Bitcoin (BTC) has come a long way since it’s inception. What started as a medium of exchange on the deep web has now become one of the world’s most exciting investments.
With investors able to enjoy five-digit returns, it is perfectly understandable to see why cryptocurrencies have exploded in popularity.
Besides being investments, cryptocurrencies have a myriad of other uses. Originally, Bitcoin was developed in order to be an inflation-proof medium of exchange.
Being decentralized and unregulated with a fixed supply, there is potential for its use as a hedge against inflation.
However, an ever lengthening blockchain has slowed down transaction processing times significantly. Thus, affecting the cryptocurrency’s popularity as a means of transferring funds from around the world.
Recognizing this and building on Bitcoin’s popularity, there have been a slew of new cryptocurrencies appearing on the market. Each one of them has been developed with the intention of overcoming an existing issue with BTC.
Hence if you’re looking to get aboard the crypto hype train, here are some alternative cryptocurrencies that you can look at.
1. Ethereum
Regarded by many as the “working man’s” cryptocurrency, Ethereum (ETH) was introduced in 2014 by Vitaly Dmitriyevich “Vitalik” Buterin.
While Ethereum may not be as valued as Bitcoin, the Ethereum platform is used in open-source applications and as the base for smart contracts. The utility that Ethereum brings to the table makes it a viable investment choice for new investors.
Additionally, Ethereum is a relatively stable cryptocurrency that is unlikely to fail overnight. Hence making it a viable investment for first-timers looking to dip their feet into the crypto pool.
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2. Litecoin
Litecoin (LTC) was developed in response to concerns that the Bitcoin network would be unable to process transactions quickly. Developed by Charlie Lee, Litecoin is built on the same concept as Bitcoin.
With a larger quantity of coins in circulation and a significantly faster transaction speed, Litecoin is designed to be an improvement over Bitcoin. While this makes little difference to investors, improved processing power will prove to be an advantage on the long-term.
As adoption rates for cryptocurrencies increase, their usage as a medium of exchange will likely rise accordingly. Because Litecoin can process larger transactions faster and at a lower cost, this will naturally lead to an increase in valuations in the future.
Given the relatively affordable price of Litecoin at the time of writing, there is plenty of opportunity for long-term gain.
3. XRP
XRP is a cryptocurrency developed by Ripple Labs, Inc. The cryptocurrency operates on the Ripple network – a platform for processing transactions and remittances.
Unlike other networks, Ripple allows for both fiat and cryptocurrencies to be seamlessly transferred across the network. As an added plus, transfers are performed instantaneously thus making Ripple a popular choice for banks and fintech companies.
Despite their ongoing lawsuit with the SEC, recent court judgements have painted a positive outlook for both the company and XRP.
4. Monero
Cryptocurrencies such as Bitcoin were originally prized for the anonymity that they offered. However, most experts agree that Bitcoin and other cryptocurrencies are more pseudonymous than they are fully anonymous.
Given that digital wallets are used for transacting payments, it is very much possible to trace the origin of a transaction.
Because of this, most crypto enthusiasts have begun searching for alternative cryptocurrencies that are truly anonymous.
Monero is one of the few privacy-focused coins that are developed specifically to guarantee anonymity. Unlike other cryptos, Monero utilizes technology that intentionally obscures the identifies of the sender and recipient.
Thus, if privacy is of a major concern to you, then Monero is the currency for you.
If you’re looking to start investing in cryptocurrencies, the assets discussed today would be a good place to start. However, always remember to do your own research and manage your risk exposures.