Investors have many choices. Even though bitcoin isn’t as hot as it was a couple of years ago, there are still enthusiasts. Indeed, bitcoin (BTC) is going for close to $4,000. What if you want…
Investors have many choices.
Even though bitcoin isn’t as hot as it was a couple of years ago, there are still enthusiasts. Indeed, bitcoin (BTC) is going for close to $4,000. What if you want to invest in cryptocurrency but can’t afford bitcoin? Well, there are alternatives. However, as with any investment, it’s important to recognize that you could lose money. Cryptocurrency is a new frontier, so don’t risk money you can’t afford lose. And, if you decide you’re ready to give cryptocurrencies a try, here are 10 more affordable bitcoin alternatives.
One of the things investors like about Ethereum is that it has a functionality beyond acting as a medium of exchange. The currency, called ether, is a draw, but many investors are actually more interested in the smart contract aspect of the Ethereum network. With smart contracts, it’s possible to enter a number of business arrangements in which the terms of the contract are automatically fulfilled when the parties verify that they’ve held up their end of the deal. Some experts speculate that these contracts could streamline certain transactions, like real estate deals.
The company, Ripple, crented its XRP coin as a way to allow global payment transactions. Because of its private nature, it’s harder to invest in XRP. You have to go through extra steps since Ripple only allows you to buy XRP with other cryptocurrencies. After you create a Ripple account, you have to buy another cryptocurrency on an exchange (like Coinbase), and then use a crypto-to-crypto exchange (like Bitsane) to convert those coins into XRP. For many beginning cryptocurrency investors, this might be a little too much, especially with bitcoin alternatives that are so much easier to invest in.
Unlike many other coins that have seen rather rocky rides in recent years, Litecoin’s price has remained somewhat stable. This has caused it to be seen as something akin to “silver” when compared to bitcoin’s “gold.” Litecoin is actually a fork from bitcoin, and its hallmark is faster settlement than bitcoin. These days, some cryptocurrency enthusiasts complain, it takes a long time for bitcoin transactions to settle. Litecoin is faster, and that flexibility can make it a reasonable bitcoin alternative.
Like ETH, EOS has a functionality that goes beyond payment transactions. EOS is a decentralized operating system as well as being a coin, and it provides the opportunity for businesses to build their own blockchain applications, similar to how the internet allows people to build online applications. EOS has a versatility that has many blockchain enthusiasts interested because it’s a system that is actively working toward widespread applications of the technology.
Bitcoin Cash (BCH)
Back in 2017, a disagreement over how to improve the bitcoin system arose. Enough bitcoin users were annoyed with the increasingly clunky nature of BTC that Bitcoin Cash was born. The fork addresses some of the scaling issues that bitcoin was starting to see, and has become an alternative to “regular” BTC.
One of the selling points for Monero enthusiasts is the fact that it’s a blockchain cryptocurrency that uses a type of cryptography that makes transactions completely anonymous. In some cases, blockchain transactions aren’t completely hidden because they take place on a public ledger. However, Monero obscures the trail and allows you to make completely anonymous transactions and spend your coin the way you want — without worrying that someone will be able to follow the trail.
This is a cryptocurrency with a mission. Cardano plans to use its coin, ada, for transactions, but it’s also planning on building out a financial platform. The goal is to promote financial inclusion at some point. However, Cardano is planning to also look for ways to protect the privacy of transactions along with meeting the changing regulatory environment.
With bitcoin alternatives, there tends to be a leaning toward additional functionality. Dash, on the other hand, is designed as medium of exchange. It’s popular among a certain set of digital nomads and business owners that like to use it to pay people all over the world for goods and services. In general, Dash is faster to process and is also cheaper to use than bitcoin.
Like Monero, the main draw of Zcash is its focus on privacy. Details of sender, amount, and recipient remain private, even though the transactions are recorded on the blockchain. Zcash also has a mission, associating itself with ideas of economic freedom and working to create a cryptocurrency that is resistant to censorship.
Tron’s blockchain platform (the coin is TRX) is all about creating a “decentralized entertainment ecosystem.” The idea is to provide a platform where creators can use blockchain technology to create digital content and entertainment. The goal of Tron is to make it easier to help developers learn how to develop applications using blockchain protocols. It’s one of the cheapest of the “main” bitcoin alternatives.
10 alternatives to investing in bitcoin.
Investors interested in digital currency have choices beyond the well-known bitcoin. Here are 10 of them: