Bitcoin could still be considered the leading cryptocurrency, on which many other alternative cryptocurrencies operate. But with more than 1,300 different cryptocurrencies now available, it’s not easy to know which to invest in.
The boom in the price and importance of Bitcoin has led to the growth of dozens of other cryptocurrencies. The world of virtual currencies is awash with so-called altcoins that operate on Bitcoin’s technological principles.
We will explore some of the top cryptocurrencies, which can be an alternative to bitcoin.
1. Ethereum (ETH)
Ethereum is the first bitcoin alternative on our list. This decentralized software platform allows the creation and execution of smart contracts and decentralized applications (DApps) without pause, fraud, control, or interference from third parties.
Ethereum applications run on its specific cryptographic index, ether. Ether is like a vehicle used to move around the Ethereum platform. It is being sought after by developers looking to develop and run applications within Ethereum or by investors looking to buy other digital currencies using ether.
Ether, which was launched in 2015, is currently the second-largest digital currency by market cap after bitcoin, although it is considerably behind the dominant cryptocurrency, with a large margin.
In 2014, Ethereum launched an Ether pre-sale, which received a stupendous response; this helped in the introduction of Initial Coin Offering (ICO). Ethereum, it can be used to “encrypt, decentralize, secure and exchange almost anything.”
Following the DAO attack in 2016, Ethereum was divided into Ethereum (ETH) and Ethereum Classic (ETC).
2. Ripple (XRP)
Ripple is a global real-time settlement network that offers inexpensive, secure, and instant international payments. Ripple, launched in 2012, enables banks to settle international payments instantaneously, with ultimate transparency and reduced costs.
Ripple’s consensus ledger (its conformation method) is unique in that it does not need mining. All Ripple XRP tokens were “pre-mined” before launch, which means that over time there is no “creation” of XRP, only the introduction, and removal of XRP from the market supply following network’s directives.
Ripple, therefore, differs from Bitcoin and many other alternative currencies. The Ripple structure does not require mining; it reduces the use of computing power and minimizes network latency.
So far, Ripple has succeeded with its current business model; It remains one of the most attractive digital currencies among traditional financial institutions looking for ways to revolutionize cross-border payments. It is currently the third-largest cryptocurrency in the world in terms of total market cap.
3. Litecoin (LTC)
Litecoin, which was launched in 2011, was one of the first cryptocurrencies to follow the steps of bitcoin and is often called “silver to bitcoin’s gold”“. It was created by Charlie Lee, a former Google engineer.
Litecoin is established on an open-source global payment network that is not controlled by any central body and uses a “scrypt” as proof of operation, which can be decoded using a consumer-grade CPU.
Although Litecoin is homogeneous to bitcoin in many ways, Litecioin has a faster block generation rate and therefore offers faster transaction confirmation time. Asides developers, a growing number of merchants, accept Litecoin.
4. Tether (USDT)
Tether is one of the first and most famous of the group of so-called stable coins. These cryptocurrencies aim to link their market value to a currency or another external reference value to reduce volatility.
Since most digital currencies, even the most essential ones, such as bitcoin, have often experienced dramatic volatility, Tether and other stable coins are trying to soften price fluctuations to attract users who would otherwise be wary.
Launched in 2014, Tether relates itself as “a blockchain-enabled platform designed to facilitate the use of currencies digitally.” This cryptocurrency allows people to use the blockchain network and associated technologies to transact in traditional currencies while minimizing the volatility and complexity associated with digital currencies.
5. Bitcoin Cash (BCH)
Bitcoin Cash (BCH) holds an essential place in the history of alternative currencies as it is one of the oldest and most successful hard forks of the original bitcoin. In the world of cryptocurrencies, the fork emerges as a result of discussions and debates between developers and miners.
Due to the decentralized character of digital currencies, a consensus is needed to make wholesale changes to the code on which the token or coin is based; this mechanism of this procedure varies depending on the particular cryptocurrency.
When different factions fail to reach an agreement, the digital currency is divided. The original remains the source code, and the second copy begins as a new version of the previous currency, with changes in the code.
BCH was created in August 2017 as a result of one of these divisions. The exchange of views that led to the creation of the BCH addressed scalability; The Bitcoin network is strictly limited to the size of the blocks: one megabyte (MB).
BCH is increasing block sizes from one MB to eight MB, with the idea that larger blocks will allow faster transaction times and make other changes, including removing the separate cookie protocol that affects the space for blocks.
6. Dash (DASH)
Based on Bitcoin, Dash is a highly payment-oriented cryptocurrency. Their goal is to provide a portable, affordable, and easy-to-use form of money that can be spent online or in person. Transaction fees are at a minimum, and all dealings are secure.
Dash offers two services that are of particular interest to those who use cryptocurrencies: InstantSend and PrivateSend. InstantSend allows users to execute transactions at almost instantaneous speeds, instead of a potentially hour-long wait that could take a similar transaction in Bitcoin.
PrivateSend allows users to mix their currencies with other senders’ coins in a single transaction with multiple exits, which allows for more confidentiality, although not complete.
7. Moreno (XMR)
Monero is a secure, private currency that cannot be tracked. This open-source crypto was launched in April 2014 and quickly aroused great interest among the community and lovers of crypto. The development of this cryptocurrency is entirely based on donations and is community-oriented.
Monero was launched with a strong emphasis on decentralization and scalability, and allows complete confidentiality using a unique technique called “ring signatures.”
Using this technique, a group of cryptographic signatures emerges that includes at least one real participant, but since they all seem valid, the real one cannot be isolated. Due to abnormal security mechanisms like this, Monero has developed a bad reputation linked to criminal operations around the world.
However, whether used for better or wrong, there is no denying that Monero has introduced significant technological advances in the field of cryptocurrency.
8. EOS (EOS)
EOS was launched in June 2018 and was created by cryptocurrency pioneer Dan Larimer. Prior to his work on EOS, Larimer founded the Bitshares digital currency exchange and a social media platform based on the blockchain Steemit.
Like the other cryptocurrencies on this list, EOS was designed after Ethereum, so it offers a platform on which developers can establish decentralized apps. However, EOS is also vital for many other reasons.
First, their initial supply of coins was one of the most extended and most profitable of all time, raising a record $4 billion in investment funds through a crowdsourcing effort that lasted one year. EOS offers delegated proof of a role mechanism which, it hopes, will provide scalability beyond its competitors.
EOS consists of EOS.IO, similar to a computer operating system, and acts as a blockchain network for digital currency and EOS coins. EOS is also revolutionary due to the lack of a coin mining mechanism. Instead, block manufacturers create blocks and are rewarded with EOS tokens based on their production rates.
The EOS includes a complex set of rules governing this procedure, with the idea that the network will eventually be more popular and decentralized than the networks of other cryptocurrencies.
9. Bitcoin SV (BSV)
Bitcoin SV, with “SV” in this case representing “Satoshi Vision,” is a hard form of Bitcoin Cash. In this manner, BSV is a fork of the original Bitcoin network.
The network update scheduled for November 2018 sparked a lengthy discussion between the mining and development factions of the BCH community, leading to a hard fork and the creation of the BSV.
The developers of Bitcoin SV suggest that this cryptocurrency restores the original protocol of the Bitcoin developers Satoshi Nakamoto while allowing new developments to increase stability and enable scalability. The developers of Bitcoin SV also prioritize security and transaction processing speed.
10. Binance Coin (BNB)
The Binance Coin (BNB) is the official indication of the Binance cryptocurrency exchange. Founded in 2017, Binance has grown rapidly to become the world’s largest exchange of its type in terms of total trade volume.
The Binance Coin token lets Binance users trade dozens of different cryptocurrencies on the Binance platform efficiently. The BNB is used to facilitate stock market transaction fees and can also be used to pay for particular goods and services, including travel expenses and more.
Above is a well-compiled list of alternatives to Bitcoin! Undoubtedly, Bitcoin is still the superior of cryptocurrencies, but many Bitcoin competitors should be explored as an alternative to Bitcoin.
Which of the alternatives to Bitcoin listed above do you think is the best? Or, if we haven’t listed your favorite Bitcoin alternative, tell us what it is.