5 Ethereum alternatives and competitors you can invest and play safe
There is no doubt that Ethereum has taken a safe position in the cryptocurrency market. Ethereum was launched in 2015 and works on a blockchain platform. Ethereum promises a decentralized finance model. It also can execute smart contracts. Smart contracts allow executing legal contracts without any third-party intervention. The contracts are executed effectively when certain conditions are met.
Ethereum was priced at $1 during its launch phase. But, Ethereum touched new heights in November 2021. As of today, Ethereum is priced at $4800 per coin. The growth volume of Ethereum has increased by more than 100% in the past five years. Like Bitcoin, investing in Ethereum is also an expensive affair today.
Considering the continued market growth of Ethereum, it is high time to look at altcoins for your investment and if you’re interested in the comparative study on investments in crypto and banks click here.
Given below are 05 Ethereum alternatives you may consider for your investment.
Launched in 2020, Solana developed its blockchain. This crypto can integrate with other crypto networks. Solana can undertake transactions at a faster speed. This crypto also allows the execution of smart contracts. There are more than 450 decentralized applications currently using the Solana platform. These apps range from decentralized finance services, non-fungible tokens, and other gaming apps. All these apps need Solana coins to complete the development cycle. This explains the reason for the increasing demand and supply of Solana coins.
This particular crypto is deployed by banking financial institutions. Ripple uses the XRP technology to start fund transfers. Leading banks like Yes and Axis uses XRP technology to undertake transactions with huge volumes. The transaction details are stored in their ledger. It can start transactions that are fast, scalable, and ensure low transaction fees. Another notable factor is the intervention by the US SEC to watch all XRP transactions. Considering the impact of Ripple on traditional currencies, this monitoring is inevitable.
In recent times, Polkadot is gaining immense popularity. Since its launch in 2020, Dot has gained immense attention and popularity amongst investors. Polkadot bangs on three years of labor in developing the platform. In 2017, Polkadot announced its initial offering at $0.29. During the launch, it was estimated that Polkadot sold more than $145 million through the initial offering alone. The advantage of this coin is its scalability and transparency in the transaction. Polkadot uses the proof of work strategy to confirm each transaction.
If you have been following crypto news you might be well aware of Dogecoin. This crypto was developed as a meme-based coin toShiba and features a dog in its logo. But, the coin gained attention and popularity amongst investors in the crypto market. Many online shopping websites and other retailers today accept Dogecoin payments. The most recent addition to this list is Tesla. Investors and fans can buy Tesla merchandise in exchange for Dogecoin. Also, the prices have been increasing and allow easy investment for any newcomer to the crypto market.
Litecoin is the first to hit the global market as an alternative to Bitcoin. This coin retains many similar features as compared to its predecessor. This crypto is easy to use and undertakes transactions with reduced transaction charges. The transaction speed is much higher as compared to Bitcoin and provides for secured network support.
Like Ethereum, other cryptos also work on decentralized finance and blockchain philosophy. Also, considering the growing volume of crypto investments many countries are monitoring crypto transactions. Russia and China have already banned crypto payments. Other countries want to legalize crypto payments schemes. Few countries have also set up tax slabs for capital gains on crypto investments. Bringing crypto investment under the tax bucket is an important step towards legalizing it.
Other than the above-listed cryptos you can also choose other altcoins in the market. You need to factor in price volatility and market fluctuations. These reasons invite your complete attention to crypto investments. Tread carefully while choosing your investment option. Yet another important factor for consideration is the exchange from where you buy crypto coins and tokens. There are crypto exchanges that allow for multi-asset trading. Such types of exchanges allow you to trade and diversify your investment options.