With the recent rally of cryptocurrency – particularly in the Bitcoin market – yet another wave of attention and speculation is being generated for crypto.
Ultimately, these periods come and go, but the long-term effects they create on investment opportunities and, more broadly, of legitimate currencies in the public eye, are tangible.
While Bitcoin gets the lion’s share of attention, plenty of other viable cryptocurrency options exist. With a new year arriving, some may be asking which alternative cryptocurrencies are the best investments.
To answer that question, here are three popular alternatives to Bitcoin that enjoy widespread acceptance and a history of strong market performance.
Ethereum
Built around a decentralized software platform that aims to promote security and trust, Ethereum is arguably the most powerful alternative to Bitcoin.
While unheard of just a few short years ago, Ethereum currently enjoys a market cap roughly 20 percent the size of Bitcoin’s (approximately $70 billion as of December 2020).
What makes Ethereum such a powerful alternative is the fact that it doesn’t merely serve as a currency or commodity. Designed to help ensure computer code and software can be stored without tampering, the actual currency is known as Ether (which is used to power apps and contracts on the network).
Fortunately, purchasing Ethereum is simple, and it is just as easy to swap ETH to BTC if you so choose. You can use platforms such as Paxful which offers peer-to-peer transactions for a wide range of cryptocurrencies, including Ethereum, and hundreds of potential payment options.
They also provide users with free, secure Bitcoin wallets in case you do decide to swap your ETH to BTC once again.
Litecoin
If Bitcoin is thought of as the gold standard of cryptocurrency, then Litecoin would easily be its silver. With roughly a decade of precedent, Litecoin has established itself as a trustworthy choice in the eyes of crypto investors.
Currently boasting a market cap of approximately $5 billion, Litecoin may not be the most valuable selection overall, but it is a steady and reliable alternative to Bitcoin.
Offering more rapid block generation than Bitcoin and quicker confirmation times on transactions, Litecoin was once poised to potentially surpass Bitcoin as the cryptocurrency market’s standard-bearer.
While this didn’t happen, it doesn’t change the fact that Litecoin is still a solid investment in 2023 for those who want to avoid some of the more volatile swings in the crypto market.
Tether
While the hallmark of cryptocurrency often revolves around the sheer volatility that can lead to massive gains (or losses), some coins have taken a decidedly different approach.
Tether is one such example: created to serve as a stablecoin, Tether pegs its value to $1 USD per coin. This creates a constant value that makes it appealing in select situations.
Tether, for instance, could be a solid choice to move other cryptocurrency investments into after cashing out (but before reinvesting in the market).
Ultimately, Tether provides a unique solution in the world of crypto, and that makes it a worthwhile contender for consideration. With so many cryptocurrencies to consider, knowing which are worth the time and effort are important.
As a new year of investing arrives, consider these three alternatives to Bitcoin and whether or not their unique niches are of value to your long-term crypto strategy.