Bitcoin prides itself as the pacesetter in the world of digital currencies. The advent of Bitcoin led to the later emergence of other cryptocurrencies, (in our words… bitcoin alternatives) built on a decentralized peer-to-peer network. The use of Bitcoins has changed the way people handle money and it also provides a host of benefits/opportunities including a decentralized administrative structure and handsome profit margins. In fact between Jan. 1, 2017 and June 1, 2017, the value of one Bitcoin increased from just under $1,000 to almost $2,500.
However, there are underlying worries about the use of Bitcoins. The first borders on the process of creating/obtaining a Bitcoin. This process, also called mining, has become increasingly difficult. Personal and corporate miners complain about the enormous computing power required in mining a Bitcoin, with advanced software applications like the 3 SLi NVidia Graphic Cards falling short. Another worry revolves around the shrinking pool of available Bitcoins for transactions. This continuous shrinkage means that the entry barrier for new and existing Bitcoin users gets higher and higher as time progresses. Consider also that Bitcoins are speculative investments; hence the high-profit margins may also mean that probability of losing all of one’s investment is just as high as well
If you are still interested in Digital Currency, then there are other alternative cryptocurrencies that give Bitcoin good competition. These alternatives, sometimes branded as altcoins, also offer competitive returns and are easier to mine. Note, however, that these currencies are speculative investments, therefore it is essential you make well-informed investment decisions. These altcoins also possess greater risk brought on by lesser liquidity, acceptance and value retention. Here are some bitcoin alternatives you’d want to invest in.
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Dash is an open sourced, privacy-centered digital currency characterized by instant transactions.
This digital currency platform allows you to keep your finances private as you make transactions without undue delays.
The many impressive features of Dash include strict privacy, low transaction fees, peer-to-peer transactions as well as instant payouts.
Dash can be obtained (purchased and sold) via Exchanges, Instant exchanges, peer-to-peer and by ATMs.
As at December 2017, one Dash traded at 1,061 USD. Currently supplying 7.79 million coins, Dash has registered a total volume of over 125,000,000 USD, with a market capitalization put at 8,266,850,871.25 USD. Again, as with other forms of investment portfolios, it is important you consult your financial advisor before taking any trading decisions.
To get you on the way to investing in Dash coins, you will need to obtain a Dash wallet, buy the coin itself from appropriate quarters and move purchased coins to your wallet.
Litecoin is among the first generation of cryptocurrencies when it launched in 2011. Praised as the major competitor, Litecoin has found growing acceptability among developers and merchants alike.
Litecoin works as an open source global payment network that is not controlled by any central authority and uses “scrypt” as an evidence of work, which can be decoded with the help of less expensive CPUs of consumer grade.
The features of Litecoin include a faster block generation rate and a swifter confirmation of transactions.
The following constitute the core statistics for Litecoin:
Exchange rate to Dollar: 232
Amount of coins in circulation (Cap): 84 million
Trade volume (daily):360,658,195.25 USD
Market Capitalization: 12,688,637,704.82 USD.
Litecoin can be purchased/sold through peer-to-peer transactions as well as on Exchanges. With a market liquidity ratio pegged at 82 percent, Litecoin continues to command patronage from individuals and businesses alike.
Investing in Litecoin entails funding a digital wallet with the commensurate quantity of Litecoin. The goal is for the value of Litecoin to rise, in which case, you could exchange your Litecoins back to dollars, at a higher exchange rate.
Ripple prides itself on being a real-time global settlement network that offers instant, certain and low-cost international payments.
Ripple’s platform enables financial institutions to settle cross-border payments in real time, with end-to-end transparency, and at lower costs.
Founded in 2012, Ripple differs from other digital currencies with its use of a consensus ledger.
This ledger does not require mining, hence users save up on computing power and minimize network latency.
With a market capitalization of 86,222,876,860.31 USD, a trading volume of $1,920,710,000 and a liquidity ratio set at 99 percent, Ripple enjoys a huge vote of confidence from traders and merchants.
Ripple can be sold/bought from trade exchanges and financial institutions.
Investing in Ripple entails the following: Creating an account on a Ripple Exchange, buying another cryptocurrency such as Bitcoin or ether, moving the purchased digital currency to an exchange called Bitsane and finally buying the quantity of Ripple you desire.
Again the idea is for Ripple to appreciate against the fiat currency of exchange such as the USD.
Ethereum is a decentralized platform that runs on a custom built blockchain.
This blockchain comprises an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
With a market capitalization of over 18 billion USD, Ethereum also prides itself as one of the most trade altcoins with a daily trade volume of 1,054,313,130 USD.
Its exchange rate to the dollar stands at $756.Ethereum is available for sale at Global trade exchanges.
Start out investing in Ethereum by first creating a digital wallet. Fund this wallet with Ether, from any of the notable Exchanges such as Coinbase.
Your strategy should center on interested buyers paying you more for the cryptocurrency than you purchased them for.
Zcash works as a decentralized and open-source cryptocurrency.
This digital currency was launched in the latter part of 2016. Zcash offers privacy and selective transparency of transactions. In other words, users can take advantage of multiple security and privacy levels, with general details published on the blockchain excluding information such as sender, recipient and transaction amount.
Investing in Zcash entails purchasing ZEC on a number of cryptocurrency exchanges, including Bittrex, Poloniex, and Shapeshift.
There are instances, depending on the particular exchange, where you can buy ZEC directly with fiat currency. Otherwise, you will need to use Bitcoin or another cryptocurrency for your purchase.
Again the strategy is to see the digital currency appreciate in value against the fiat currency of purchase, such that you earn the difference in a buyouts.
Safecoin can also be seen as a digital token. This cryptocurrency sets out to reward all users on the network for the value they add to the system. The impressive features of Safecoin include self-encryption where data encrypts itself by itself, automatic removal of unneeded duplicates and opportunistic data caching by users.
With a market capitalization set at 496,446,513 USD, a daily trade volume of $15,242,894 and an exchange rate of $1.0639 / $1.1982, Safecoin presents the opportunity to enter the digital currency market at an affordable level.
To trade in Safecoin, you will need to purchase Maidsafecoin, which will then be exchanged for Safecoin on a 1:1 basis.
Steem raises the bar with cryptocurrencies with its unique structure and methodology.
At its most basic, Steem is a blockchain-based social media platform where users earn rewards for carrying out simple tasks.
Unlike other digital currencies, users do not have to give up something to earn; rather for doing something as simple as voting for a post, individuals receive steem coins as a reward.
Basically, the blockchain distributes payouts as 50% Steem Power for voting and 50% Steem Dollars.
With a liquidity ratio of 63 percent and a market capitalization of $1,873,645,562, Steem takes pride in rewarding users that help build its community.
You can trade in Steem by obtaining a wallet and funding it with Bitcoin. Subsequently, you can use the Bitcoin to purchase the corresponding quantity of Bitcoin.
The ambitious goals of peercoin include becoming the most affordable and secure cryptocoin in the digital currency ecosystem.
The platform also rewards users who strengthen the network with a 1 percent return on minting transactions.
The platform pioneers the use of Proof of work as well as Proof of minting to ensure fair distribution and the security of the network.
For this digital currency, market capitalization is set at close to 150 million USD, with a daily trading volume of 5.6 million USD.
Peercoin is perfect for investors seeking low-risk investment schemes. You can trade in Peercoin by joining an exchange like CoinTouch, obtaining a wallet and funding the wallet with the desired quantity of peercoin.
This cryptocurrency leads the way in experimental, open-source digital currency technology. In more detail, Namecoin seeks to improve decentralization, security, censorship resistance, privacy, and speed of certain components of the Internet infrastructure such as DNS and identities. It achieves these aims through merged mining and a decentralized DNS.
As an experimental digital currency, Name posts modest trading figures: market capitalization is set at $70,905,538 with a liquidity ratio of 22 percent. It is for investors who would like to enter the cryptocurrency market in an inexpensive way.
To start investing in Namecoin, buyers are advised to engage in merged-mining which means obtaining Namecoin as a free by-product of Bitcoin mining. Obtain a wallet and receive funding from an exchange such as Kraken.
Primecoin comes across as an innovative cryptocurrency, secured by cryptography and issued through a decentralized mining market. As the name suggests, this digital currency uses a unique form of proof-of-work based on prime numbers.
Primecoin is characterized by a high-speed block generation time, fast transaction confirmations, smooth difficulty adjustment, and a self-adjusting block reward.
Market capitalization for this digital currency is pegged at $20,022,495, with a daily trade volume of close to 500,000 USD. Primecoin commenced business on July 7, 2013.
Interested investors can trade in Primecoin by creating a wallet and funding it via one of the exchanges offering Primecoin transactions. LumbridgeCity is an example of such an exchange. For the benefits of investing in Primecoin, check here.
So here are some awesome Bitcoin alternatives. Will you like to know how to earn free bitcoins? This article is a must-read then.