Bitcoin has become synonymous with cryptocurrency, and it is the reason why cryptocurrencies are popular now and has completely changed the way the financial market operates. Of course, Bitcoin is the best cryptocurrency to invest in, but there are many Bitcoin alternatives available now. These alternatives have not only great growth potential but they are priced quite less as compared to Bitcoin.
In this article, you will learn about some of the top cryptocurrency options that are hailed as the next Bitcoin. These cryptocurrencies are great alternatives to Bitcoin and can be great options if you want to diversify your crypto investments. These cryptocurrencies are great options if you are thinking of starting out with investments in cryptocurrencies. Hence, to know in detail about them, read on through to the end of the article.
Bitcoin Alternative Cryptocurrencies: An Overview
A cryptocurrency is a virtual currency that takes the form of coins or tokens. All the Bitcoin alternatives are known as altcoins as a collection since they are just modified or improved versions of Bitcoin only. However, each of these cryptocurrencies comes with different functions and applicability.
All these cryptocurrencies are decentralized, and these currencies are developed by a mechanism known as mining. According to Investopedia,
“Cryptocurrencies are almost always designed to be free from government manipulation and control—although, as they have grown more popular, this foundational aspect of the industry has come under fire.”
The best part about the major Bitcoin alternatives is that they are not as highly-priced as Bitcoin. Furthermore, you will have to consider the fact that the cryptocurrency market is very volatile in nature. Hence, if you cannot take the continuous changes in the prices of volatile financial assets, do not consider investing in cryptocurrencies.
The Best Bitcoin Alternative Cryptocurrency Options To Invest Today
There are many Bitcoin alternatives available in the financial market, which are not only decentralized but also have a high rate of growth in terms of value. Furthermore, these alternatives are also not as highly-priced as Bitcoin. The following are the best Bitcoin alternatives that you need to look for as of now:
1. Ethereum (ETH)
It is hailed as the next big cryptocurrency after Bitcoin, and rightly so because of its popularity and value. Like Bitcoin, Ethereum is also an open-source network. However, the difference is that Ethereum operates with the help of Smart Contracts, which work on blockchains. Currently, it has a market cap of $220 billion, and each Ethereum costs approximately $1820 as of May 2023.
2. Binance Coin (BNB)
The Binance Coin is a good option to invest in because of its high market capitalization of $50 billion. Binance actually lets you trade on the Binance platform and also pay fees through the platform. Since Binance is one of the biggest crypto exchanges in the world, the Binance Coin is an option worth looking into. The cost of Binance Coin is almost $1.047 and is a bit stabler version than the rest of the cryptocurrencies on the list.
3. Ripple (XRP)
Ripple is a platform that helps in the transaction and facilitation of currencies that include cryptocurrencies as well as fiat currencies. However, many consider XRP equivalent to a penny stock. For example, according to MoneyUnder30.com,
“But for investment purposes, Ripple should be thought of as a cryptocurrency equivalent to penny stock — which is exactly where it’s trading.”
It has a market cap of $23 billion, and each crypto is priced at $0.45.
4. Cardano (ADA)
Cardano works with a proof-of-chain blockchain platform. It is also similar to the Ethereum platform due to its flexibility and scalability to run smart contracts. It basically helps in reducing the time of transaction w while reducing energy usage and environmental impact. It currently has a market cap of $13.4 billion. Each Cardano crypto costs $0.37.
5. Litecoin (LTC)
Many consider Litecoin to be a Bitcoin sibling since they operate almost similarly. In some cases, with Litecoin, even the transactions are faster. According to AnalyticInsight.net,
“With an open-source global payment network, Litecoin can add faster blocks compared to Bitcoin, which contributes to its faster transaction time.”
Litecoin currently has a market cap of $6 billion, and each Litecoin is priced at $92.5.
6. Polkadot (DOT)
Polkadot is also a famous blockchain platform that helps in connecting different blockchains to each other. This works basically as a multi-chain network. This is done for better data exchange. However, it works through a decentralized exchange and through a token, making it a great Bitcoin alternative. Currently, Polkadot has a market cap of $8.9 billion, and each DOT is priced at approximately $5.35.
7. Avalanche (AVAX)
This is also a proof-of-stake platform that is open-source as well as decentralized. Apart from that, many consider Avalanche to be one of the fastest smart contracts platforms among all the blockchain platforms. To make transactions on the Avalanche network, you will need to use the AVAX coin. The market cap of Avalanche is currently $5.5 billion, and the price of each AVAX is close to $15.
8. Solana (SOL)
Solana is an open-source blockchain. It is not only a type of cryptocurrency but also contains a platform to run decentralized applications. You can also use SOL to pay transaction fees and also stake it with the help of the Solana network. It has become quite popular in the Decentralized Finance (DeFi) sector and NFT space. Currently, it has a market cap of $8 billion, and each SOL costs $21 (approx.).
Summing Up
Although Bitcoin is still the king of cryptocurrency and will remain a kind for the time to come, it cannot be denied that there are many Bitcoin alternatives available that are worth investing in. However, before you start investing in a cryptocurrency, you must research in detail the growth opportunity of the coin and the current prices, as well as the market cap, as given in the article. Nevertheless, you must also consider the fact that every cryptocurrency in the market is susceptible to fluctuations, which include both positive and negative effects. Do you know of any other cryptocurrency that can be considered a good alternative to Bitcoin? Share your opinions with us in the comments section below.
