5 Promising Cryptocurrencies Other Than Bitcoin
The first digital money appeared in 2009 when a developer hiding under the nickname Satoshi Nakamoto presented a unique program – Bitcoin. It became the first type of cryptocurrency and ensured the further development of the field of digital assets. Finally, fiat money got a worthy competitor. Some experts even make bold predictions about the possible replacement of standard money with more convenient virtual assets. Let’s talk about cryptocurrency and what profitable alternatives to Bitcoin exist.
What do we know about Cryptocurrencies
Cryptocurrency is a decentralized payment system in which banks do not participate in transactions. Such a system lets users send and receive payments regardless of location. Cryptocurrency payments exist only in digital form in a virtual database that describes certain transactions. They do not involve transactions with a physical currency that a person can exchange in the real world. In the process of transferring funds in cryptocurrency, transactions are recorded in a public ledger. Crypto coins are stored in unique digital wallets. You may find out the currency’s exchange rate against the dollar at any time, for example, what is solana to USD price today.
The term “cryptocurrency” appears because encryption (cryptography) is involved in verifying transactions. Registries use advanced coding, guaranteeing maximum security in storing and transferring information between wallets.
Types of altcoins
The term “altcoin” consists of two parts, “alt” and “coin,” which means an alternative to Bitcoin. The basic structure of Bitcoin and altcoins have a lot in common. They use similar code and act as peer-to-peer systems or super-powerful computers that can handle a large amount of information simultaneously. Essentially, altcoins want to be the next Bitcoin, only cheaper and more efficient.
Cryptocurrency
Cryptocurrency is used to make payments and transfer value (as well as digital money) using a decentralized system of users. Many altcoins are classified in such a way and got the name “value tokens.” When a person works with cryptocurrency, it is essential to know its all-time high price.
Tokens
Tokens are another form of digital assets without their blockchain, and we like to divide tokens into security tokens and utility tokens. Ethereum is an altcoin that can be described as a group of utility tokens. It performs a valuable function throughout the blockchain but has no intrinsic value.
Bitcoin is also a form of a utility token. Regarding security tokens, we are talking about a currency with an underlying intrinsic value. It can be, for example, art or the like.
Ethereum (ETH)
Ethereum is a computing platform created in 2015; its main feature is support for smart contract functions. Ethereum is currently the second largest cryptocurrency in the world.
Ethereum advantages:
- availability of a full-fledged financial infrastructure;
- the ability to create smart contracts;
- the possibility of utilizing quasi-money in management and logistics.
Among the shortcomings of Ethereum are the lack of deflationary characteristics and an imperfect protective system.
Tether (USDT)
Tether is the first cryptocurrency to achieve stablecoin status. The value of such virtual assets is pegged to a fiat currency, most often to the US dollar.
Tether benefits:
- transparency of all calculations;
- the ability to quickly perform any operation;
- slight volatility;
- minimum commission.
The main disadvantage of such an altcoin is the presence of risks associated with reservations.
Solana (SOL)
Solana is an open-source cryptocurrency platform. It allows specialists to develop various decentralized applications on the blockchain.
Solana blockchain benefits:
- maximum decentralization;
- the possibility of stable and fast scaling;
- high level of security.
Solana’s main problem is related to intermittent malfunctions.
USD Сoin (USDC)
USD Coin is a stablecoin pegged to the US dollar. The asset relies on the ERC20 algorithm, which allows the developer to reduce the cost of creating software.
Pros of USD Coins:
- transparency of financial reporting;
- open source code;
- high level of liquidity.
Investors call the main disadvantage of USDC the need to pass verification to purchase tokens from issuers.
Cardano (ADA)
Cardano (ADA) is a blockchain technology that relies on the Proof-Of-Stake algorithm, designed to build decentralized applications based on smart contracts.
Benefits of Cardano:
- unlimited scalability potential;
- fast and cheap transactions with altcoin;
- fair consensus mechanism;
- the ability to create decentralized applications.
It is difficult to judge the shortcomings of Cardano since it is still at the development stage. Specialists plan to solve the scalability problem soon.
When people hear the word “cryptocurrency,” they immediately imagine bitcoin. There are many alternative options known as “altcoins.” An altcoin is all kinds of digital assets that are not bitcoin.
The list of the famous altcoins includes Ethereum, Tether, Solana, etc. Investors can find reliable cryptocurrency with more stable value than bitcoin. Before investing in cryptocurrency, it is worth reading analytics, for example, Solana price prediction for the coming months.
