Bitcoin Alternative: The 7 Best Altcoins
The development of the Bitcoin price (especially in 2017) is impressive. This also has a downside: The transaction volume of Bitco is continuously increasing. The consequence of this is always higher transaction fees. In addition, the duration of the transactions of bitcoins is also undecided. Anyone who does not consider Bitcoin as an art digital gold with the longest investment horizons is quickly forced to look for a bitcoin alternative. In the following post we show you alternatives to Bitcoin.
The article is structured as follows:
- Bitcoin Alternative: Ether
- Bitcoin Alternative: Litecoin
- Bitcoin Alternative: DASH
- Bitcoin Alternative: Monero
- Bitcoin Alternative: NEO
- Bitcoin Alterantive: IOTA
- Bitcoin Alternative: Bitcoin Cash
1. Bitcoin Alternative: Ether
Ethereum is the largest by market capitalization (currently nearly $ 32 billion, source: coinmarketcap.com ) Cryptocurrency that currently exists on the market. Ethereum was developed in 2013 and is a system for mapping and managing contracts. The cryptocurrency Ethereum uses is ether. The best year for Ether so far was 2017. With more than 3,000% over the past 12 months, Ether has even outperformed Bitcoin.
But what makes Ethereum so interesting? It makes it possible to develop your own apps, which then run on a blockchain. This has the advantage that there can be no downtime and security is extremely increased. Many of the ICOs that are currently taking place are based on Ethereum technology.
For the simpleuser who does not want to launch their own blockchain project, Ethereum has the following advantage: transactions are executed much faster in this cryptocurrency than Bitcoin does. In addition, the transaction costs are significantly lower. Ethereum is now also supported by a number of Exchanges, such as Conbaise, Blockchain.info or bitpanda. Ethereum has become an integral part of trading platforms that specialize in cryptocurrency.
Conclusion: Ethererum or Ether is a good bitcoin alernative. The currency is becoming increasingly supportive of exchanges, and as a trading asset, Ether has the potential to make significant gains in the future.
2. Bitcoin Alternative: Litecoin
Another alternative to Bitcoin is Litecoin. This cryptocurrency was developed by Charlie Lee (a former Google employee) in 2011. Two years later, Litecoin already reached a market capitalization of one billion dollars (currently around 3.65 billion in fifth position by market capitalization, as of November 2017) Litecoin has some similarities to Bitcoin, but it also differs in a few basic ways: In the Litecoin blockchain, new blocks do not spawn every 10 minutes, but every 2.5 minutes, which means that transactions are up to four times faster The transaction fees are also very low at Litecoin.
As one of the oldest cryptocurrencies Litecoin has many followers. Moreover, it is a bitcoin alternative, which – for crypto ratios – does not have too strong volatility. Litecoin enjoys wide support on trading platforms. In terms of Exchanges Litecoin is also quite well represented. For example, there are providers like bitpanda or even Anycoindirect.eu who support Litecoin. But even one of the industry’s biggest names – Coinbase – is now supporting Litecoin.
Conclusion: Litecoin is an interesting bitcoin alternative. The price is not as volatile as it is with other currencies. The currency is supported by the most important exchanges. In addition, Litecoin convinces through very fast transactions and low fees.
3. Bitcoin Alternative: DASH
The Bitcoin Alterantive DASH (short for “Digital Cash”) was traded in its early days (2014/15) with the names Darkcoin or Xcoin. Like Litecoin, it has partially similar functionality to Bitcoin. But even here there are differences: the transaction fees are much lower and the transaction speed is much higher. In addition, the DASH organization attaches importance to anonymity. This way, all transactions are mixed together and concealed in this way. Part of the fees go to the organization to drive the development of DASH.
In terms of market capitalization, DASH currently occupies sixth place (around $ 3.4 billion) and thus fights tightly with Litecoin for fifth place. The scaling problems of Bitcoin recently caused a rapid price surge of DASH. If you want to trade this bitcoin alternative, you will find enough good providers for it. For example Bitfinex, Bittrex or the social trading platform etoro. In terms of exchanges DASH also finds more and more support (for example, anycoindirect.eu or bitpanda). In addition, there is also a bitcoin debit card with Wirex, which has announced that it will also support DASH in the future.
Conclusion: DASH is an interesting alternative to Bitcoin. The claim to accelerate and reduce digital payments is leading to growing interest in the economy. In addition, there are already a number of exchanges that support DASH and one can expect that the acceptance of DASH will probably increase even more in the future.
4. Bitcoin Alternative: Monero
You attach great importance to anonymity? Then Monero is an interesting bitcoin alterantive. Monero was founded in April 2014 and has since performed impressively. With a market capitalization of $ 2 billion, the Bitcoin alternative is currently ranked 9th.
The special thing about Monero is that you can make transactions absolutely anonymously. This way, unlike Bitcoin, the transactions can not be viewed publicly. In addition, it is not possible to assign Monero addresses to real people. Another distinguishing feature of Bitcoin is Monero’s focus on scalability.
Conclusion: Monero is a bitcoin alternative, which is particularly interesting for users who value anonymity. With a market capitalization of $ 2 billion Monero is one of the shearing weights of the cryptocurrencies.
5. Bitcoin Alternative: NEO
The Bitcoin Alternative NEO is sometimes referred to as the Ethereum of China . As with Ethereum, NEO enables Smart Contracts to be developed on a blockchain basis. A difference to Ethereum is that NEO is not based on a specially developed programming language. Instead, it is possible to use existing programming languages such as Java. But before it gets too technical, here are some interesting points about NEO: The Bitcoin Alternative NEO has a sister company called OnChain. It already has a name in terms of financial services has made.
The company also works with the governments of China and Japan. And that’s exactly what makes this Bitcoin alternative very interesting. How so? China was until recently the largest market for Bitcoin. However, after the government banned Bitcoin trading, much of the Chinese crypto market has moved to nearby Japan. Now, if a cryptocurrency or its sister works with China and Japan, it means that this currency has tremendous growth potential. By market capitalization, NEO currently occupies seventh place. Value: around 1.6 billion dollars.
Conclusion: If you’re not just looking for a Bitcoin Alterantive to handle payment transactions, but also want to speculate a bit, you might like this Bitcoin alternative.
6. Bitcoin Alternative: IOTA
Another bitcoin alterantive is IOTA. IOTA is very attractive in that, unlike Bitcoin, it is not based on blockchain technology but instead on the “Directed Acyclic Graph DAG” called “Tangle”. As a result, IOTA theoretically scales infinitely. In addition, the transaction costs are reduced. The market capitalization of IOTA is currently around $ 1.4 billion, which means eighth place. The Bitcoin Alternative IOTA has focused on the Internet of Things. From a technological point of view, it is an absolute novelty compared to Bitcoin and Co. This makes this currency relatively risky (the technology has yet to be proven). The growth potential for this Bitcoin alternative is correspondingly high.
Conclusion: IOTA is a bticoin alternative with tremendous growth potential. For investors who are not afraid of the risk, IOTA can represent an interesting Bitcon alterantive.
7. Bitcoin Alternative: Bitcoin Cash
Last but not least, we would like to go back to Bitcoin Cash: The currency was created through a fork, which gave the owners of Bitcoin the same amount of coins in Bitcoin Cash. The name of this Bitcoin alternative suggests that I am a variant of Bitcoin, but it is an independent development. One of the main differences is the block size. This is set to a limit of 8 MB for Bitcoin Cash (in comparison Bitcoin: 1MB). As a result, scaling issues, as we are currently experiencing with Bitcoin (slow transactions, high fees), are unlikely in this bitcoin alternative.
This of course sounds convincing and has also meant that Bitcoin Cash has recently risen dramatically. Nevertheless, one may be skeptical of this Bitcoin alternative. The reason: by far the largest share of transactions is generated in South Korea – and not just on individual days, but regularly. The screenshot from Coinmarketcap below illustrates this: Almost 50% of the trading volume is accounted for by South Korea. Such a high dependency on only one country (which, with 51 million inhabitants, is not particularly large) makes Bitcoin Cash a bitcoin alternative to a highly speculative asset.
Conclusion: For traders who are not afraid of the risk Bitcoin Cash may be an interesting specula object. However, if you are looking for a solid Bitcoin alternative, you will probably stay away from it.