5 Cryptocurrencies Other Than Bitcoin You Should Consider Investing In

Cryptocurrency has grown to be a popular avenue for investment in recent years for plenty of good reasons. It attracts a lot of people, in part, because it presents the potential for high returns and the freedom to complete transactions without relying on intermediaries. The technology that supports the existence of digital currencies is also widely accessible to a more tech-savvy generation of investors. And despite its inherent volatility and risks, cryptocurrency is now considered a worthwhile addition to a highly diversified portfolio.

Which Cryptocurrencies Should You Consider Investing In?

Choosing the best cryptocurrency to invest in can be a real challenge considering that there are currently thousands in circulation at the moment. There is, of course, Bitcoin (BTC), the first and most valuable cryptocurrency. Bitcoin news became the talk of the town when the value of each BTC coin exceeded USD 65,000 in November 2021. The price of BTC has since dipped and is now hovering between USD 25,000 and 30,000 at the time of writing, but perhaps you already have a Bitcoin investment and you want to diversify. Here are some of the digital currencies you should consider looking into. 

Ethereum (ETH)

In terms of market capitalization, Ethereum sits right next to Bitcoin as the largest cryptocurrency in the world. Conceived in 2013 and launched in 2015, the digital coin introduced the concept of smart contracts. dAaps, as these are known, are self-executing contracts that are guided by predefined rules and conditions. The existence of dApps, in turn, permits developers to build their own applications on its blockchain. Its versatility and potential for innovation contribute to ETH’s popularity. The technology pioneered in the development of this coin has been used in a number of practical applications such as decentralized finances (DeFi), non-fungible tokens (NFTs), supply chain management, and decentralized exchanges.

Binance Coin (BNB)

Completing transactions without relying on traditional intermediaries such as banks, exchanges, or government agencies is one of the key benefits of using cryptocurrency. However, using these intermediaries still has its conveniences, and there are exchanges that are dedicated to digital coins. One of the largest cryptocurrency exchanges globally is Binance, and it has its own digital currency called Binance Coin (BNB). Launched in 2017, BNB gained popularity because it’s primarily used to pay transaction fees on its namesake exchange. The coin’s appeal to investors stems from the fact that it’s an integral part of the Binance ecosystem of products and services. Using it, then, allows one to enjoy token sales and discounts on trading fees, among other perks. Also, it means that putting money on BNB allows investors to gain profits from the growth of the exchange.

Ripple (XRP)

Processing cross-border transactions is an activity that is common to both traditional and emerging financial institutions. Ripple (XRP), a digital currency and payment protocol that was launched in 2012, aims to facilitate fast and low-cost international money transfers between different parties. It bridges currencies by utilizing blockchain technology and eliminating intermediaries from the transaction. This, in turn, speeds up cross-border payments and transaction processing time, all while reducing the cost of these activities. Ripple’s applications and advantages are not lost to investors who see the coin’s potential to revolutionize cross-border transactions and its ties to major banking and financial institutions. 

Cardano (ADA)

It’s not uncommon for cryptocurrency creators to develop new currencies that are more in tune with their vision. This is the case for Charles Hoskinson, one of the people responsible for Ethereum. He eventually helped found Cardano (ADA), which was launched in 2017. The research behind ADA is what sets it apart from other digital currencies in the market. The coin was developed with input from cryptography experts, mathematicians, and engineers. The research process for it also resulted in the publication of over 120 papers that delve on a wide variety of subjects. Aside from the use of a scientific approach and the meticulous planning and research that went into its development, ADA attracts investors because of its commitment to sustainability, its robust and reliable infrastructure, and the issues that the coin is being developed to solve in the coming years. 

Polkadot (DOT)

Polkadot (DOT) is a digital coin founded by Gavin Wood, another of the core developers of Ethereum. Envisioned to be a “shared version of Ethereum,” DOT is primarily designed to facilitate interoperability between different blockchains. While ETH allows the creation of dApps, DOT enables developers to create their own blockchains while also utilizing the security features already present in Polkadot’s blockchain. This cryptocurrency aims to create a decentralized and scalable network of interconnected blockchains, thus allowing the seamless transfer of assets and data. Among the reasons why investors are adding Polkadot to their portfolio is the coin’s focus on scalability, security, and governance. 

Evaluating Cryptocurrencies Before Investing in Them

Not all cryptocurrencies are made the same. It’s a must, then, for investors to scrutinize their financial goals as well as the qualities of the coins that they are interested in including in their portfolios. It’s also of utmost importance to conduct thorough research and stay updated with the latest developments regarding these cryptocurrencies, as the market for digital coins is highly dynamic and subject to change.