Today, cryptocurrencies are an integral part of our lives. Many people know about the existence of Bitcoin. Even people who are completely far from this sphere invest in it. However, a much smaller number of people know that on one “digital gold” everything does not end there. There are many coins that are as promising as Bitcoin. On some of them you can earn even more than on currency No. 1. They are usually called altcoins. We’ll talk about the five most popular of them today. Do not forget that you can test all altcoins using Holderlab analysis tools.
Current value –
Capitalization — $24 765 747 690
The second most important digital currency and the brainchild of Vitalik Buterin – Ethereum opens the list of top altcoins to invest. The coin is still not thinking of losing ground. Unlike Bitcoin, Ethereum is not just a cryptocurrency, but a whole platform for developers. On this platform, there is the creation of smart contracts based on blockchain technology.
In addition, Ethereum is the most popular coin for conducting ICOs. Most project developers create tokens of the ERC-20 standard, which is the official protocol for submitting proposals for improving the Ethereum network (20 is a unique offer identification number).
The main challenge facing developers is to increase scalability. They assure that very soon they will overtake the Visa payment system and will reach a new level.
Current value —
Capitalization— $3 771 795 956
Litecoin is one of the oldest digital currencies in the world. In 2011, former Google employee Charlie Lee created a coin. That coin supposed to be an alternative to Bitcoin. Compared to digital gold, Litecoin received a number of improvements, among which one can single out a higher transaction speed (2.5 minutes with LTC versus 10 minutes with BTC) and a lower commission.
Litecoin was created on the basis of Bitcoin. Its main purpose is an alternative to fiat currencies (for example, dollar or euro). It is worth noting that the coin is actively developing. The developers are doing everything possible to make Litecoin easier to use in popular e-commerce platforms. The number of terminals accepting it for payment is constantly increasing. Therefore, according to experts, Litecoin is one of the top altcoins to invest.
Current value —
Capitalization — $3 301 790 791
EOS is a relatively new coin from top altcoins to invest. Dan Larimer, one of the founders of the Bitshares cryptocurrency exchange, is also the creator of EOS. In 2017, an ICO was launched. During the company managed to raise about a billion dollars. Many investors then agreed that EOS is on the list of the best altcoins for investing.
The main difference from Bitcoin is that EOS is not only a coin. Also a blockchain platform designed to create decentralized applications (DApps) and smart contracts, therefore it is reasonable to compare digital currency with Ethereum. Ethereum uses the Proof-of-Work (PoW) mechanism, while EOS uses the Delegated Proof-of-Stake (DPoS). That is why EOS is more scalable than Ethereum.
Another obvious advantage is compatibility with many popular programming languages (including C ++). Ethereum is only compatible with the specific Solidity language.
EOS developers are now actively working to ensure that the coin can fully realize its potential. By the way, the investor has already managed to get good dividends.
Current value —
Capitalization — $1 402 768 590
The platform is developed on the basis of the Ethereum blockchain. The main purpose is the relationship between smart contracts and external data. Chainlink is one of the latest milestones in the development of blockchain technology.
In 2015, Ethereum was created. With the advent of this project, smart contracts first appeared, which proved to the crypto community that the industry may not be limited solely to financial transactions. However, Ethereum had one serious drawback – smart contacts work only within its blockchain. Chainlink oracles, in turn, are able to collect data outside the chain. They use any sources around the world (for example, data sets, APIs, payment systems, stock exchanges). The oracles ensure the reliability of data provision through direct interaction with information sources.
The project has certain problems. The issuance of a billion tokens exceeds the potential activity of users, which prevents the coin from growing in value. In addition, funds after an erroneous transaction are non-refundable. However, the advantages of Chainlink eliminates all the disadvantages of the project. Investors are sure that developers will be able to bring to mind the platform and it will continue to develop successfully.
Current value —
Capitalization — $1 913 016 316
The list of the top altcoins to invest would not be complete without Tezos. It’s one of the most controversial blockchain projects in history. His journey began with powerful sponsorship and a well-known development team, after which serious problems began that resulted in litigation and internecine war. Later situation returned to normal. The project was nevertheless implemented.
Tezos blockchain was created by developers from scratch, this is main difference from many other projects. It is not based on the code of any existing blockchain, that is, it is not someone’s fork. The main idea of the developers was to create a blockchain that is not subject to hard forks and is able to become a kind of springboard for innovation.
Like other altcoins, Tezos is able to work with smart contracts. This uses the DPoS mechanism, as in EOS. At the moment, there is a minimum computational load on the network and a minimum dependence on the participation of miners.
Despite conflicts in the team, the project received a response from many investors. Its main advantage is the lack of the possibility of a hard fork.
Pros and Cons
The system is designed in such a way that the community is engaged in improving the project. Not undergo constant splits. It can be noted that the system code is written far from the most popular programming language Ocaml. Because of this, fewer developers are able to improve the project. The unlimited issue of coins at the ICO depreciated them a little. But there are much more advantages than disadvantages. Tezos continues to be actively supported by investors.
Summarizing the above, we note that top altcoins to invest are still an attractive investment tool. Extensive functionality makes them much more useful and promising in the foreseeable future. It is worth noting that new altcoins appear every month, so a prudent choice of altcoin can bring good benefits to investors.
This article is not a recommendation for investment or investment in cryptocurrency, as well as perceived as investment advice. Be careful, because investing in cryptocurrencies is very risky and you need to consult with your financial advisor. Past earnings do not guarantee future earnings.