There can be no doubt that the world has gone crazy over Bitcoin and a whole host of other cryptocurrencies. The brainchild of Satoshi Nakamoto, Bitcoin has changed the way we fundamentally think about money. Given the exponential growth of Bitcoin valuations, investors all over the world have been jumping at the opportunity to jump on the cryptocurrency bandwagon.
Thus, as a savvy investor, it would be perhaps better to focus your attention on other forms of cryptocurrency. When Bitcoin first exploded onto the scene back in 2017, the concept of digital money embedded itself in the consciousness of the mainstream. It also opened the door for an entire host of other cryptocurrencies.
In this article, we take a look at some of the best crypto alternatives to Bitcoin. A word of caution though; the crypto industry is a fast-moving one which is constantly evolving. Hence this list could potentially be never-ending. For the sake of time and convenience, we’ve put together a list of cryptocurrencies with a known track record.
No list with Bitcoin would be complete without at least 1 mention of Ethereum. Firmly embedded in the number 2 position, Ethereum differs from Bitcoin in a variety of areas. Firstly, Ethereum focuses on the optimization of its blockchain technology. Where Bitcoin was looking to partner with merchants, Ethereum’s developers have invested heavily in ensuring that its blockchain technology is able to work in conjunction with that of other networks.
Along with this, Ethereum has introduced a smart contracts protocol which automatically executes preset instructions when a specific set of conditions are met. For example, an investor can program the smart contract to purchase more Ethereum when prices drop below a certain level without any need for human intervention.
This along with a variety of other features are just some of the reasons why Ethereum should have a place in your cryptocurrency portfolio.
In stark contrast to Ethereum, Litecoin is looking to beat Bitcoin at its own game. Where Ethereum leveraged on on blockchain technology, Litecoin has set its sights on being the next medium-of-exchange.
Described as the silver to Bitcoin’s goal, the Litecoin development team has done a phenomenal job partnering with merchants all over the world. Created by former Google engineer, Charlie Lee, Litecoin boasts significantly faster processing, validation and settlement times when compared to Bitcoin.
To give you some idea, Litecoin took approximately between 1/2- 2 minutes to process, a “block” of transactions. In contrast, Bitcoin took about 10 minutes to complete processing.
With a team focused on partnering with as many merchants as possible and quick processing times, Litecoin has the potential to overtake Bitcoin as the new crypto medium of exchange.
Despite the assurances many have given us about the supposed anonymity of Bitcoin, most blockchains are not as private as we’d like to think. In fact, despite the lack of government regulations and interference, Bitcoin merely offers a form of pseudo-anonymity which can be cracked with time.
Monero on the other hand takes things to a whole new level. Specially designed to protect the anonymity of its users, Monero encrypts and protects the identity of both the sender and receiver of funds.
With tougher government regulations being introduced, Monero has been accused of being the token of choice for criminals and shady characters. However, the privacy and anonymity offered by Monero can serve to increase its market cap on the long run. Hence it wouldn’t hurt to have some Monero stashed away in your portfolio.
Bitcoin doesn’t mean to be the end all and be all for crypto investors. In fact, with such volatile market conditions, diversity is the key to success. As you can read in this eToro review, you are able to buy and trade a variety of cryptocurrencies including Ethereum and Litecoin.