There is no doubt that Bitcoin has been the leading cryptocurrency on the market over the past decade. However, with the emergence of many exciting platforms in this sector, there has never been a better time to consider investing in coins other than BTC.
In this article, we will discuss the Best Cryptocurrency Alternative to Bitcoin , highlighting the options currently available on the market and showing you how to buy cryptocurrency right now - all from the comfort of your own home.
The next best alternative to Bitcoin
If you want to buy a cryptocurrency and are interested in alternatives to Bitcoin, below is our list of the top 10 altcoins currently available on the market:
- Ethereum (ETH) - The best alternative to bitcoin - invest now
- Solana (SOL) - Superfast alternative to Bitcoin with low fees - invest now
- Chainlink (LINK) - The best alternative to Bitcoin for long-term holding - invest now
- Aave (AAVE) - A new alternative to bitcoin in the DeFi sector
- Dogecoin (DOGE) - Meme Coin, which acts as an alternative to Bitcoin
- Tether (USDT) - The best alternative to Bitcoin, stable money (Stablecoin)
- Cardano (ADA) - An exciting alternative to Bitcoin, a smart contracts platform
- Polkadot (DOT) - An innovative new bitcoin alternative for interoperability
- Ripple (XRP) - Superfast payment network as an alternative to bitcoin
- Binance (BNB) - A valuable exchange token that is an alternative to Bitcoin
A closer look at the best alternative cryptocurrencies to Bitcoin
If you want to invest in an alternative to Bitcoin, it is important to understand the intricacies of the cryptocurrency you want to trade. Below is our analysis of the alternative cryptocurrencies to Bitcoin listed above, highlighting their uses and future potential.
1. Ethereum (ETH) - generally the best alternative to Bitcoin
Our choice for the best alternative to Bitcoin is Ethereum. Many investors choose to buy Ethereum because it offers completely different services than BTC. Simply put, Ethereum is an open-source blockchain platform that was designed by Vitalik Buterin in 2013.
The key concept behind Ethereum is that it allows developers to create decentralized applications (dApps) with smart contract functionality. Ultimately, this leads to a wide variety of use cases, including in the field withdecentralized finance (DeFi) and NFT.
Because of Ethereum's utility, many other cryptocurrencies have been designed and run on the Ethereum blockchain as ERC-20 tokens. However, one of the most exciting things about Ethereum is its upcoming upgrade to "Ethereum 2.0," which will see the platform move to a sharding approach
. This will significantly increase Ethereum's scalability and reduce fees - which have been a pain point for developers in recent years. Overall, the future of Ethereum in the cryptocurrency ecosystem is extremely bright, making it the current Our best alternative to bitcoin.
2. Solana (SOL) - Superfast bitcoin alternative with low fees
Another of the best alternative cryptocurrencies to consider is Solana. Like Ethereum, Solana is an open-source blockchain network that uses a proof-of-stake (PoS) protocol to reach consensus. However, what sets Solana apart is that it can handle far more transactions per second (TPS) than Ethereum. For example, Ethereum can handle between 15 and 45 TPS, while Solana can handle around 50,000! In addition, since Solana offers lower fees than ETH, it is a much cheaper option for developers.
Solana's price has risen by more than 12,000% in the past year alone, showing how quickly the platform has become popular. The platform's native token, SOL, is used for staking and can also be used for speculation by investors. The future certainly looks bright for Solana, as the DeFi Llama reports that Solana has the fourth highest blockchain value of any blockchain in the world. In the future, as more and more developers choose to use Solana instead of other options, we are likely to see prices rise - which is great news for investors.
3. Chainlink (LINK) - The best alternative to Bitcoin for long-term investment
Chainlink is an excellent alternative cryptocurrency to Bitcoin, which rapidly expanded in 2021. Much excitement is being generated by the network Chainlinkbecause it offers a way to connect decentralized blockchains to the outside world. Simply put, Chainlink works on the principle of a so-called "oracle network" that allows off-chain data to be sourced for smart contracts on the chain.
Since blockchains are decentralized, they need such a service so that specific applications can receive the data they need to function properly (such as stock prices or news).
At the time of this writing, Chainlink already has more than 600 partners, including such lucrative ones as Google i Hedera Hashgraph. The platform is one of the best alternatives to Bitcoin because its token, LINK, can be used for a variety of purposes.
Blockchain users who need data can pay LINK to get it from the oracle on the network, while retail investors can also purchase LINK to speculate on the platform's growth. Overall, Chainlink's innovative applications will ensure its future resilience, which means it's a great choice as a long-term investment.
4th Aave (AAVE) - a new alternative to Bitcoin in the DeFi sector
One of the best cryptocurrencies to consider in the DeFi sector is Aave. If you are not aware, decentralized finance (DeFi) are based on removing centralized authorities, such as banks, from financial transactions through the use of blockchain technology. Aave is one of the best cryptocurrency investments in the area because it offers a unique way to lend and borrow cryptocurrencies - and earn higher returns than traditional financial institutions. Users can borrow cryptocurrency stablecoins (such as DAI) at a low interest rate, and then transfer their holdings to FIAT for use in the real world.
If this situation is reversed, users can also deposit stablecoins into the Aave protocol and get a much better return on investment. It is worth noting that Aave is built on the Ethereum blockchain, so the protocol can leverage the power of this technology to provide security for users. The protocol's native token, AAVE, is crucial to smooth operations, as it is used to vote on potential protocol changes and to pay lenders. As more and more investors seek higher returns than banks can offer, DeFi protocols such as Aave are likely to become more popular, making them a great alternative to bitcoin, which is worth considering.
5. Dogecoin (DOGE) - a cryptocurrency "Meme Coin "which is an alternative to Bitcoin
If you are new to the world of cryptocurrencies, you may want to invest in a Dogecoin. This alternative to Bitcoin began as a joke between two software engineers, but has since grown exponentially, with a market capitalization of nearly $23 billion at the time of this writing! Last year, when Dogecoin hit an all-time high, its value increased by more than 17,000% by 2021. Much (if not all) of this price increase was driven by social media hype on sites such as Reddit, along with mentions from celebrities, including Elon Musk.
Going a little deeper, Dogecoin is used as a means of payment, making it similar to BTC - although transactions using Dogecoin are confirmed much faster than with Bitcoin. As Dogecoin's value grew and the online community rallied around it, the founders used this publicity to further develop the cryptocurrency, and DOGE can now be used as a method of online tipping. Ultimately, while this alternative to Bitcoin doesn't have the technology or potential uses as the other cryptocurrencies on this list, it does have the advantage of a large social media following - meaning there's always the possibility that this coin will skyrocket again in the future!
6. Tether (USDT) - the best alternative to bitcoin - Stablecoin
Tether occupies an exciting role in the cryptocurrency ecosystem and is extremely valuable to all stakeholders. Tether is called a "stablecoin," meaning that it is designed to always be worth $1. Unlike other cryptocurrencies, Tether is mainly used as a medium to avoid the volatility that many cryptocurrencies face. Since Tether is pegged to the dollar, users can convert their FIAT to USDT and then use USDT to purchase other cryptocurrencies. Tether is hosted on the Ethereum blockchain and is controlled by the Bitfinex, one of the largest stock exchanges in the world.
According to CoinMarketCap, USDT has a market capitalization of more than $76 billion, making it the fourth-largest cryptocurrency in the world at the time of this writing. Tether regularly sees trading volumes in excess of $60 billion per day, as investors around the world use it to reduce the volatility of their investments. What's more, companies around the world accept USDT as a payment method, which allows them to retain value better than volatile alternatives. So, although this alternative to Bitcoin is not as exciting as others, it is an extremely valuable digital asset in the field of cryptocurrency trading.
7. Cardano (ADA) - an exciting alternative smart contract platform for Bitcoin
As one of the best cryptocurrencies under $1, ADA is a coin that rarely goes unnoticed by the cryptocurrency enthusiast community. Cardano is an open-source blockchain platform that uses a unique consensus PoS mechanism called Ouroboros. Cardano was founded by Charles Hoskinson, who co-founded Ethereum, and was initially launched in 2017.
Although Cardano offers similar applications to Ethereum, the platform is strongly supported by peer-reviewed literature and has an excellent development team behind it. For this reason, Cardano is seen as a "safer" option for enterprises to use, as it has an academic credibility that other platforms do not have.
Much of the hype around Cardano is based on its potential applications in smart contracts, i.e. contracts that don't require a centralized authority to execute them. What's more, Cardano's network can handle more than 250 transactions per second (TPS) - significantly more than Ethereum.
Finally, Cardano is a much greener alternative to platforms using the mechanism of the proof-of-work (PoW) due to its unique consensus algorithm. Overall, Cardano is slowly growing into one of the most exciting platforms on the market - and one that is a viable alternative to Bitcoin.
8. polkadot (DOT) - an innovative new alternative to Bitcoin providing interoperability
Blockchain platforms such as Ethereum and Cardano operate individually, meaning that developers must decide which platform best suits their needs. Polkadot aims to solve this potential problem by offering a way to communicate and connect the separate networks.
Investors who buy Polkadot are getting exposure to this exciting protocol that will ensure that decentralized applications can maximize their utility and usefulness.
Polkadot achieves this feat through the use of "parachains," which allow other blockchain networks to operate in parallel to Polkadot and use its PoS consensus protocol. In addition, networks that choose to use the Polkadot, they can still maintain autonomy and decide how to update their code and what applications to run.
DOT, the network's native token, can be used by holders to vote on changes - with more use cases planned in the future. Although the price of DOT has dropped by about 52% in recent months, there has never been a better time to invest in this Bitcoin alternative at an attractive price!
9. Ripple (XRP) - a superfast payment network as an alternative to Bitcoin
If you have experience in cryptocurrency trading, you've probably heard of Ripple. Ripple offers a much different service than Ethereum and Cardano because it is a payment settlement system that works in real time.
Banks are now using the system around the world to send money much faster than "traditional" methods - Ripple, for example, can process about 1,000 transactions per second and finalize payments in seconds. In addition, Ripple is much cheaper, which means people can send cross-border payments cheaply.
Investors who want to benefit from Ripple's success should invest in a native token of the Ripple network, XRP. XRP is being used as a temporary settlement layer between currencies, allowing for quick conversion and low fees.
The potential for Ripple and XRP is huge, as the network offers a much more streamlined way to send payments around the world - although it will likely be some time before legacy institutions begin to take full advantage of the network. So if you're looking for a great alternative to Bitcoin, Ripple is also worth considering.
10. Binance Coin (BNB) - a valuable exchange token that is an alternative to Bitcoin
The last bitcoin alternative we will discuss today is. Binance Coin. As the name suggests, Binance Coin is controlled by Binance, the world's largest cryptocurrency exchange. This digital currency has a maximum supply of 200 million tokens, and part of the supply is "burned" every quarter - reducing the supply and increasing the value of the BNB.
Initially, the only use for BNB was to allow users of the platform to trade at lower fees, although more use cases have since emerged.
The Binance cryptocurrency can now be used as a payment method at various merchants around the world, which is similar to BTC. What's more, Binance allows users to invest in initial coin offerings (ICOs) on its platform using BNB, which provide the opportunity for incredible profits.
You can even use BNB to borrow from certain cryptocurrency lending sites. Eventually, as the cryptocurrency market continues to grow and Binance attracts more users, the price of BNB will naturally increase - making it a a viable alternative to bitcoin, which is worth considering.
How to choose an alternative to Bitcoin
If you're wondering, how to buy cryptocurrency, there are certain things to pay attention to. Here are five key factors to consider when choosing which Bitcoin alternative to invest in.
Usability
The use case of the cryptocurrency you are interested in is crucial, as it can help future-proof it against other changes. Platforms like Ethereum have many use cases, which means that in a few years (or even decades) they should still be viable.
Let's take a look at how a use case for a new cryptocurrency can revolutionize existing industries. For example, if you decide to purchase Chiliz, you would gain access to the world's first blockchain-based sports fan rewards platform. You could then exchange your CHZ tokens for Fan tokens, which in turn can be used to receive rewards and promotions.
Technical analysis
As with Forex trading, you need to analyze the price chart to see if your investment is profitable. Keep an eye out for areas of support or resistance where the price is likely to reject, and use indicators such as the EMA or RSI to inform your trading decisions.
Availability
If you decide to Invest in a new bitcoin alternative, you need to make sure it is available for trading. Smaller cryptocurrencies are usually only offered by large exchanges (such as Coinbase), while those with large market capitalization are offered by suppliers such as eToro.
Development Team
The best bitcoin alternatives usually have a solid and experienced development team behind them. When you invest in projects with a good team of developers, you can be sure that the team will make every effort to improve the platform and increase its value - which is important from an investment perspective.
Regulatory threats
Finally, it's worth considering the potential regulation of any cryptocurrency you invest in. DeFi cryptocurrencies are particularly susceptible to this, as regulators are still trying to figure out how to control them. So if you're worried about these regulations, you may want to steer toward "safer" options.
Where to invest in alternatives to bitcoin
Many of the top cryptocurrency exchanges and brokers offer a range of BTC alternatives that users can invest in. Below is our review of eToro, our recommended platform for trading Bitcoin alternatives.
1. eToro - overall the best broker for buying Bitcoin Alternatives
eToro is one of the world's top online brokers, with more than 23 million users in over 100 countries worldwide. Regulated by the Financial Conduct Authority (FCA) and covered by the FSCS, eToro is incredibly safe for investors.
One of the main advantages of eToro is that it offers 42 different cryptocurrencies that can be traded with low transaction fees. Users avoid high fees and instead have to pay a spread, which on eToro is usually very low. For example, the spread in BTC trading is only 0.75%. Besides, eToro does not charge any deposit or account maintenance fees per month.
Deposits can be made from as little as $10, and users can fund their FIAT currency accounts via credit card, debit card, bank transfer or e-wallet. Importantly, eToro even offers a free cryptocurrency wallet app, available for iOS and Android. Using this app, you can protect your cryptocurrency holdings with advanced standardization protocols and DDoS protection @!
Advantages
1. eToro - overall the best broker for buying Bitcoin Alternatives
eToro is one of the world's top online brokers, with more than 23 million users in over 100 countries worldwide. Regulated by the Financial Conduct Authority (FCA) and covered by the FSCS, eToro is incredibly safe for traders in the UK.
One of the main advantages of eToro is that it offers 42 different cryptocurrencies that can be traded with low transaction fees. Users avoid high transaction fees and instead have to pay a spread, which on eToro is usually very low. For example, the spread in BTC trading is only 0.75%. Besides, eToro does not charge any deposit or account maintenance fees per month.
Deposits can be made from as little as $50, and users can fund their FIAT currency accounts via credit card, debit card, bank transfer or e-wallet. Importantly, eToro even offers a free cryptocurrency wallet app, available for iOS and Android. Using this app, you can protect your cryptocurrency holdings with advanced standardization protocols and DDoS protection - and even exchange one coin for another within the app!
Advantages
✔ No high transaction fees
✔ Low spreads on cryptocurrencies
✔ 42 different coins that can be traded
✔ FCA-regulated site
✔ Free cryptocurrency wallet app
How do you buy bitcoin alternatives?
Finally, let's discuss the process of investing in Bitcoin alternatives. Here are five quick steps needed to invest in these cryptocurrencies using eToro - Our number one cryptocurrency trading platform.
Step 1 - Open an eToro account
Visit the homepage eToro and click "Join Now." Enter a valid email address and select a username and password to open an account.
Note - Cryptocurrencies are highly volatile, unregulated investment products.
Step 2 - Verify your identity
Click the "Complete Profile" button on your dashboard and fill out the KYC form required by eToro. You will also need to upload proof of identity (passport or driver's license) and proof of address (bank statement or utility bill).
Step 3 - Make a deposit
To start trading, deposit a minimum of $10 into your eToro account . As for payment methods, eToro accepts credit/debit cards, bank transfers and various e-wallets (such as PayPal and Neteller).
Step 4 - Buy an alternative cryptocurrency to Bitcoin
Search for the cryptocurrency of your choice in the search bar and click "Trade." In the order window that appears, enter the desired position size, check that everything is correct, and then click "Open Trade."
Step 5 - Download eToro cryptocurrency wallet
Once your item is open, go to the App Store or Google Play and search for "eToro Money". Download the app and log in using your standard eToro credentials. Once logged in, you can transfer your transaction from the eToro trading platform to the eToro Money cryptocurrency wallet, ensuring the highest level of security for your holdings!
eToro - Best broker to buy bitcoin Alternatives
In conclusion, in this guide we have covered bitcoin alternatives in detail, highlighting the best options on the market and their future potential. By reviewing the list presented earlier, you will have a solid understanding of your options in the market - ensuring that you make an effective investment decision.
If you would like to invest in Bitcoin alternatives today, we recommend using eToro. By partnering with eToro, you can trade cryptocurrencies from as little as $10 per position - all without commissions and with tight spreads!
The views and opinions expressed here are solely those of the author and should not be taken as financial advice either. Every investment and transactional activity involves risk, so you are advised to do your own research when making any trading, investment or financial decisions.
