What Is An Altcoin?
Altcoins are alternative cryptos that were created after the success of Bitcoin. Altcoins are positioned as better replacements for Bitcoin. The emergence of Bitcoin as the first peer-to-peer digital currency inspired many to follow it.
Most altcoins are built on the basic structure popularized by the Bitcoin blockchain, so most use peer-to-peer systems. They require mining, through which users solve complex puzzles to add transaction blocks to the blockchain. Although altcoins have many similar features, they vary widely from each other.
This article will explore the top altcoins to invest in.
Currently, Cardano is the most popular and well-developed proof-of-stake crypto on the market. Cardano is a carefully designed and peer-reviewed blockchain. Cardano has the potential to challenge and even beat Ethereum. Cardano is widely known as a third-generation crypto. Cardano underwent a Vasil Hark Fork in September 2022 to improve scalability and reduce costs.
Cardano has a market cap of $13 billion at the time of writing.
Polygon is based on the Ethereum blockchain. It can enable the creation of multiple blockchains that are interlinked. Polygon addresses Ethereum’s drawbacks, such as delayed transactions, throughput, and a lack of community control. It is economically priced compared to Ethereum and has grabbed attention from all over the world. All this makes it an attractive investment option.
Currently, Polygon has a market cap of $9 billion.
XRP is the native crypto token of Ripple, a payment protocol for fast and cost-effective transactions. Ripple has partnered with many financial institutions to facilitate international fund transfers.
Ripple became embroiled in an SEC lawsuit at the end of 2020. As a result, Ripple’s prices were down all of last year. The lawsuit will most likely reach its conclusion in the first half of this year. Depending on the ruling, XRP prices can either skyrocket or have the opposite effect.
Ripple has already proven its worth as an international transaction processor with quick and low fees. Major partners like Bank of America, Banco Santander, and other partners in America have paused their associations until the verdict, but the RippleNet payment system is running at full speed in other countries.
Ripple seems prepared to survive the lawsuit and is here for the long haul. Smart investors will buy XRP as there is a high potential for its price to skyrocket in 2023.
XRP has a market cap of $20 billion at the time of writing.
Litecoin is one of the first altcoins created to improve Bitcoin’s drawbacks, such as its slow transaction speeds. Bitcoin has evolved to become more of a store of value, whereas Litecoin is used for everyday transactions.
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Apart from transaction speeds, the maximum supply of Litecoin and Bitcoin is different. Bitcoin is capped at 21 million coins, whereas Litecoin is capped at 84 million coins.
Currently, Litecoin’s market cap is $6.5 billion.
Polkadot is a proof-of-stake crypto aimed at enabling interoperability among blockchains. The Polkadot protocol enables permissioned and permissionless blockchains to work together. The main component of Polkadot is its relay chain, which allows interoperability between blockchains.
Gavin Wood created Polkadot and was a core member of the Ethereum project. At the time of this writing, the market cap of Polkadot is $7.2 billion.
Solana was created to power DeFi and Smart contracts. It runs on a hybrid model of proof-of-stake and proof-of-history mechanisms to complete transactions quickly. Solana is one of the fastest blockchains but faces issues with being too centralized. It is also highly scalable with low fees.
The market cap of Solana at the time of writing is $9.3 billion.
Dogecoin is a meme coin created in 2013. It was created as a joke but has rallied to become one of the top cryptos in recent years. This meme coin made an 8,000 percent return to its investor in a matter of months. Many analysts still consider this crypto as a viable investment option.
Currently, Dogecoin’s market cap is $11 billion.
Binance Coin became a popular crypto token of its crypto exchange. This crypto coin is used to trade as well as to pay fees. The Binance exchange is the largest crypto exchange, and its crypto coin has the potential to come up with unique developments in the future, making it an attractive investment option.
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