People are once again starting to take notice of bitcoin now that it has been gaining record value. Although, there are some wondering if we have seen the peak and it may be too late to invest. The trick is to buy when it is at its lowest point and then hold it as it rises again.
Since this could take some time, it could be a long wait to be able to make money with it. Luckily, bitcoin is not the only cryptocurrency out there. There are alternatives and they also have their value so it may be a good time to look into bitcoin alternatives. If you already know how to purchase Bitcoin then you can purchase any other type of cryptocurrency out there.
In this article, we will go over several good alternatives for you to consider investing in.
1 – Ethereum
The second most valuable cryptocurrency is Ethereum. The reason this is a good alternative is not just that it has a high value, but its value is tied to its usefulness.
Ethereum was created because it started to become clear that the blockchain could be a very powerful tool since it is immutable. This meant that individual hashes, or blocks, could also be used to create decentralized apps. Anybody in the world could have access to this decentralized suite of financial products without any interference from third parties or a central authority like a bank or government.
Whereas bitcoin’s blockchain only functions as a way to create bitcoins, Ethereum has more use beyond currency speculation. Individuals can use the Ethereum blockchain for things like a bank account or create smart contracts for official documents that are secure and transparent.
This is a good time to look into buying since they are poised to change their proof of work system to one of proof of stake sometime later this year.
2 – Litecoin
One of the biggest drawbacks to bitcoin is that it is very slow when it comes to processing the blocks. It can take quite a while for a hash to be verified. This limits its ability to properly scale and become adopted by the masses.
Litecoin was invented to address this problem and it uses a different encryption method to verify the blocks which is much faster. More transactions can be done per second so it is increasing in popularity for its advanced usability.
Because of this is is very popular with merchants so we should see an increase in the adoption of this coin over time.
3 – Cardano
The key to making money on cryptocurrency is to pick a winner early on and hold onto it while it increases in value. The problem is that some never live up to their promise and end up losing money.
One such young coin that holds a lot of upsides is Cardano. It is favored by engineers and programmers because of how robust the proof of stake encryption is. As it stands now, it looks like the blockchain will be far more useful than Ethereum and will offer a lot more features.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.