Hi all, today I will talk about the Best Proof of Stake Coins 2018. In terms of choosing the right coins or tokens to keep, we need to look at the % annual return and the “use case”. When I talk about “use case”, it means the coins or tokens need to have certain competitive edge and also have high growth potential for the long run if we hold them. We should train our mind to look for undervalued coins by comparing it with existing solutions.

There are several things I look at in my Best Proof of Stake Coins 2018:

“Use case” or usage of the coins and tokens — use the “use case” to benchmark a next generation coin

How do we find undervalued coins? First of all, is the Cryptocurrency or Token solving an important problem? What differentiates the Proof of Stake Coins with the rest? This is the most important thing for my Best Proof of Stake Coins 2018. As an example, Binance.com has been growing really fast and become one of the largest Cryptocurrency Exchanges in the world! They have grown from 0 to 6,000,000 users in 6 months! It’s amazing to see the growth. When we look at “use case”, we need to understand that coins and tokens are not created the same. It could be a new blockchain, a currency, an infrastructure, or a decentralized apps. Examples of blockchains are Ethereum and EOS. An example of infrastructure is ChainLink (which connects blockchain with other off-chain or external data souces). An example of currency would be Bitcoin. An example of Dapps would be an ERC20 Token that runs on Ethereum platform.

When we pick a Proof of Stake Coin / Token, we look at its usage. Binance Coin (BNB) can be used to pay for trading fee on Binance.com to save 50% of the cost.

As an example:

You are trying to sell some one Bitcoin at the price of $11,000 each on Binance.com. The trading fee would be $11,000 x 0.1% = $11. That’s a lot, right? If you use BNB (Binance Coin), the fee is reduced by 50% to $5.5. You will need to buy BNB in order to reduce the fee. In this case, you would need $5.5 / $2 = 2.75 BNB Token (when BNB Token is at $2). Please take note that the first time you buy BNB Token will require you to pay 100% fee for the BNB Tokens.

With the current growth, BNB Token’s price has gone up from $2 in July 2017 to $15 today (22nd of January 2018). That’s more than 700% growth in a short time.

With this, we can assume that the higher the number of users on Binance.com > the more the usage of the token > the higher the price of the token.

An example of a good token is Hawala.Today (HAT), I am invested in this token. Why? Hawala.Today is building a decentralized P2P Cryptocurrency-Fiat Exchange. It is the next generation exchange. It will also integrate Asset Management Service, which allows people to make money by managing others’ investments. Guess what users are gonna need to use in the platform? HAT Token. “Use case” matters.

Binance.com is amazing, but it is still centralized (it is also planning to develop decentralized exchange in the future, as his CEO has stated in the latest press conference).

2. Total Supply

For my Best Proof of Stake Coins 2018, I love coins and tokens with low total supply. Bitcoin has a total supply of 21,000,000 coins. The limited supply can make its price maintain and go up when the demand goes up. The price of a coin/token is all about supply and demand. That’s the reason that I only invest in coins / tokens with total supply below 300,000,000. The lower it is, the more interesting it is. I dislike coins with total supply above 500,000,000.

3. Current market cap — then benchmark with the market cap of existing solution

If the market cap is too huge, it is very hard for us to gain 10x return. A small to medium size of market cap is the next thing I look at for my Best Proof of Stake Coins 2018. How do we find undervalued coins with small to medium market cap? We can go to coinmarketcap.com and click “next” until we reach the pages which contain smaller market cap coins.

I love to invest when the market cap of the coin is still below $200,000,000. I am very careful if we talk about ICO, it is very tricky (which I will explain about in the future). The reason is I don’t want to come in too early nor too late.

With this 3 rules in mind, I will now talk about my Best Proof of Stake Coins 2018 and some of my suggestions on how to find undervalued Cryptocurrency:

I have been writing about NULS for a few times, it is my first pick for Best Proof of Stake Coins 2018. There are many reasons, NULS has a great “use case”, it is basically the next generation of Ethereum, which allows developers to build on top of its platform. It has a modular infrastructure that allows a faster transaction speed and more flexibility. With this, let’s apply my strategy and use benchmarking:

Ethereum (ETH)

Circulating supply: 97,134,982 ETH

Market cap: $104,538,610,495 USD

Type: Blockchain

NULS

Total supply: 40,000,000 NULS

Circulating supply: 23,564,882 NULS

Market cap: $115,672,231 USD

Type: Blockchain (Take note that NULS is still using ERC20 Token for now, which will be swapped with its native token when main net launches in May 2018.)

Let’s compare the two Proof of Stake Coins, do you think there is a chance for NULS to actually be a least 10% the size of Ethereum? If yes, that would be a market cap of $10 billion, right? With current market cap of $115 million, that would be a 100 times potential gain from today.

Let’s say we are pessimistic and think NULS could only be 1% of Ethereum. That means $1 billion market cap in the future. That is still 10 times potential gain from today. That’s very achieveable in 2018, what do you think? One think I am sure, at $115 million market cap, NULS is undervalued.

My next pick for Best Proof of Stake Coins 2018 is Hawala.Today (HAT). I have also mentioned this token a few times in my blog posts. There are many reasons behind it. Currently, there are 1,400 Cryptocurrencies listed on coinmarketcap.com and the number would be growing into hundreds of thousands in 10 years. Imagine that, the market of an exchange business is still huge and growing. What happens when we can allow people to trade Cryptocurrency to Fiat currency (like USD) easily with less friction, and decentralized? That is the future.

Let’s do some benchmarking with the existing solution:

Binance (BNB)

Total supply: 197,192,382 BNB

Circulating supply: 99,014,000 BNB

Market cap: $1,415,692,271 USD

Type: Exchange (ERC20 Token)

Hawala.Today (HAT)

Total supply:

Circulating supply: 74,372 HAT (Initial supply is 2.5 million HAT, currently many people are staking HAT due to its 15% annual return. That makes the circulating supply in coinmarketcap.com a lot smaller.)

Market cap: $885,386 USD

Type: Exchange (ERC20 Token)

Now let’s us think about the potential of HAT Token, would it be at least 10% of Binance in the future? If yes, that would be a market cap of around $140 million in the future. That is like 10 times potential gain from today. What if it replaces Binance with its decentralized exchange? It’s speculative but nothing is impossible. The market for exchange business still has a long run to go. Even Binance still has a huge runway for growth, at market cap below $30 million, HAT is undervalued. Btw, currently you can make 15% annual return if you stake HAT Token in Hawala Staking Wallet (no minimum required to start staking). You can stake HAT Tokens in Android mobile app or in your desktop.

My next pick for Best Proof of Stake Coins 2018 is XSPEC. This privacy coin is stealth by default (100% anonymous), untraceable, fast, and secure. Its features are better than Monero in many aspects. I always believe that privacy coins will co-exist in the future, everyone needs it. You would prefer no one knows about your transactions, right?

Let’s compare this coin with benchmarking strategy:

Monero (XMR)

Circulating supply: 15,631,628 XMR

Market cap: $5,508,913,933 USD

Type: Privacy Coin (Currency)

Spectrecoin (XSPEC)

Circulating supply: 20,785,264 XSPEC

Market cap: $59,780,914 USD

Type: Privacy Coin (Currency)

Do you think XSPEC can one day be worth at least 10% of Monero? I think it is very likely, with XSPEC current professional team of cryptographers. That would be a market cap of around $550 million. That is not impossible to reach in a few years. I think XSPEC is quite undervalued with its amazing tech and team.

My next pick for Best Proof of Stake Coins 2018 is Social (SCL). Please take note that this is a riskier bet, because social network really depends a lot on network effect, but the reward can be huge if it succeeds. What I like about this project is that they already have a working prototype and a dedicated team. It’s also very early at a super small market cap.

Let’s compare this to Steemit:

Steemit (STEEM)

Total supply: 264,412,391 STEEM

Circulating supply: 247,438,297 STEEM

Market cap: $1,176,801,694 USD

Type: Social Network (Blockchain)

Social (SCL)

Circulating supply: 16,714,020 SCL

Market cap: $10,481,144 USD

Type: Social Network (ERC20 Token)

The main difference is that Steemit is actually its own blockchain platform, which allows others to build new tokens with it. This puts Steemit at a better position. While Social (SCL) runs on Ethereum platform, it plans to integrate marketplace in the future, which could be something interesting to watch. If Social (SCL) can be at least 10% of Steemit (STEEM), it puts it at $110 million market cap. That would be around 10 times return from today.

My next pick for Best Proof of Stake Coins 2018 is DADI. This is at super early stage, they are still running their Pre-Sale starting today (22nd of January 2018). The DADI Crowdsale is capped at $29 million USD. The reason I like this project is because it is backed by a solid team. It also targets an interesting market similar to Golem (GNT). I seldom recommend any ICO, but this could one of those you can consider. PS: ICO is always more dangerous than normal investment. So be careful and do your own research.

Let’s compare both of them:

Golem (GNT)

Total supply: 1,000,000,000 GNT

Circulating supply: 834,262,000 GNT

Market cap: $532,531,960 USD

Type: Cloud Computing (ERC20 Token)

Dadi.cloud (DADI)

Total supply: 100,000,000 DADI

Market cap (ICO price is $0.5 / DADI): $50,000,000 USD

Type: Cloud Computing (ERC20 Token)

It’s ICO market cap already reaches 10% of Golem, so this investment is particularly risky that it needs to be as big as Golem (GNT) to allow us to gain 10 times return. However, if you believe that cloud computing is one of the best usage of blockchain, you should consider them. It is undervalued if you think whether Golem (GNT) or Dadi.cloud (DADI) could one day compete with Amazon Web Services. However, nobody knows what the future holds.

That’s it for my Best Proof of Stake Coins 2018. I also hope you love my suggestions on how to find undervalued Cryptocurrency.

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