You won’t regret buying these 3 cheap cryptos

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The first few weeks of September have been brutal for cryptocurrencies, with major indices falling by a quarter amid fears of a regulatory crackdown. These worries are subsiding, making it a good time to do what stock investors have done to great advantage in similar situations: use temporary market withdrawals as an opportunity to buy high-end brands at good prices. Marlet.

So let’s see why now is the time to buy Ethereum (CRYPTO: ETH), Attached (CRYPTO: USDT), and Aave (CRYPTO: AAVE).

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Ethereum

Ethereum has exploded in popularity to become the “reserve currency” of the decentralized finance (DeFi) world. Right now, the Ethereum blockchain powers over $ 341 million in transactions per day using decentralized applications (dApps) or smart contracts – deals that are triggered automatically. Investors using dApps are buying non-fungible tokens, or digital certificates of ownership, which have become hot in the art and entertainment world; trade altcoins – anything but Bitcoin – on decentralized exchanges (DEX); or even play on blockchain casinos.

But here’s the game changer: Right now, the Ethereum network is operating at a breakneck rate of 15 transactions per second. This makes it difficult to increase the number of DeFi protocols or dApps it can handle.

This is all set to change next year with the introduction of sharding. In this new configuration, network custodians (called nodes) would only need to keep a copy of the ledger of transactions that they post instead of the transactions of the entire network. Ethereum developers plan to have 64 shards at the start, which isn’t a lot. But Ethereum co-founder Vitalik Buterin ultimately intends to deploy enough shards to scale the network to over 100,000 transactions per second, which would exponentially accelerate the development of dApps.

Since its inception, ETH has returned over 102,000%.

Attached

Tether is a stablecoin built on the Ethereum blockchain that is pegged at a 1: 1 exchange rate to the US dollar. The peg isn’t what makes Tether attractive, and I don’t think investors should try to profit by buying the token when it trades for $ 0.9999 and selling it when it hits 1.0000 $. Instead, they should lend it out and earn interest!

Nowadays, crypto developers and investors need loans to cover either the cost of building crypto infrastructure projects or the day to day expenses, without selling their crypto holdings. This is where Tether comes in. On most DeFi platforms, users can earn up to 12% per year by lending their Tether. Don’t worry: borrowers are required to pledge their own crypto as collateral for the term of the loan. So, if a borrower defaults, the lender automatically gets their money back through the execution of a smart contract. Additionally, contracts allow Tether owners to re-loan their coins, which can produce even higher returns.

Whatever the return, it will be far more than the measly 0.01% to 0.05% paid into deposit accounts at most banks. One caveat: Tether holders should only invest in projects audited by crypto-security companies such as CertiK. Otherwise, it could very well be scams.

Aave

Speaking of which, Aave just happens to be one of the DeFi platforms audited by CertiK. The total value locked, or the money wrapped in smart contracts, on the Ethereum-based DeFi protocol has exceeded $ 10 billion.

Aave tokens have returned over 53,000% since their inception in 2017, even after the last sale. Borrowers can receive reduced fees and borrow more if they use AAVE instead of regular crypto as collateral for a loan.

The platform is unique in that it allows users to borrow and lend in 20 different types of cryptocurrency. These include Tether, as well as the pledge of ETH as collateral. In addition, Aave operates like a traditional bank, offering both variable rate and fixed rate loans (the former for as little as 3% interest per annum). So you can borrow on Aave, sell the Tether stablecoin loan on exchanges like Binance for fiat currency, and then use the funds to pay off the credit card debt, avoiding compound interest of 20% per annum. Check out both this amazing token and the platform when you get the chance.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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