Whether you are a part of the crypto-verse who loves to trade and invest almost every single day or a part of people who have not yet engaged in the cryptocurrency world, chances are you have probably heard of Bitcoin at least once or twice in recent years.
It’s not surprising as Bitcoin was the first crypto to be developed and is still one of the leading cryptos nowadays.
However, you should know that thousands of other coins known as altcoins have emerged in the market. What are these coins, and which ones should you keep your eye on? Read on to find out.
What Are Altcoins?
Altcoins or alternative coins gained their name from being an alternative coin to the first crypto – Bitcoin. In short, these coins refer to other cryptocurrencies that are not Bitcoin, including Ethereum – the most popular alternative coin in the market.
Other altcoins also include litecoin, dogecoin, tether, and many more. As the years go by, more and more altcoins have started to develop and are available in the market.
While some altcoins have distinct features and capabilities, the majority of them have the same mechanism and characteristics as Bitcoin. Most of them utilize blockchain technology – a public ledger that records and stores all data and transactions of users.
However, some altcoins may have low volatility and use smart contracts, which also attracts investors to try out investing in altcoins.
As of February 2022, there is an estimated total of over 17,000 alternative coins in the market. Given the large number of cryptos in the market, it can be confusing which one to invest in and which one best suits your financial goals.
This is why some crypto enthusiasts seek guidance in Bitcoin Up (or platforms alike) – a website that provides reliable experts with sufficient knowledge of the market and the right tools for a secure and efficient trading environment.
Are Altcoins Worth Investing In?
Altcoins can be a good alternative to Bitcoin, especially for those who want to diversify their crypto portfolio. Altcoins can be cheaper yet have a good potential to reshape modern finance.
However, it’s given that every investment carries risks so it’s extremely important to research the different types of alternative coins, especially for those who have just started to explore the crypto space.
Doing research and looking into altcoins that show great potential is a must since, as a crypto trader, you must be prepared for the future and avoid or at least decrease the chances of possible losses that might occur anytime.
Several alternative coins were designed and created for experimentation, and most altcoins still have a long way to go to catch up with the biggest names in the market.
Check out these 3 Altcoins that have shown great potential in 2022, and see if it fits your needs and goals:
1. Cardano (ADA)
Cardano is one of the cryptocurrencies that uses proof-of-stake technology. This altcoin is designed to be sustainable and energy-efficient, which means it permits the validation of transactions without using too much energy.
With $1.20 as the current market price, its total market capitalization is around $55 billion, making it the third-largest cryptocurrency in the market worldwide.
2. Solana (Sol)
This altcoin is known to be Ethereum’s first competitor and ranked fifth of the top crypto in 2021; experts in the field have released bullish predictions about Solana’s future.
Experts believe that this altcoin’s blockchain is faster when it comes to transaction process time and has lower fees. With a starting trading rate of less than $2, it hit an all-time high of around $260 in November 2021.
3. Shiba Inu (Shiba)
You may have heard of Shiba Inu, and it’s not surprising since this name is still fresh in the crypto market as it was created just in June 2020. This coin is a popular counterpart of the meme coin, Doge, and was just created as a joke.
But after its first launch, it became an instant hit; all the more as Tesla CEO Elon Musk named Dogecoin a new pet. Like Dogecoin, Shiba Inu also entered the spotlight and instantly gained popularity.
It already became part of the top 10 cryptos in the market just a few months after its foundation.
Conclusion
The golden rule of any investment field is that you must always do research before letting out a huge sum of money.
This is to check whether it is reputable enough to be added to your portfolio and suits your goals and needs. Choosing a coin to add to your collection can be tricky and difficult.
However, if you prefer to invest in altcoins, make sure to understand it properly and check out the three main coins listed above.
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