You probably have a working grasp of Cryptocurrency if you’re reading this and know what HODL means. If you’re new to Bitcoin and came here looking for information, this post is a fantastic place to start if you want to learn more about it and how to invest in it.
Oh, and for the uninitiated, HODL stands for HOLD. After some Crypto-trading dude made a typo, some clever people turned it into a thing. Internet, well done.
Bitcoin isn’t the only cryptocurrency on the market. There are actually over a thousand others.
Surprised? Be careful. After all, Bitcoin was the first cryptocurrency. It is the most popular since it has the most adopters. However, understanding Bitcoin is only the tip of the iceberg in this brave new world of decentralized digital currency.
We’ll need to talk about these alternatives and the foundation on which the technology is constructed if you really want to grasp Cryptocurrency and how it works.
What is the definition of cryptocurrency?
Cryptocurrency is a decentralized (not controlled by one party or entity) digital peer to peer currency.
All transactions are recorded on a Blockchain, which is a digital ledger. Let’s pretend John wishes to send Paul money. This transaction is reflected as a “block” on the internet. If Paul believes the transaction is legitimate, he will approve it with a cryptographic signature.
The blockchain is the platform that cryptocurrency runs on. Its protocols and strong encryption assure data integrity, eliminating the need for third-party verification (banks, governments, financial institutions, etc.).
It’s worth noting that Blockchain technology opens up a wide range of potential solutions for a variety of applications. Like Bitcoin, it is not precisely implemented as a peer-to-peer payment system. Bitcoin is reliant on the blockchain to function. Here’s a good example:
Cryptocurrencies are divided into three categories.
- Bitcoin is based on a transactional architecture. Transactional cryptocurrencies enable a safe digital payment exchange system.
- Platform — This type of cryptocurrency is intended to act as a foundation for the development of other cryptocurrencies. It operates as a launchpad for Smart Contracts, which are programs that operate under particular terms and circumstances and are executed automatically, quickly, and securely.
- Utility – Consider them as apps that perform a certain function. Ripple is an example of a cryptocurrency.
What other decentralized digital currencies use cryptography given that we know Bitcoin isn’t the only one?
What exactly is an alternative coin?
Alternative Coins, sometimes known as “alt coins,” are cryptocurrencies that are not classed as Bitcoins. Because need is the mother of invention, the majority of these Alt Coins try to leverage blockchain to solve an existing problem.
Some strive to improve on Bitcoin’s merits, while others take a whole different strategy and create their own platform.
Top Alternative Coins to Invest in in 2022
Note that the codes next to each name belong to the currency.
Ethereum (ETH)
Smart Contracts in two words (see Platform category above for definition).
When someone wishes to do something in Ethereum, they start a Smart Contract with the other party. Its network, dubbed Ethereum Virtual Machine, keeps track of all transactions that take place on it.
We prefer Ethereum because:
- It’s the most widely used platform for constructing dApps (decentralized applications) by numerous ICOs today.
- Enterprise-level firms and cryptocurrency exchanges have adopted ERC20 tokens in large numbers (like coinbase announcing their support for Ethereum-based tokens).
- ETH has a total circulating supply of less than 100 million units, which means its value has further room to rise until Ethereum’s market capitalization exceeds $100 billion.
Litecoin (LTC)
Litecoin is modeled after Bitcoin. Its goal is to serve as the silver to Bitcoin’s gold. It’s speedier and can make up to four times as many coins as its predecessor.
They are also more accessible.
- We prefer Litecoin because:
- High adoption rate thanks to payment processors like LitePay and availability at most Bitcoin ATMs around the world.
- The cryptocurrency is supported by a large community of creators, users, and investors.
Enigma (ENG)
Its key selling point is that it protects data privacy while allowing the blockchain technology to function. This is accomplished by using Enigma network nodes.
We enjoy Enigma because:
- A strong team of MIT-educated software developers and marketing specialists.
- Alex Pentland, who sits on the boards of Google and NIssan, is part of a strong team of advisors.
- Catalyst is a working product.
- ENG’s intended total supply is less than 200 million, which means the coin’s price will skyrocket once its market capitalization exceeds $1 billion.
Ethos (BQX)
This cryptocurrency’s purpose is to allow free storage and transfer of any kind of value via its blockchain platform. It intends to accomplish this by utilizing a worldwide wallet, which will make cryptocurrency investing available to anybody in the globe.
We like Ethos because:
- It attempts to tackle a real-world problem, hence it’s a strong use-case (especially with their fiat gateway project).
- Design and marketing teams are outstanding.
- Total circulating supply of 220 million ETHOS is the goal.
Waves (WAVES)
Waves allows users to create their own cryptocurrency tokens. Its name relates to both the currency and the type of blockchain it uses, which is proof-of-stake.
We like Waves because:
- Faster transactions and a clearer route to scalability than Ethereum (which is one of the biggest challenges faced by most blockchain-based platforms).
- It’s the market’s only enterprise-ready bespoke tokens platform (designed for easy crowdfunding).
- 100,000,000 WAVES is the total supply goal.
Network of Golems (GNT)
Imagine combining the processing power of millions of computers and allowing everyone connected to the Golem Network to use it.
Isn’t it cool?
Anyone linked to it can tap into massive computer power and use it for demanding activities like graphics and video rendering. All for a reasonable price.
We enjoy The Golem Project because:
- This is a highly intriguing initiative with a lot of potential for widespread adoption.
- The technology is likewise aimed at a massive market (for both B2B or B2C cloud computing)
GameCredits (GAME)
If you’re a gamer who finds in-game purchases inconvenient and bothersome, the Game Credits cryptocurrency could be the answer.
Its ambition is to become the gaming industry’s de facto digital currency.
We enjoy GameCredits because:
- Building a strong community by actively seeking out and gaining partnerships (especially in the eSports space). Definitely a marketing pro.
- It’s in one of the fastest-growing industries (gaming), with a massive market (the worldwide gaming market is about $100 billion, and is predicted to keep rising over the next decade).
- GPlay, GNation, and PixelWars are all working products.
Bottomline
Thank you for sticking with me this far. You genuinely care about altcoins and cryptocurrencies. Some of us may find the world of cryptocurrency difficult to grasp at first. But don’t be put off by this.
If you’re serious about learning more about crypto and maybe investing in it, you need first learn about the science underlying it.
Due diligence is critical.
And hopefully, this advice will assist you in conducting research and developing strategies.
