Tech

A List of Alternative Coins You Can Exchange for Ethereum (ETH)

Ethereum (ETH), the second largest cryptocurrenсy in terms of market capitalization, has not lost its popularity among investors and fans. However, there could be a need to avoid over-concentration in a particular project or you may be interested in other potential projects. In this article you will find a list of different exchanges which allow for the ETH/Ethereum to be traded for other types of cryptocurrencies.

Established DeFi (Decentralized Finance) Tokens

DeFi has launched an array of tokens that drive various applications in the ecosystem, thus the tokens are diverse. Below are some of the popular DeFi tokens that you can look forward to while ETH swap for them:

  • Maker (MKR): Being an ERC-20 token, MKR is an integral part of the MakerDAO platform and allows users to interact with the MakerDAO protocol and make important decisions.
  • Uniswap (UNI): UNI is the native token that enables users in the Uniswap decentralized exchange platform to engage in governance and also earn from liquidity mining.
  • Aave (AAVE): AAVE is the governance token of the Aave lending protocol that enables the users to gain voting right for protocol decisions as well as earn an interest on deposited digital assets.

These are DeFi tokens that have already been created and formed, and they have the capabilities of not only having intrinsic value but also value appreciation within the platform.

Smart Contract Platforms with Growth Potential

There are several other smart contract platforms, not only striving to take market share from Ethereum but also have different objectives. These are other options to look at if you think that some of these projects have a future:

  • Solana (SOL): With the capacity for scaling and a high TPS, Solana (SOL) is now one of the most dominant players in the smart contract market.
  • Cardano (ADA): Boasting of its security and scalability, Cardano (ADA) has a highly structured approach to the architecture that supports smart contracts.
  • Polkadot (DOT): As a blockchain that focuses on the compatibility of multiple blockchains, the Polkadot (DOT) enables efficient interaction and data sharing.

These platforms come with their native tokens (SOL, ADA, DOT), meaning they have potential to grow in tandem with the ecosystems of their hosts.

Emerging Sectors of the Crypto Space

It also important to indicate that the use of cryptocurrencies is a new industry that is continuously expanding with new sectors being developed. Here is the list of the most prospective directions to look at when switching your ETH:

  • Metaverse Tokens: As the idea of the metaverse continues to pick up steam, tokens linked to metaverse projects such as Decentraland (MANA) or The Sandbox (SAND), could prove valuable.
  • Play-to-Earn Tokens: This is because the tokens of the play-to-earn games such as Axie Infinity (AXS) and Decentraland (MANA) have increased in value as more people continue to play the games. These are issues to consider if you are buying into the future of this gaming model.
  • Non-Fungible Token (NFT) Marketplaces: Those tokens which are related to such industry leaders as OpenSea (OS) can be in demand with the help of the growing NFT market.

These emerging areas have great potential, therefore, it is advisable to investigate before getting your hands on these tokens by trading your ETH.

Stablecoins for Portfolio Diversification

With regard to their returns, stablecoins cannot generate high revenues, but they may help investors preserve their funds during fluctuations in the market. Examples of stablecoins are tether which is anchored to the USD, USD coin among others that have a stable value due to their link with the US dollar. They can be used as a sort of an intermediate storage of your exchange ethereum before you invest in other coins.

Important Note: Please remember that this article is meant to be informative only and does not contain any recommendations. You should never make any investment decision especially regarding the cryptocurrency without consulting with your own research.

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