Although Bitcoin is the most famous digital currency on the marketplace, it is far from your only investing choice. In reality, based on your trading style and financial resources, Bitcoin investment may not be the ideal option for you.
Bitcoin, the planet’s first cryptocurrency, has been in circulation for more than a decade. Thousands of other cryptocurrencies have developed due to the remarkable popularity of the main digital asset. Any cryptocurrency other than Bitcoin is referred to as an altcoin. Numerous altcoins have surged in value over the last several years, resulting in enormous investment returns.
So far, cryptocurrency has been among the greatest financial stories. Prices and popularity appear to be reaching new highs, with strong institutional support. Furthermore, institutional investors are beginning to recognise virtual currencies as an alternate asset class. In the end, they want to optimise their profits in the current investing environment.
If you’re considering investing in virtual currency for the very first time or trying to diversify your portfolio, here are the top 06 cryptocurrencies to consider other than Bitcoin.
- ETHEREUM (ETH):
Vitalik Buterin, a Russian-Canadian developer, and Gavin Wood, an English computer scientist who subsequently worked for other digital currency projects, founded Ethereum in 2014. The Ether currency is constructed on the Ethereum blockchain, which is used to run smart contracts. With a market valuation of $414 billion, it is now the second-biggest digital currency following Bitcoin.
Unlike Bitcoin, which is generally viewed as a measure of value by speculators, Ether’s value stems from its ability to allow smart contracts in decentralised apps. Ethereum serves as the foundation for the majority of “Defi” (decentralised finance) initiatives. The quantity of Ether is unrestricted, which means that the total quantity of Ether created is currently unknown and will be set by Ethereum’s community members. The network will switch from a proof-of-work method to a proof-of-stake method in the coming years.
- STELLAR (XLM):
Stellar is an open-source blockchain using Lumen as its native currency. Jed McCaleb, a virtual currency advocate who formerly co-founded Ripple Labs and the notorious Mt. Gox Exchange, established the network in 2014. Stellar’s purpose is to enable low-cost transactions in developing regions. The blockchain avoided using a traditional mining network for transactional verifications, instead depended on a “federated byzantine agreement” mechanism.
- BINANCE COIN (BNB):
Binance coin is the creation of Changpeng Zhao, the CEO and Founder of Binance, a renowned global crypto exchange. The BNB token was designed to facilitate transactions on the Binance platform, enabling participants to pay trading fees and get access to additional products and services, like Binance’s decentralised exchange.
Binance users pay cheaper trading costs than those who pay in other cryptocurrencies. Since its inception, BNB has risen in popularity beyond its use on the Binance exchange, drawing investors and day traders. BNB employs a consensus approach based on proof-of-stake.
- CARDANO (ADA):
Cardano was developed in 2015 by Charles Hoskinson, a computer scientist and Ethereum co-founder who left the project due to differences with the project’s other creators. Cardano’s coin, ADA, is protected by the Ouroboros proof-of-stake technology, which supports both permissioned and permissionless blockchains.
The Cardano Foundation, a non-profit organisation, established in Switzerland, oversees the project’s development. The group has conducted substantial studies and testing, resulting in the publication of over 90 studies on blockchain technology. Much of this scholarly work is at the heart of Cardano’s technology.
- DOGECOIN (DOGE):
DOGE began as an internet joke during Bitcoin’s bull run; it was named after an internet meme depicting a Shiba Inu dog. Unlike other virtual currencies, which have a restriction on the number of coins that dealers may issue, Dogecoin has an infinite supply and can be used to make payments or transmit money. DOGE is undoubtedly the most controversial currency because of Elon Musk’s constant backing, which has won DOGE millions of impressions across social media channels. It has a market capitalisation of $33 billion.
Without question, Bitcoin altered the financial landscape. However, BTC is not the only valuable cryptocurrency. Crypto platforms such as Ethereum and Cardano have dominated the world of banking and investing. Based on current technical breakthroughs, this looks to be only the beginning. The top 05 cryptocurrencies other than Bitcoin that are expected to rise in value in the near future are listed above. If you are a beginner investor seeking cryptocurrency alternatives to Bitcoin, think about investing in the digital assets listed above on a reputable platform like 1K Daily Profit.