We have Bitcoin and every other alternative currency.
Altcoins are digital currencies that are not Bitcoin.
Everything: ETH, XRP, LTC, etc. (DOGE, however, is a meme coin!)
Currently, Bitcoin is the most widely used cryptocurrency worldwide. And if you don’t have something else, you should HODL it. Just Holding Bitcoin doesn’t make sense if you don’t have enough money; let’s say you can’t purchase at least 0.5 BTC at a specific average price. You have a very slight possibility of becoming very wealthy.
The portfolio also needs a few more cryptocurrencies for diversity purposes. In the end, it is impossible to predict whether Bitcoin will gain popularity and dominance in the future. It has numerous flaws, and those flaws will impede its development even with institutional investors’ backing.
Since Bitcoin is no longer money but an asset, this is just pure speculation. The bitcoin industry’s future breakthroughs will determine if cryptocurrencies can hold their value over time. The five top altcoins that you should currently hold in your portfolio are covered in this post. These alternative currencies forecast enormous gains and a bright future.
You can reduce risk and prepare for prospective market crashes by diversifying your portfolio after it has bottomed out.
Ether (ETH) (ETH)
You are making a massive error if you are not holding ETH alongside Bitcoin.
Bitcoin is a digital asset, while ETH is a market application leader. His Ethereum blockchain, the NFT platform, enables the creation of DeFi applications, and hundreds of tokens have a strong roadmap. BTC and ETH both act as market movers. So if one goes down, the whole market will follow.
The Proof of Stake network will soon replace Ethereum. This results in quicker transaction times, lower fees, and fewer problems with carbon emissions.
This is terrific news because these problems have a detrimental impact on the usage and acceptability of cryptocurrencies.
By betting ETH, you can also get yearly interest. In addition, ETH may be staked on several cryptocurrency wallets and exchanges, including Coinbase.
Gas prices (ETH transaction fees) are considerably cheaper now than they were previously.
ETH competes directly with a few blockchains, like Binance Smart Chain, Polkadot, and Solana. However, we see no rivals for ETH. It is, without a doubt, the most significant and potent blockchain.
Competition refers to using technology, not to value or market share. For example, Polkadot is one of the smaller blockchains that may scale faster and add new features without considering the consequences. On the other hand, ETH is too huge to take unnecessary risks.
If ETH transaction costs decrease and swaps and exchanges become more affordable, it will be a mountain that only a few people can scale.
However, a major if remains. You and I both cannot be there.
Overall, ETH needs to be a part of your cryptocurrency portfolio no matter what appears and poses as your adversary.
Cardano (ADA)
At least some analysts and “experts” think that Cardano is ETH’s main rival.
We sincerely doubt it. ADA has not yet released anything that may be deemed a “product”. Frankly speaking, Cardano does not yet have a product, albeit it is close to completion. It was followed for many years, nearly like a stablecoin. And in 2021, individuals are beginning to understand that Cardano is more than just a coin or token posing as the upcoming big thing. It is.
Cardano is all that all digital coins and tokens want to be; therefore, you have every reason to be optimistic about it. But unfortunately, although it is almost flawless, the test net has not yet been completed.
Because it requires time and money to do what its founder Charles Hoskinson intends ADA to do, Cardano has been under development for so long. Being the most scalable and secure blockchain is Cardano’s core objective.
This indicates that they require a minimum of three items:
A faster rate of the transaction (Proof-of-stake already enabled on Cardano)
For creators of apps, interoperability of a network with high security for the coins stacked.
It’s going to take a long time to finish everything. So the strategy is set up for active development through 2025.
We are essentially placing a wager on Cardano’s future worth as long-term holders. Cardano appears to be improving with each step, and its price has also increased slightly.
It accepts ADA as interest on unheld coins because ADA is a proof of stake currency. A fantastic approach to earn 3% to 5% interest annually is by staking Cardano.
Cardano and Stake thus have wallets similar to Exodus and Atomic.
Solana
Solana is another fantastic altcoin with a solid development team and a good roadmap. Solana is working on a proof-of-history mechanism in addition to being able to process more transactions per second.
Solana can handle 30,000–50,000 transactions per second. In addition, it is more effective than Ethereum in detecting double spending because it uses a Proof-of-History network mechanism.
Very promising. They mostly used to work for businesses like Google, DropBox, Binance, and BMW.
Like Cardano, Solana is built for scalability and quick, highly secure transactions. Particularly in the case of micropayments.
They immediately compete with Polkadot and are one of the most promising ETH rivals.
Solana is a unique initiative, given the application development and deployment speed. As a result, you ought to consider including it in your portfolio.
Solana, which works with Atomic or Exodus wallets, also offers a good return of 10% to 12% annually. Additionally, remember that Exodus is staking without a custodian, meaning that staked coins can be transmitted and redeemed at any time.
BNB
The biggest cryptocurrency exchange in the world is called BNB Binance. Each week, retail banking organizations use it to process billions of dollars.
His BNB coin on Binance is valuable and in demand as a result. Binance Smart Chain’s blockchain is incredibly quick, safe, and affordable. What Ethereum should be is a Binance Smart Chain. Similar to Bitcoin, BNB is regarded as a store of value. His BNB and Ethereum are both now developing smart contracts. BNB has expanded significantly since 2021. All of this is made possible by its meagre transaction fees. And it’s swift.
The Binance Smart Chain (BNB blockchain) operates with validators rather than nodes. This indicates that Ethereum will continue to be energy-efficient even after switching entirely to a proof-of-stake network.
According to market research, BNB is very promising and is now reasonably priced. BNB can use Binance or its Trust Wallet, but be aware of the hazards. Unlike Cardano and Solana, staking BNB locks your funds on the Exodus blockchain.
Therefore, hoarding BNB coins is preferable to silly MEME coins like SHIB or DOGE.
Litecoin / Chainlink
One of the first forks from Bitcoin was Litecoin (LTC). Released in 2011. Consider Litecoin as silver if Bitcoin is gold.
It’s essentially a faster scaling version of Bitcoin in litre form. Although significantly quicker, Litecoin is remarkably comparable to Bitcoin. And transaction costs with LTC are relatively minimal.
We are currently positioned halfway between Chainlink (LINK) and Litecoin. However, we have read that Chainlink is another excellent choice.
Both are highly erratic and fluctuate along with Bitcoin, although Chainlink has exhibited some market resiliency. In our opinion,
Chainlink is extremely quick and supports smart contracts as well. Chainlink seems to be highly successful. It has all the makings of a reliable cryptocurrency in the future.
Chainlink has expanded steadily over the last 12 months along with the market. However, we anticipate their future growth to be slower because they grew swiftly in 2020–21.
As a result, HODLing for a long time is appropriate for both Chainlink and Litecoin.
Note Special: POLYGON (MATIC)
Founded in 2017, Polygon is an Indian cryptocurrency business. By three outstanding software engineers.
The Ethereum blockchain is intended to function as an extension of the MATIC network. As a result, Plasmachain was created for Ethereum. This significantly improved the blockchain’s overall scalability while preserving network integrity.
Currently known as Polygon. MATIC utilizes Layer 2 Scaling and Proof of Stake (Creating a Plasma Chain of the Ethereum Blockchain). For quicker transactions and less expensive gas, Ethereum’s mainnet (Layer 1) is bypassed in favour of an off-chain (Layer 2).
Even though we know relatively little about this aspect of Polygon, our progress in creating the Ethereum ecosystem seems logical so far.
Also utilized are validators. It is, therefore, more centrally controlled than Bitcoin. However, it will be considerably faster because MATIC can execute roughly 10,000 transactions per second.
Finally, Some Advice
You can keep track of your whole bitcoin holdings using the CoinMarketCap app. extremely practical We advise using the exchanges below to purchase cryptocurrency: I utilize these exchanges because they are the safest.
Binance
Kraken
WazirX
Coinbase
Never engage in cryptocurrency trading. Platforms, brokers, and exchanges are the only profitable trading-related businesses.
Spend your time on more worthwhile things. B. Develop your skills to get more money. Do not follow Instagram users who are tiktokers or give cryptocurrency advice while shaking their heads.
They can inform you of market trends and what you desire to hear. However, you cannot speculate on something as fragile as virtual currency since doing so is a sort of gambling. Additionally, you cannot jeopardize your savings, so only invest if you can show that you can lose. As a result, less than 10% of the whole investment portfolio is typical.
In a bull market, everyone is a genius, so remember that.