Hearing the word cryptocurrency, many will immediately think of Bitcoin. Considered by many investors as the original cryptocurrency, Bitcoin was created in 2009 and paved the wave for a new age of blockchain technology and decentralized digital currencies.
Today, Bitcoin is one of the most popular forms of cryptocurrency available. However, it is essential to note that it is not the only investment option.
If you are looking to invest in cryptocurrency for the first time or you are looking to expand your portfolio, these are just a few of the other cryptocurrencies to consider investing in other than Bitcoin.
Ethereum is the second-largest cryptocurrency after Bitcoin. Additionally, it is considered one of the most popular cryptocurrencies on the market today. Ethereum allows users access to digital money and data services. All Ethereum users are provided with cryptocurrency tokens referred to as Ether (ETH).
These are similar to Bitcoin as they can be used to purchase and sell both goods and services. Many guides answer the question ‘What is Ethereum?, diving into the history of Ethereum and how it has become the second most common form of cryptocurrency.
Many people would refer to Litecoin as being the silver to Bitcoin’s gold. However, it is one of the most important cryptocurrencies that are worth considering aside from Bitcoin. Technically, Litecoin is similar to Bitcoin as both enable cross-border payments and serve as digital cash. The difference between the two is that Litecoin’s processing times are four times quicker than Bitcoin. Another difference is that Litecoin is also not that resource-intensive, which means that the transaction fees are lower.
For those that are new to cryptocurrency or are not comfortable with the wide swings in value, Tether is worth considering. Referred to as a stable coin, Tether keeps valuations stable compared to more volatile coins. Tether is supported by an equivalent amount of traditional currencies, like the euro, the yen, and the dollar.
This cryptocurrency has been designed to build a bridge between cryptocurrencies and traditional currency. Whilst the value of Tether is linked to that of the U.S. dollar, there is no guarantee for any exchange between Tether coins and real money.
One of the first peer-reviewed blockchain-based platforms, Cardano aims to improve issues like interoperability, crypto mass adoption, and scalability. With solid foundations, Cardano effortlessly combines a vast range of tech innovations. For instance, it has a two-layer architecture, in which one layer – the Cardano Settlement Layer (CSL) – can be used for handling payments and transactions. The second layer, the Control Layer, can be used for smart contracts development. The future of Cardano looks promising, as experts believe that it is worth investing in. This is due to its two-layered structure is an unusual feature which many investors worldwide are attracted to.
When looking to invest in cryptocurrencies, it is vital to weigh up each available type. You may find that you prefer the structure or the small swings in the value of a particular coin over another. Before you invest, spend time researching the advantages of the coin to help you make a more informed decision on which one to invest in.