Witness the evolution of the cryptocurrency space with altcoins. From pioneering technologies to diverse use cases, explore how these alternative digital currencies break boundaries and reshape the financial landscape. Stay ahead of the curve and explore the exciting world of altcoins.
What are Altcoins?
The crypto space’s onset began in 2009 with the introduction of Bitcoin’s first-ever decentralized token. Since then, innumerable new coins and tokens have been introduced to the crypto dynamic. All these coins are called Altcoins. Every crypto coin that is not Bitcoin is called Altcoin. The invention of these coins is considered an attempt to bring changes and improvements in Bitcoin by working on factors like the total supply of coins, mining algorithm, confirmation time, etc.
Altcoins are developed in a similar blockchain structure as Bitcoin or Ethereum and follow a peer-to-peer network system. Altcoins also need a specific mining method for users to conduct secure web transactions. They generally follow a framework similar to Bitcoin but have additional capabilities and enhanced features, like cheaper transactions, better mining processes, etc. Despite immense competition with over 14,000 Altcoins, Bitcoin still tops the list in the crypto world.
Altcoins have ideally been developed to solve particular problems and not just to collect money. However, Ethereum and Tether are considered top Altcoins per market capitalization, with XRP, MATIC, NEAR, and TRON performing exceptionally well. While predicting these coins’ future value is almost impossible, many more are designed and developed daily.
Types of Altcoins
The different kinds of Altcoins are listed below depending on their mining process, purpose, etc.
Mining-Based: There is a mining system mastered by the altcoins where the new coins are mined by fixing the challenging issues.
Payment Tokens: As the name suggests, these are developed to be used as currency and to trade value between parties. Even though not an altcoin, Bitcoin is the perfect example of a payment token. Ethereum is an excellent example of a payment token too.
Stablecoins: Cryptocurrency trading and use have been marked by volatility since launch. Stablecoins are crypto tokens with a value pegged to another relatively stable asset, like fiat currency, precious metals, or other cryptocurrencies. Stablecoins aim to reduce this overall volatility, as the price fluctuations are not supposed to exceed a narrow range. The most popular stablecoins are Tether (USDT) and Libra of Facebook.
Security Tokens: These altcoins are connected with an enterprise and commence in an initial coin offering (ICO). Security tokens are considered to be the same as customary stocks. While trading, they frequently payout dividends or possession. Security tokens are assets offered on stock markets. Tokenization refers to transferring value from an asset to a token, making them available to investors.
Utility Tokens: These offer the right to services. Simply put, they provide services within a network, pay network fees, buy storage space on the network, or redeem rewards. They are offered as an element of an ICO.
Meme Tokens: This segment of crypto assets is relatively new and has witnessed a significant surge amongst dedicated communities. The greatest examples of Meme tokens are Dogecoin and Shiba Inu. Dogecoin has branched from Litecoin, which sprouted out of Bitcoin. It was created as a joke, yet a digital mode of payment.
Altcoins with Exponential Potential
We have mentioned a few top altcoins in our previous post. Here are a few others that are worth eyeing.
Market cap: Over $22 billion.
XRP and Ripple share a few of the founders. XRP is used on that network to ease exchanging various currency types, including major cryptocurrencies and fiat currencies. XRP was trading at $0.006 in 2017. As of May 2023, it is trading at $0.43, more than a 6000% rise.
Market Cap: Over $6 billion.
Polkadot is a unique blockchain designed to connect different chains with the ability to exchange and use practical information. It enables the exchange of data and processes transactions across parallel blockchains sans compromising security. Developers and programmers can create blockchains using Polkadot security. DOT has no upper limit to its supply, making it exciting for investors and users. Polkadot is currently trading at $5.39.
Market Cap: Over $8 billion.
Polygon is a framework that helps build and connect blockchain apps that work with Ethereum. This protocol sorts scalable Ethereum solutions to help the ecosystem of multiple Ethereum chains. Polygon is a complete multi-chain system that can amalgamate Ethereum and similar blockchains. It is pacing towards becoming a full-fledged scaling and infrastructure platform for Ethereum, offering Optimistic Rollups, Zk Rollups, and more Layer 2 options.
Currently trading at $0.80, experts and the latest reports predict that the MATIC price will likely increase in 2023. It says that the value of MATIC will cross $1.75 in 2023.
Market Cap: Over $1.5 Billion
The NEAR blockchain gained popularity because its creators successfully fixed significant problems common to rival technologies. Using cutting-edge scaling techniques, NEAR ensured that the time and resources needed to develop and run decentralized apps are as little as possible. NEAR contributed towards a difficult yet necessary change in the blockchain ecosystem by creating a platform with open-source code. Currently trading at nearly $1.65, it is set to be one of the cryptocurrencies with a great year.
Market Cap: Over $6 Billion
Tron uses blockchain and peer-to-peer (P2P) network technology to cut out the middleman and let content creators sell their work directly to customers. Software writers use the Solidity programming language to run apps on the Tron platform. Tronix, or TRX, is the cryptocurrency used on the network. Users can keep their crypto assets in a desktop, smartphone, or hardware wallet.
TRON is expected to grow this year with a potential ROI of roughly 57.1% and a current trading price of $0.065.
Is it worth investing in DOT, MATIC, NEAR, TRX, and XRP in 2023?
Considering the current trading prices, the market caps, and the growth potential, 2023 can be an excellent year for all of the above altcoins. If experts are to believe and the technical analysis and charts are diligently followed, the investors can see some significant growth opportunities. However, do not consider this as an investment advice. Crypto markets are aggressively volatile, so your research should be the only basis of your decision. If you are a beginner and looking for a user-friendly yet safe trading platform, then LotusX can be great for you and your investment needs.