Best Crypto Currencies to Invest Other Than Bitcoin

What Are Cryptocurrencies?

Cryptocurrencies are digital assets that can work as a medium of exchange without any centralized authorization of a bank or a government. There is an exponential rise in cryptocurrency projects at present times.

1. Bitcoin (BTC)

Market capital: $370 billion

Bitcoin is the earliest cryptocurrency, created in 2009. It operates on a blockchain distributed across a vast network of computers.

The ledgers have to solve a cryptographic puzzle to keep Bitcoin safe from fraud. This process is known as proof of work. 

Bitcoin has become quite famous, and thanks to its fame, more people are now interested in cryptocurrencies. But, there are other best cryptocurrencies to invest in.

2. Ethereum (ETH)

Market capital: $128 billion

Ethereum is a cryptocurrency that also provides a blockchain platform. It is also considered one of the safest cryptocurrencies to invest in.

This network has created the best platform for program developers. Here, programmers can build and optimize their networks.

Although it is facing quite a competition now, its market shares in gaming, NFT (non-fungible tokens), and DeFi are still influential.

Soon, Ethereum has predicted to earn even better market share as it will finalize its transition to a proof of stake network.

The developers are implementing sharding technology to enhance performance and reduce transaction costs.

2. Tether (USDT) 

Market capital: $66 billion

Tether is a stablecoin. And also, it is supported by FIAT currencies like Euro and U.S Dollars. Hypothetically Tether has its value equal to one of their denominations. 

These all suggest that the value of Tether is more consistent than other cryptocurrencies. Tether is more likely to be favored by investors who are mindful of the extreme volatility of coins. 

3. Chainlink (LINK)

Market Capital: $7.6

Chainlink is a top blockchain project that assists program developers in easily merging off-chain data with the on-chain ecosystem.

In other words, Defi or decentralized finance developers can obtain data on cryptocurrencies on their platform.

But there is also the possibility of bringing data on the rest of the industries.

Chainlink is considered a safe cryptocurrency because of its uniqueness in industries. It also got a significant market share in the sector.

4. Binance Coin (BNB)

Market capital: $35 billion

Binance Coin is also a variety of cryptocurrencies that one can utilize to trade and for payments on Binance. It is one of the largest crypto exchanges around the world.

It was launched in 2017 and initially facilitated trades on the platform of Binance’s exchange.

Now, it can perform various functions such as trading, payment processing mode, and even booking travel arrangements.

And, of course, it also acts as a medium of exchange for other varieties of cryptocurrencies.

5. Binance USD (BUSD)

Market capital: $17 billion

Binance USD or (BUSD) is another stablecoin. The Paxos and Binance created a cryptocurrency that will be backed or supported by the U.S Dollar.

For maintenance of its value, the total supply of BUSD is equal to the amount of U.S Dollars. 

As it is with other stablecoins, BUSD also allows traders to engage with other crypto assets in the transaction. All the while, it keeps in check the risk of volatility.

Here, most of the cryptocurrencies are stablecoins. Read further to know what makes them special to invest in. 

What Are Stablecoins?

Stablecoins are digital currencies that have the support of reserve assets. It can be perceived as-

• Fiat money is like the currency in circulation, 
• Precious metals like gold, silver, and even oil
• Protected by the algorithm to keep the price stable.

Benefits of Stablecoins

Stablecoins have stability, but they have the same advantages as cryptocurrencies.

And it is better because of less risk involvement. The followings are the benefits of stablecoins-

• Fast and secure transaction
• Zero interruption from the third party 
• Transactions directly meet the ledger
• It is adaptable to various investors

The stablecoin market has mostly been run by FIAT money-backed coins since 2019. And among stablecoins, Tether is the most capitalized one. 

Types of Stablecoins

The stablecoins have been categorized into four groups by the asset they are supported.

Raw Material

They are stable with gold, silver, oil, or any real estate assets. They also permit the use of a diversified basket of precious raw materials.

Digix Gold Tokens are widely supported among them.

Fiat Money

These include the currencies that collateral maintains the reserve of FIAT money.

Tether is an excellent example of it. Here raw materials are exchanged for their cash equivalent, along with precious metals.

Crypto 

This includes crypto-based currencies. And also the currencies that are overcollateralized. MakerDAO is an example of this. It has a lower supply than the FIAT-backed currencies.

Algorithm

This category does not own any assets, but they have algorithms to record and add cryptography.

Currencies are backed by algorithms that are programmable and flexible assets. The algorithm can provide stability to the value. A few major stablecoins are Fragments and Kowala.

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