Investing in Cryptocurrencies. 5 Best alternatives to Bitcoin in 2022

The blockchain industry has gone through a lot during the past 10 years. There were both joyful ups and downs. And now it is clear to everyone that the money of the future is cryptocurrencies. Even the coronavirus pandemic has not affected the rise of the cryptocurrency market. On the contrary, the value of coins continues to grow steadily. Therefore, many experts believe that now is the time to invest in the crypto sector. But the question immediately arises: how to choose the most promising cryptocurrency that will bring profit? Let’s work together on the coins that will have the greatest potential in 2021

How to choose a currency for investment?

First of all, you should know what exactly to buy. There is no exact answer to the question of which digital currency is better to invest in. You have to carefully study the market and analyze the potential of each project. During the analysis, you need to pay attention to the following indicators:

  • The popularity of the project in the cryptocurrency community. 
  • Ease of movement and storage. Startups with great potential create Several types of crypto wallets. Also, their digital coins are supported by other multicurrency wallet developers.
  • Protection from hackers.  The best cryptocurrencies that use the Proof-of-Work algorithm often have enough power to prevent a 51% attack. 

5 best alternatives to bitcoin in 2021

Ethereum (ETH)

After Bitcoin, the second most popular cryptocurrency is Ethereum. This cryptocurrency ranks second in terms of capitalization and has no restrictions on the issue of new tokens. Now the total emission is almost 113 million ETH. Ethereum has grown 40 times in two years.

ETH is considered one of the most promising cryptocurrencies in 2021. It is because of the usefulness and relevance of the platform. It allows you to develop decentralized solutions for many areas. It was thanks to Ethereum that the ICO boom began. So many countries around the world began to use Ethereum smart contracts for “electronic government” systems. 

ETH has grown steadily since its launch in 2015. So far there are no prerequisites for the fact that Ethereum will drop sharply in price.

Ripple (XRP) is the fastest cryptocurrency

XRP digital currency is ranked in the top five in terms of market capitalization. It is the token of the Ripple platform, which is known for its outstanding processing speed. Therefore, the project attracted the attention of large banks, and the blockchain network is considered the “king of banking infrastructure.”

The Ripple project is carried out by developers who have big experience in creating financial systems. The company proposed an innovative transfer system that in the future may replace the banking standard – the SWIFT platform.

The team of Ripple Labs continues to seek support from big financial institutions and liquidity providers. This enthusiasm will have a positive effect on the value of the asset. So, according to optimistic forecasts, the exchange rate will rise several times.

To date, XRP has grown over 30,000% overall. Moreover, the coin remains a promising cryptocurrency in 2021 with low risks due to the huge number of tokens in circulation.

Litecoin (LTC)

Litecoin was released in 2011 by developer Charlie Lee. The cryptocurrency was created as a fork of Bitcoin. LTC is considered a very attractive long-term investment for three reasons:

  • The coin is widely used for calculations. The number of places where you can pay with LTC is continually growing;
  • Low commissions for transactions (several times less than for a traditional bank transfer);
  • Litecoin’s exchange rate depends on Bitcoin. So, if Bitcoin goes up, then Litecoin will do the same.

Tron (TRX)

The Tron digital currency (TRX) appeared in 2017. It is used as an internal token of the Tron system, which is a global blockchain entertainment content exchange system. The platform also allows gamers to enter into smart agreements and create decentralized applications.

Now the market capitalization of TRX is approaching the $ 2,000,000,000 mark. According to some experts, the value of the cryptocurrency will grow tenfold, and a sharp rise in value will happen in 2021. Therefore, the token is also included in the list of promising low-cost cryptocurrencies.

Neo (NEO)

The Chinese platform NEO works similarly to Ethereum. However, the emission of tokens is limited here. Blockchain continues to grow and offer new features.

NEO has announced a platform upgrade that will drive the asset’s growth. Thus, the company plans to:

  • move to a new blockchain with greater stability and transaction processing speed;
  • add coins to the listing of cryptocurrency exchanges Coinbase and Coinbase.Pro.
  • Now tokens can be found on the American exchange Binance.US. And the international version of this platform added the ability to trade NEO futures.

Therefore, it’s not for nothing that NEO has great prospects in 2021. 

Conclusion

Investing in the cryptocurrency market is now very different from investing in 2017. At that time the goal was to make money on speculation with this or that coin. In 2020, investors are carefully choosing the tokens that will be successful in the future. Now everything has been done to make money on cryptocurrency: there are all kinds of crypto-platforms, and many countries give the green light to cryptocurrency. Therefore, investing in cryptocurrencies in 2021 is a very smart investment.

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