Choosing which altcoin to buy can feel like being a kid in a candy shop. There’s a lot to choose from and it all looks pretty good!
Well, consider us your Candyman (but not the one from the horror film!) because we are going to break down what altcoins are worth keeping an eye on.
“Altcoins” is short for “alternative coins.” And it’s literally any cryptocurrency that is an alternative to Bitcoin. Need more on that? Check this out.
For the first two years after its inception in 2009, Bitcoin was the only cryptocurrency. It was a virtual crypto monopoly.
Then, in 2011, along came the first altcoin, Namecoin, which is essentially dead now. Then Litecoin was developed, as “the silver to Bitcoin’s gold,” which has remained a top cryptocurrency for the past decade.
Since those first altcoins, tens of thousands of them have been created. In the beginning, people created altcoins to be more energy efficient and faster than Bitcoin transactions. Many of them have achieved that goal. And, some have gone above and beyond.
Altcoins can be broken down into different types based on their purpose and how they work.
So, you want to have your cake and eat it, too?
Here are some of the best altcoins you should be watching right now.
There are many stablecoins pegged to the U.S. dollar, meaning one coin will always be worth approximately $1.00 USD. But, Tether is one of the most popular. Its market cap is in the top five, trailing behind Bitcoin, Ethereum, and Binance Coin. However, Tether isn’t just tied to the dollar. It’s also tied to some controversy.
One of the reasons why people question Tether is because only some of its holdings are actually in cash. The rest is in other types of reserves, including commercial paper, which is a type of unsecured, short-term debt. And yet, there are five different versions of Tether, built on different blockchains, which makes it pretty versatile. Plus it’s not just USD … there are also Tether tokens pegged to the Euro, Chinese Yuan, and even gold. Tether can be used for trading, lending, and making payments (where crypto is accepted as a form of payment).
Chainlink is a decentralized oracle network. Its popular use case is for smart contracts. Smart contracts work off of blockchain technology, which can be used for more than just cryptocurrency. With smart contracts, the system can respond to a range of logic-based inputs to lock in the agreement. So, developers can use it to say, “If this happens, then do that.” Chainlink began using the Ethereum blockchain, but it’s like Albert Einstein, in that it's blockchain agnostic. This means Chainlink can operate on different blockchains. Its native token is LINK, which is geared towards financing Chainlink’s growth.
Aave is a decentralized finance (DeFi) tool built on the Ethereum blockchain. It lets people borrow and lend crypto without having to use a middleman (like a bank or credit lender). It can be used as an alternative to traditional loans. When people lend, they earn interest. When people borrow, they have to pay interest. So, Aave replaces the need of a financial institution to get a loan. Token holders get to vote on decisions regarding AAVE. This makes it a governance token in a decentralized autonomous organization (DAO).
Algorand is a decentralized network that uses the Proof-of-Stake (PoS) concept. Silvio Micali, a computer scientist and MIT professor, launched Algorand in 2019. His goal was to create a payments-focused network that can work quickly, securely, and be decentralized. Algorand’s validators earn its native crypto called ALGO. Algorand can be used to host decentralized applications (dApps). Another benefit of Algorand is that developers can use the Algorand Standard Asset (ASA) protocol to create new tokens. They can transfer tokens, like USDT (Tether) on Algorand’s blockchain, too. El Salvador recently announced that the country is going to look at building its own blockchain infrastructure using Algorand’s help.
Polygon is a protocol that can connect Ethereum-compatible blockchain networks. Developers created it to overcome challenges of Ethereum’s blockchain. Polygon is gaining popularity because of its low gas expenses and scalability. The goal of Polygon is to create interoperability. Interoperability is the ability for different networks to operate together with the hope of speeding up transaction times. Consider having multiple horses pulling a heavy load rather than just one horse who can’t move fast enough because he’s lacking energy. Polygon is the rope that ties these horses together.
We can’t talk about altcoins without bringing up the dog. It’s not just Shiba Inu’s cute face that put it on this list. The meme coin hit the world around the same time as Covid (that is, in 2020). But, it’s been in the headlines a lot these days because it’s rapidly moving up the cryptocurrency list in terms of market capitalization. The die-hard fans behind the coin are driving up its value, especially through the use of social media platforms like Twitter. In just the past month, the value has risen by over 900%.
There are so many altcoins in the cryptoverse to get to know. Hopefully, this gave you a better understanding of why cryptocurrencies are gaining popularity.
Did any of these altcoins have you salivating like the kid in the candy shop?
If you said yes, wipe up your drool. Then, head over to your nearest Coin Cloud machine, where you can buy and sell these and many other altcoins using cash. It’s simple because it works as easily as an ATM.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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