Whether you’re new to cryptocurrencies or you’re trying to get to know more about other currencies aside from just the good old Bitcoin, now is the perfect time for you to get up to speed. As months passed by, the crypto industry has rapidly grown in popularity. With Bitcoin slowly becoming a huge part of the new generation’s norm, many believed that cryptocurrency is here to change our lives forever.
True enough, Bitcoin is the most popular cryptocurrency of today. But that doesn’t mean it should be your only option. Depending on your trading style and the level of risk you’re willing to take, there are actually a lot of other cryptocurrencies you might need to consider.
What Exactly are Cryptocurrencies?
At its core, a cryptocurrency can be defined as an encrypted decentralized digital currency that takes the form of coins or real money. Like physical money digital money also known as “tokens” can be used to purchase goods and services online or even trade them for a bigger profit.
Since the launch of Bitcoin, other cryptocurrencies have begun to exist. Others even ventured into the physical world, making their currencies available via credit cards. However, most cryptocurrencies remain intangible.
What are the 5 Most Significant Cryptocurrencies Other Than Bitcoin?
According to Statista, there are over 4,000 cryptocurrencies as early as 2021. From this statistic alone, we can all agree that creating a comprehensive list of the most significant cryptocurrencies is nearly impossible. Indeed, the crypto industry is vastly expanding. It wouldn’t be much of a surprise if the greatest digital asset will be launched tomorrow.
Since it hasn’t yet, allow us to give you a brief introduction of 5 of the most popular cryptocurrencies you might want to know about this 2021.
Alongside Bitcoin, Ethereum is the second most popular with the second-largest live market cap of $316,966,791,191 USD and a 24-hour trading volume of $30,446,908,467 USD according to CoinMarketCap. Ethereum is a decentralised software platform with a native cryptocurrency that can support smart contracts and decentralised applications (dApps). The Ethereoum blockchain can also be used to create new tokens and launch decentralised finance projects (DeFi).
What makes this cryptocurrency more unique is that its goal is for anyone in the world regardless of nationality or ethnicity to freely access a decentralized suite of financial products. Given the unique capabilities and features of Ethereum, it isn’t difficult to understand why it has gained the support of major financial institutions. In fact, Ethereum has partnered with Microsoft and ConsenSys to provide enterprise clients and developers with Ethereum Blockchain as a Service (EBaaS) on Microsoft Azure, which allows them to have a single click cloud based blockchain developer environment.
Tether is a blockchain-enabled platform designed to mimic the value of fiat currencies in a digital manner. Ranking third with a market cap of $61,209,575,780 and a 24-hour trading volume of $90,399,008,416, Tether belongs to a group of stablecoins that aim to reduce volatility. As opposed to other cryptocurrencies that have experienced a series of dramatic volatility, Tether aims to smooth out price fluctuations. Since it is backed by the equivalent amount of typically currencies such as dollars and euros, Tether allows users to easily transfer from other cryptocurrencies back to traditional currency in an easier way.
Binance Coin (BNB)
Binance Coin is tagged as the most popular utility token which can be used to trade and pay fees on the Binance Exchange, the largest cryptocurrency exchange in the world, supporting more than 1.4 million transactions per day. Binance Coin has a market cap of $52,151,656,622 and a 24-hour volume of $$3,433,281,148.
With Binance Coin, users can trade all types of cryptocurrency in a quick and secure manner. Users who use tokens as a means of payment are eligible for discounts and rebates.
Cardano is a proof-of-stake blockchain platform with the first-ever peer-reviewed cryptocurrency called “ADA” created by engineers, mathematicians and cryptography experts. Compared to other cryptocurrencies, Cardano is focused on simplifying processes that require the collection of data from multiple sources as well as improving common issues associated with scalability and interoperability.
The platform was developed in 2015 by Jeremy Wood and Charles Hoskinson who previously worked on the Ethereum ecosystem. As of writing, ADA has a market cap of $49,127,900,977 and $4,017,975,658 traded over the last 24 hours.
On the sixth spot is Ripple XRP with a market cap of $41,900,950,947 and a 24-hour volume of $41,900,950,947. Ripple is a payment settlement system, currency exchange network behind the XRP cryptocurrency. Through Ripple, users can easily make cross-border transactions without the need for third parties. Unlike Bitcoin that takes minutes and higher transaction fees, XRP transactions include fast processing time of about 3-5 seconds with lower transaction fees.
Key Takeaway: Top 5 Best Alternatives to Bitcoin
Indeed, Bitcoin remains to be the unbeatable household name in the crypto industry. However, it doesn’t necessarily mean that Bitcoin is the only choice we could have. As you can see from the list above, there are other cryptocurrencies that can provide you with a list of benefits not even Bitcoin can offer. So before you make up your mind, try to look at the large pool of cryptocurrency options first.