The bitcoin may arguably be the most famous cryptocurrency in the world today but there are a number of other cryptocurrencies that you may consider investing in. While bitcoin may be the trendsetter in the world of cryptocurrency, it’s fluctuating and unstable nature has ushered in a wave of other cryptocurrencies that are built on […]
The bitcoin may arguably be the most famous cryptocurrency in the world today but there are a number of other cryptocurrencies that you may consider investing in. While bitcoin may be the trendsetter in the world of cryptocurrency, it’s fluctuating and unstable nature has ushered in a wave of other cryptocurrencies that are built on peer-to-peer networks.
These cryptocurrencies are improved alternatives to bitcoin and promise a better future of crypto currency. This is mostly for the future use of digital currency as a solution to many existing challenges.
This is because, with the use of these altcoins, there are no risks that are brought about by:
- Experiencing less liquidity value
- Value retention and acceptance challenges
- Price volatility
There are as many as 700 altcoins in existence today to choose from, with more being created each day. This is because blockchain technology promises to offer a number of solutions to challenges facing the world today from Medicare to the economy. The blockchain technology has been replicated to facilitate different solutions that can be used to buy goods and services as well enabling you to sell them.
This is all done on the internet in a digitally enabled exchange.
Alternative cryptocurrencies are helping are helping dethrone the bitcoin in many ways. These altcoins present solutions to a number of increasing problems and also the present long-term liability in terms of cheaper transaction costs and speed.
Here are some of the top alternatives that may appeal to you as an investor.
Etherium is the second largest form of cryptocurrency with a market capitalization of more than $130 billion. It was launched in 2015. The ether form of cryptocurrency has many properties that resemble those of the bitcoin.
However, Etherium is unique in a number of ways. The Etherium network mainly operates through a computer code of smart contracts that are uploaded to the blockchain technology that other cryptocurrencies operate in.
It is an open source network that is managed by its users. Users of Etherium can buy and sell products and services using it as well as buy and sell Etherium itself. Ether’s price has reached above a thousand dollars in the past with its current value being at $507.45.
Etherium is one of the safest cryptocurrencies to invest on and regarding its stability and price in the past, it’s among the top 5 safest altcoins to invest in.
Litecoin was launched in 2011 and that makes it among the earliest forms of cryptocurrencies. It has a market capitalization of $9.6 billion at the moment. Litecoin stands out from the rest of the cryptocurrencies by being very fast in its use to settle transactions.
It takes Litecoin less than 3 minutes to settle transactions compared to bitcoin which takes a whole ten minutes to do the same. This is roughly four times faster. Litecoin operates based on a global open source payment network.
This network is not controlled by any centralized form of authority. The Litecoin network uses the script as a proof of transactions. This script can be developed with the help of consumer-grade central processing units.
Ripple is quite different from other cryptocurrencies because it offers safety to its users in the unregulated online payments world. Instead of employing public block chains that other cryptocurrencies like bitcoin do,Ripple works using a network of nodes that consist of participating financial institutions and banks.
Ripple does not need to be mined unlike other cryptocurrencies and is very cheap with its current value being at $0.66024. Ripple is a low-cost alternative to bitcoin. You can invest in Ripple considering its potential to draw leading financial institutions and banks in the future. Because it’s priced lowly for now.
Zcash is an open source, decentralized form of cryptocurrency that was launched in late 2016. Zcash offers more transparency in its operations as well as values its users’ privacy. It aims to provide security features and privacy by publishing all the information it’s transactions on a blockchain but concealing details such as:
- Amount sent
It has successfully done this by employing advanced cryptographic encryption technology to all its operations by using its ZK – SNARK feature.
Dash was launched in the year 2014 and has ever since experienced an increasing fan base. Dash operates on a decentralized network that works to make its transactions untraceable. Originally branded as Dark Coin, it was rebranded to bear the name Dash on the year 2015.
Dash is a lot more user-friendly compared to bitcoin.
This is because, with Dash, it is very easy to send currency to each other in a matter of a few minutes. Dash has a $6.1 billion market capitalization. Dash can be used to buy goods and services cheaply and faster. It incorporates features such as Darksend and InstantX to make its transactions very fast.
Different altcoins and forms of cryptocurrencies have adopted different uses. They provide a lot of solutions in their different applications. The blockchain technology keeps a record of all transactions without the need for a central authority, for example, the central bank or federal reserve.
Altcoins have also adapted the lasting value and widespread use like that of hard currency. They have proven to be used as forms of currency. Based on properties of mathematics rather than physical properties of valuable items or trust in central authorities, altcoins have adapted scarcity, durability, profitability, divisibility, and reconcilability just as money.
With these attributes in place, they can only be an increasing fan base for altcoins as people accept them as a form of payment.