It is high time that people now move towards diversifying their portfolios and buying more altcoins rather than simply sticking to bitcoins. That is not to say that the charm of bitcoin is diminishing, but it speaks more about how the value of altcoins is rising, and having them in the portfolio could prove to be an asset. The more diverse the investment profile, the better it would be on two fronts – chances to maximize profits and lesser risk factors. This is the reason why people are now willing to look at the underdogs and the less-popular cryptocurrencies as they see more potential in them.
What are altcoins – Altcoins, or alternative coins, are any cryptocurrencies that are not bitcoins. They were created to follow the actions of the leading crypto and were meant to have similar functions and purposes. However, they have now begun to form their own identities and have made a name for themselves in the crypto market. The wide spectrum of altcoins has varied features and applications. Several altcoins are now posing a threat to bitcoin and its place in the market.
Here are the altcoins that are rising in the ranks that can enhance your portfolio and help your money grow.
Tether–Tether, or USDT, is one of the more appealing cryptocurrencies and one that most people would prefer to have in their profiles as it is a stablecoin. This means that the value of USDT to INR would not see as many rapid and erratic fluctuations as the other cryptos would see because it is not as volatile in nature. The value of USDT is tethered to the value of a US dollar usually at a one-to-one ratio. The approximate market cap of Tether is around 72.48 billion dollars which put it among the top placed cryptocurrencies in the world. It is also one of the most-traded stablecoins across the globe.
Litecoin – Litecoin is also one of the original cryptocurrencies that came into the market to try to fill the gaps that bitcoin couldn’t. It was soon deemed as a competitor to bitcoin as it aimed to provide what the dominant crypto did along with a lot more and at better and faster rates. At the moment, the LTC to INR value is around 3,506.7 rupees. This value, along with the inexpensive transactions, make it a far better alternative for people who are looking to invest in something similar to BTC. While Litecoin has not witnessed very strong growth in recent years, there is still time for it to show its potential.
Ripple – Ripple is not a cryptocurrency, it is the company behind the cryptocurrency (XRP). It describes itself as a ‘payment solutions company’ that would primarily aim at focussing on cross-border payments that can happen at a fast and cheap rate. The payment network, RippleNet, consists of banks and other big financial institutions that have signed on to use the blockchain to make international payments. It also manages the XRP ledger that holds all the transactions and details of transfers via XRP. The trades are settled within seconds making it one of the most desirable networks to opt for.
Avalanche – This is one of the lesser-known cryptos but is slowly increasing in popularity. It describes itself as an open and programmable smart contracts platform for decentralized apps. Any transaction fees can be paid using (AVAX) the cryptocurrency for Avalanche. The network can also power multiple applications like DeFi apps, stablecoins, NFTs, etc. It is one of the largest and most engaged communities. Avalanche can process up to 4,500 transactions per second. The fast method for peer-to-peer transactions is what makes Avalanche appealing to many investors. It has a maximum supply of 720 million coins and has shown great potential in the last year as it increased in value by almost 2,400 percent.
Ethereum – Ethereum, and its cryptocurrency, Ether, is the second-largest crypto in the world behind bitcoin. It had its moments last year where it even outperformed bitcoin. Ethereum’s network went through a major upgrade where the technology is now being developed to handle more transactions per second. Additionally, they are also looking to improve the platform’s overall scalability and lower the transaction fee. Ethereum is not just a store of value, it is also a platform wherein apps (decentralized) can be built. Many projects on the metaverse including NFTs are being built on the platform of this particular network. Its move towards using more sustainable energy has also been appreciated by the investors.
Look beyond bitcoin to see the vast array of cryptocurrencies at your disposal and choose any of the ones that you think will best suit your profile and investment goals. Benefit from your investments to the maximum.
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