3 Reasons to Buy DigiByte
Many investors have been told they can have it good, cheap, or fast, but they can only pick two. That is not the case with DigiByte (CRYPTO: DGB). DigiByte is a unique three-layer cryptocurrency that is poised to make solid gains in the markets over time because of its unique dedication to security. It also has the impressive ability to support digital assets like decentralized applications (dApps) and smart contracts.
DigiByte has flown under the radar for years. And from a long-term perspective, these are just the kind of coins to look at.
DGB is still relatively affordable, trading at $0.06 at the time of this writing. With some analysts predicting a return to the highs of earlier this summer, there's speculation this token could see see a valuation of $0.50 by 2030. Indeed, that would be some impressive growth.
What is all this hype about? Let's look at three reasons why DigiByte may be a solid long-term choice for investors right now.
Image source: Getty Images.
1. DigiByte is built for speed
To really understand why DigiByte is such a useful coin it is necessary to understand Bitcoin (CRYPTO: BTC). Fundamentally, Bitcoin is not scaleable, at least not to the degree other cryptocurrencies are.
BTC has a transaction limit of seven transactions per second. This makes it impossible to scale up to the level of Visa, for instance, which can process 56,000 transaction per second. Digibyte has a chance in this space. It can process 560 transactions per second, which is incredibly fast. Even Ethereum can only handle 13 transactions per second.
Why does all this matter? Because DigiByte can scale, which gives it room to grow. Ethereum, which has a much larger network, has been stifled in recent times by the limitations of its network and its high gas fees. This is fundamentally because it cannot process enough transactions per second. DigiByte has a solution for this. It is cost effective and quick. That is great news for investors looking for a crypto with a bright future.
2. Digibyte is secure
Digibyte uses a proof-of-work (PoW) consensus mechanism to verify its blockchain, like Bitcoin and Ethereum do. The difference is that DigiByte uses five different algorithms to secure its network. This creates an incredibly secure and decentralized blockchain. It would be nearly impossible to take over 51% of the hashrate of the DigiByte network and create a double spend attack, which happened to Ethereum Classic three times in August 2020, crippling the price of the coin. DigiByte does not have this vulnerability.
DigiByte is uniquely poised in the world of proof-of-work blockchains with the most secure network available. This gives the coin resilience, and is more great news for investors looking for a long-term hold in the crypto world.
3. DigiByte is a community-driven project
DigiByte was never funded by an initial coin offering (ICO), or a significant amount of pre-mined coins. It doesn't have a parent company or CEO. Rather, DigiByte is volunteer- and community-driven.
What does this mean?
Well, this means DigiByte is truly decentralized. DigiByte's community-driven roots also lead to transparency. This is great news for investors, because in the world of crypto, it is so common for the true intentions of developers to be masked. Investors need only to look at the recent Squid Game Token rug pull to note how dangerous the world of crypto can be.
DigiByte is an established coin with a verified community. It is here to stay.
The brass tacks
In this market, risks can vary widely. Liquidity is the largest concern for DigiByte. Although it is listed on Binance, not every exchange lists DGB. Additionally, DGB has relatively low daily volume. Investors should proceed with caution, depending on the exchange they have access to.
Another risk since DigiByte is a proof-of-work coin, it cannot be staked, and there are no further opportunities for generating a return on the asset other than holding it. Additionally, this token may be less popular among investors for environmental reasons. Accordingly, investors should proceed, as always, with caution.
That said, DigiByte is an innovative and secure coin in the cryptocurrency space that may provide investors with an above-average long-term investment.
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