Before we dive into the top five altcoins, let us, first of all, understand what altcoins mean. In simple terms, any coin/cryptocurrency other than Bitcoin is considered an altcoin. As Bitcoin continues to be the alpha in the cryptocurrency industry, there are other alternative coins.
- Ethereum (ETH)
- Cardano (ADA)
- Binance Coin (BNB)
- Solana (SOL)
- Polkadot (DOT)
Ethereum is the second biggest cryptocurrency, created in 2015 by Vitalik Buterin and his team of co-founders. Its blockchain network revolutionized the Defi sector and made way for decentralized apps. Recently, Ethereum launched its much-awaited new update that will improve the transaction fees and reduce Ether’s inflation. This change makes it easy for investors to decipher the value of investing in Ether and give miners a fair fee.
Just like Ethereum, Cardano is also a decentralized blockchain platform that enables peer-to-peer transactions. A point that is worth noting is that these transactions are extremely secure. What has paved the way for the wide acceptance of Cardano across the globe is its extremely low level of energy consumption when compared to Ethereum and Bitcoin. Cardano is on its way to enabling smart contracts, thereby leaving us with no doubts pertaining to how valuable investing in this digital currency would turn out to be.
Binance Coin (BNB)
Binance Coin (BNB) is the native token of the Binance exchange. It allows the user to pay fewer fees when they transact on the Binance exchange. It was created in 2017 as an ERC20 token built on the Ethereum blockchain. In the year 2020, BNB was moved from the Ethereum network to Binance Smart Chain (BSC).
DOT was founded by Ethereum co-creator Gavin Wood, Robert Habermeier, and Peter Czaban. Its blockchain protocol is designed to support parachains and aims to provide interoperability, scalability, and security. DOT trading began in August 2020. Polkadot is a blockchain protocol designed to support multiple chains within a single network.
Solana is a web-scale, open-source blockchain protocol that supports developers and institutions around the world to build decentralized applications (DApps) and marketplaces. Solana’s protocol is fast, secure, and censorship-resistant, which provides the flexibility of an open infrastructure required to build applications for mass adoption.
Investing in cryptocurrency is risky, but with a bit of research, you will find reliable projects to invest in. Most of the altcoins here are a good starting point. Keep in mind that cryptocurrencies with large market caps are considered to be at lower risk than those with smaller market caps. Lastly, always do your own research (DYOR) before investing in any coin.