The cryptocurrency craze regularly prompts investors to invest in Bitcoin, the oldest and most popular digital currency. Besides Bitcoin, there are other alternatives, popularly called altcoins. Altcoin defines any other cryptocurrency type other than Bitcoin. Altcoins can be categorized in several ways, including stable coins, a cryptocurrency whose value is pegged to a lesser volatile asset, and meme coins whose value originates from community buy-in.
Other altcoins include utility tokens, governance tokens, security tokens, and forks. However, before putting your money in these digital assets, research them to make informed investment decisions. Here are the ten best Bitcoin alternatives in 2022.
1. Stellar Lumens (XLM)
Stellar, an open blockchain network, is meant to offer enterprise solutions by linking financial institutions to handle large transactions, eliminating the complicated, time-consuming, and costly processes of sending money worldwide. Lumens are the cryptocurrency created for this platform. XLM is decentralized and seeks to solve real-world problems by acting as a cross-border payment system that lets financial institutions and people send money while reducing transaction costs and speed.
It’s a popular cryptocurrency with high liquidity volumes, making it easier to enter and exit at very low costs. Full XLM tokens come at a lower price, meaning you can enjoy owning a whole coin instead of a fraction. You can learn how to buy XLM, regardless of where you’re in the world, as it offers affordable transactions and assets/ currencies trading across borders is fast and cheap.
2. Ethereum (ETH)
Ethereum can store value and act as money too. It’s an open-source, decentralized technology powering most of the crypto world. DeFi applications, non-fungible tokens, and enterprise blockchain solutions depend on Ethereum’s technology, making ether, Ethereum’s native token, the second-largest crypto after Bitcoin. To profit from the growing Ethereum use, there are multiple ways to invest, including purchasing Ethereum itself.
You can buy Ethereum through cryptocurrency exchanges, stock brokers, and payment apps. Considering its quite volatile, it possesses the greatest risk but has the most significant profit potential. You may also consider a less volatile option, Ethereum stocks.
3. Ripple (XRP)
Ripple, a currency exchange network and payment settlement system, processes transactions globally. XRP is the cryptocurrency running on the XRP ledger. You can purchase XRP as an investment, a way to finance transactions, or a crypto exchange for other crypto coins on the Ripple network. Unlike other cryptos, XRP’s blockchain operates differently. Other cryptos open their verification and transaction ledgers to anyone capable of solving complex equations fast.
However, transactions are secure because most ledger holders must agree to the verification before adding them. XRP centralizes things and utilizes a consensus protocol. Ripple’s transactions have a substantial network effect and take seconds, making them a worthwhile purchase.
4. Cardano (ADA)
Cardano is a third-generation altcoin aiming to improve Bitcoin’s scaling issues and Ethereum’s innovative contract deployment principles. It’s a proof-of-stake blockchain platform. Cardano isn’t minted. However, validators are picked by the network based on the number of ADA tokens. If they’re chosen to validate transactions on the block, they bet on their confidence in verifying transactions. Consider investing in Cardano as it’s a fast-growing blockchain platform and is a significantly valued digital asset in the market.
5. Binance coin
Binance coin is a cryptocurrency created by the Bitcoin exchange. It gets most of its value running as a discount token at the Binance crypto exchange, meaning traders may get trading fees discounts when they utilize the token. The Binance coin functions as a discount coin and fuels the Binance Smart chain. It’s fast and flexible, and the payment processing network supports over 50 crypto coins and significant payment networks like Mastercard and Visa. Binance has two blockchains that reduce the bottlenecks Ethereum is unsafe with.
6. Litecoin (LTC)
Litecoin is a cryptocurrency sharing the same features as Bitcoin but a different algorithm. It aims to become a daily transaction medium. Litecoin is a P2P virtual currency with a network offering instant, no-cost payments institutions or individuals can conduct. It utilizes proof-of-work as a consensus mechanism. Litecoin has a higher reward-to-risk ratio because it has to go further to be on the same page with the rest of the market, and more financial benefits, making it an excellent altcoin to buy.
7. The Sandbox (SAND)
The Sandbox refers to a virtual Metaverse where players buy, build, play, and monetize their virtual experiences. It’s a user-generated network that lets anyone develop and monetize from the Metaverse. SAND is the Sandbox’s native utility token. It can be utilized within its ecosystem to create asset tokens, buy and sell assets on the marketplace, and participate in land transactions. SAND can also be applied as part of the broader ecosystem’s user-generated experiences.
Sandbox is a solid investment as it applies blockchain technology to a vast global market like the gaming industry and focuses entirely on decentralization. SAND coins can also be utilized for governance processes where SAND token holders can vote on proposals to develop the game further.
8. Lucky Block (LBLOCK)
Lucky Block is an altcoin whose cryptocurrency platform aims at revolutionizing the lottery industry. It relies on Blockchain technology to refurbish traditional lotteries by increasing transparency, lowering draw times, and improving each player’s winning chances. LBLOCK tokens create the ecosystem’s foundation, with part of the total fees being shared among the holders as a reward. Lucky Block is hosted on the Binance Smart Chain.
9. Aave (AAVE)
Aave is considered the ideal new crypto coin to purchase within the Defi space because this protocol lets users borrow and lend cryptocurrencies easily. AAVE automatically sets collection ratios and interest rates using liquidity pools operated through intelligent contracts.
10. Polkadot (DOT)
Polkadot is software incentivizing a global computer network to run its blockchain, where users can launch their blockchains. Polkadot has three blockchain types: Relay Chain, Parachains, and bridges. DOT’s relay chain is built with a blockchain-building framework, Substrate. It has a reputation for letting users stake the DOT tokens where they’re rewarded for their contributions. When users stake DOT tokens, they’re used to mine and validate the blockchain, and as a result, every trader helps secure and maintain the network and is rewarded for it.
Endnote
Altcoins are an excellent investment when done right. Consider investing in these Bitcoin alternatives in 2022.
