These 5 altcoins crypto investors should know about

Thus, there are more and more providers that enable payment with Bitcoin, such as Bitcoin casinos, online shopping portals or even stationary restaurants and shops in various cities in Germany.

Ripple or Litecoin: Among the cryptocurrencies there is more than just Bitcoin

While Germany is still lagging far behind when it comes to Bitcoin and is sometimes met with scepticism, other countries such as South Africa or Nigeria are already much further ahead when it comes to implementing the currency in the country’s monetary cycle. But bitcoin is not everything. After all, there are plenty of other digital currencies that are popular, especially among investors.

If you’ve never heard of Ripple, Ethereum, or Litecoin, you should look into it. While these digital funds are even less widely accepted as a payment option than bitcoin, there is already a market where trading in these cryptocurrencies is flourishing. For many investors, cryptocurrency is now a good addition to the stock portfolio and considering the volatility of prices, they offer a lot of potential but a corresponding amount of risk.

These are some of the most popular altcoins

Alternative cryptocurrencies are also called altcoins, which stands for “alternative bitcoins.” Some of the most well-known include:

  • Ethereum
  • Dogecoin
  • Ripple
  • Dash
  • Litecoin

More than 800 altcoins exist in total, but many are nothing more than an exact replica of the market leader. Bitcoin also remains the most important cryptocurrency, with a market share of more than 50 percent. Nevertheless, a certain basic understanding is also worthwhile with altcoins, after all, they are catching up more and more and are becoming more and more well-known. If you don’t want to miss out on the hype, you should therefore take a closer look at alternative cryptocurrencies now.

See also  Banco Hipotecario de El Salvador partners with bitcoin startups to launch products

Different names and different technologies, but the same hype

Ethereum: The number two cryptocurrency after Bitcoin is Ethereum. This decentralized system has been around since 2015 – the fundamentals of digital money are similar to bitcoin. ETH is the abbreviation of the currency, which has risen in value quite a bit in the meantime. The system offers more possibilities than just money transfer, such as smart contracts. Also, money transfers with Ethereum usually work faster than with Bitcoins.

These 5 altcoins crypto investors should know aboutThese 5 altcoins crypto investors should know about

Ripple: The altcoin Ripple can be understood as a means of exchanging currencies. Both traditional fiat money and cryptocurrencies can be exchanged with Ripple, which is also a big difference from other cryptocurrencies. Banks and other financial institutions play a role in Ripple by being a part of the system as intermediaries. Bitcoin and other digital currencies aim to do without the intervention of banks. Another difference with Ripple is that it is not a decentralized system, but databases that can be viewed publicly. Every transaction is recorded in them.

Litecoin: Litecoin has been around since 2011 and is very similar to Bitcoin. What makes Litecoin so successful is that the cryptocurrency works much faster than Bitcoin. Transactions take less time, which also lowers fees. A new block can be generated in just two and a half minutes – with Bitcoin, the process takes around ten minutes. Moreover, Litecoin has a high market capitalization. In the course of the crypto rally that has been happening since 2020, Litecoin has also risen sharply and has been able to multiply its value.

Dogecoin: Derived from Litecoin is Dogecoin, a cryptocurrency whose design and name is based on the internet meme phenomenon “Doge”. Dogecoin is the sixth largest cryptocurrency by market capitalization, helped by Tesla founder Elon Musk. After he touted Dogecoin in several tweets in December 2020 and January 2021, the currency, which was previously worth only a few cents, rose to as much as $0.70. One key difference between Dogecoin and the other cryptocurrencies is the large number of coins that can be generated. Bitcoin and Litecoin are limited, to 21 million and 84 million coins respectively – the limit for Dogecoin was lifted back in 2014, resulting in inflation rates, but these are decreasing annually.

See also  Bitcoin Use Will Be "Totally Optional" in El Salvador, Finance Minister Says

These 5 altcoins crypto investors should know aboutThese 5 altcoins crypto investors should know about

Dash: Dash stands for “digital cash” and has some advanced features unlike Bitcoin, in part because it is based on a peer-to-peer network. Transactions with Dash are not entirely anonymous and , in addition, instant transfers cost a corresponding fee. Dash was able to gain momentum in 2020 slightly ahead of the other cryptocurrencies, increasing in value by about 250 percent in 2020. Another plus point of Dash is its decentralized organization. However, its market capitalization is quite small compared to other digital money.

Those who want to invest in altcoins are spoilt for choice. For many, the classic Bitcoin belongs in the crypto depot, supplemented with some Altcoins. For actual payment transactions, Bitcoin is still the cryptocurrency of choice in many places, but that could also change in the next few years.