the Ethereum platform, I frequently utilize Token Trove’s marketplace for NFT transactions, which offers an unparalleled user experience with immediate trades.

Notably, Immutable is the fastest Australian firm to achieve unicorn status, with a recent $200 million Series C fundraising round valuing the company at $2.5 billion. These funds will support its global expansion, including a $100 million partnership with Gamestop to enhance its NFT marketplace.

Section 2.2: Solana

Solana can process 65,000 transactions per second at an incredibly low cost. As of September 2022, it has managed over 100 billion transactions with an average expense of just $0.00025 each. Its blockchain maintains a historical record of every transaction, which is akin to an ongoing receipt.

The innovative proof-of-history mechanism ensures the authenticity of data without intermediaries, enabling the network to handle high speeds and transaction volumes. This advanced technology significantly outpaces Bitcoin and Ethereum, which struggle to exceed 15 transactions per second. For context, Visa can handle 65,000 transactions per second, making Solana often likened to the "Visa of Cryptocurrencies."

Moreover, Solana is geared towards scalable applications, including NFTs and decentralized finance tools, and is gradually capturing market share from Ethereum due to its lower transaction fees. Investors are drawn to Solana because of its smaller market capitalization, which offers greater upside potential with even minor buying pressure.

Section 2.3: Bitcoin

I’ve positioned Bitcoin second, despite it being the leading cryptocurrency by market capitalization. Environmental concerns pose a risk to Bitcoin's mining operations, which consume more energy than the entire population of Argentina combined. Unlike the other two cryptocurrencies, Bitcoin lacks a founder; it was developed by the pseudonymous Satoshi Nakamoto in 2008 and has since seen adoption rates surpassing those of the internet.

Bitcoin has emerged as the best-performing asset over the past decade, outshining the stock market.

According to a report from Goldman Sachs, Bitcoin has a strong chance of capturing a larger share of the market traditionally held by gold, which currently has a $2.6 trillion investment market compared to Bitcoin’s $316 billion market cap. The report suggests that Bitcoin is "most likely" to evolve into a more significant asset class than gold over time.

Section 2.4: Ethereum

Often dubbed as digital gold, Ethereum represents the future of internet finance. Its primary strength lies in the 'smart contract' functionality, a concept introduced by co-founder Gavin Wood. Smart contracts are self-executing lines of code that automatically validate and execute agreements without intermediaries.

The technology behind smart contracts, referred to as Solidity, is deemed revolutionary. Prominent voices in the industry liken it to the invention of the printing press, with Gary Vaynerchuk stating, "It’s the most significant technology since fire and the printing press."

Ethereum's recent merge has addressed environmental issues, enhancing energy efficiency by 99.5% by transitioning to a proof-of-stake network. Now, Ethereum is more energy-efficient than platforms like YouTube and Netflix.

Section 2.5: Final Thoughts

I anticipate receiving numerous inquiries regarding why I may have overlooked certain cryptocurrencies. My selections were not intended to exclude others but rather stem from my strongest convictions in these four. Ethereum, Solana, and Immutable X are all poised to thrive in the global NFT market, which I believe will be pivotal in mainstreaming cryptocurrency.

While you may doubt the viability of NFTs, with many being of questionable value, the underlying technology is here to stay. As for Bitcoin, its potential is already realized; the primary obstacles it faces are centralized governance and activist groups.

For deeper insights into Web3, consider joining my membership. Your subscription supports independent writers, and I earn a small commission for referrals.

This article serves purely for informational purposes and does not constitute financial, tax, or legal advice. Always consult a financial expert before making major financial choices.

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In the first video, "I Researched 180 Altcoins in 2023: THIS 1 is the BEST!", the creator shares insights into various altcoins, highlighting the standout option based on extensive research.

The second video, "Everything Is About To Change In 2025! Bitcoin - What Comes Next?", delves into upcoming changes in the cryptocurrency landscape and what they might mean for Bitcoin's future.