For good reason, Bitcoin receives the most media attention in the cryptocurrency world. Thousands of new cryptocurrencies have emerged in the years since the first Bitcoin transaction in 2009, creating a complicated landscape for investors. Some cryptocurrencies contain proprietary technology that enhances or differentiates them from Bitcoin. Others are simply well-known digital currency businesses or memes that have gone viral on social media. Investing in altcoins is a dangerous business, but given the crypto market’s high volatility, it may also be quite profitable. Here are six of the best altcoins to buy.
Best Altcoins to Buy
Solana is a cryptocurrency that is relatively new to the market. However, the cryptocurrency’s popularity has surged, making Solana the world’s fourth-most valuable cryptocurrency. Solana also supports dApps and NFTs, however, it claims to only have about 350 projects on the network for now. The unique combination of proof-of-history (PoH) and proof-of-stake (PoS) transaction verification mechanisms used by Solana is substantially faster than Ethereum’s proof-of-work (PoW) model. Solana also offers lower costs than Ethereum and requires considerably less energy than PoW models, making it a greener cryptocurrency than Bitcoin and Ethereum.
Ethereum is the most popular and largest Bitcoin alternative, yet it was created with a very different objective in mind. Smart contracts, or code that permits blockchain platforms to execute decentralized apps or dApps, were originally introduced by the decentralized network. The website “State of the dApps” reports that there are currently 2,889 Ethereum mobile applications (dApps) in the world. Gaming, gambling, socializing, and even decentralized finance, or DeFi, are all available on the network. The Ethereum network is also the foundation for the majority of nonfungible tokens, or NFTs, making Ethereum probably the most functional and usable blockchain in the world.
The Polkadot blockchain was created by Ethereum co-founder Gavin Wood and debuted in 2020. Polkadot has the main network blockchain with permanent transactions. Its unique feature is its parachains, which are user-created blockchains that may be altered while maintaining the same level of security as the main chain. Users can create different parachains for different uses without requiring additional processing resources from the main chain. Polkadot also enables trustless communication between blockchains. In practice, the Polkadot system might allow investors to immediately trade Bitcoin for Ethereum without the need for an exchange.
Dogecoin was founded as a satire of Bitcoin in 2013. The Shiba Inu dog mascot was a big aspect of the joke cryptocurrency’s success in 2020. Dogecoin became a social media meme sensation, but the cryptocurrency has also gained traction among business leaders. Elon Musk, the CEO of Tesla Inc., is a Dogecoin investor who claims to be working with developers to improve the Dogecoin system’s efficiency. Dogecoin has also been dubbed the “strongest” cryptocurrency as a medium of exchange by billionaire entrepreneur Mark Cuban.
Litecoin was founded in 2010 by Charlie Lee, a former Google engineer who now works for cryptocurrency Coinbase Global Inc. Lee essentially designed Litecoin to be the silver to Bitcoin’s gold. The main advantage of Litecoin over Bitcoin is its faster block creation time, which allows for faster transaction confirmation. AMC Entertainment Holdings Inc. recently announced that by the end of 2021, it plans to accept Litecoin and other cryptos as payment, potentially expanding Litecoin’s reach. Litecoin’s price has increased by more than 450 percent in the last three years, but it has lost market share to higher-flying competitors like Bitcoin and Ethereum.
6. Shiba Inu
Shiba Inu’s success, like Dogecoin’s, is largely due to its branding, which includes its name and symbol. In August of 2020, Shiba Inu was created. The ShibaSwap decentralized exchange, which provides financial services to its user community, was launched in July 2021 by its developers. Shiba Inu has limited utility outside of ShibaSwap. According to Cryptwerk, just 371 global retailers accept cryptocurrencies as payment. Bitcoin, on the other hand, is accepted by over 7,600 retailers. More than 540,000 people have signed a Change.org petition asking Robinhood Markets Inc. (HOOD) to introduce Shiba Inu trading, but the popular trading app has yet to do it.
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