4 Bitcoin Alternatives for Future Currency Investments
In economic management sciences, investments means longer-term savings. Bitcoin is without a doubt the most famous cryptocurrency across the globe. Created in 2008 as an answer to the growing distrust of the banks, its value has been changing over the years, and as of the moment of writing the article, is over $29000.
This is why so many people dream of turning back time and investing in it, years ago. Nevertheless, for those that weren’t lucky enough, and those that are just starting to invest in cryptocurrencies, thankfully there are many more options out there.
There are thousands of crypto coins you can choose from. Some are based on the first-ever blockchain created, Bitcoin’s blockchain, whereas others use other blockchains. Not all of the crypto coins you will encounter in crypto exchanges are equally as significant and not all of them will succeed. Ethereum is probably the most popular alternative to Bitcoin. However, if you are looking for some other interesting investments, here are four with great potential for growth.
Feathercoin is a refined and updated version of Bitcoin, and one of its popular alternatives. Forked from Litecoin (LTC), FTC is a crypto coin that, like Bitcoin, allows direct transactions without an intermediary. It allows faster confirmation of the transaction, thanks to its algorithm, based on NeoScrypt.
Aside from investing in Feathercoin, if you want to possess this coin, you can also mine it. You can do so with CPUs or GPUs. To mine FTC you also need to find a mining pool. To start mining you must create a wallet, where your work will be rewarded with coins. You can also choose a mining pool because even though the profits may be lower, the probability of profit increases.
Ripple’s native tokens, called XRP are currently among the most popular Bitcoin alternatives for investment on the market. It was designed to enable fast transactions, but instead of avoiding financial institutions, like banks, completely, it collaborates with them. This way, Ripple allows easier international money transfers, becoming a rival to the most widely used cross-border payment system, the SWIFT system.
By using blockchain technology, Ripple’s payment system, called RippleNet also makes money transfers faster and cheaper. Since more and more financial institutions implement it, its value is expected to grow. It uses a consensus mechanism made of independent nodes, which can process 1500 transactions per second, and ensures confirmation and validation of each transaction within 3 to 5 seconds. XRP can be exchanged for cryptocurrencies, commodities, and fiat currencies.
Currently one of the top 100 cryptocurrencies on the market, CELO is a governance token, which means that as a holder, you can vote on different proposals regarding modifications to the asset allocation or any changes or upgrades to the protocol. It was designed as a utility for the Celo platform. The platform also has a native stable coin, called Celo Dollar (CUSD).
Celo is a Proof-of-Stake blockchain platform. It uses a consensus mechanism performed by nods. Aside from investing, you can also earn CELO. One way to do it is to become a validator. You can also earn CELO through staking, lending, and yield farming. The network is compatible with Ethereum, and it’s open. This means that it allows building new applications, as well as making transactions to other blockchains with smart contracts.
Ravencoin is an open-source project, designed as a fork of the original Bitcoin code. The native token of the Ravencoin platform is called RVN, and it’s sometimes referred to as Bitcoin 3.0. One way in which traders choose a crypto coin in which they want to invest is by learning about the ideals it represents. At the heart of the RVN core values stands the belief that people should be above governments and corporations. The ideals they represent include liberty, anonymity, and healthy free markets.
Unlike mining Bitcoin, which requires expensive equipment and guarantees huge electricity bills, RVN can be mined with USUs. It has a special mining algorithm, which ensures that it can’t be mined with hardware like ASICs. RVN can be used for different purposes. It can represent different types of assets, including shares and virtual goods.
These four cryptocurrencies are among the most interesting Bitcoin alternatives at the moment. However, before investing you should investigate more, and learn about the current situation. Also, it’s important to note that investing in any cryptocurrency, even the most popular ones, can be a big risk. Cryptocurrencies are volatile, and although experienced traders and experts can make predictions based on past behaviours, it’s quite hard, if not impossible, to know for sure what will happen. This is why you should always invest cautiously, and don’t spend more money than you can afford to lose.
Very descriptive post, I enjoyed that a lot.
Will there be a part 2?
Very informative post. I really found it useful. I am looking forward for some more useful content regarding digital currency. Thank you for sharing.