The internet defines cryptocurrency as an electronic form of money wherein transactions are created and protected online, keeping the identities of its users secure and encrypted. This procedure is widely known as cryptography and in the present scenario engineers and technicians around the world are putting it to effect in numerous ways. But due to running in the herd of cattle, nobody is realizing that there are actually much better cryptocurrencies other than Bitcoin that are worth investing in.
We all are familiar with the most celebrated cryptocurrency in today’s generation – Bitcoin. Having recently recorded an all-time high of $58,000 in Feb 2021, Bitcoin is on the surge like never before. Bitcoin is undoubtedly the most feasible blockchain in the sense that each transaction takes place between its users establishing a peer-to-peer network. This blockchain technology allows users to not only transfer but receives bitcoins directly without any third-party involvement.
Now, the blockchain mechanism gives rise to a few major cryptocurrencies – Bitcoin being the most renowned of all. However, what if we tell you that Bitcoin is not the end of the world. In fact, there are plenty of others that can give bitcoin run for the money. Two such cryptocurrencies that should definitely be on your list are Altcoin and Tokens. While these cryptocurrencies might not be as popular as Bitcoin but have surely maintained a steady pace over the years.
Some experts also believe that these are highly undervalued currencies and have the potential to overtake Bitcoin in the future.
We know what a wise investor does- put money into a assets that can drive exponential wealth in future. If you are a wise investor and not just the one that follows the herd, here are the other cryptocurrencies that are much better bet than bitcoins.
Best Cryptocurrencies Other Than Bitcoin to Invest in
Although there are only a few thousand altcoins in existence, a majority of these altcoins are in fact ‘alternatives’ to Bitcoins. Hence the name, Altcoin. These Altcoins are simply just Bitcoins with minor tweaks. Namecoin, which was created in 2011, was the first Altcoin ever to be created. Some other famous Altcoins include Peercoin, Litecoin, Dogecoin, and Auroracoin.
So, how to buy altcoins? Akin to miners of Bitcoins, stakers are people that give verification to such transactions in return for rewards. Now, instead of taking part in the race to solve the bitcoin blockchain puzzle, these stakers take turns one by one. In this way there is lesser consumption of power as only one staker will be responsible for verifying a single block at a time.
The most popular cryptocurrencies like Ethereum and NEO are also forms of Altcoins but are completely different from Bitcoin.
Unlike Bitcoin, Ethereum and NEO are not meant to be used as a digital currency. Instead, these cryptocurrencies were designed as pillars to build applications on a blockchain. Let’s take a brief look at these.
Ethereum uses a similar blockchain to that of Bitcoin but has a completely different currency called Ether. However, Ether is autonomously managed by a network of users quite like Bitcoin. The one feature that sets it apart from Bitcoin is its ‘smart contracts’. Simply put, these are digital contracts that compensate a user only after validation of certain conditions.
NEO uses an open-sourced blockchain as well to manage digitized assets by making use of smart contracts as discussed above. Its vision is to create a smart economy by making proper use of blockchain technology.
Another main category of cryptocurrency is ‘tokens’. Out of the lot, tokens are the most interesting form of digital currencies. Tokens stand out as they do not have their own blockchain but are used on decentralized applications or ‘dApps’ as they are widely known.
Here is the interesting bit. These decentralized apps are the ones that can be built on blockchains like NEO and Ethereum. In turn, these dApps facilitate smart contracts which is why they make use of these tokens. These tokens are encrypted with long characters comprising numbers and letters.
Tokens have no physical representation and can be used to purchase a variety of assortments on these decentralized apps. Further, they can also be put to use to avail benefits online like discounted fees.
Another stand-out feature about tokens is that they are distributed through an ICO. Much like an Initial Public Offering, an ICO or Initial Coin Offering is similar to a stock offering. They are not necessarily meant to be used as currency but to create a function. One can compare it to the British Pound, which is represented as a value but doesn’t hold any intrinsic value.
NEM or New Economic Movement is the 23rd largest cryptocurrency in the world by market capitalization and is classified as both a cryptocurrency and a platform for building other applications similar to Ethereum and NEO. NEM had been a sleeping giant since its inception in 2015 up until 2017 when it completely took off.
Operated by a nonprofit organization based out of Singapore called NEM.io Foundation, NEM has its very own cryptocurrency called XEM which has shown great potential over the years and has climbed to number twelve on the list of cryptocurrencies with the highest market capitalization.
The main idea behind the conception of NEM was to create a better and more advanced blockchain using concepts of “proof of importance” or POI and “harvesting”. The best part about NEM is that one can create their own open-sourced app on its network – NEM network.
5. XRP- Ripple
Many times people refer to XRP as Ripple which, factually, is an incorrect representation of the cryptocurrency. Ripple, which is the company and the network behind the cryptocurrency XRP, is often mistaken as the cryptocurrency itself. Only behind Bitcoin, Ethereum and Tether, XRP ranks fourth on the list of largest cryptocurrencies by market capitalization.
XRP is widely known for its digital payment network and uses a very unique mechanism with the help of a varied network of servers that validate and verify each transaction. While Bitcoin is considered to be one of the most power-intensive cryptos out there, Ripple, on the other hand, is known for consuming next to negligible power thanks to its mining-free system.
Such cryptocurrencies have huge potential to digitize and unify the entire monetary structure. However, they have faced a number of challenges as governments and institutions around the world come to terms with the revolution that these currencies bring about with them.