Are you looking to start a cryptocurrency portfolio?
If so, have you noticed that there are so many options out there ? This can be overwhelming. I spent time looking at several top-rated cryptocurrencies to invest in this month and here’s what I found.
- Yearn.finance – YFI
YEARN.FINANCE is a suite of decentralized finance (DeFi) products that bring values such as lending pooling and revenue generation to the blockchain.
In other words, it is a leading DeFi product that acts as a gateway to various protocols, allowing users to take advantage of the best strategies to earn crypto assets through lending and other trading methods.
This set of protocols runs on the Ethereum blockchain and aims to maximize users’ profits while removing the need for a financial intermediary such as banks or escrow.
To understand what this really means, imagine if you had access to a savings account that earns 15% annually in USD but without a bank and practically no financial risk.
Suppose you are a market maker and you make a percentage profit as the financial banks want.
This is somewhat related to what Yearn.finance brings to the world of DeFi.
Overall, Yearn.finance aims to provide the burgeoning DeFi space to the common man.
The platform is monitored and controlled by YFI coin holders and by several independent developers.
- Solana – SOL
Solana is a decentralized protocol for building dApps with a transfer rate of 65,000 transactions per second (TPS) thanks to a distributed computing system.
Unlike most Proof of Stake (PoS) or Proof of Work (PoW) protocols, the Solana blockchain uses Proof of History (PoH), a new cryptographic mechanism that amplifies scalability while maintaining network security.
Solana is among the few first layer solutions that are able to support thousands of transactions per second without the need to implement second layers or off-chain.
- Bifrost Finance – BiFi
BiFi (Bifrost Finance) is a multi-chain DeFi project powered by Bifrost’s multi-chain technology. BiFi doesn’t only bind Ethereum-based tokens but also other tokens from different block chains such as Bitcoin, Tron, and Klaytn. BiFi will offer multi-chain wallet services, lending, borrowing and staking services, as well as return farming rewards and other multi-chain investment products.
- Polygon – Matic
Polygon is an inter-chain scalability solution that provides an infrastructure for building blockchain networks. They can interact with each other, and aim to provide adaptability and scalability in alternative chains along with Ethereum security, liquidity and interoperability. Polygon is also looking to accept two new offers on its platform at a later date. One will distribute loads of off-chain exchanges together into a single trade, while the other will run on top of the Ethereum network to speed up transactions.
Ethereum is still the most widely used blockchain globally. This open source decentralized blockchain has gained rapid ubiquity after its launch in 2013. It offers smart contracts as a POS (Proof of Stake) framework.
However, the rapid adoption of Ethereum leads to a significant cost, with exchange fees often costing more than the amount transferred. This is because Ethereum has a large amount of customers using the network, which significantly reduces the scalability of the exchange.
- Polkadot – DOT
Blockchain network, which connects blockchain networks with each other. It enables users to easily build a blockchain using their own pillar framework. It is a host blockchain that allows the security of projects and their transactions. Polkadot’s blockchain networks are also connected to other networks such as Ethereum and Bitcoin.