Bitcoin was not just a pioneer in digital trading, unleashing a wave of cryptocurrencies built on a decentralized peer-to-peer network, but rather becoming the de facto standard for cryptocurrencies, inspiring a growing group of followers and subsidiaries.
After the company, Tesla, with its CEO, Elon Musk, announced that his company had invested a huge amount in digital currencies, interest in the nature of these currencies increased, which achieved a huge profit margin overnight!
So what are "digital" cryptocurrencies?
Before we take a closer look at some of these alternatives to Bitcoin, let's briefly examine what we mean by terms like cryptocurrency and altcoin.
A cryptocurrency, in a broad sense, is virtual or digital money in the form of tokens or "coins".
While some cryptocurrencies have entered the physical world with credit cards or other ventures, the vast majority of them remain completely intangible.
The term “cryptocurrency” in cryptocurrencies refers to the complex cryptocurrency that allows creation and processing of digital currencies and their transactions through decentralized systems.
In addition to the important 'crypto' feature of these currencies, there is a common commitment to decentralization; Cryptocurrencies are usually developed as a token by teams that build issuance mechanisms (often, though not always, through a process called "mining") and other controls.
Cryptocurrencies have always been designed to be free from manipulation and government control, although although they are becoming more and more popular, this foundational aspect of the industry has been under fire.
Bitcoin-style coins are collectively called altcoins, and in some cases “shitcoins,” and have often attempted to present themselves as modified or improved versions of Bitcoin.
While some of these currencies may contain some impressive features that Bitcoin does not possess, matching the level of security achieved by Bitcoin networks has largely not been seen by altcoins.
Below, we'll examine some of the most important digital currencies other than Bitcoin, according to Investopedia.
However, it is impossible for a list like this to be completely comprehensive. One reason for this is the fact that there are more than 4,000 cryptocurrencies as of January 2021.
And while many of these cryptocurrencies have little following or trading volume, some of them are hugely popular among communities dedicated to backers and investors.
In addition, the range of cryptocurrencies is always expanding, and the next token may be issued tomorrow.
While Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts have adopted many methods to evaluate tokens other than BTC.
The most important digital currency that you can invest in, other than Bitcoin
1-Ethereum (ETH)
The first alternative to Bitcoin on our list, Ethereum, which is a decentralized software platform that enables smart contracts and decentralized applications (DApps) to be created and run without any downtime, fraud, control or interference from a third party.
The goal of Ethereum is to create a decentralized set of financial products that anyone in the world can access for free, regardless of nationality, race, or religion.
This aspect makes the implications for those in some countries more compelling, as those without government infrastructure and state identity can access bank accounts, loans, insurance, or a variety of other financial products.
The apps on Ethereum run on the platform's encryption token, Ether.
Ether is considered a vehicle for navigation on the Ethereum platform and is sought by mostly developers looking to develop and run applications within Ethereum, or now by investors looking to purchase other digital currencies with Ether.
Ether was launched in 2015 and is currently the second-largest digital currency by market value after Bitcoin, although it lags behind the dominant cryptocurrency by a large margin.
As of January 2021, the market value of Ether is around 19% of Bitcoin's volume.
In 2014, Ethereum launched an initial sale of Ether which received an overwhelming response; This helped usher in the era of initial coin offering (ICO).
Depending on the currency, it can be used to "codify, decentralize, secure, and trade in anything."
After the attack on the DAO in 2016, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC).
As of January 2021, Ethereum (ETH) has a market cap of $ 138.3 billion and each token's value of $ 1,218.59.
In 2021 Ethereum plans to change its consensus algorithm from Proof of Work to Proof of Stake.
The move would allow the Ethereum network to run itself with much less power as well as improve transaction speeds.
Proving a stake allows network participants to "share" their ether in the network. This process helps secure the network and process the transactions that occur.
Those who do so reward Ether like an interest expense. This is an alternative to Bitcoin's proof of work mechanism where miners are rewarded with more Bitcoin for processing transactions.
2-Litecoin (LTC) ,, the closest analogue to Bitcoin
Litecoin, launched in 2011, was among the first cryptocurrencies to follow in the footsteps of Bitcoin and is often referred to as "Bitcoin's silver for gold."
The digital currency was created by Charlie Lee, a graduate of the Massachusetts Institute of Technology and a former engineer at Google.
Litecoin relies on an open source global payment network that is not controlled by any central authority and uses "scrypt" as evidence of action, which can be decrypted with the help of consumer-grade CPUs.
Although Litecoin is similar to Bitcoin in many ways, it has a faster block generation rate and thus provides a faster time for transaction confirmation.
Other than developers, there is an increasing number of merchants accepting Litecoin. As of January 2021, Litecoin has a market value of $ 10.1 billion and each token is valued at $ 153.88, making it the sixth largest cryptocurrency in the world.
3-Cardano (ADA)
Cardano is a “euroboros proof of stake” cryptocurrency created with a research-based approach by engineers, mathematicians, and cryptologists.
The project was co-founded by Charles Hoskinson, one of Ethereum's first five founding members.
After having some disagreements with the direction Ethereum was taking, he left and later helped create Cardano.
The team behind Cardano created their own blockchain through extensive experimentation and peer-reviewed research.
The researchers behind the project have written more than 90 papers on blockchain technology across a range of topics. This research is the backbone of Cardano.
Due to this rigorous process, Cardano appears to stand out among its peers in Proof of Stake as well as other large digital currencies.
Cardano has also been dubbed the "Ethereum Killer" as its blockchain is said to be capable of more.
However, Cardano is still in its infancy. While it beat Ethereum to the proof-of-stake consensus model, it still has a long way to go in terms of decentralized financial applications.
Cardano aims to be the world's financial operating system by creating decentralized financial products along the lines of Ethereum as well as providing solutions for serial interoperability, voter fraud and legal contract tracking, among other things.
As of January 2021, Cardano's market cap is $ 9.8 billion and one ADA is trading for $ 0.31.
4-Bulcadot digital currency (DOT)
Bulcadot is a unique Stake Proof cryptocurrency that aims to provide interoperability between other blockchains.
Its protocol is designed to connect both licensed and unauthorized blockchains as well as "Oracle" to allow systems to work together under one roof.
The core component of Bulcadot is the relay chain that enables interoperability of various networks. It also allows “parachains,” or parallel blockchains, with their tokens for specific use cases.
The difference between this system and Ethereum is that instead of building decentralized applications only on Bulcadot, developers can create their own blockchain while using the security that the Bulcadot chain already provides.
With Ethereum, developers can create a new blockchain but they need to create their own security measures which can leave both new and small projects open to attack, as the larger the blockchain, the greater the security.
In blockadot, this concept is known as shared security.
Bolcadot was created by Gavin Wood, another of the founders of the Ethereum project who had differing opinions about the future of the project.
As of January 2021, Bolcadot has a market cap of $ 11.2 billion and DOT is trading for $ 12.54.
5-Bitcoin Cash (BCH)
Bitcoin Cash (BCH) holds an important place in the history of altcoins because it is one of the oldest and most successful hard forks operations of the original Bitcoin.
Due to the decentralized nature of cryptocurrencies, wholesale changes must be made to the base code of the token or currency on hand due to general consensus; The mechanism of this process differs according to the cryptocurrency.
And when the different factions cannot reach an agreement, the digital currency is sometimes split up, with the original chain remaining consistent with its original symbol and the new series beginning to life as a new version of the previous currency, complete with changes to its symbol.
BCH began life in August of 2017 as a result of one of these divisions.
The debate that led to the creation of the new currency was related to the issue of scalability; The Bitcoin network has a block size limit: one megabyte.
Bitcoin Cash increases the block size from one megabyte to eight megabytes, with the idea that larger blocks can carry more transactions inside them, and thus the transaction speed will increase.
It also makes other changes, including removing Segregated Witness protocol affecting block space.
As of January 2021, the market value of the Biosafety Clearing-House is $ 8.9 billion and the value of each token is $ 513.45.
6-Stellar coin (XLM)
Stellar is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions.
Huge transactions between banks and investment firms that usually take several days, a number of middlemen, and cost a great deal of money can now be done almost instantly without middlemen and at little or nothing cost to those who do the deal.
While Stellar has established itself as an institutional blockchain for corporate transactions, it is still an open blockchain that anyone can use.
Stellar's original coin is the Lumens (XLM). The network requires users to hold Lumens in order to be able to perform transactions on the network.
The coin was founded by Jed McCaleb, a founding member of Ripple Labs and developer of the Ripple protocol.
He eventually left his role with Ripple and went on to found the Stellar Development Foundation.
Stellar Lumens has a market cap of $ 6.1 billion and a valued value of $ 0.27 as of January 2021.
7-Chainlink coin
Chainlink is a decentralized Oracle network that bridges the gap between smart contracts, such as those on Ethereum, and data outside of it.
The blockchain itself does not have the ability to communicate with external applications in a reliable way. And the decentralized Oracle ChainLink allows smart contracts to communicate with external data so that contracts can be executed based on data that Ethereum itself cannot connect with.
Chainlink's blog outlines a number of use cases for its system. One of the many use cases that have been explained will be monitoring water supplies for pollution or illegal withdrawals occurring in certain cities.
Sensors can be set up to monitor corporate consumption, water tables, and local water bodies levels.
Chainlink Oracle can also track this data and directly enter it into a smart contract.
A smart contract can be set up to enforce fines, issue flood warnings to cities, or bill companies that use a lot of city water with data from Oracle.
Chainlink was developed by Sergey Nazarov along with Steve Ellis. As of January 2021, Chainlink's market cap is $ 8.6 billion, and one LINK is valued at $ 21.53.
8-Binance Coin (BNB)
Binance Coin is a useful cryptocurrency that acts as a payment method for fees associated with trading on the Binance Exchange.
Those who use the symbol as a payment method for the exchange can trade at a discount.
The blockchain from Binance Coin is also the platform on which the decentralized platform Binance operates.
The Binance Exchange was founded by Changpeng Zhao and the exchange is one of the most widely used exchanges in the world based on trading volume.
Binance coin was initially an ERC-20 token running on the Ethereum blockchain.
And it finally had her own home network launch. The network uses a consensus model to establish a stake.
As of January 2021, Binance has a market cap of $ 6.8 billion with a single BNB value of $ 44.26.
9-Coin Tether (USDT)
Tether was one of the first and most popular set of stablecoins, cryptocurrencies that aim to peg their market value to a currency or other external reference point in order to reduce volatility.
And since most cryptocurrencies, even major currencies like Bitcoin, have experienced repeated periods of massive volatility, Tether and other stablecoins try to smooth out price fluctuations in order to attract users who might otherwise be wary.
The Tether rate is directly related to the US dollar. The system allows users to make transfers from other cryptocurrencies to the US dollar more easily and in time than the actual conversion to the regular currency.
Tether was launched in 2014, and describes itself as "a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital way."
Effectively, this cryptocurrency allows individuals to use the blockchain network and related technologies to engage in traditional currencies while reducing the volatility and complexity often associated with digital currencies.
In January 2021, Tether was the third-largest cryptocurrency by market cap, with a total market cap of $ 24.4 billion and each token's value of $ 1.00.
10-Monero Coin (XMR) - the black version of Bitcoin!
Monero is a safe, private and untraceable coin. This open source cryptocurrency was launched in April 2014 and quickly gained great attention among the crypto community and enthusiasts.
Development of this cryptocurrency depends entirely on donations and is led by the community.
Monero was launched with a strong focus on decentralization and scalability, and it allows for complete privacy using a proprietary technology called "ring signatures".
With this technique, a set of encrypted signatures including at least one real participant appears, but since they all appear to be valid, the true signature cannot be isolated.
Due to exceptional security mechanisms like these, Monero has developed something of a loathsome reputation - it has been linked to criminal operations around the world.
While this is the main candidate for conducting criminal transactions anonymously, the privacy inherent in Monero is also beneficial to opponents of oppressive regimes around the world.
As of January 2021, Monero has a market cap of $ 2.8 billion and a value of each token of $ 158.37.