Bitcoin, the world’s pioneering crypto, is also the largest by market capitalization. In many ways, it is a trendsetter in the crypto world. Bitcoin has become synonymous with crypto, inspiring several crypto projects and decentralized peer network cryptocurrencies. While Bitcoin might be the most popular crypto, it is not the only one. There are many types of cryptos present in the market today.
Among different cryptocurrencies available in the market today, altcoins stand out. Any cryptocurrency other than Bitcoin is known as altcoin, short for alternative coin. Ethereum, the second-largest by market capitalization, is the most popular altcoin in the crypto world today.
As the crypto market deepens and interest in crypto investment intensifies, it is important to explore different cryptocurrencies to find the best cryptocurrency to invest in. Read on to learn more about the top 10 cryptos other than Bitcoin and what makes them unique.
What are cryptocurrencies?
Let’s understand cryptos before we dive deeper into altcoins. Cryptocurrencies are virtual or digital currencies that use cryptography for transaction security. A cryptocurrency does not have a central issuing and regulatory authority like a central bank. Instead, cryptos will be governed by a decentralized network. The decentralized network is responsible for recording transactions and issuing new units.
Types of Altcoins
As we have seen above, all crypto that aren’t Bitcoin are termed altcoins. Here is a list of the top 10 cryptocurrencies that are the best investment alternatives to Bitcoin.
1. Ethereum
Ethereum is a decentralized, open-source blockchain platform conceived by Vitalik Buterin in 2013. Its native crypto is known as Ether. Ether is the second largest crypto by market capitalization.
Ethereum serves as a platform for several crypto projects and is also used as a platform for the execution of smart contracts. Buterin built it to reduce downtime and eliminate third-party interference and control.
Ethereum is an evolving blockchain that implements regular upgrades such as its transition to the proof-of-stake (PoS) validation method and the most recent Dencun upgrade. Ethereum is finding increased application in the DeFi space, making it probably the best crypto to invest in.
2. Tether (USDT)
Stablecoins are types of altcoins that are pegged to another asset to reduce volatility. USDT, or Tether as it is popularly known, is the oldest and the most popular stablecoin pegged to the US Dollar. This means USDT derives its value from the US dollar.
Most popular cryptocurrencies, including Bitcoin, experience phases of volatility. Stablecoins such as USDT and others aim to reduce volatility, making them attractive investment opportunities for crypto investors.
3. Binance Coin (BNB)
Binance Coin (BNB), the fourth largest crypto by market capitalization, is a utility token launched by Binance, the world’s largest crypto exchange by trading volumes. BNB is used for paying trading fees on Binance.
This means the BNB value is related to the trading activity on Binance. An increased trading activity could positively impact BNB prices. This makes BNB a good cryptocurrency project to invest in.
4. Solana (SOL)
Solana is a favorite with crypto investors and enthusiasts across the globe. Solana supports decentralized applications by banking on the blockchain technology’s permissionless feature.
Like Ethereum, Solana utilizes smart contracts which are important for seamless transactions on decentralized apps and NFTs.
SOL is the native token of the Solana blockchain. SOL is the fifth-largest crypto by market capitalization. The rise in SOL’s popularity can be attributed to the growing success of Solana-based meme coins such as BONK.
5. XRP
XRP is the native token of XRP ledger, an open-source, decentralized, permissionless payment system created and maintained by Ripple Labs. Low transaction costs, enhanced transaction speed, scalability, and green attributes such as carbon neutrality and energy efficiency make the XRP ledger attractive.
The XRP ledger has been in operation since 2012. The popularity of the ledger makes XRP an attractive investment opportunity. Currently, XRP is the seventh-largest crypto by market capitalization.
6. USD Coin (USDC)
Another stablecoin, USDC, is pegged to the US dollar on a 1:1 basis. This means every unit of USDC is backed by its reserves, a mix of US dollars and short-term US treasury bond holdings.
Launched by the Center consortium in 2018, USDC is backed by Circle and Coinbase. USDC is a regulated stablecoin. The regulated status of USDC makes it a relatively stable and safer investment bet.
7. Cardano (ADA)
Cardano is an open-source, decentralized proof-of-stake (PoS) blockchain.
Charles Hoskinson, the co-founder of Cardano, was one of the founders of Ethereum. He created Cardano after walking away from Ethereum. Cardano, currently the 10th largest crypto by market capitalization, is known as the Ethereum killer as the blockchain is deemed to have more capabilities than Ethereum.
While Cardano is a great project, it is still in its early stages. Cardano can be considered a long-term investment alternative with great potential if it succeeds in delivering on its promises.
Cardano might be the best crypto to invest in for the short- to medium-term.
8. Dogecoin (DOGE)
The only meme coin in the top 10 cryptos by market capitalization, Dogecoin was created as a joke in 2013, mocking the wild speculation in the crypto market.
Considered the first meme coin, Doge used the image of a dog—-Shina Inu—-as its symbol. The coin rose to prominence in 2021 when Tesla CEO Elon Musk posted several tweets referring to Doge as his favorite coin.
9. Tron (TRX)
Tron is a digital, creator-friendly blockchain launched to provide creators ownership rights to their content through tokenization and dApps.
TRX, the native token of the Tron Blockchain, is used for on-chain transactions on the Tron network and as a payment mode on other exchanges. TRX, the fifteenth largest crypto by market capitalization, has a solid growth potential, thanks to its unique proposition of helping digital content creators.
10. Polygon (MATIC)
Polygon is a well-structured, scalable blockchain developed to address the issue of network congestion on the Ethereum network. Polygon has implemented several upgrades and the recent developments have helped it emerge as a multi-chain system enabling blockchains to interact with one another using the Ethereum Virtual Machine (EVM).
Innovations such as the Optimistic rollups and ZK rollups enable Polygon to transform Ethereum into a multi-chain system.
All these make MATIC, the native token of the Polygon chain, the best cryptocurrency to invest in as the blockchain has ample growth potential and the token can benefit from the chain’s growth.
Honorable Mentions
The global crypto market capitalization is about $2.4 trillion as of April 25, 2024. This means cryptocurrencies are a deep market with several projects championing different causes. Other than the altcoins mentioned, several types of crypto look good from an investment perspective.
- Avalanche (AVAX)
Avalanche is a smart contract platform known for its speed. AVAX, the native token of the Avalanche platform, is the 12th largest crypto by market capitalization.
- Uniswap (UNI)
Uniswap is a decentralized trading platform. It is known for facilitating the automated trade of DeFi tokens. UNI, its native governance token, is the 23rd-largest crypto by market capitalization.
The Bottom Line
Given its market cap dominance and solid reputation as a cryptocurrency project, Bitcoin and cryptocurrencies are often mentioned in the same breath. Yet, many more cryptocurrencies deserve your attention considering their capabilities and immense growth potential. We have listed the top 10 cryptocurrencies that are good investment options, with reasons that make them unique. This blog post has educated you about some of the best cryptos to invest in, but don’t forget to do your research before investing.
All these cryptocurrencies are available on CoinSwitch. Download the app today to invest in a promising crypto project.
