The 10 most important cryptocurrencies other than bitcoin
Global financial marketing has been strongly developed during the last few years. The growth of the digital market made online payments, transactions, and other similar operations simple for customers all over the world. The expansion of cryptocurrencies makes it difficult to choose the most appropriate and correct one – each of them may have its peculiarities, profitable in this or that case.
Bitcoin has become the first cryptocurrency, and, as a result, the most popular. Worldwide contributions made it highly demanded and nowadays its price still stays at the top. But is bitcoin a good investment in 2021 and can other cryptocurrencies become as beneficial as the most popularized one?
What Are Cryptocurrencies?
Digital currencies are considered unique because of their decentralized properties. They are not maintained by the banks, which makes it possible to set the custom parameters of their transactions and to confirm their credibility. The new coins released usually combine the properties of the existing ones to make the customers interested in their profitable investments. The most essential properties of the cryptocurrencies, which exist nowadays are:
- High transactional speed – no one bank transaction may be done as fast as cryptocurrency transfer.
- No payment for transfers – overpricing commissions don’t apply to digital currencies.
- Full anonymity – the personality of the users can’t be defined by third parties.
- High investment potential – the property to grow in price rapidly allows making beneficial contributions.
- Full anonymity – the personality of the users can’t be defined by third parties.
Choosing the best crypto to invest in 2021 must be predetermined by the algorithms awareness and general understanding of digital marketing.
The Blockchain Definition
Before thinking about bitcoin replacement, the basis of such a cryptocurrency system’s workability must be understood. A blockchain is a big virtual scheme of connected blocks, which includes information about transactions during all this time. It is a reliable and safe method because blocks with data are inaccessible for those, who don't make any digital transactions – each subsequent one contains unique information about the previous. The high-reliability blockchain is determined by the next properties:
- Confirmation of the transactions – if the digital transfer is not introduced in the blockchain, the system will define the bitcoin number on the current address not changed.
- Hash-tree structure – the leaf parts contain hashes from the data blocks when the internal ones include information about additions in the child vertices.
Mining And Its Benefits
Mining is a process, in which a cryptocurrency can be obtained as a reward and is accompanied by the creation of new blockchain cells. It is performed by several counting processes, aimed at finding hash with constant properties. Several counting models are created for a long time and need energy expenses, which are provided by powerful equipment, like graphics processors, field-programmable gate arrays, etc. Nowadays it is hard to say what is the best digital currency to mine, but the objective benefit can be easily determined.
The cryptocurrencies research and profitable use of counting models creation are introduced in getting a cryptocurrency after creating a new blockchain cell (for example, bitcoin mining is considered successful after 120 confirmations). Such counts are also used by the crypto algorithms to avoid the repeated use of the same currency.
All in all, after understanding the principles of such a system and the general concept of its use, it is necessary to find out if other popular digital currencies have profitable characteristics and what is the best cryptocurrency to buy now?
Ethereum
It was created in 2013 and sometimes is called bitcoin 2.0. With the appearance of Ethereum, more than 10 thousand applications started functioning with each other on the same platform and it was first considered the future of cryptocurrency. It became possible to create an application, which works on a constant algorithm, which developed the field of blockchain use. The most essential characteristics of Ethereum:
- Smart logistic management contracts creation with the ability to control them.
- Applications of any type can be created.
- Physical assets, like gold and industrial goods, can be digitized.
- Client management services and document legality confirmation can be easily provided.
- Decentralized marketing platforms’ establishment became possible.
Tether
The cryptocurrency has the same value as USD (the cost proportion is 1:1). According to the company, "platform currencies are 100% backed by reserves – everyone can convert all their USDT (the main denomination of the currency) to USD and everyone has enough fiat money.
Tether is one of the most long term cryptocurrencies – from the time when it appeared till nowadays it had been staying at the top of global capitalization rating. Cheap and fast transfers are also an essential characteristic – traders can react to price changes fast and get more profit for currency exchanges.
Ripple (XRP)
During the creation of cryptocurrency, the main aim was to create a product, which will connect all the currency platforms, banks, and financial organizations to make transfers fast and not as valuable as existing ones.
Ripple had acquired high throughput, which made it one of the best cryptocurrency stocks to buy in 2021 – more than 1000 operations can be processed at the same time. Moreover, it can’t be mined because of the original consensus algorithm, which defines the transaction validation. For payment services providers a lot of platforms, like xRapid or xCurrent were created.
Binance Coin
At the time, when Bitcoin became widely used, a cryptocurrency better than Bitcoin with more potential profit was desired to be created. Binance coin is a native token of the Binance blockchain, characterized by high scalability.
Byzantine Fault Tolerance mechanism is used in such a case, which allows defining the system’s inconveniences or illegal attack, aimed at blockchain algorithms changings. Despite the absence of decentralization, it has powerful algorithms of inflation defense and a wide specter of use. The internal coins can be secured at:
- Trust wallet – official wallet of the cryptocurrency.
- Other multivalue wallets – Coinomi, Exodus, etc.
EOS
The cryptocurrency is considered the main Ethereum competitor and is one of the best cryptocurrencies to buy right now. It allows the creation of decentralized platforms for the development of different types of applications.
EOS has 2 main components: EOS.IO and EOS token. During the firsts tests of the cryptocurrency, it was allowed to operate more than 10000 transactions per second. It is easy to use – the high scalability allows simple installation of any software and distributive applications.
Bitcoin Cash
It is an independent part of Bitcoin, which seceded from it in 2017. The main reason for this – the desire to use crypto as a transactional instrument (Bitcoin was considered a store of value at that time). The Bitcoin Cash team proposed increasing the block size, which would require more powerful facilities for the nodes running. This, in turn, required a more funded and centralized ecosystem. Unlike Bitcoin, Bitcoin Cash can process more than 100 transactions per second with small value. The experts say that if BTC takes 1 percent of global transactions, more than 80 million transactions will be done per day.
Dogecoin
One of the most controversial currencies, which was first considered useless, had incredibly increased in price. It differs from the standard algorithms by the period of block generation, which is approximately 1 minute (the other systems have more than 2 minutes) when the general transactions’ processing speed is near 6 minutes, which is considered medium.
The main property of the cryptocurrency is the ability to be mined with a specific algorithm – merged mining (mining of several currencies can be done at the same time)
Polkadot
The independent blockchains and technological solutions can exchange information and be connected with Polkadot – cross-chain compatibility makes it possible.
High security and verification algorithms of several blockchains make it possible to distribute transactions to several parallel blockchains. It has an open-source management system, in which the users can take place. The easy adaptation to the changes allows the implementation of new technologies to the blockchain. Polkadot also has the new way of authorization mechanisms of several governmental organs (smart contract, for example).
Cardano
One of the most popular Ethereum alternatives, which allows voting and betting at the Cardano platform. Staking is a popular practice among Cardano holders, which is aimed at embracing the Proof-of-stake blockchain position. It allows a decentralized application development platform (DApp) with a multi-active registry and verifiable smart contracts.
Litecoin
The public blockchain system of the currency made it one of the best cryptocurrencies to invest in 2021. It is an open-source mechanism, similar to Bitcoin, which includes a unique cryptographic algorithm. Litecoin was created for less time spent on one block verification, which made companies use it as a Bitcoin alternative. The time was reduced twice (compared to Bitcoin), so the block verification takes approximately 2,5 minutes. Due to the use of the cryptocurrency as a store, it is popular among the miners – everybody, who has digital facilities can get it as a reward after new blockchain cells are created.
Conclusion
All in all, it is hard to say what coins should be invested in nowadays, because each of them has unique peculiarities and beneficial properties. If you want to become a coin holder, make a systematic review of the marketing condition and determine the most efficient one for your purposes.
