It’s not easy to choose which cryptocurrency to invest in. There are so many coins, each with advantages and disadvantages.
Let’s take a look at some of the best altcoins investments.
Bitcoin was the first cryptocurrency, After that Litecoin was released and tagged as the silver to bitcoin’s gold. Faster than bitcoin, with a more significant amount of tokens and a new mining algorithm, Litecoin was a real innovation, perfectly tailored to be the more minor brother of bitcoin.
It facilitated the emergence of several other cryptocurrencies that used its codebase but made it even lighter. The network is peer-to-peer, and transactions occur between users directly through cryptography, without an intermediary.
These transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Litecoin has no centralized issuer; instead, the network is managed by users who run specialized software called miners that approve transactions according to predetermined rules.
Features of Litecoin (LTC)
- Litecoin offers faster transaction confirmations (2.5 minutes on average) and uses a memory-hard, script-based mining proof-of-work algorithm to target the regular computers and GPUs most people already have for mining.
- The Litecoin network is scheduled to produce 84 million currency units.
- One of its most appealing features is how cheap it is to mine bitcoins, which at one point were only 5% as costly as Bitcoin to mine.
A decentralized blockchain middleware enables smart contracts on various networks to connect with the critical resources needed to become business logic. In addition, ChainLink allows users to leverage tokens for payments made between connected systems.
LINK is an ERC20 token that is a payment method for service fees and data costs on smart contracts connected through ChainLink.
Features of ChainLink (LINK)
- ChainLink is a decentralized oracle network that will allow smart contracts on various networks (such as Bitcoin and Ethereum) to securely access external data feeds, web APIs, and traditional bank account payments.
- The ChainLink Network uses three types of nodes: Publishers, Oracles, and Requesters.
- When building an innovative contract application on top of any blockchain network, one encounters significant challenges in data feed reliability and API security.
Stellar is a powerful and secure platform that lets you connect banks, payments systems, and people. You can easily integrate it to move money quickly, reliably, and at almost free. It was developed by Ripple co-founder Jed McCaleb who left Ripple in 2015. Stellar has an order of magnitude more transactions than bitcoin.
It can handle 1500 transactions per second compared with Bitcoins 7 transactions per second. Stellar has innovative contract capabilities. The native asset (XLM) is used to pay transaction fees on the network. The XLM token distribution was utterly fair as each person received free tokens based on their contribution to society.
Features of Stellar (XLM)
- Stellar has a lot of similarities with Ripple and is also traded on exchanges like Poloniex, Bittrex, and Binance.
- Stellar aims to be an open-source protocol for facilitating cross-asset transfers of value, including payments.
- The Stellar network is supported by Stellar Lumens (XLM), which serves as its native currency.
The meme-based cryptocurrency might not be taken seriously by some. Still, it has a vast community that makes it one of the most popular cryptocurrencies for people new to cryptos. You can use it to play online games. The tokens are also used in tipbots across many social networks and internet communities.
DOGE is based on Litecoin, which means it has speedy transaction times and low fees. However, there is no limit on how many Dogecoins can be produced (unlike Litecoin). This could mean that Dogecoin’s value could skyrocket if demand increases (and supply stays constant).
Features of Dogecoin (DOGE)
- Dogecoin is an open-source, peer-to-peer digital currency favored by Shiba Inus worldwide.
- It’s also a fun and friendly internet currency that supports real-world charities such as The Dogecoin Foundation or Moolah using their customized Dogecoin Tipbot on Reddit, Twitter, and YouTube.
Cryptocurrency is still in its early stages, but I’m sure most readers are familiar with these currencies. Investing in cryptocurrencies carries a high level of risk. It may not be suitable for everyone, particularly those investing more small amounts. However, if you want to start trading in cryptocurrency, many investors recommend starting with bitcoin trading software.
I use an investment approach that has worked well throughout my career: Start small and add more funds when you feel comfortable doing so.