The ideal of a cryptocurrency as a secure system of digital money is being challenged by Bitcoin’s recent price volatility. Rather than abandon the cryptocurrency market, however, many investors are looking to alternatives to Bitcoin that will allow stability through diversification.
There are many other reasons for seeking alternatives to Bitcoin, such as speed of transaction, versatility of platforms, and ease of investment. Investors are being offered cryptocurrency alternatives to suit their needs.
Here are some of the big contenders.
Ethereum
According to Tech Advisor, “Ethereum was created as a platform upon which other applications can be built and use Ethereum’s existing infrastructure to function.”
Ethereum’s transaction speed is faster than Bitcoin’s, but its biggest selling point is its ‘smart contracts‘ feature, a digital means of ensuring that the terms of a contract have been fulfilled before a transfer of cryptocurrency is implemented. You can find out more at the Ethereum Project website.
Ripple
Ripple is described by its developers as, “The world’s only enterprise blockchain solution for global payments.” It offers faster transfer speeds than Bitcoin while using blockchain technology to encrypt and secure transactions. Ripple is promoted as an alternative to bank transfer payments.
Litecoin
“Litecoin is seeking to become the currency of the future and wants to allow people to pay for anything from a cup of coffee to a flight abroad through their system,” reports Tech Advisor.
Litecoin is positioned to accomplish this goal by having a transaction time much faster than Bitcoin, while still using the security of Blockchain transaction verification.
How To Invest
According to Bankrate, “With the exception of Bitcoin Cash and Ethereum, buying alt coins usually starts with buying Bitcoin or Ethereum on an exchange like Coinbase and then going to another exchange.”
It’s important for cryptocurrency investors to do research in order to verify the legitimacy and security of a cryptocurrency exchange. Reputable exchanges are well known, and thanks to blockchain verification, records of your transaction will be echoed on all the other reputable exchanges.
Which cryptocurrency is right for you, however, depends on your personal profile. Are you looking for diversification from Bitcoin? An alternative to bank payments? A vehicle for micropayments? The alternatives given here are a place to start in making your investment decision.