You don't need a fortune to get started in crypto. And a $500 starting investment could help set the foundation for enormous returns over the long term. Let's explore why Ethereum(ETH -8.06%) andRipple(XRP -10.79%) look poised for lasting success.
1. Ethereum
With a market cap of $345 billion, Ethereum is the second-largest public cryptocurrency, worth almost 20% of the entire sector. The platform's developers are working hard to maintain this dominant position through an upgrade called The Merge, which could make running the blockchain more environmentally friendly and sustainable.
As you probably already know, Ethereum has fallen behind newer blockchains. Take, for example,Solana,which can handle 50,000 transactions per second compared to Ethereum's measly 15.
Image source: Getty Images.
This disparity has a lot to do with Ethereum's proof-of-work (POW) block validation mechanism where miners solve computational problems to verify transactions. This process is cumbersome and consumes real-world resources. An update aims to solve these issues.
According to its developers, Ethereum's main blockchain will combine with a parallel network called the beacon chain and transition to a full proof-of-stake (PoS) system where miners verify transactions using existing coins instead of solving puzzles. This change could result in a 99.95% reduction in Ethereum's total energy use and open the door for further improvements designed to tackle speed and scalability.
It is unclear when The Merge will go live, but the developers say it could occur a few months after June.
2. Ripple
Want a cryptocurrency with real-world utility? Look no further than Ripple. Despite ongoing legal uncertainty, this finance-focused blockchain's well-defined niche and impressive technical capabilities position it for long-term success in the competitive crypto industry.
While virtually all cryptocurrencies can store and transmit value, Ripple takes this further by optimizing its design to excel in this use-case. Transactions are fast and cheap -- processing in just three to five seconds for a fee of 0.0001 XRP tokens (each XRP is worth $0.65 at writing).
The blockchain's developer Ripple Labs also has an enterprise-level payment solution called RippleNet designed to help large companies move money across borders using Ripple's native token, XRP, as well as other traditional currencies. So far, the protocol boasts some high-profile partnerships, such as the Spanish multinational bank Santander and global payments giantAmerican Express.
Ripple's real-world utility has caught the attention of U.S. regulators, who are considering whether its developers broke securities law when they launched the blockchain. No one knows how this issue will play out, but investors should remember that Ripple's developer is a separate entity from the XRP tokens you buy or sell on the exchanges.
Betting on crypto
Crypto is a hugely volatile asset class, which might scare some investors away. But with risk comes reward -- and a small opening investment could set the stage for potentially life-changing returns over the long haul. While nothing is guaranteed, Ethereum and Ripple look like they have what it takes to outperform the sector.
American Express is an advertising partner of The Ascent, a Motley Fool company. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool owns and recommends Ethereum and Solana. The Motley Fool has a disclosure policy.
FAQs
The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Race to a Billion is an exciting cryptocurrency with 1000x potential. That's because the project aims to bring fun and rewards to Formula 1 fans worldwide. While the project is in a presale phase, early investors can buy the token at a low price and stake their tokens for an APY of over 5,160% while it lasts.
Which crypto will boom in 2024 for the long term? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Bitcoin (BTC) | $1.32 trillion | $67,217 |
| Ethereum (ETH) | $389 billion | $3235 |
| Binance Coin (BNB) | $84 billion | $575.82 |
| Solana (SOL) | $82 billion | $178.27 |
6 more rowsJul 26, 2024
Which crypto to buy below $1? Popular cryptocurrencies trading under $1 include The Sandbox, Bonk, Dogecoin, and Cardano. You might also consider a presale project like Pepe Unchained and The Meme Games.
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What is the Motley Fool crypto in 2024? ›
CRYPTO: BTC
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1. Pepe Unchained – Most Likely Meme Token to Soar by 1000x. We have picked Pepe Unchained ($PEPU) as the #1 choice for coins that could soar by 1000x in the long-term. This is because Pepe Unchained offers low transaction fees, high speed, and huge staking rewards.
Which penny coin will explode in 2024? ›
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Solana – Undervalued Web 3 Infrastructure With High Scalability and Low Fees. Solana is also a cryptocurrency with the highest potential. Launched in 2020, Solana has developed blockchain infrastructure for the Web 3 era. Solana's native language, Rust, enables developers to build decentralized applications.
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Here's our list of cryptos that will explode in 2024: Pepe Unchained (PEPU) – Iconic meme token built on a layer-two Ethereum blockchain. The Meme Games (MGMES) – Meme coin that could explode, offers gamified presale bonus. WienerAI (WAI) – A prime meme coin contender for explosive growth in 2024.
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What is the safest cryptocurrency? ›
The world's first cryptocurrency, Bitcoin, has the largest market capitalization. Its established network, limited supply, and growing institutional adoption make it a relatively safe haven in the volatile crypto market.
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Our top token with 100x growth potential is Pepe Unchained ($PEPU), a meme coin built on Ethereum's layer-two (L2) network. By breaking free from the constrained layer-one network, the project brings new life to the popular Pepe meme.
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What is the number one crypto to buy now? ›
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Which crypto coin is most promising? ›
Most Promising Cryptocurrencies for 2024
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