Bitcoin is the granddaddy of all cryptocurrencies. Having been around since 2009, Satoshi Nakamoto had a vision that would change the financial landscape forever. Free from a middleman, a decentralized peer-to-peer (p2p) cash system, and deflationary cryptocurrency there is no wonder why Bitcoin popularized.
Innovation breeds imitation. Soon after, many alternate currencies popped onto the blockchain. How can you differentiate between them all either as a speculator or investor?
Below we break down the top 5 alternatives to Bitcoin. Let’s dive in to take a look.
- Bitcoin Cash (BCH)
We start our alternate currencies list with Bitcoin Cash. One of its claims to fame is that it was an early and successful hard fork of Bitcoin. After much debate and arguments between miners and developers, general consensus agreed that a hard fork was in order.
In Bitcoin Cash’s case, the reason for the split was due to issues of Bitcoin’s scalability. Bitcoin Cash increased the block size of Bitcoin’s 1 MB to 8 MBs. Many felt that this would increase transaction times because the blocks could hold more data.
The result is that Bitcoin Cash feels much more like cash whereas the original Bitcoin feels more like a store of value.
- Litecoin (LTC)
Litecoin is one of the household names in the alternate currencies space. Launching in 2011, Charlie Lee began Litecoin’s journey not long after Bitcoin. In terms of types of cryptocurrency, many refer to Litcoin as “silver to Bitcoin’s gold”.
When looking to invest in crypto, LTC has a lot of things going for it—faster block generation time for starters. Much like Bitcoin Cash, Litecoin offers a wonderful replacement for fiat cash. A lot of merchants now accept Litecoin as currency.
- Ethereum (ETH)
When seeing the types of cryptocurrency out there, you’ll want to take a look at Ethereum. Ethereum is a decentralized software platform that utilizes smart contracts and dApps (decentralized applications) sans the need for a third-party intermediary.
Ethereum’s plan is to open the world up to financial products—loans, insurance, “bank accounts”. Ethereum doesn’t care what your nationality, ethnicity, or faith is.
The cryptographic token, Ether (ETH) is what you’ll use to move around the Ethereum blockchain. Ether remains the second-largest market capitalization behind Bitcoin.
- Tether (USDT)
Stablecoins have quickly become popular because of their lack of volatility. Being pegged to the US dollar is appealing to many new and seasoned crypto investors. Tether is one of the alternate currencies to keep your eye on.
You can view Tether as a bridge between traditional fiat currencies and cryptocurrencies. The benefit is that users will experience faster transfers when compared to the banking system.
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- Monero (XMR)
The fifth and final on our alternate currencies list is Monero. Monero’s popularity stems from its ability to anonymize users through ring signatures and stealth addresses. This makes the identity of the sender and receiver hidden.
With so many bad actors and scammers out there, Monero offers a way to fight against this. If you’re looking to protect your identity with cryptocurrency, you ought to start with Monero. In terms of cryptocurrency benefits, this is what many are after.
What Alternate Currencies Will You Hold?
We hope our alternate currencies list has sparked your interest in the space. What cryptos will you hold?
It’s well-advised to do your own research (DYOR). this means checking the white paper, heading to the site, and Crypto Twitter. Aside from those things, be sure to read and follow our blog to stay up to date with the currency crypto trends.
