Top Altcoins Other Than Bitcoin To Invest In 2018
The advancement of technology along with the internet has caused the extinction of various industries such as music distribution, newspaper advertising, and so on. The next one is the money, as we know it. Cryptocurrency is digital money, which has the potential to replace traditional money, with a medium of exchange.
Its specialty is that it is a decentralized mechanism without the command and control of the States and banks in which the transactions are recorded using cryptography. Cryptocurrency’s power or the destabilizing potential has kicked off various countries to research into its pros and cons. It has led to intense debates on whether they need to be regulated or not.
Top 10 Altcoins Available In Today's Market
After the successful venture of Bitcoins, alternate cryptocurrencies were launched, projected as better substitutes for Bitcoins. These altcoins are based on the open-source software framework which Bitcoins follows, and thus the peer to peer strategy is used. These altcoins are more advantageous than the Bitcoins because they try to overcome the possible limitations in the Bitcoin and have faster processing time and lower transaction fees.
Even though the fundamental framework of the mining process and the transactions are common, there are subtle differences between the different types of Altcoins available in the market.
In this section, we will cover the top 10 Altcoins based on their credibility and the universal ranking and also look at ways about how to use them.
Ether is the most widely used cryptocurrency after Bitcoins, and it is the native currency of the Ethereum network. Ether has an overall market worth of $70 billion. This coin powers the whole of Ethereum blockchain and can only be used by developers and businesses who build applications over the network’s currency.
- Bitcoin cash(BTC)
A group of developers created Bitcoin cash when they were dissatisfied with the upgradation in the original bitcoin blockchain on August 2017. BTC allows larger block sizes compared to that of bitcoins and thus enables much faster transactions and also reduced transaction fees. These two features boosted the usage of Bitcoin Cash, and currently, the currency has an overall market capitalization of over $50 billion.
Ripple(XRP) is created to enable ultra-fast and more affordable payments, primarily for financial institutions. It is the native currency of the RippleNet Payment Blockchain/Network. It supports both domestic and international transactions and also allows the user to keep a wallet for their organization in the network itself. With over 75 clients from financial institutions, it has become more stable and reliable and also the leading payment systems amongst the financial institutions.
- Litecoin (LTC)
Litecoin was one of the first alternatives to bitcoin launched in 2011, by avoiding the limitations of bitcoins. It provided faster transactions at a lesser cost than the Bitcoins. Litecoin managed to gain more users when the Bitcoin was facing scalability issues in 2017. Its price had raised higher since then and also when Coinbase and Bitcoin wallet supported Litecoins.
Stellar is an offshoot of Ripple founded by the Ripple co-founder Jed Caleb in 2014. The cryptocurrency Lumen from the company stellar has had a recent upsurge compared to bitcoin and Ethereum. It is finding traction with various investors and has reached a market capitalization of 11 billion USD. It stands sixth largest cryptocurrency network and aims to enable financial transactions for businesses easy.
- IOTA (MIOTA)
IOTA is different from other currencies in the way that it is explicitly designed for Internet of Things (IoT) allowing machines to trade resources other than money such as electricity, bandwidth, etc. IOTA’s technology has no transaction fees. It works by enabling people to verify transactions as well as doing deals at the same time. There is no need to mine new coins as all the coins have been generated at the Genesis transaction. Investors willing to enter into this market have to use other cryptocurrencies and participate in the exchanges. It is the seventh largest cryptocurrency in the world.
- Monero (XMR)
Monero is one of the most advanced digital currencies focused on privacy. All the transactions between the senders and receivers are done anonymously, and this particular feature has attracted a lot of customers ultimately increasing its price to more than $350.
Neo, formerly known as Ant shares has provided a compelling return to all its investors recently and thus reached a much higher price than it was started before. Neo is the cryptocurrency used in the first open source, decentralized blockchain platform that was launched in China. Neo mainly focuses on the smart economy which makes all the assets, identities and contracts in digital format. Over 100 million neo tokens were pre-mined during the block creation and used for network management, consensus requirements and also for network changes.
NEM platform launched in 2015 and has pioneered new improvements such as encrypted messaging, multi-signature accounts, proof-of-importance (POI) algorithm, and an Eigentrust++ reputation system, etc. It uses commercial blockchain software called Mjin. It has recently found widespread acceptance from financial institutions from Japan. It aims to make banking more secure and also reduce the institutional costs.
- Cardana Ada
Cardana is the latest cryptocurrency on the market. Although it has solved most of the problems plaguing the cryptocurrency market, it is not as well established or reliable as Ethereum. It has lost the market lead to other crypto coins. It can be used for peer to peer financial transactions and business purposes.
These are the top 10 cryptocurrencies people will be interested in investing instead of investing in bitcoin. Let's look at the trend which these currencies are going to follow this year.
The Trend Cryptocurrencies will follow in 2018
The rise of cryptocurrencies does not mean that the the existing currency system has to disappear. Various innovations can enable both of them to coexist or even facilitate the embedding of cryptocurrencies within the traditional financial system. Due to the volatility of the cryptocurrencies, derivatives markets for them such as futures and options can develop to enable investors to hedge against the risk.
There may be a creation of cryptocurrency funds similar to the likes of mutual funds, ETF or even hybrid funds which can have a balanced portfolio including stocks, gold, etc. 2018 will see the slowdown of ICO (Initial Coin Offerings) projects.
The market can also work towards reducing irrationality by giving more due diligence to the admission of investors to the market thereby preventing the entry of manipulators. Governments may look to be active regulators instead of an outright ban or being passive watchers of the market. They can also enforce investors to reveal their identity to curb terrorism funding and even tax them for the profits made. There are technical shortcomings of Bitcoin, and hence new cryptocurrencies which effectively overcomes these obstacles can appear and gain widespread support.
By this time, you would have acknowledged that the potential of cryptocurrencies is immense. If you have spare cash, you can invest in these markets. But using credit cards and selling of material possessions to make a splash in the market is insanely foolish. No amount of speech can control the price fall once it starts.
While we can logically predict the actions of governments or how the economy reacts to the bitcoin, we have no control over how the price gets affected which purely depends on investor sentiment. There are also price rigging, pseudo schemes that have cropped up to cheat the investors. It is best to wait and watch the market rather than be irrational and feel sorry at the end of the day.