Top 10 Cryptocurrencies Beyond Bitcoin

Last week on cryptocurrencies, following financial sanctions imposed on Russian companies in the EU and other countries, there was speculation that these companies could use cryptocurrencies to facilitate the transfer of money outside the traditional banking system. Elsewhere in the world, the country’s Senate has passed a bill from the Brazilian government to regulate certain aspects of the cryptocurrency market.

What are cryptocurrencies?

Before we take a closer look at some of these Bitcoin (BTC) alternatives, let’s go back and examine briefly what we mean by terms like cryptocurrencies and altcoins. In the broadest sense of the word, cryptocurrency is a virtual or digital currency in the form of a chip or “coin”. While some cryptocurrencies enter the physical world through credit cards or other projects, most remain completely unimportant.

“Cryptocurrency” in cryptocurrencies refers to complex cryptography that allows the creation and processing of digital currencies and their transactions in decentralized systems. In addition to the important “crypto” feature, there is a general desire for decentralization. Cryptocurrencies are often built into the code of teams that establish release mechanisms (but not always through a process called mining) and other control mechanisms.

Cryptocurrencies have almost always been designed to be immune to government manipulation and control, but key aspects of the industry have been burned as its popularity has grown. Cryptocurrencies after bitcoin are collectively called altcoins, and in some cases bitcoins, and are often tempted to present as modified or enhanced versions of bitcoins. While some of these currencies have notable features not found in Bitcoin, the altcoin has not yet achieved the level of security that Bitcoin networks have more than achieved.

Below we will take a look at some of the best digital currencies besides bitcoin. But first, a word of caution: this list is by no means complete. One reason is that there were approximately 10,000 cryptocurrencies in February 2022. While many of these cryptocurrencies have little or no subscribers or trading volume, some of them are very popular with dedicated fans and communities. investors.

In addition, the cryptocurrency space continues to expand and the next big digital badge could be released tomorrow. While Bitcoin is widely regarded as a pioneer in the world of cryptocurrencies, there are several strategies that analysts are taking to value tokens other than BTC. For example, analysts typically value the classification of currencies in terms of market value. We thought about it, but there is another reason why a digital badge should be included in the list.

Types of altcoin

cryptocurrency

Cryptocurrencies are designed to pay and transfer value (similar to digital money) through a decentralized network of users. Many altcoins (i.e. bitcoin and sometimes not Ethereum) are classified as such and are sometimes referred to as tokens.

Tokens

There are also blockchain-based badges designed for more than just money. An example is an initial coin offering (ICO) token interested in a blockchain or decentralized finance (Defi) project. Badges can be called security badges (such as titles, not titles) if they refer to the value of a business or project.

Some icons have a specific use or function. Examples include Storj icons, which allow users to share files on a decentralized web, or Namecoin, which provides a decentralized domain name system (DNS) service for Internet addresses.23 these are known as utility name icons.

While many cryptocurrency users today understand and appreciate these differences, traders and casual investors may not notice the difference because all classes of tokens tend to trade cryptocurrencies in the same way.

1. Ethereum (ETH)

The first alternative to Bitcoin on our list, Ethereum (ETH) is a decentralized software platform that lets you create and execute smart contracts and decentralized applications (dApps) without downtime, fraud, control, or interference from third parties. Ethereum’s goal is to create a decentralized range of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or religion. T. They have government infrastructure, and government officials have access to bank accounts, loans, insurance, or various financial products.

Ethereum applications run on a platform-specific Ether crypto token. Ether (ETH) is a tool on the Ethereum platform and is primarily sought after by developers who want to build and run applications on Ethereum, or now by investors who want to use Ethereum to buy other digital currencies. Launched in 2015, Ethereum is currently the second-largest digital currency by capitalization after bitcoin, although it lags far behind the mainstream cryptocurrency.

In 2014, Ethereum launched a massive presale of Ethereum. This helped start the ICO era. According to Ethereum, it can be used to "encrypt, decentralize, secure, and sell almost anything." After the Decentralized Autonomous Organization (DAO) attack in 2016, Ethereum split into Ethereum (ETH) and Ethereum Classic (ETC) 7.

In December 2020, Ethereum moved the consensus algorithm from Proof of Work (PoW) to Proof of Stake (PoS). Better trade rates create a more deflationary economic environment. PoS allows network members to stake their ether in the network. This process helps with network security and in the processing of ongoing transactions. Its makers will be rewarded with Ether, similar to an interest-bearing account.9 This is an alternative to Bitcoin’s PoW mechanism, which gives miners more BTC to organize transactions.

2. Litecoin (LTC)

Launched in 2011, Litecoin (LTC) was one of the first cryptocurrencies to follow in Bitcoin's footsteps and is often referred to as the "currency for bitcoin gold." thrive.

Litecoin is built on an open-source global payment network that uses Scrypt as its PoW, which is not controlled by any central authority and can be resolved using consumers ’central processing units (CPUs). While Litecoin is similar to Bitcoin in many ways, it has faster blockchain speeds and therefore offers faster transaction confirmation times.

In addition to developers, more merchants are accepting Litecoin. In February 2022, Litecoin had a market capitalization of $ 9.3 billion and a coupon value of approximately $ 135, making it the 21st largest cryptocurrency in the world12.

3. Cardano (ADA)

Cardano (ADA) is Ouroboros proof-of-stake cryptocurrency developed by engineers, mathematicians, and cryptographers using a research and development approach.13 The project was founded by Charles Hoskinson, one of the five major founders and members of Ethereum. After some controversy over the direction Ethereum was heading, he left the company and eventually helped find Cardano.

Cardano’s team created the blockchain through extensive experiments and research involving judges. The researchers behind the project have written more than 120 articles on blockchain technology on a variety of topics.14 This research forms the backbone of Cardano.

Because of this complex process, Cardano seems to be different from its PoS counterparts and other major cryptocurrencies. Cardano is also known as the “killer of Ethereum” because the blockchain is said to do more. But Cardano is still in its infancy. Although Ethereum has surpassed the PoS consensus model, it still has a long way to go when it comes to Defi applications.

Cardano aims to become a global financial operating system by launching Defi products similar to Ethereum, which offer solutions for network interaction, voter fraud, and legal contract monitoring. , among other things. In February 2022, Cardano was ranked sixth by market capitalization of $ 38.5 billion, of which the ADA trades at approximately $ 120.15.

4. Polkadot (DOT)

Polkadot (DOT) is a unique PoS cryptocurrency that aims to provide interoperability between other blockchains. The protocol is designed to connect to the licensed and unlicensed blockchain and prediction, allowing systems to work together under one roof. The most important part of Polkadot is the relay chain, which ensures the interoperability of different networks. It also allows parachains or parallel blockchains to have their tokens for specific use.

The difference between Polkadot and Ethereum is that developers can create their blockchains instead of building apps on Polkadot and enjoy the security benefits that are in the Polkadot chain. Ethereum allows developers to create new blockchains, but they must implement their security measures that can cause new and small projects to be vulnerable to attacks, because the larger the blockchain, the more it is reliable. This concept is known within Polkadot as shared security.

Polkadot was created by Gavin Wood, another founder of the Ethereum project, with a different perspective on the future of the project. In February 2022, Polkadot’s market cap was at approximately $ 24.5 billion, with a DOT trading at $ 22.60.17.

5. Bitcoin Cash (BCH)

Bitcoin Cash BCH holds an important place in the history of altcoin because it was one of the first and most successful hard forks of the original Bitcoin. In the world of cryptocurrencies, forks occur as a result of disputes and disagreements between developers and miners. Due to the decentralized nature of digital currencies, major code changes under each icon or coin must be made by consensus. The mechanism of this transaction depends on the cryptocurrency in question.

When different groups disagree, the digital currency is sometimes split, the original chain remains faithful to the original code, and the new chain begins as a new version of the old currency with code changes.

BCH left in August 2017 after one of those divorces. The debate that led to the creation of BCH revolved around the issue of scalability.

BCH increases the block size from 1MB to 8MB because larger blocks can handle more transactions, thus increasing the speed of transactions. The block affects the area.

In February 2022, BCH had a market capitalization of approximately $ 6.5 billion and a coupon value of $ 340.19.

6. Stellar (XLM)

Stellar (XLM) is an open blockchain network designed to provide business solutions by connecting financial institutions to large transactions. Large transactions between banks and securities firms, which often take days, involve multiple agents, and cost large sums of money, can now be processed almost immediately without intermediaries and operators costing almost nothing. nothing.

While Stellar charges itself as an enterprise blockchain for business transactions, it is still an open blockchain that anyone can use. The system allows cross-border transactions between all currencies. Stellar’s ​​local currency is the lumen (XLM). The network requires users to maintain lumens so they can trade online.

He eventually left his position at Ripple and co-founder of the Stellar Development Foundation.21 Stellar Lumens had a market capitalization of less than $ 6 billion and was valued at approximately 25 cents in February 2022.

7. Dogecoin (DOGE)

Considered by some to be the original “meme”, Dogecoin (DOGE) caused a stir in 2021 as the price of the currency rose. The coin, which uses the image of Shiba Inu as its avatar, has been welcomed by several large companies, including Dallas Mavericks, Kronos, and, perhaps most importantly, SpaceX, the American aerospace company owned by Elon Musk.

Dogecoin was developed in 2013 by two software engineers Billy Markus and Jackson Palmer. Markus and Palmer allegedly created the money as a scam to comment on wild speculation in the cryptocurrency market.

The price of DOGE hit an all-time high of about 0.74 cents a week after Musk appeared on Saturday Night Live. As of February 2022, Dogecoin has a market capitalization of $ 21.7 billion and a DOGE is worth approximately 16 cents, making it the 11th largest cryptocurrency.

SHIB

Shiba Inu (SHIB), a meme-inspired meme coin, came to prominence in the fall of 2021, slightly surpassing Dogecoin in capitalization.

8. Binance coin (BNB)

Binance Coin (BNB) is an additional cryptocurrency that works with the Binance Exchange as a means of payment for fees associated with the transaction. Users of 24 tokens as a method of payment in the stock market can trade at a discount.

The Binance Coin blockchain is also the platform that enables Binance decentralized exchange. Founded by Changpeng Zhao, Binance is one of the most widely used exchanges in the world in terms of the trading volume.

Binance Coin was originally an ERC-20 token powered by the Ethereum blockchain. It was eventually launched on the main net. The network uses the PoS consensus model. As of February 2022, the market capitalization of Binance Coin was $ 73.5 billion and BNB was $ 436.24.

9). Tether (USDT)

Tether (USDT) is one of the largest and most popular of a group of so-called stablecoin - cryptocurrencies designed to tie market capitalization to a currency or other external benchmark to reduce volatility. Since most digital currencies, even large currencies like Bitcoin, often experience wild volatility, Tether and other stablecoin seek to accelerate price changes to attract discerning users. . The system allows users to transfer other cryptocurrencies to US dollars faster than regular currency.

Launched in 2014, Tether describes itself as "a blockchain-enabled platform that facilitates the digital use of fiat currency." volatility and complexity are often associated with digital currencies.

Beginning in February 2022, Tether is the fourth-largest cryptocurrency by market cap with a market cap of $ 78.1 billion and a coupon value of $ 1.26 (you guessed it!).

10. Monero (MXR)

The Monero MXR is a safe, private and unobtrusive currency. This open-source cryptocurrency was released in April 2014 and quickly gained the attention of the community and cryptocurrency fans. The development of this cryptocurrency relies solely on donations and is driven by the community.27

Because of these efficient security mechanisms, Monero has gained a somewhat dubious reputation - it is associated with criminal operations around the world. While Monero is a prime candidate for anonymous criminal activity, Monero’s privacy is also beneficial to opponents of repressive regimes around the world.29

In February 2022, Monero had a market capitalization of $ 3.2 billion and a coupon value of $ 178.30.

Why are cryptocurrencies important?

As decentralized platforms, blockchain-based cryptocurrencies allow people to conduct peer-to-peer financial transactions or contracts. In any case, there is no need for a third-party intermediary such as a bank, financial authority, court, or tribunal. This can undermine the existing economic order and democratize the economy. The size of the cryptocurrency space has grown dramatically over the past decade, driven by innovations and a combined market capitalization of over $ 1.75 trillion1.

Why so many cryptocurrencies?

Most existing cryptocurrencies are represented in some form of bitcoin, which uses an open-source architecture that is resistant to censorship. This means that anyone can copy and modify the code and create their new currency. It also means that anyone can sign up or join their networks.

What are the other major cryptocurrencies?

Many cryptocurrencies have become more valuable or promise to do so. Dogecoin, for example, is a meme-based joke that became popular when Tesla CEO Elon Musk promoted the badge on social media. In addition to Dogecoin and the others mentioned above, there are many other Bitcoin forks such as Bitcoin Gold and Bitcoin SV. Other known currencies include Ripple (XRP), Solana, USD Coin, and Tezos.

Why is bitcoin still the most important cryptocurrency?

Despite the emergence of thousands of competitors, bitcoin, the original cryptocurrency, remains the dominant player in terms of usage and financial value. Each currency (BTC) was worth approximately $ 44,000 in February 2022, with a market capitalization of over $ 830 billion31.

Investing in cryptocurrencies and other Initial Coin Offerings (ICOs) is extremely risky and rewarding, and this article does not constitute an Investment Pedia or an author’s recommendation to invest in cryptocurrencies or other ICOs. Because each person’s situation is unique, one should always consult a qualified professional before making any financial decisions.