Bitcoin is by far the most popular cryptocurrency but isn’t the only one. Sadly a majority of us can’t name three other cryptos despite the immense growth of virtual currencies.
With more than 9,000 crypto projects live today, retail investors often wonder if there is more value in buying one of the many bitcoin alternatives.
The most important cryptocurrencies are the ones that are most widely used today.
- Binance Coin
1. Ethereum (ETH)
Ethereum (ETH), the first Bitcoin alternative on our list, is a decentralized software platform that allows smart contracts and decentralized apps (dApps) to be written and run without the need for third-party downtime, fraud, control, or intervention.
This element heightens the ramifications for those in some countries, as those without governmental infrastructure or identification can obtain bank accounts, loans, insurance, and a number of other financial items.
Ethereum applications are powered by ether, the platform’s proprietary cryptographic token. Ether (ETH) is used to move about the Ethereum network and is mostly sought by developers who want to build and run apps on the platform, as well as investors who want to buy other digital currencies with ETH. Ether, which was founded in 2015, is the second-largest digital currency by market value behind Bitcoin, however, it is still a long way behind the dominating cryptocurrency.
2. Litecoin (LTC)
Litecoin (LTC), which debuted in 2011, was one of the first cryptocurrencies to follow in Bitcoin’s footsteps, and has been dubbed “the silver to Bitcoin’s gold.” Charlie Lee, an MIT graduate, and former Google developer designed it.
Litecoin is based on an open-source worldwide payment network that is not centralized and uses scrypt as a PoW, which can be decoded using consumer-grade central processing units (CPUs). Although Litecoin is similar to Bitcoin in many ways, it generates blocks at a quicker rate, allowing for speedier transaction confirmation.
3. Cardano (ADA)
Cardano (ADA) is an “Ouroboros proof-of-stake” cryptocurrency developed by engineers, mathematicians, and cryptography experts using a research-based approach. Charles Hoskinson, one of Ethereum’s five original founding members, is the founder of the project. He left Ethereum after some issues with the direction it was headed and eventually went to build Cardano.
Cardano’s blockchain was developed through considerable testing and peer-reviewed research by the Cardano team. Cardano’s research is its foundation.
4. Polkadot (DOT)
Polkadot (DOT) is a one-of-a-kind Proof-of-Stake cryptocurrency that aims to bring interoperability to other blockchains. Its protocol connects permissioned and permissionless blockchains, as well as oracles, allowing systems to collaborate under one roof.
Polkadot’s fundamental component is its relay chain, which allows different networks to communicate with one another. Parachains, or parallel blockchains with their own native tokens, are also possible for specialized use cases. Developers can establish new blockchains with Ethereum, but they must implement their own security mechanisms, which could expose new and smaller projects to attack because the larger a blockchain is, the more secure it is. Polkadot refers to this concept as “shared security.”
When different factions can’t agree, sometimes the digital currency is split, with the original chain remaining true to its original code and the new chain beginning life as a new version of the prior coin, complete with changes to its code.
5. Stellar Lumens (XLM)
Stellar (XLM) is an open blockchain network that connects financial institutions for the purpose of massive transactions to give corporate solutions. Huge transactions between banks and investment firms, which used to take several days, involved a number of intermediaries, and cost a lot of money, may now be completed almost instantly with no intermediaries and for a fraction of the cost.
Despite its positioning as an enterprise blockchain for institutional transactions, Stellar is still a public blockchain that anybody can utilize. Cross-border transactions in any currency are possible with this system. Lumens are Stellar’s native currency (XLM). For users to be able to transact on the network, they must have Lumens.
6. Dogecoin (DOGE)
Dogecoin (DOGE), dubbed the “original meme coin” by some, caused a sensation in 2021 when its price surged. The coin, which has a Shiba Inu as its avatar, is accepted as a means of payment by a number of big businesses, including the Dallas Mavericks, Kronos, and—perhaps most notably—SpaceX, Elon Musk’s American aerospace company.
Billy Markus and Jackson Palmer, two software programmers, founded Dogecoin in 2013. Markus and Palmer are said to have created the coin as a prank in response to the cryptocurrency market’s rampant speculation.
7. Binance Coin (BNB)
Binance Coin (BNB) is a utility cryptocurrency that may be used to pay for trading costs on the Binance Exchange. By market capitalization, it is the third-largest cryptocurrency.
Those that use the token to pay for the exchange can trade at a reduced rate.
The Binance Coin blockchain also serves as the foundation for Binance’s decentralized exchange. Changpeng Zhao developed the Binance Exchange, which is the most extensively utilized exchanges in the world by trading volume.
Binance Coin was first released as an ERC-20 token on the Ethereum platform. It was subsequently given its own mainnet.
8. Tether (USDT)
Tether (USDT) was one of the first and most popular of a class of cryptocurrencies known as stablecoins, which try to reduce volatility by pegging their market value to a currency or other external reference point. Tether and other stablecoins seek to smooth out price variations to attract consumers who might otherwise be wary of digital currencies, especially significant ones like Bitcoin, which have suffered repeated bouts of severe volatility.
The price of Tether is directly linked to the price of the US dollar. The method enables users to make transfers from other crypto currencies to US dollars in a fraction of the time it takes to convert to regular currency.
9. Monero (XMR)
Monero XMR is an untraceable, secure, and private cryptocurrency. This open-source cryptocurrency was first released in April 2014, and it quickly gained popularity among cryptography aficionados. The development of this coin is entirely funded by donations and driven by the community.
Monero was created with a heavy focus on decentralization and scalability, and it uses a technology called “ring signatures” to provide perfect secrecy.
These are just but a few examples. At Market Cap Trainers, we offer personal finance education, Investment opportunities and other financial services. Just reach us through our contacts: Info@marketcap.co.ke or 0765 093983 for any inquiries.