Bitcoin emerged in 2009, created by someone or a group known as Satoshi Nakamoto. This was in the aftermath of the 2008 global financial crisis, a time when many sought a financial system independent from major banks.
Bitcoin was introduced with the promise of eventually overthrowing the existing centralized global financial system. Due to its limited coin supply and unchangeable source code, it also serves as a hedge against inflation.
While Bitcoin remains the dominant player in the cryptocurrency arena, other cryptocurrencies are gaining investor interest. Here are five such cryptocurrencies that offer diversified investment opportunities and serve as alternatives to Bitcoin.
5 Best Investment Alternatives to Bitcoin with Immense Potential
Ethereum
Ethereum is more than just a cryptocurrency. It operates as a blockchain platform enabling the deployment of dApps and smart contracts. The native token of Ethereum is Ether (ETH).
ETH functions as a cryptocurrency, facilitating blockchain navigation and asset transactions. Ethereum’s appeal lies in its resistance to fraud and non-reliance on third-party control or interference, making it increasingly popular among decentralized app developers worldwide.
Ethereum’s ecosystem supports various applications such as Defi and metaverse games, and it intends to transition to a Proof-of-Stake consensus in 2022, greatly reducing energy consumption and enhancing transaction speed. The impending Ethereum 2.0 upgrade is highly anticipated, with ETH currently trading at $2565 and holding less than half of Bitcoin’s market cap.
Litecoin
LTC, created in 2011 by Charlie Lee, an MIT graduate and former Google engineer, shares similarities with Bitcoin. It employs the Proof-of-Work consensus mechanism for transaction approval and offers a faster transaction rate than Bitcoin. LTC has seen a substantial value increase and currently holds the 21st spot in the cryptocurrency market, with a market cap of $7.4 billion and a token trading at $106 as of March 2022, making it a potentially lucrative investment.
Cardano
Cardano functions as a blockchain platform similar to Ethereum and is often referred to as an “Ethereum Killer.” Founded by Charles Hoskinson, a co-founder of Ethereum, Cardano employs a research-based approach involving experts in calligraphy, mathematics, and engineering. With a market cap of $26.9 billion, it is currently the eighth-largest cryptocurrency, trading at $0.80 per token in March 2022, presenting significant growth potential.
Polkadot
Polkadot operates as a blockchain platform offering interoperability among various blockchains, with its native token, DOT. Notably, Polkadot provides shared security for developers creating their blockchains, differentiating it from Ethereum and enhancing its appeal to low-budget developers. With DOT trading at $17.59 and a total market cap of $17.4 billion, Polkadot presents substantial upside potential.
Bitcoin Cash
Bitcoin Cash, or BCH, is among the earliest hard forks of Bitcoin, emerging in 2017. With a token trading at $286.97 and a market cap of $5.5 billion in March 2022, its unique history and position in the market make it an intriguing investment prospect.
While the crypto market’s volatility means that today’s winners can turn into tomorrow’s losers, these five cryptocurrencies stand out among the multitude of options available, offering potential diversification for crypto portfolios. As with any investment, thorough research and a cautious approach are essential due to the market’s unpredictable nature.
