Bitcoin is the first cryptocurrency that was created in 2009 and since its inception, it has become the largest asset in the market based on market capitalization, price, and adoption. And if you are looking for bitcoin alternatives, there have emerged various cryptocurrencies in the market from 2009 till now. Each with its own features, potential use cases, and how it compares to bitcoin.
In this article, we will explore the top 10 altcoins (alternative coins) to watch. We will provide an overview of each coin, new assets to watch, and how to choose the altcoins. Furthermore, we will discuss tips to diversify your altcoin portfolio.
Key Takeaways
- When it comes to investing in cryptocurrency, bitcoin is often the first choice for many investors. However, several alternative cryptocurrencies can provide similar benefits and more suitable features.
- It is important to research each coin carefully to make an informed decision. It is also essential to keep up with the latest and breaking crypto news on the market and its various coins.
- You need to understand the technology behind the coins and their respective blockchains. This will help investors get a better understanding of their investment and how it may perform in the future.
- You need to consider the goals of the project and its team. Knowing what the team hopes to achieve can help investors decide if they should invest or not.
- Investors should research each of these altcoins to determine which one best fits their investment goals and risk tolerances.
Top 10 Bitcoin Alternatives
We will briefly give an overview of these alternative coins. The list considers their market capitalization.
1. Ethereum (ETH)
Ethereum is a blockchain platform created in 2015 by Vitalik Buterin. It supports smart contracts, which are self-executing agreements written in code. This enables developers to create decentralized applications (DApps) on the Ethereum network. The Ethereum network was created to solve some of the limitations of the Bitcoin blockchain and its native coin ETH or Ether has since become the second most valuable cryptocurrency after bitcoin.
2. Binance Coin (BNB)
Binance Coin is the native currency of Binance, one of the world’s largest cryptocurrency exchanges. BNB offers various benefits within the Binance ecosystem, such as discounted trading fees, and is also used in decentralized finance (DeFi).
3. Ripple (XRP)
Ripple is designed to facilitate fast, low-cost international transactions between banks and other financial institutions. Its native currency, XRP, acts as a bridge between different currencies, enabling quick cross-border payments. Ripple’s focus on the banking industry sets it apart from other cryptocurrencies.
4. Cardano (ADA)
Cardano is a research-driven blockchain project focused on security, scalability, and sustainability. Its unique layered architecture separates the settlement layer (where transactions occur) from the computation layer (where smart contracts are executed), enabling efficient and flexible development of decentralized applications.
5. DogeCoin
Dogecoin is a fun, lighthearted cryptocurrency based on the Shiba Inu dog meme. Created in 2013 by software developers Billy Markus and Jackson Palmer, Dogecoin quickly became popular on social media, especially on Reddit. The currency’s logo is a cute, smiling Shiba Inu, which perfectly matches its playful, puppy-like personality.
Despite its silly origins, Dogecoin has gained a lot of traction in the cryptocurrency world. In fact, Tesla and Twitter CEO Elon Musk have tweeted several times about Dogecoin, increasing the currency’s value.
6. Polygon (MATIC)
Polygon is a layer 2 scaling solution for Ethereum, the second-largest cryptocurrency by market capitalization. The Polygon network is designed to make it easier and cheaper for developers to create and scale new decentralized applications (dApps).
One of the key advantages of Polygon is its fast transaction speeds and low fees. This makes it an attractive option for anyone looking to trade Ethereum-based tokens without dealing with the high fees and slow processing times of the Ethereum network.
7. Solana (SOL)
Solana is a high-performance blockchain platform designed for scalability and speed. Its unique consensus algorithm, Proof of History (PoH), enables Solana to process thousands of transactions per second, making it an attractive choice for decentralized applications (DApps) that require fast and secure transactions.
8. Polkadot (DOT)
Polkadot aims to create a scalable, interoperable network of blockchains, allowing different blockchain networks to communicate and collaborate. Its unique design supports cross-chain transactions and bridges the gap between existing and new blockchain technologies.
9. Litecoin (LTC)
Litecoin, often called “the silver to Bitcoin’s gold,” offers faster transaction speeds and lower fees than Bitcoin, making it among the popular choices for everyday transactions. Created by former Google engineer Charlie Lee, Litecoin aims to be a more practical and accessible alternative to bitcoin.
10. Shiba Inu (SHIB)
Shiba Inu is another meme-based cryptocurrency, heavily inspired by Dogecoin. Created in August 2020 by an anonymous person going by the name ‘Ryoshi,’ Shiba Inu has quickly gained a large following on social media.
The currency’s logo is similar to Dogecoin’s, featuring a Shiba Inu. However, the community behind Shiba Inu has developed its own distinct personality, labeling investors as “SHIBARMY.” Despite being a fairly new entrant in the cryptocurrency world, Shiba Inu has already achieved a market capitalization in the billions, making it one of the most valuable meme coins out there.
N.B: Though some stablecoins have higher market capitalization than some assets listed in this part, they weren’t added to this list.
New Altcoins Worth Watching
In this part of the article, we’ll list 4 relatively new altcoins that are worth watching.
1. Algorand (ALGO)
Algorand is a blockchain platform that utilizes a pure proof-of-stake (PoS) consensus mechanism, ensuring high-speed, low-cost transactions while maintaining a high level of security. Its unique approach to consensus and focus on scalability make Algorand an interesting project for businesses and developers looking to build on a fast and secure blockchain.
2. Aave (AAVE)
Aave is a decentralized finance (DeFi) platform that enables users to lend and borrow cryptocurrencies without the need for intermediaries. Its innovative features, such as flash loans and credit delegation, have made Aave a popular choice among DeFi enthusiasts. As DeFi continues to gain traction, Aave’s innovative solutions make it a project worth watching.
3. The Graph (GRT)
The Graph is a decentralized protocol for indexing and querying blockchain data, making it easier for developers to access and use information stored on blockchains. The Graph’s native token, GRT, is used to incentivize data providers and secure the network. As the need for efficient access to blockchain data grows, The Graph’s potential for widespread adoption makes it an exciting project to follow.
4. Near Protocol (NEAR)
Near Protocol is a scalable blockchain platform that aims to lower the barriers to entry for developers and businesses looking to use blockchain technology. Its platform offers a user-friendly experience and easy deployment of dApps, allowing developers to focus on building their applications instead of worrying about the technical details. NEAR’s token, also called NEAR, is used to pay transaction fees and to secure the network’s consensus mechanism.
How to Choose Bitcoin Alternatives
Selecting the best Bitcoin alternatives requires a thorough understanding of your investment goals, risk tolerance, and knowledge of the cryptocurrency market. So when evaluating different options, what are the factors to consider?
Understand your investment goals. Before choosing bitcoin alternatives, it’s important to understand your investment goals. Are you looking for a long-term investment or a short-term gain? What level of risk are you comfortable with? Knowing your investment goals will help you narrow down your options and select the altcoin that best aligns with your objectives.
Examine the market cap and trading volume. Market capitalization and trading volume are important metrics to consider when choosing bitcoin alternatives. A high market cap indicates that the altcoin has gained investor confidence and has a higher likelihood of being around for the long term. Similarly, high trading volume means that it is actively traded and has a healthy demand in the market.
Investigate the team and community behind the alternative. One of the most important factors in any cryptocurrency investment is the team behind the altcoin. Research the team members of the alternative, their credentials, and their experience in the industry. Similarly, look into the community behind the project, including its user base, social media presence, and developer activity.
Consider the technology and use case of the alternative. Each bitcoin alternative has its own technology and use case. Some are designed for faster transaction processing, while others focus on privacy and anonymity. Investigate the technology behind the alternative coin and consider whether it has a practical application or addresses a particular market need.
Assess the regulatory landscape. Bitcoin alternatives are largely unregulated, but this may change as regulators seek to increase their oversight of the cryptocurrency market. Consider the regulatory landscape of the alternative, including its legal status in your jurisdiction and any potential regulatory challenges it may face.
Tips for Diversifying Your Altcoins Portfolio
There are several ways to minimize risks and maximize returns when diversifying your cryptocurrency portfolio and 7 of them will be listed below.
- Do your own research (DYOR) as it will help you make informed decisions and avoid investing in scams or weak projects.
- One way to mitigate risk is to spread your holdings across multiple altcoins rather than putting all your eggs in one basket. This will reduce the impact of any single coin’s price volatility and increase the chances of positive returns.
- Investing in different sectors of the cryptocurrency market also helps to diversify your portfolio. For instance, you could invest in some coins in the DeFi sector, others in the gaming industry, and others in the NFT space.
- Although market capitalization is an important metric in assessing the value of an altcoin, it shouldn’t be the only factor you consider. Some undervalued coins with a small market cap could offer better returns in the long term than more established offerings.
- An altcoin’s team members are crucial when assessing its potential. A competent and experienced team with a clear roadmap is more likely to succeed than a team with little experience or a vague vision.
- The cryptocurrency market is constantly evolving, so it is important to stay updated with the latest news, trends, project updates, and regulatory developments. This will help you make informed decisions as you navigate the market.
- It is important to remember that investing in altcoins is risky, and you should never invest more than you can afford to lose. Allocate only a portion of your investment portfolio to cryptocurrencies, and consider seeking professional advice if you are unsure.
- Consider dollar-cost averaging. This strategy involves investing a fixed amount at regular intervals, regardless of price fluctuations. It helps reduce the impact of market volatility and eliminates the need to time the market.
Conclusion
With so many altcoins in the market—over 20,000—it is no surprise that users cannot choose. These altcoins are not only offering unique features and advantages, but they are also presenting new opportunities for crypto investors and enthusiasts alike. From Ethereum to Ripple, to Cardano, to Polygon, each of these altcoins brings its unique flavor to the table.
It’s important to keep an eye on these top altcoins and their growth potential. So make sure to do your research and explore all the options available to you. And whether you’re a seasoned investor or a newcomer just starting to explore the world of altcoins, there is sure to be something out there for you.
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Disclaimer: The opinions expressed in this article are for general informational purposes only. They are not intended to provide specific financial or investment advice. Guarda’s editorial team reminds you of the risk of speculation in all financial markets. All financial activities carried out by you are made at your own risk.
FAQ
1. Why may you be interested in cryptos besides Bitcoin?
You may be interested in cryptos besides Bitcoin because they can offer unique features, lower fees, faster transactions, and higher potential returns, providing a more diversified and balanced investment portfolio.
2. What is the alternative to Bitcoin in 2023?
In 2023, Ethereum remained a popular alternative to Bitcoin, thanks to its smart contract capabilities, allowing the development of decentralized applications and supporting the booming DeFi sector.
3. What is the fastest-growing cryptocurrency in 2023?
The fastest-growing cryptocurrency in 2023 can’t be predicted precisely. They each have times when they do well and other times when they fall behind. You just have to keep an eye on projects with solid fundamentals, innovative technologies, and good track records.
