Cryptocurrencies have become a very popular investment option in recent times. While Bitcoin began this new revolution, there are currently over 1,400 cryptocurrencies that are traded.
Even though bitcoin has become the de facto virtual currency, it is not the only one performing well. Several other cryptocurrencies have mushroomed over time giving investors a variety of options.
These other cryptocurrencies are known as Altcoins or alternative coins which means an alternative to bitcoins. After the release of bitcoins in 2009 and its robust performance, a number of new virtual currencies were created based on the same blockchain technology but designed differently.
Let's look at 5 such cryptocurrencies which are the best alternatives to bitcoin.
Ethereum is a cryptocurrency that has the second-largest market capitalization after Bitcoin. It was proposed in 2013 by Vitalik Buterin and went live in 2015. EVM stands for Ethereum Virtual Machine.
Trading at over $4,000 per ETH as of November 2021, its market capitalisation is half that of Bitcoin’s. It is the first blockchain technology to provide currency as well as non-currency use.
The Ethereum blockchain is a decentralized software that enables smart contracts and allows decentralized applications. It can run without any lag or fraud or interference from a third party.
It is not cheap but is a very good investment option for crypto investors.
Launched in 2011 by Charlie Lee, it follows in the footsteps of Bitcoin. Charlie Lee was a former Google employee and a graduate of MIT. It was developed as an open-source network that can't be controlled by any central authority.
It has a faster block generation time due to which the transaction time is lower for Litecoin. This results in higher transactions of Litecoin. In 2013, crypto crossed the market capitalization of $1 billion and is currently the 5th largest virtual currency in terms of market cap. As of September 2021, it has a market cap of around $4 billion and a value of around over $200.
It is also a safer choice since its transaction time is very low, making it very difficult to hack.
This crypto was created by engineers, mathematicians, and cryptography experts after a lot of research. It was co-founded by Charles Hoskinson, who was one of the founders of Ethereum. The Cardano blockchain was created through extensive experimentation and peer-reviewed research.
It has become one of the most popular cryptos due to its flexible network as well as fast transactions and is expected to remain one of the most sought out choices. It also has low transaction fees and its development team is also working to fully decentralize the project.
As of September 2021, it has the third-largest market capitalization of $71 billion and trades at around $2.50.
Stellar has a market capitalization of over $5.8 billion and stands at 8th position in terms of market cap. It was developed in 2014 by Jed McCaleb and Joyce Kim.
Its goal is to connect financial institutions in emerging regions at a low transaction cost using blockchain technology. It enables transfers among different currencies across the world at a very low transaction cost.
A great advantage of this crypto is that a user can freeze the transfer if he/she has mistakenly entered the wrong wallet address. Most other cryptocurrencies, unlike Stellar, have irreversible transfers.
Also known as VeChain Thor, is one of the cheapest cryptocurrencies available but with great growth potential. It was designed specifically to focus on supply chain management. It basically uses the blockchain and Internet of Things to keep counterfeit products out of the supply chain and track orders in real-time. It also helps retailers to verify the authenticity of the products.
The crypto recently teamed with BMW to help the firm track its auto parts supply chain.
While bitcoin may remain the top choice for a number of investors, these 5 alternatives also provide a very good investment opportunity.