Bitcoin is the digital coin that started it all, and it is also by far the most popular digital currency to date. In 2009, an anonymous person, or a group of individuals known as Satoshi Nakamoto, started the software that was soon a global sensation. While Bitcoin is undeniably phenomenal, blockchain technology is the backbone of Bitcoin and just about every other digital currency around.
It’s no secret that cryptocurrencies are rapidly increasing in popularity ever since the release of Bitcoin. More and more websites are available that function with digital currencies. There is also a vast number of alluring cryptocurrency apps and hardware wallets readily available that make it effortless for new users to join the digital currency revolution.
That said, even though Bitcoin remains the reigning digital currency, there are still several other lucrative digital coins out there.
If you’re thinking of investing in the lucrative world of cryptocurrency, here are some of the best bitcoin alternatives of the year.
Runner up to Bitcoin, the most valuable cryptocurrency is Ethereum. The blockchain technology used for this digital currency allows currency and non-currency use, offering versatility that makes waves.
Ethereum also has another great function, incorporating smart contracts built into the blockchain network, acting as guidelines for the streamlined execution of transactions. There is some evidence to suggest that the stable features and technology of this digital currency could overtake Bitcoin in the near future.
While most other digital currencies boast their blockchain-based technology, Litecoin was created to encourage effortless exchange. Litecoin seems to have the primary goal of partnering with merchants, and it is not so far off from Bitcoin in terms of daily transactions. While Bitcoin has plateaued since 2016 with a total number of daily transactions of 150,000 and 300,000, Litecoin has continued to grow its daily transactions.
Even though Litecoin has far fewer daily transactions, it continues to expand its numbers rapidly. The founder of Litecoin, Charlie Lee, is also working full-time at developing digital currency. Litecoin seems capable of processing transactions much faster than any other digital currency, which is understandably the currency’s most alluring selling point.
Dogecoin is yet another fantastic alternative to the reigning digital currency that’s recently blown up in value dramatically. Some companies like SpaceX are even accepting this digital currency, and its value simply keeps climbing, making now the best time to buy-in.
Billy Markus and Jackson Palmer are the software engineers behind Dogecoin. This coin has been around since 2013, even though it’s only just started making waves. However, the currency was created merely as a joke. It was previously known as the ‘MemeCoin.’ Oddly enough, the coin has surpassed its previous purpose and is now an excellent investment choice that rivals other cryptocurrencies.
Because Elon Musk and others are fuelling the popularity of this coin, it’s worthwhile to find out how to buy Dogecoin and start investing while the value of the currency is still climbing.
Another great Bitcoin alternative is the Monero privacy coin. A privacy coin is a digital token, and the main feature of this digital currency is that it boasts a level of privacy. While most blockchain-based currencies are not as private as you might believe, considering that blockchain analyses can reveal both the sender and the receiver of the funds.
The privacy coin Monero enforces privacy so that the sender, receiver, and the amount of money are all pleasingly discreet. However, this great selling point could very well be the digital currencies’ downfall when considering that the discreet nature of this cryptocurrency could promote criminal activity.
This digital currency boasts fast transaction speeds, outstanding blockchain technology, and the Lumens coin. Stellar’s transaction validation speeds are remarkably fast as they can take between 2 to 5 seconds, which is not as impressive as real-time transaction speeds, although still far more impressive than having to wait up to five business days. This digital coin also incorporates smart contracts, like Ethereum.
VeChain Thor was recently noticed as a top digital currency after it made some impressive partnerships with the global assurance service DNV GL, enabling retailers to track their products in real-time and also partnering with BMW. The digital currency is set to assist BMW in tracking the auto parts supply chain in the promising hopes of eliminating child labor.
Even though some impressive cryptocurrencies are taking the world by storm in attempts to upstage the original digital coin, Bitcoin is still the best choice for investing in cryptocurrency. Not only does Bitcoin make it daily in market news, but it is also still the most popular option of cryptocurrency yet.
It is also improbable that Bitcoin will lose its legendary status as the most popular cryptocurrency, and for this reason, it would be a wise investment. Most Bitcoin forecasts for the year predict that the digital currencies price will remain elevated, implying that it would also be a relatively safe investment option.
But even so, as an investor, it’s wise to spread your wealth by diversifying your portfolio. So, it’s still worthwhile to opt for Bitcoin alternatives when investing in digital coins.
Nevertheless, when investing in digital currencies, it’s advisable to first compare all your options. You will also need a crypto wallet and an investment strategy. Furthermore, it’s also best to start investing with a small amount, especially if you are a beginner that’s new to the world of crypto. Starting smaller gives you the chance to play the markets with less risk.
Once you know how the coins function in terms of value and volatility, you can start investing more significant amounts. But even so, you must still monitor your investments and keep an eye on crypto market news. If you don’t know what’s happening with the value of your coins, you could lose everything you’ve invested. On the other hand, watching the markets will help you know when to cash out and when to buy in for maximum profits.