Bitcoin is the OG crypto, but diversification is important when investing your hard-earned money. Therefore, if you are looking for cryptos for investment, here is a review of the top 10 altcoins that aren’t Bitcoin. However, any discussion on altcoins should begin by answering the question: What are altcoins? Let’s dig in.
What is Altcoin?
Altcoins, short for alternative coins, are any coins that are alternatives to the pioneering crypto, Bitcoin.
Any crypto that is not Bitcoin is an altcoin. There are various theme-based altcoins such as stablecoins, AI tokens, gaming tokens, etc. The total crypto market capitalization stands at around USD 2.25 trillion. Out of this, the altcoin market capitalization is USD 1.02 trillion. While Bitcoin dominates the global crypto market cap, the market capitalization of altcoins is improving as innovative altcoin projects addressing diverse problems gain prominence.
As an investor, you can transact in altcoins on crypto exchanges such as CoinSwitch. Read on to learn more about the top 10 altcoins and what makes each altcoin unique.
Why do we need Altcoins?
Altcoins became popular as they sought to enhance the functionality of Bitcoin and Ethereum blockchains. Some altcoins are forks of popular chains such as Bitcoin, while some altcoins belong to blockchains specifically designed to achieve various objectives.
The cryptocurrency ecosystem needs altcoins as they bring diversification in functionality and applicability. Altcoins also provide a diversification opportunity for crypto traders and investors. Here is the top 10 altcoin list for you to consider.
1. Ethereum (ETH)
Ethereum, the second largest cryptocurrency, is a distributed computing network that enables users to run decentralized apps (dApps) and host smart contracts.
While Ethereum is sometimes criticized for high gas fees, recent upgrades have rationalized the gas fees. Ethereum is used by many apps and the blockchain supports hundreds of altcoins. This makes Ethereum a good choice for investors and traders as the network is here to stay.
2. Solana (SOL)
Solana is the rising star in the crypto universe. Solana, a platform designed to host scalable decentralized apps, has been in the news as Solana-based memecoins such as BONK make a splash.
Solana is gaining popularity as it has an edge over rivals such as Ethereum in terms of processing speed and lower transaction fees.
SOL, the native token of the Solana blockchain, is currently the 5th largest cryptocurrency by market cap.
3. Ripple (XRP)
Ripple Labs is a centralized fintech company that designs and builds products to ease global payment issues via Ripple’s remittance system, payment settlement, and exchange. XRP is the token Ripple Labs uses to facilitate transactions on the Ripple network.
XRP is pre-mined and like Bitcoin, its supply upper limit is fixed. XRP can have a maximum supply of 100 billion tokens. While XRP has good applications, it was marred by legal issues last year and has been under trading pressure for some time now.
4. Cardano (ADA)
Cardano is a proof-of-stake blockchain platform developed through evidence-based methods. Cardano uses a PoS consensus mechanism, similar to Ethereum.
ADA, the native token, can be traded on major crypto exchanges such as CoinSwitch.
5. Chainlink (LINK)
Chainlink provides infrastructure that enables the linking of non-blockchain organizations with blockchain platforms. The Chainlink blockchain is the medium that can be used to connect smart contracts with external data such as stock prices and cricket scores.
LINK, the blockchain’s native token, is used to pay network operators and as collateral for network smart contract agreements. Chainlink’s ability to help connect non-blockchain enterprises to blockchain makes it unique. As a crypto investor, you can do your research and take a call on investing in LINK.
6. Polygon (MATIC)
Polygon, a blockchain launched by Indian co-founders, is an Ethereum-based scaling platform that enables developers to build decentralized apps with low transaction fees. Polygon transforms Ethereum into a multi-chain system similar to Polkadot, Avalanche, etc.
MATIC, the native token of the Polygon blockchain, is used to secure the chain and pay network transaction fees. MATIC token is being replaced by a new coin, POL.
7. Uniswap (UNI)
Uniswap is a decentralized exchange protocol that enables peer-to-peer crypto trades. The Uniswap platform facilitates crypto trading without the involvement of a centralized trading intermediary. The Uniswap blockchain is open source, which means anyone can view and contribute to its development.
UNI is the native token of the Uniswap blockchain. The UNI token holders govern the Uniswap blockchain. You can trade UNI on CoinSwitch.
8. Tron (TRX)
Tron is a decentralized blockchain developed to host a global entertainment system for cost-efficient sharing of digital content. Tron utilizes blockchain and peer-to-peer technology to avoid intermediaries, allowing content creators to host and sell their content directly to consumers.
TRX is the native token of the blockchain. Content creators gain TRX tokens as a reward for posting their content.
9. Avalanche (AVAX)
Avalanche, an Ethereum competitor, uses smart contracts to support blockchain projects. Avalanche is an open-source blockchain that aims to be versatile, secure, affordable, and accessible by prioritizing scalability and transaction processing speeds.
AVAX, the native token, is used to pay on-chain transaction processing fees and secure the Avalanche blockchain.
10. Stellar (XLM)
Stellar is a blockchain network designed for payments and tokenization. It is a decentralized public blockchain that allows developers to create a seamless, cash-like transaction experience for users.
Stellar is in a cluttered space as several blockchains store and transmit cryptos. XLM is the main token of the Stellar blockchain. You can benefit from XLM price momentum by trading in it on CoinSwitch.
Conclusion
Virtual digital assets are gaining popularity as alternative investments in India. Yet, cryptos come in all shapes and sizes and are not a homogeneous asset class. Other than market leaders Bitcoin and Ethereum, several altcoins are available in the market, representing different themes. You can benefit from the growth of the altcoins market by trading and investing in them via the CoinSwitch app.
