1 Cryptocurrency I'd Buy Right Now – The Motley Fool

1 Cryptocurrency I'd Buy Right Now – The Motley Fool

Blockchain Crypto Market Technology
May 3, 2022 by Coinvasity
98
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books,
wp-header-logo-42.png

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
As the cryptocurrency market recovers from last winter’s sudden chill, one name strikes me as a fantastic investment for the long run. In fact, I’m so excited about Polkadot (DOT 0.08%) and its future prospects that I doubled down on my position last week.
Let’s see why I’m putting real money into this promising but relatively obscure cryptocurrency right now.
In simple terms, Polkadot helps other cryptocurrencies work together. By connecting specialized coins and blockchain networks together, the Polkadot platform brings out the best qualities of each contributing currency. As a result, developers can rely on Polkadot to build powerful applications that simply wouldn’t be possible any other way.
For example, Bitcoin (BTC -1.25%) is an effective system of long-term value storage and Ethereum (ETH -0.34%) runs decentralized computer code in the form of smart contracts. Filecoin (FIL -0.06%) offers a blockchain-based system for secure file storage without central storage servers. Creating a single cryptocurrency that supports all of these functions would be difficult at best. Polkadot lets you build a decentralized application that features all of these unique features in a coherent package.
That’s why I’m convinced that Polkadot will play an important role in the next era of the internet. This is the glue that binds the entire cryptocurrency ecosystem together. That takeaway should not come as a surprise, because Polkadot was designed as a platform for the next-generation internet model known as Web3.
Why pick just one? Image source: Getty Images.
Investing in Polkadot today will let you benefit directly from the Web3 sea change. That’s a big deal, and the fundamental building blocks of the Web3 structure should become household names over the next few years.
There’s more to it, of course. Part of Polkadot’s power lies in the network’s innovative structure, where so-called parachains can add more functionality over time. As the parachains are plugged into the larger Polkadot machinery, the process itself provides funding tools for each new parachain’s development team — and that’s another important advantage. I can only scratch the surface of Polkadot’s complex and powerful setup today, but I have talked about the network’s supporting ecosystem and the power of parachains in other articles.
With a market cap of $22 billion, Polkadot is the 11th-largest cryptocurrency on the market today. That’s a respectable ranking, but still just a 1% sliver of the total market. A fully mature Polkadot should account for a much larger slice of an expanding crypto market.
Furthermore, the market stepped away from cryptocurrencies and other potentially risky investments over the last six months. Polkadot was swept up in that risk-averse trend, and the cryptocurrency now trades 59% below November’s 52-week highs:
Polkadot Price Chart
Polkadot Price data by YCharts
Past performance is no guarantee of future returns, of course. Many cryptocurrencies have crashed just as hard in recent months, but most of them cannot match Polkadot’s well-lighted path toward widespread usage in real-world projects. The combination of incredible business prospects and dramatic buy-in discounts drove my hand to Polkadot’s “buy” button again.
So Polkadot is not only a tremendous investment based on its real-world use and unique market role, but the coin is also on fire sale right now. And I’m not just saying that. Doubling down is an understatement — I quadrupled my Polkadot position last Wednesday and might add even more of these coins if the discount lasts much longer.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/03/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

source

Add a comment