People are crazy to invest in bitcoin as it is the most famous and valued cryptocurrency. But you will be happy to know that some other cryptos are there that are recently being famous and are used as a great investment asset. It is good to invest in bitcoin. It is also easy through some benefits of Bitcoin but, if you want a diversified investment portfolio then these cryptos will be useful for you.
The 5 Best Cryptocurrencies To Invest In Besides Bitcoin
- Ethereum (Ether): Ethereum is a Blockchain-based network just like bitcoin. It is decentralized and open-sourced. That means, no government or bank can enter into the network to control it. But, with a huge similarity, it also has some dissimilarities with bitcoin. Tn Ethereum, the network is the Ethereum network and the native cryptocurrency is ether. They also work in some different ways than bitcoin. Let’s understand it.
In the Ethereum Blockchain network, there are three components or layers.
- Ethereum Virtual Machine (EVM): It is the network here that is decentralized and that is the main application we understand when we call the name Ethereum. As it has been built on Blockchain technology it provides a distributed ledger system where transactional data are stored in the blocks and that is how the network spread. The network is set in a way that can run automatically when the particular input is triggered. That is called the smart contract facility that it provides.
- Ether: Ether is the native cryptocurrency in the Ethereum network that runs through the EVM. Being complete online currency ether has some real-world connection as per its valuation. You can understand it clearly with the nest point.
- Gas: The distributed Ethereum network needs some energy to run or to work like making a transaction. Here the amount of work is called gas and the energy is ether. Ether is basically a transformed version of energy. So, it has a real-world value.
- Dogecoin (DOGE): It is another popular cryptocurrency that was launched on 6th December 2013 by two software engineers Billy Markus and Jackson Palmer.
The creation of dogecoin has a bit funny story. After the innovation of bitcoin in 2009 people showed their speculations about it. At that time, these two software engineers planned to create a cryptocurrency as a joke to the controversy that was around the innovation of bitcoin. They wanted to develop a much better currency than bitcoin. They were successful in their move and chose the face of the meme dog, Shiba Inu dog as their cryptos logo. It was then launched in 2013.
Though it was created as a joke to some extent dogecoin really performs better than bitcoin. A dogecoin transaction takes less than 2 minutes for a transaction and it charges around $2 which is less than Bitcoin.
- Stellar (XLM): The interesting thing about stellar is that it is not cryptocurrency itself and it facilitates banks and other payment systems for transactions. The cryptocurrency is XLM here that circulates through the stellar network and helps banking transactions by converting crypto to fiat currency. At the time of the digital transaction, XLM is transferred and transformed into fiat currency to be deposited in banks.
- Binance Coin (BNB): Binance coin is a Blockchain-based cryptocurrency that was initially run on Ethereum Blockchain but now it runs on its own Blockchain, the Binance chain. It facilitates quick fund transfer and is a great asset for investment too.
- PolkaDot (DOT): The cryptocurrency Polkadot is recently being famous. It was created in 2017 by Gavin Wood who was one of the Ethereum cofounders.
The Polkadot network is quite different from other cryptocurrency networks. This is also a Blockchain-based network but multiple blockchains are there and the crypto enables cross0blockchain transactions. The network has all the facilities that a decentralized network has like no third-party interference and open-sourced network.
So, these were some top-performing cryptocurrencies that you needed to know about. These cryptocurrencies are performing well since a few years ago. So, you can surely include them in your investment portfolio. You just have to check their market price and future potential at the time of buying them.