Today, if you wanted to look at cryptocurrencies apart from Bitcoin that you should consider, you have plenty of options. But, there was a time when you took the word "cryptocurrency," and the only thing that came to mind was Bitcoin.
Bitcoin has been synonymous with cryptocurrencies since its inception. Invented by Satoshi Nakamoto, Bitcoin is a decentralized cryptocurrency that works on a public ledger called the blockchain.
Since Bitcoin's inception, numerous other cryptocurrencies have come into existence. Today, you can choose from thousands of cryptocurrencies, each with its own unique properties and characteristics.
Digital currencies like Ethereum, Stellar Lumens, Litecoin, Bitcoin Cash have improved upon the original properties of Bitcoin or found more use cases such as smart contracts or DeFi.
Of course, Bitcoin is still the Largest cryptocurrency by market cap and the most popular coin. However, the cryptocurrency space is teeming with alternatives to Bitcoin, some of which we will take a look at in this article.
Cryptocurrencies Apart From Bitcoin That You Should Consider:
- Ethereum (ETH-USD)
- Litecoin (LTC-USD)
- Bitcoin Cash (BCH-USD)
- Ripple (XRP-USD)
- Cardano (ADA-USD)
- Tezos (XTZ-USD)
- Ethereum Classic (ETC-USD)
- Stellar Lumens (XLM-USD)
- Binance Coin (BNB-USD)
#1: Ethereum (ETH-USD)
Ethereum is a cryptocurrency and a fully autonomous decentralized platform run by thousands of volunteers worldwide. The platform allows developers to build dApps and smart contracts, which can then be run without any downtime, fraud, or control from any third-party.
dApps on Ethereum enable users to conduct transactions, buy and sell goods and services. Ethereum hopes to become a "world computer" that aims to decentralize and democratize the client-server model. Smart contracts on the Ethereum blockchain are self-executable. This means that once certain conditions are met, smart contracts are executed automatically.
Ethereum is the go-to platform for ICOs and smart contracts, and the platform has also gained popularity amongst financial institutions that are deploying their dApps on the Ethereum blockchain. Companies like J.P. Morgan, Credit Suisse use Ethereum for specific functions.
Ethereum is also actively promoting the use of Ethereum and blockchain technology through the Ethereum foundation. The Ethereum Foundation has over 100 members, which consists of several Fortune-500 companies as well. Today Ethereum is the second-largest cryptocurrency, second only to Bitcoin.
Currently, Ethereum is trading at $1502 and has seen a significant increase in price since the start of the year. Most analysts believe that the price will continue to increase due to the rising popularity of DeFi and smart contracts.
Ethereum is the go-to platform for DeFi projects and dApps; add to this the fact that more institutional investors see Ether as an important store of value.
#2: Litecoin (LTC-USD)
Litecoin was created in 2011 as a result of a hard fork of the original Bitcoin blockchain.
The team behind Litecoin wanted to solve Bitcoin's problems in terms of slow transaction speeds. The Bitcoin network also faced significant network bottlenecks due to slow transaction speeds.
Bitcoin also had higher transaction fees. To address these issues, the team initiated a hard fork in the original Bitcoin blockchain leading to the creation of Litecoin.
Litecoin is significantly faster than Bitcoin, with the cryptocurrency able to process a block in 2.5 minutes. Litecoin is capable of processing 56 transactions per second.
It is also much easier to mine than Bitcoin. Litecoin uses "scrypt" as a Proof-of-Work consensus mechanism, which allows users to mine it using consumer-grade computers.
Litecoin is often referred to as the silver to Bitcoin's gold due to its similarities with Bitcoin, and it is rapidly gaining popularity with businesses and multinational companies who accept LTC as a mode of payment.
Currently, hundreds of companies accept Litecoin as payment, with the number increasing every year, thanks to Litecoin's transaction speeds being faster and transaction costs lower.
Check Out: Litecoin Price Analysis for 2021
#3: Bitcoin Cash (BCH-USD)
Like Litecoin, Bitcoin Cash is also the result of a hard fork in the original Bitcoin blockchain. The fork was initiated by a group of miners and developers who had concerns about the future of Bitcoin and the cryptocurrency's ability to scale. Bitcoin's slow transaction speeds were also a cause for concern.
With the users growing and the technology seemingly unable to keep up, leading to frequent bottlenecks and the developers unable to reach a consensus, a hard fork was initiated in August 2017.
Bitcoin Cash improves upon key features of Bitcoin and also solves the scalability issue that plagues Bitcoin. It can process transactions much faster, thanks to an increased block size of 8MB. The increased block size allows more data to be processed, increasing the speed of transactions on the blockchain while also reducing the transaction costs.
Bitcoin Cash has been attracting significant investor interest since the start of the year and has received public endorsements from cryptocurrency experts like Robert Ver and, more recently, Kim Dotcom. The cryptocurrency is currently among the largest in the market, with a market capitalization of $9 billion.
The recent endorsements of the cryptocurrency has seen a significant increase in it by investors and crypto enthusiasts.
Don't Miss: Bitcoin Cash Price Analysis for 2021
#4: Ripple (XRP-USD)
Developed by Ripple Labs, Ripple is a for-profit platform and cryptocurrency. It provides currency exchange services and real-time payment settlement services to banks and financial institutions.
Ripple has partnered with over a hundred companies and financial institutions that use it for its fast transactions. XRP, Ripple's native cryptocurrency, is currently the 7th largest cryptocurrency by market capitalization.
XRP provides liquidity to banks so that they can facilitate cross-border transactions.
XRP is pre-mined, and Ripple Lab controls the coins' circulation and when they are released into the market. Currently, there are 45 billion XRP in circulation.
Ripple Lab releases new coins whenever there is a need to maintain the number of coins in circulation.
Ripple can also support traditional fiat currencies like the Dollar, Yen, Euro, and Pound.
The Ripple platform also supports other cryptocurrencies, acting as a facilitator for currency exchange and also as a payment processor.
Ripple is bringing blockchain technology to the cross-border payments industry, competing with traditional payment systems like ACH and Swift.
Ripple is more than just a cryptocurrency. It is a payment protocol that can be used by banks and other financial institutions.
Read Also: Ripple Price Prediction
#5: Cardano (ADA-USD)
Cardano, like Ethereum is a cryptocurrency and smart contract platform founded by Ethereum co-founder Charles Hoskinson and former Ethereum CEO Jeremy Wood.
Its founders describe Cardano as a third-generation cryptocurrency. It solves the scalability issues that plague first and second-generation cryptocurrencies like Bitcoin and Ethereum.
Cardano is popular amongst the cryptocurrency community thanks to its layered architecture that offers better scalability compared to its peers. The platform's native currency, ADA, allows users to send or receive funds and conduct transactions.
Cardano secures transactions on its platform through cryptography, making transactions fast and secure.
Cardano is also the world's first peer-reviewed blockchain.
The Cardano Foundation has all its protocols reviewed by scientists and academics from institutions such as the Tokyo Institute of Technology and the University of Edinburgh.
The platform uses a unique Proof-of-Stake consensus mechanism called Ouroboros.
Ouroboros gives the security of a Proof-of-Work consensus mechanism at a fraction of the energy. It applies processes like cryptography, combinatorics, and mathematical game theory to guarantee the protocol's longevity, integrity, and performance.
Cardano has the backing of three organizations that ensure that Cardano functions without any hiccups. These organizations are:
- The Cardano Foundation oversees the development of the Cardano blockchain.
- IOHK built Cardano and designed its unique Proof-of-Work consensus mechanism, Ouroboros.
- Emurgo is the organization that promotes Cardano and its technology to firms and multinational companies around the world, encouraging its use and adoption of the underlying technology.
Don't Miss: Why Cardano Is Going To Explode In 2021
#6: Tezos (XTZ-USD)
Tezos is a smart contract platform that uses a process called an "on-chain governance model." The on-chain governance model allows Tezos to implement changes and upgrades on the blockchain without implementing a hard fork.
A hard fork occurs in a blockchain when developers cannot reach a consensus on changes that need to be implemented, leading to a split in the original blockchain.
The on-chain governance model allows Tezos to upgrade automatically, giving it a considerable advantage over other cryptocurrencies.
Tezos works in a reasonably straightforward manner. Users who own XTZ, which is the cryptocurrency of the Tezos platform, can vote on changes to be implemented on the platform.
Changes are implemented only when the new rules are agreed upon. Once the rules are agreed upon, the platform automatically initiates the update.
The automation prevents the Tezos blockchain from splitting. It has ensured that decision-making rules are built into the blockchain. This ensures that whatever course the project takes, it has been agreed upon democratically.
The Tezos ICO took place in 2017 and was the largest ICO at the time, raising a total of $232 million.
Check Out: What Will Drive Tezos Price In 2021?
#7: Ethereum Classic (ETC-USD)
Ethereum Classic is an open-source, decentralized cryptocurrency platform that runs self-executing smart contracts. Like the contracts on Ethereum, these contracts are executed automatically once certain predefined conditions written in the contract are met.
Ethereum Classic was the result of a split in the original Ethereum blockchain. The split was a result of a loophole in the Decentralized Autonomous Organization (DAO). This loophole was exploited by hackers who then siphoned off $50 million worth of Ether.
When the hard fork occurred, a small community of developers and miners decided to stick with the original Ethereum blockchain, leading to Ethereum Classic's creation.
Even though most of the community has moved on from Ethereum Classic, the cryptocurrency still has a few advantages like quick and affordable transactions.
Ethereum Classic is also a decent investment option for those looking to invest in the cryptocurrency space other than Bitcoin.
#8: Stellar Lumens (XLM-USD)
Stellar Lumens is a platform for financial products created by Jed McCaleb, the founder of Ripple. Stellar Lumens is similar to Ripple but serves a different purpose.
Stellar Lumens has cemented itself as a cross-border payments solution that aims to give individuals without access to the banking system a method of transferring funds and access to a store of value while paying minimal transaction fees.
Stellar Lumens overcomes the problems of slow transaction speeds and high transaction fees, providing an inexpensive method of transferring money globally.
Stellar Lumens has also partnered with IBM to create IBM World Wire, a global network enabling financial institutions to simultaneously settle cross-border payments in real-time. Jed McCaleb also founded the Stellar Foundation in collaboration with the CEO of Stripe, Patrick Collinson.
The Stellar Foundation is a non-profit organization that supports the development and promotes the Stellar Lumens payment network's adoption.
Don't Miss: Stellar Lumens Price Prediction
#9: Binance Coin (BNB-USD)
Binance Coin was launched in 2017 and quickly established itself among the top cryptocurrencies in the world. Currently, Binance Coin is the 4th largest cryptocurrency by market capitalization.
Binance Coin is the cryptocurrency of the Binance exchange. It can be used to trade and used in exchange for other assets, like other cryptocurrencies.
The Binance Coin token is an ERC-20 token that was launched on the Ethereum network.
Binance Coin can be used primarily for the following functions.
- Binance Coin can be used as a trading asset.
- Users of Binance can use Binance Coin to reduce commissions on the platform.
- It can also be used to pay for goods or digital assets on websites that accept Binance Coin as a mode of payment.
A unique feature of Binance Coin is the regular burns of the cryptocurrency. These burns' ultimate goal is to reduce reserve Binance Coins to 50% of the initial reserve.
As you can see, there are several cryptocurrencies apart from Bitcoin that you should consider.
Bitcoin is indeed the largest and most popular currency, but there are other cryptocurrencies that are much better investments than Bitcoin when it comes to return on investment.
If you are looking to invest in cryptocurrencies other than Bitcoin, then the options we have discussed above are worth considering. Each of them has its unique characteristics and its unique use cases. However, keep in mind that investing in cryptocurrencies is risky and not something you should jump into without adequate research.
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