Going Beyond Bitcoin: Alternative Cryptocurrency Options
After Bitcoin’s explosion onto the scene and meteoric rise, we seem to have hit a period of sideways trading. There is not any positive momentum on the price at the moment, and if any does crop up it is quickly squashed, but there isn’t enough negative pressure to send the price below US$10,000 either.
The reason for the slump in Bitcoin seems to be that more issues are being identified with the cryptocurrency. As we learn more about how altcoins work, it becomes clear that they need more regulation than the initial ideal that Bitcoin was created for. The so-called Bitcoin bubble might burst while we continue to develop our understanding of it, so questions about its future feasibility have arisen.
Something else that may not have been anticipated when the idea of Bitcoin was conceived was how many other virtual currencies would follow. But as the blockchain developed in its own right, with altcoins being just one application of the many that it could serve, this is exactly what happened. Now, with Bitcoin flailing, it might be a good idea to look at other options, especially those that deal with the potential pitfalls we’re starting to identify.
Evaluating Your Altcoin Alternatives
Whenever you’re looking at buying any cryptocurrency, there are a number of different factors to consider. Avoid getting burned, as far as possible, by doing your due diligence into the team behind it, how far they are in the process of developing their virtual currency and whether any updates are pending, and the valuation – if they’re too high there could well be a pump-and-dump scenario happening. Looking at the problems the altcoin is trying to solve is important too; it needs to make good sense. Many cryptocurrencies dedicate energy to changes and updates that are, frankly, ridiculous.
Some Cryptocurrency Recommendations
This list definitely isn’t exhaustive, but it does include some of the best alternatives to Bitcoin, which should stand up to the evaluation mentioned above. Consider these, and then use the same evaluative prospective to look at other options.
First up, Litecoin has long been considered an alternative to Bitcoin and could be a good thing to invest in now. The number of Litecoin is set at84 million, or 4 times as many as Bitcoin. Combined with the fact that the unit price of Litecoin is slightly cheaper than Bitcoin, this makes it less volatile. In addition, Litecoin is a good prospect because it’s widespread enough for there to be good-quality online short courses that give you an introduction into it.
Another option that has well-executed online courses to teach you the basics is Ripple. The key difference between Ripple and Bitcoin is that the former is privately owned, while the latter is, of course, decentralised. Ripple is probably the altcoin most different to Bitcoin, with a far more rigid structure aimed more at banks than individuals. Since it is quite a lot more solid, there’s a better chance of major institutions trusting, accepting and using it.
On the other hand, rather than being different to Bitcoin, Monero is perhaps more in line with the original ideas than Bitcoin itself is now – at least as far as anonymity goes. The absolute anonymity that this cryptocurrency provides is at the heart of its appeal, with all details of transactions being obfuscated to make them untraceable. This may sound like a cybercriminal’s dream, and the ransoms demanded in the WannaCry incident were indeed made in Monero. However, corporations who want to keep their money movements away from the eyes of their competitors will see the value in Monero, and since the big businesses are here to stay it should be considered as a solid investment project.
With Bitcoin investors developing something of a love-hate relationship with the cryptocurrency, looking alternatives is never a bad thing and as with all types of investing, only sticking with one option is ill advised.
