Cryptocurrencies continue to frustrate investors despite concurrently creating new billionaires during this challenging period. Many different cryptocurrencies, some of which are very well-known and relatively high-profile, like Ethereum and Ripple. However, Bitcoin is the leading virtual currency that receives the most attention. But there are thousands of less well-known virtual currencies as well.
Even if using virtual currencies to make purchases is still comparatively rare, there is still plenty of money to be gained with these less popular coins that have been compared to the “penny stocks” of the cryptocurrency world and the correct one might be poised for a spectacular increase.
Here is a list of top cryptocurrencies that are the best backup alternatives to a bitcoin. Read the article further for a better understanding.
- Bitcoin Cash (BCH)
In August 2017, the original Bitcoin was forked into Bitcoin Cash, which now has a market worth of $28 billion (£20 billion). The original Bitcoin was restricted to 1MB, resulting in the network’s ability to process transactions at a rate of just seven per second, a significant constraint as Bitcoin gains popularity. The objective was to develop a newer version of Bitcoin with higher block size.
The developers see Bitcoin Cash as the next phase of the virtual currency’s development, promising to deliver speedier peer-to-peer transactions with reduced transaction costs. The ultimate purpose of Bitcoin Cash is to function as real-world digital money for transactions.
- Monero (XMR)
Since July 2012, the open source, crowdfunded cryptocurrency known as Monero has existed. Its initial name was Bitmonero; however, this was later abbreviated to its present name. With a new block being created every two minutes, Monero, a decentralised virtual currency based on the CryptoNote algorithm, provides speedier transactions than Bitcoin.
The fact that Monero is fungible, which means that transactions are secret and there are no “tainted” currencies, gives it an additional edge over Bitcoin. Finally, Monero is resistant to ASIC mining, making it harder for specialized mining firms to mine it, keeping it decentralized.
- Litecoin (LTC)
Charlie Lee, a former developer at Google, developed Litecoin in 2011. With a market worth of $10 billion (£7 billion) at the moment with a hard ceiling of 84 million Litecoins ever created, it is frequently referred to as Bitcoin’s “younger brother” or, to put it another way, the silver to Bitcoin’s gold.
Litecoin is a decentralised cryptocurrency that supports peer-to-peer trades, much like Bitcoin. However, Litecoin employs the Scrypt method, which is quicker and has a goal time of 2.5 minutes for each new Litecoin block, whereas Bitcoin is based on the SHA-256 algorithm (Bitcoin takes 10 minutes for each new block).
As a result, Litecoin offers quicker transactions and reduced transaction fees compared to Bitcoin, which are undoubtedly positive.
- Cardano (ADA)
Cardano is a very young cryptocurrency, having only been issued in 2017 after a protracted “initial coin offering” that began in 2015. Its name is derived from Gerolamo Cardano, an Italian mathematician and physician who lived in the Renaissance and is regarded as a third-generation coin. Charles Hoskinson, who also co-founded Ethereum, is its founder.
Cardano is a blockchain-based cryptocurrency that adopts a scientific approach to cryptocurrencies. Its development is supervised by academic institutions and is based on published academic papers(opens in new tab). Their objective is to strike a compromise between the necessity for regulation and preserving privacy and decentralisation.
Additionally, this virtual currency has the laudably energy-efficient Ouroboros “Proof of Stake” (PoS) technique for speedier transactions. Additionally, because it is built on layered architecture, it is regarded as being extremely secure. The goal of the ambitious Cardano project is to improve upon Ethereum and other more established cryptocurrencies.
Cardano appears to succeed so far; as measured by market cap value, it has swiftly risen to the fifth-largest cryptocurrency.
- Vertcoin (VTC)
Although it’s not as well-known as Bitcoin and Litecoin, Vertcoin was introduced in 2014 and is identical to both. Vertcoin has a block time of 2.5 minutes, is open source, and is decentralised. It also aspires to serve as “the people’s coin.”
In other words, Vertcoin aspires to avoid being under the influence of centralised mining companies like banks. Everybody has the option to mine using basic consumer graphics cards thanks to its ASIC resistance, which prevents it from being dominated by mining farms.
The Lightning Network is also used by Vertcoin for quick blockchain transactions. Additionally, the ‘Atomic Cross-Chain’ feature of the Lightning Network decentralises exchanges by enabling Vertcoin to be converted straight into either Litecoin or Bitcoin. The developers are also developing “Stealth Addresses,” enabling them to offer anonymity within the blockchain’s public ledger.
The popularity of Vertcoin is also influenced by two other things. The first is that it has a vibrant online community. The second significant benefit is that it’s widely accessible and straightforward for beginners to mine utilising one-click software.