Bitcoin (BTC) is the most popular cryptocurrency in the media, and for good reason. However, in the years since the first Bitcoin transaction in 2009, dozens of other cryptocurrencies have developed, providing a confusing picture for investors. Some of these alternative currencies have made substantial technological advancements that distinguish them from Bitcoin, while others have merely become well-known digital currency brands and social media memes. Cryptocurrency investment is still a high-risk endeavour, but it may be rewarding for those willing to take a big risk in exchange for a big payoff. So, without further ado, let’s look at the top 5 alt currencies worth investing in crypto.
The Ethereum network is the largest and oldest Bitcoin competitor, although it was built for an entirely different purpose than Bitcoin. Smart contracts, which are bits of code that allow decentralised programmes, or dApps, to run, were originally introduced on the Ethereum blockchain. According to the website State of the dApps, the Ethereum network now has 2,921 apps in use. Decentralised apps (dApps) for gaming, gambling, socialising, decentralised finance (DeFi), and non-fungible coins are all available on the Ethereum network (NFTs). One of the reasons Ether, the Ethereum network’s native asset, has surpassed Bitcoin in recent years is because of the network functions.
Ripple is a global digital financial transaction network that allows banks and other financial institutions to trade with one another. Ripple is billed as a more secure, quicker, and less expensive alternative to the SWIFT (Society for Worldwide Interbank Financial Telecommunications) money transfer system. XRP is the Ripple network’s and the XRP Ledger blockchain’s native coin. XRP transactions take about five seconds and cost less than a cent on average. Only transactions considered genuine by a majority of validators are added to the ledger as XRP transactions are validated using a consensus method.
Solana is a brand-new cryptocurrency that launched in March of this year. With a market cap of $31 billion, the coin has quickly gained traction and is now the world’s sixth most valuable cryptocurrency, excluding stable coins. Solana, like Ethereum, allows apps and NFTs, although its blockchain offers far fewer applications than Ethereum’s. Solana’s unique combination of proof-of-history (PoH) and proof-of-stake (PoS) transaction verification offers it several advantages over Ethereum, including transaction verification that is faster and less costly. Solana transactions consume far less energy than Bitcoin or Ethereum transactions, making it a considerably more environmentally friendly solution.
The Polkadot blockchain was announced by Gavin Wood, co-founder of Ethereum, in 2020. Polkadot features a blockchain-based core network where transactions are permanently stored. Parachains, which are user-created blockchains that may be updated while keeping the same security as the main Polkadot chain, are the technology’s differentiating characteristic. Polkadot para chains can be customised for specialised applications, but the network just needs enough computing power to run the main chain. In December, OTC-listed Deutsche Telekom AG (ticker: DTEGY), Germany’s largest telecom provider, acquired some of Polkadot’s native DOT token as part of its effort to integrate cryptocurrencies into its accounting system.
You’ve undoubtedly heard about Dogecoin if you’ve been following cryptocurrency news at all. Due in large part to its viral Shiba Inu mascot, the cryptocurrency, which was created in 2013 as a satire of Bitcoin, has evolved to become one of the world’s most popular and valuable digital currency enterprises. Elon Musk, the CEO of Tesla Inc. (TSLA) and a Dogecoin investor, has lately encouraged McDonald’s Corp. (MCD) to accept Dogecoin as a form of payment. Dogecoin is also a favourite of billionaire entrepreneur Mark Cuban, who describes it as the “strongest” cryptocurrency for trading.
Looking for more information on altcoins and the crypto market? For additional details, look into world cryptocurrency news.