What is the best alternative to Bitcoin?
Bitcoin's success was tremendous - it was talked about in every cryptocurrency community, information about it was increasingly appearing in the world outside of digital currencies, and the demand for Bitcoin robot reached incredible heights.
After Bitcoin's success, enthusiasts began to copy the idea with minor changes and tried to create the best Bitcoin alternative. Now altcoins are very different from each other. Their number is growing every day, and all of them are created to solve different tasks.
The key reasons for the growing flow of new altcoins are decentralization and blockchain technology, which allows the creation of an unlimited number of new crypto. So if you are interested in the question "What will be the next Bitcoin?", look for the answer in our article.
Which altcoins have the most potential?
To choose cryptos with the most potential, you need to consider a number of factors related to structure, team, uniqueness of the idea, and ambition. Let's take a closer look at them.
- Potential - prospective cryptocurrency must be better than competitors in terms of transaction speed, commission size, and opportunities for owners. This is necessary for the project to attract the interest of investors and become the best cryptocurrency to invest in for the future.
- Uniqueness - at the time of writing, the total number of tokens in the listing of stock exchanges is more than 10,000. This means that each new coin faces competition and must prove its worth. It is important that the token has useful functionality, gives something new, and has ambitious plans for the future.
- Blockchain - when choosing a promising coin, it is important to look at the type of blockchain that underlies the digital asset. It affects functionality, transaction speed, the ability to further exchange, and user interest. The most popular blockchains are Ethereum, BNB, and Solana. Developers are trying to create digital assets on them.
- Community - the hallmark of promising cryptocurrencies is community activity. The best upcoming crypto projects have a huge number of followers consisting of crypto enthusiasts, professional traders, and everyone who is interested in digital currencies.
- Popularity - if you want to trade cryptocurrency on the exchange market, especially using TradingView automated trading, it must be more or less known in community groups.
- Team - a mandatory stage of analysis is to look at the developers' composition. It is desirable that the team included people with experience in cryptocurrency development and a good reputation. Preference should be given to altcoins, which are developed by "veterans" of the industry, rather than newcomers.
Thousands of different altcoins from Etherium to Tether are waiting for you in the crypto world. To better guide you through the issue and determine the best alt coins to invest in your future, we've created this list for you. What are the top 10 altcoins? These are the ten most profitable cryptocurrencies to invest in based on market capitalization volume, the total value of coins, and evaluations by users of the crypto community. Investing even a small amount in altcoins with the most potential can give a serious profit. It is only important to enter the market in time and choose the best alt coins against Bitcoin.
1. Ethereum (ETH)
A cryptocurrency that many people find more interesting and promising than Bitcoin. It is a platform for many promising areas of the global economy. Ethereum has also led to the explosive growth of non-fungible tokens, the latest trend in the digital world. The increase in their value over the last 5 years is almost 25,000%.
With the launch of ETH 2.0, Ethereum will become one of the most efficient and green cryptocurrencies to buy. Note that corporations like JPMorgan, Amazon, and Microsoft Azure are already using Ethereum blockchain technology to stay ahead of other financial giants, attracting the attention of investors around the world. If you think you still don't know the answer to the question "What crypto has the most potential?" ETH would be a brilliant choice.
2. Litecoin (LTC)
Litecoin is Bitcoin's little brother, based on its protocol. Litecoin differs from its "big brother" by its convenience in use, as well as its 4 times faster speed. The speed of sending and receiving Litecoin payments can be compared to sending an e-mail.
Although some consider LightCoin a side effect or copy of Bitcoin, experts recommend taking a closer look at it. Because during the last year, the coin showed very interesting results and a promising future, and today it has a smooth and stable growth in price. In addition, if you do copy trading and study transactions of experienced traders, you will be able to notice that Litecoin is quite frequently traded.
3. Ripple (XRP)
Another fast-growing cryptocurrency from China. Its developers focus on large financial corporations rather than ordinary users. Ripple has become one of the few cryptocurrency companies that cooperate with governments. The project is supported by the European Union and the United Kingdom, as well as Microsoft Corporation.
The developers see their product as a bridge between traditional banking systems and digital payment technology. The team is working really hard to modernize and promote their brainchild. Ripple is already working with Japanese and Korean banks interested in and testing cryptocurrency technology.
Ripple cryptocurrency is the third-largest digital coin in terms of capitalization, with the amount of invested money approaching $23 billion. The main indicator of this cryptocurrency's stability and potential is that it did not suffer as hard as others in one of the recent financial crises on the exchange. Based on the above, Ripple could be called the next Bitcoin type investment.
4. Tether (USDT)
Before we talk about Tether, let's explain what stablecoins are and why their popularity is growing at a cosmic rate.
The fact is that cryptocurrencies are very volatile, and it is this volatility that is so attractive to investors. Of course, you can lose all your money on any coin, but you can, on the contrary, become a millionaire overnight. However, there are cryptocurrencies that are designed to provide stability and an unchanging rate.
These are so-called stablecoins, and they play an important role in the cryptocurrency markets. Stablecoin gets its price from the value of another asset. Therefore, the answer to the question "What is the most stable cryptocurrency?" is the stablecoin.
All stablecoins can be divided into three large groups:
- Fiat-backed stablecoins - you use your dollars (or other fiat currency) to buy Stablecoins, which you can later exchange for your original currency.
- Crypto-backed stablecoins are secured by other crypto-assets. Because a reserve active can be unstable, stable crypto-secured coins have excess collateral to ensure the value of a stablecoin.
- Stablecoins backed by precious metals use gold and other metals to maintain their value. These stablecoins are centralized, which some in the cryptocurrency community may see as a drawback, but it also protects them from cryptocurrency volatility.
"United States Dollar Tether" or USDT is the very first and most popular stablecoin issued by Tether. It appeared on exchanges in 2015 and since that time has been the leader among all cryptocurrencies equated to fiat money. As you can guess from the name, 1 USDT = 1 USD. This means that you will always get one dollar for one Tether.
USDT is among the top 10 cryptocurrencies by capitalization with over 72 billion. Tether coins can be a great low-risk capital storage option. USDT is considered one of the hottest cryptocurrencies to invest in 2022 as its exchange rate stability is not threatened. The cryptocurrency itself can be used to pay for literally everything from simple online goods to trade deals and large contracts.
5. Binance coin (BNB)
A cryptocurrency from the largest crypto exchange - Binance. Initially, BNB was used as a marketing ploy to attract users to the newly opened crypto exchange. However, today Binance, being the largest cryptocurrency exchange, no longer needs additional means of attracting customers, and the ways of using the token of the same name have already gone beyond its original purpose.
BNB's issuance was limited to 200 million coins. At the same time, a fifth of Binance's quarterly revenue proceeds is used to redeem and destroy BNB tokens.
Binance Coin is now among the top ten most popular cryptocurrencies traded on the crypto market. It is present in many currency pairs, used in futures trading, exchangeable for fiat money, and even used as an investment instrument.
Throughout the year, there has been a positive trend in the token, including on the Binance exchange itself. If analysts' forecasts come true, the coin has great prospects and can even be called a fast moving cryptocurrency. In particular, thanks to it, it will be possible to reduce commissions on the Binance exchange, which will have a positive impact on its competitive position.
6. Binance USD (BUSD)
The second Stablecoin on our list. Its main feature is that it is a collaborative project between the leading cryptocurrency exchange Binance and Paxos, a large blockchain and digital asset company from New York.
The crypto coin is a stablecoin, meaning it is 100% backed by U.S. dollars. Therefore, it has a stable exchange rate that matches fiat currency quotes. The funds with which the stablecoin is backed are in the accounts of U.S. banks insured by the FDIC. This provides protection for users. The accounts holding the dollars are monitored by several auditing companies, with Withum among them. Therefore, any manipulation of the amount of the token is impossible.
The crypto coin is a digitized dollar, which is used on the Binance platform. It is fully tied to the rate of fiat currency. That is, the amount of cryptocurrency in circulation is the same as the amount in U.S. dollars held in bank accounts. That's why stablecoin is called Binance USD. Accordingly, the token cannot be mined or issued without backing.
BUSD cryptocurrency is advantageous to use on the Binance cryptocurrency exchange. It has the following advantages:
- no commission when trading currency pairs USDT, USDC, TUSD, and RAH;
- favourable rates on deposits;
- purchase and redemption occur without commission costs;
- in lending, the stablecoin can be used as collateral.
Since Binance is the most popular crypto exchange today, it is not surprising that its token is also in high demand. Therefore, it is worth paying attention to, especially if you trade on Binance.
7. Cardano (ADA)
A fairly new but rapidly developing cryptocurrency. Despite its recent appearance on the market of digital assets, it already gives excellent results - it is among the top five cryptocurrencies by capitalization.
The coin specializes in launching smart contracts and decentralized applications. It was developed as an alternative to Ethereum. And it really became one.
Cardano is one of the promising crypto projects aimed at creating a blockchain infrastructure for a wide range of users. Although the project is moving slower than some investors would like, its developers have set themselves serious goals. After all, Cardano aims to launch a third-generation blockchain, which its creators envision as the dominant platform for smart contracts. We recommend that you buy Cardano to all future profits crypto.
8. Solana (SOL)
Solana is one of the fastest cryptocurrencies today, a direct competitor to Ethereum.
Solana is a platform for DeFi solutions, with support for smart contracts and decentralized applications. The token, the actual currency of the platform, is Sol. The peculiarity of Solana is its incredible speed. The company claims that the system can process up to 710,000 transactions per second. For comparison, the same Bitcoin network conducts from 3 to 7 transactions per second. It seems like a cosmic number compared to many other altcoins. Even against the most recent, third-generation cryptocurrencies like Cardano.
The coin ranks eighth in terms of capitalization among all cryptocurrencies. This fact shows that investors believe that Solana is cryptocurrency in the future. So we advise you to pay attention to this cryptocurrency and to buy it before the price begins to grow rapidly.
9. Dogecoin (DOGE)
Starting as a fun experiment, the cryptocurrency created by enthusiasts managed to conquer the world, survive three crypto booms, and keep its price and development prospects. Today Dogecoin carries the right of one of the oldest currencies in the crypto world, not bound by smart contracts, controversial solutions, constant feuds in the community, and uncontrolled forks.
At the time when the coin was created, a meme depicting a Shiba Inu dog was popular online. It became the logo of the new mock cryptocurrency. The project immediately gained popularity among fans of dogs and funny pictures. The main feature of the coin was the community, not the unique characteristics.
The project is engaged in charity, as well as periodic PR by famous personalities. For example, a couple of posts on Twitter of Elon Musk, and the value of this cryptocurrency is steadily growing. Dogecoin was actively promoted in social networks not only by Musk, thanks to which the initial limit of 100 billion tokens was cancelled. Today, the number of coins in circulation has already surpassed that figure, and more than 14 million tokens are mined daily.
Dogecoin was originally developed as a mock copy of Bitcoin to pay bonuses to providers of various entertainment content. However, as the popularity and capitalization of the token increased, the scope of the coin was expanded. Today DOGE is used as a trading instrument, a means of payment, and is also exchangeable into fiat money, so we can call it one of the best crypto for payments.
10. Polkadot (DOT)
Polkadot is not just a cryptocurrency, but a huge ecosystem: two workings "parent" blockchains, dozens of projects from different fields launched on them, and DOT token, which is one of the top 10 cryptocurrencies by capitalization.
Just as the Ethereum network has been called the killer of Bitcoin, the Polkadot network has been called the killer of Ethereum. Unlike the Bitcoin network, which transmits only information about transactions and the number of coins on wallets, based on the Ethereum network you can create arbitrary "smart contracts" and issue tokens in ERC-20 standard.
Polkadot developers went even further and implemented the ability to create networks of other projects based on their blockchain. Such derivative networks are called parachains. A parachain is an independent blockchain with its own token and the ability to optimize functionality for specific tasks and project needs. Parachains not only have all the advantages of Polkadot, but also can interact with other projects within the network. It is rightfully considered one of the most promising crypto projects.
The first ICO (initial coin offering) of DOT cryptocurrency was held in the fall of 2017. Then 2.7 million coins were sold. DOT reached its maximum price of several tens of dollars at the end of May 2021. However, the development of parachain suggests that it may indeed soon supplant Ethereum, which will lead to a rapid increase in the price of the token. In other words, it is the next generation cryptocurrency based on the latest technology. It is for this reason that DOT may be the answer to the question "What crypto is the next Bitcoin?"
As you can understand from the article, in addition to Bitcoin, there are several options in the digital money market with great growth potential, as well as for investing to earn money in the long term. To outline the best currencies to invest in, focus on the coins we described above. However, always keep in mind that the cryptocurrency market is regularly updated with new coins, each of which can become the best long-term altcoins. It is important to follow the news and keep up-to-date.
