In addition to "Bitcoin", the "Top Ten Overlords" that should be paid attention to! What are the "must know" things for beginners to invest in cryptocurrencies? Read the article

Not only has Bitcoin been a trendsetter, leading a wave of cryptocurrencies built on decentralized peer-to-peer networks, but it has also become the de facto standard for cryptocurrencies, inspiring a growing number of followers and derivatives.

What is cryptocurrency?

Before we take a closer look at these alternatives to Bitcoin (BTC), let's take a step back and briefly examine what we mean by terms like cryptocurrencies and altcoins. Cryptocurrencies in the broadest sense are virtual or digital currencies in the form of tokens or "coins". While some cryptocurrencies have made their way into the real world via credit cards or other items, most remain completely invisible.

"Encryption" in cryptocurrencies refers to complex cryptography that allows the creation and processing of digital currencies and their transactions across decentralized systems. In addition to this important "crypto" function, there is a shared commitment to decentralization; cryptocurrencies are often developed as code by teams that build issuance mechanisms (usually but not always through a process called mining) and other control mechanisms .

Cryptocurrencies are almost always designed not to be manipulated and controlled by governments — although this fundamental aspect of the industry has come under fire as they grow in popularity. Cryptocurrencies modeled on Bitcoin are collectively known as altcoins, and in some cases, shitcoins, and often attempt to present themselves as modified or improved versions of Bitcoin. While some of these currencies may have some impressive features that Bitcoin doesn't have, altcoins have yet to see a match for the level of security that the Bitcoin network has achieved to a large extent.

Below, we'll examine some of the most important digital currencies other than Bitcoin. First things first, though: such a list is unlikely to be comprehensive. One reason for this is that as of January 2022, more than 8,000 cryptocurrencies exist.

While many of these cryptocurrencies have little or no trading volume, some of them are extremely popular with a dedicated community of supporters and investors.

In addition to that, the cryptocurrency space has been expanding and the next great digital coin could be released tomorrow. While Bitcoin is widely seen as a pioneer in the cryptocurrency space, analysts have employed a number of methods to value coins other than BTC. Analysts, for example, often place a lot of weight on relative rankings of tokens based on market capitalization. We've taken this into consideration, but there are other reasons why digital tokens might be included in the list.

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1. Ethereum (ETH)

The first Bitcoin alternative on our list, Ethereum (ETH), is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to operate without any downtime, fraud, control or Build and run without third-party interference. The goal behind Ethereum is to create a suite of decentralized financial products that can be freely accessed by anyone in the world, regardless of nationality, race or beliefs. The impact of this on people in certain countries is even more dramatic, as those without national infrastructure and national identification have access to bank accounts, loans, insurance, or various other financial products.

Applications on Ethereum run on Ethereum, which is a platform-specific cryptographic token. Ether (ETH) is like a tool to move on the Ethereum platform, primarily sought by developers who want to develop and run applications inside Ethereum, or by investors who now want to use Ether to buy other digital currencies. Launched in 2015, ethereum is currently the second-largest digital currency by market capitalization after bitcoin, although it lags far behind the dominant cryptocurrency. Trading at around $2,500 per ETH as of January 2022, ether’s market cap is slightly more than half that of bitcoin.

In 2014, Ethereum launched the Ethereum pre-sale, and the response was overwhelming; this helped usher in the era of ICOs. According to Ethereum, it can be used to “encode, decentralize, secure, and trade almost anything.” Following an attack on the Decentralized Autonomous Organization (DAO) in 2016, Ethereum split into Ethereum (ETH) and Ethereum Classic (ETC).

In December 2020, Ethereum switched its consensus algorithm from Proof of Work (PoW) to Proof of Stake (PoS). The move is designed to allow the ethereum network to run on its own with less energy and higher transaction speeds, and create a more deflationary economic environment. PoS allows network participants to "stake" their ether into the network. This process helps secure the network and process transactions that take place. Those who do so will be rewarded with ether, similar to how interest accounts work. This is an alternative to Bitcoin's PoW mechanism, whereby miners earn more BTC to process transactions.

2. Litecoin (LTC)

Launched in 2011, Litecoin (LTC) was one of the first cryptocurrencies to follow in Bitcoin's footsteps and is often referred to as the "silver of Bitcoin gold." It was created by MIT graduate Charlie Lee, a former Google engineer.

Litecoin is based on an open source global payment network that is not controlled by any central authority, and uses scrypt as PoW that can be decoded with the help of a consumer-grade central processing unit (CPU). Although Litecoin is in many ways like Bitcoin, it has a faster block rate and therefore offers faster transaction confirmation times.

In addition to developers, more and more merchants accept Litecoin. As of January 2022, Litecoin has a market cap of $7.3 billion and each token is worth about $105, making it the 22nd largest cryptocurrency in the world.

3. Cardano (ADA)

Cardano (ADA) is a "Ouroboros Proof of Stake" cryptocurrency created by engineers, mathematicians and cryptography experts using a research-based approach. The project was co-founded by Charles Hoskinson, one of the original five founding members of Ethereum. After some disagreements over the direction of Ethereum, he left and later helped create Cardano.

The team behind Cardano created its blockchain through extensive experiments and peer-reviewed research. The researchers behind the project have authored more than 120 papers on blockchain technology, covering a range of topics. This research is the backbone of Cardano.

Due to this rigorous process, Cardano appears to stand out from its PoS peers as well as other large cryptocurrencies. Cardano is also known as the “Ethereum Killer” as it is said to be more functional on the blockchain. That said, Cardano is still in its early stages. Although it beats Ethereum on the PoS consensus model, it still has a long way to go in terms of DeFi applications.

Cardano aims to become the world's financial operating system by building Ethereum-like DeFi products and providing solutions for chain interoperability, voter fraud, and legal contract tracking, among others. As of January 2022, Cardano ranks sixth with a market cap of $33 billion, with one ADA trading at around $1.05.

4. Polkadot (DOT)

Polkadot (DOT) is a unique PoS cryptocurrency designed to provide interoperability between other blockchains. Its protocol is designed to connect permissioned and permissionless blockchains and oracles to allow systems to work together under one roof. The core component of Polkadot is its relay chain, which allows interoperability of different networks. It also allows parachains or parallel blockchains with their own native tokens for specific use cases.

Polkadot differs from Ethereum in that developers can not only create dApps on Polkadot, but also create their own blockchains, while still using the security that the Polkadot chain already has. With Ethereum, developers can create new blockchains, but need to create their own security measures, which can leave new and smaller projects vulnerable because the bigger the blockchain, the more secure it is high. This concept in Polkadot is called shared security.

Polkadot was created by Gavin Wood, another core founder of the Ethereum project, who has a different view on the future of the project. As of January 2022, Polkadot has a market cap of around $19 billion, with one DOT trading at $17.70.

5. Bitcoin Cash (BCH)

Bitcoin Cash BCH has a significant place in altcoin history as it was one of the earliest and most successful hard forks of the original Bitcoin. In the cryptocurrency world, forks are the result of debates and arguments between developers and miners. Due to the decentralized nature of digital currencies, large-scale changes to the underlying code of the token or coin at hand must be made based on general consensus; the mechanics of this process vary from one specific cryptocurrency to another.

When different factions cannot agree, sometimes the digital currency splits, the original chain maintains the authenticity of its original code, and the new chain begins life as a new version of the previous coin, with changes to its code.

Due to one of these splits, BCH started its life in August 2017. The debate that led to the creation of BCH has to do with scalability issues; the Bitcoin network has a limit on the size of blocks: 1 megabyte (MB). BCH increased the block size from 1MB to 8MB, the idea being that larger blocks can hold more transactions in it, increasing transaction speed. It also made other changes, including the removal of the Segregated Witness protocol that affected the block space.

As of January 2022, BCH has a market cap of around $5.3 billion, and each token is worth $280.

6. Stellar (XLM)

Stellar (XLM) is an open blockchain network designed to provide enterprise solutions for large-value transactions by connecting financial institutions. Huge transactions between banks and investment firms - which often take days, involve multiple intermediaries, and cost a lot of money - can now be carried out almost immediately without intermediaries, and for those who make the transactions Almost no cost.

Although Stellar positions itself as an enterprise blockchain for institutional transactions, it is still an open blockchain that anyone can use. The system allows cross-border transactions between any currency. The native currency of Stellar is Lumens (XLM). The network requires users to hold Lumens in order to transact on the network.

Stellar was founded by Jed McCaleb, a founding member of Ripple Labs and developer of the Ripple protocol. He eventually left his position at Ripple to go on to co-found the Stellar Development Foundation. Stellar Lumens has a market cap of $5 billion and is valued at 20 cents as of January 2022.

7. Dogecoin (DOGE)

Dogecoin (DOGE), seen by some as the original "memecoin," is making waves in 2021 as the coin's price soars. Featuring a Shiba Inu as a profile picture, the coin is accepted as a form of payment by a number of major corporations, including the Dallas Mavericks, Cronos, and — perhaps most notably — SpaceX, a company led by Elon Musk Owned by American Aerospace Manufacturers.

Dogecoin was created in 2013 by two software engineers, Billy Marcus and Jackson Palmer. Marcus and Palmer reportedly created the coin as a joke, commenting on the wild speculation in the cryptocurrency market.

The price of DOGE hit an all-time high of about 0.74 cents in the week that Musk was scheduled to appear on Saturday Night Live. With a market cap of $18 billion as of January 2022, one Dogecoin is worth about 14 cents, making it the 11th largest cryptocurrency.

SHIB

The memecoin inspired by memecoin, Shiba Inu (SHIB), came to the fore in fall 2021, briefly surpassing Dogecoin’s market cap.

8. Binance Coin (BNB)

Binance Coin (BNB) is a utility cryptocurrency that serves as a payment method for fees associated with transactions on the Binance exchange. It is the third largest cryptocurrency by market capitalization. People who use the token as a means of payment on the exchange can trade at a discount.

Binance Coin’s blockchain is also the platform on which the Binance decentralized exchange operates. Founded by Changpeng Zhao, Binance is one of the most widely used exchanges in the world by trading volume.

Binance Coin was originally an ERC-20 token running on the Ethereum blockchain. It finally launched its own mainnet. The network uses a PoS consensus model. Binance Coin has a market cap of $62.5 billion as of January 2022, with one BNB worth $372.

9. Tether (USDT)

Tether (USDT) is the earliest and most popular of a group of so-called stablecoins (cryptocurrencies designed to tie their market value to a currency or other external reference point to reduce volatility). Because most digital currencies, even major ones like Bitcoin, experience frequent wild swings, Tether and other stablecoins have attempted to smooth out price swings to attract users who may be cautious. The price of Tether is directly linked to the price of the US dollar. The system allows users to transfer other cryptocurrencies back to U.S. dollars more easily and in a more timely manner than would actually be converted to regular currency.

Launched in 2014, Tether describes itself as "a blockchain-enabled platform...to make it easier to use fiat currencies digitally." In effect, this cryptocurrency allows individuals to take advantage of the blockchain network and related technologies are traded in traditional currencies while minimizing the volatility and complexity typically associated with digital currencies.

As of January 2022, Tether is the fourth largest cryptocurrency by market cap, with a market cap of $78.3 billion, and each token is worth (you guessed it!) $1.

10. Monero (XMR)

Monero XMR is a secure, private and untraceable currency. Launched in April 2014, this open-source cryptocurrency quickly attracted a lot of interest from the cryptography community and its enthusiasts. The development of this cryptocurrency is entirely donation and community driven.

Monero was launched with a strong focus on decentralization and scalability, and it achieves complete privacy by using a special technique called "ring signatures". 28 Using this technique, a set of cryptographic signatures emerges that includes at least one real participant, but the real participant cannot be isolated because they all appear to be valid.

Monero has a bad reputation due to these special security mechanisms - it has been associated with criminal activity around the world. While this is a prime candidate for conducting criminal transactions anonymously, Monero’s inherent privacy also helps dissidents in authoritarian regimes around the world.

Monero has a market cap of $2.6 billion as of January 2022, and each token is worth $143.

We can only list 10 altcoins above, but there are many other significant cryptocurrencies that compete for position in terms of user base, market value, and influence over time.

Why is cryptocurrency important?

As decentralized platforms, blockchain-based cryptocurrencies allow individuals to participate in peer-to-peer financial transactions or enter into contracts. In either case, there is no need for some trusted third-party intermediary, such as a bank, monetary authority, court or judge. This has the potential to disrupt the existing financial order and democratize finance. The size of the cryptocurrency space has grown exponentially over the past decade, with new innovations and a total market capitalization exceeding $1.75 trillion.

Why are there so many cryptocurrencies?

Most cryptocurrencies today are derived in some form from Bitcoin, which uses open-source code and a censorship-resistant architecture. This means that anyone can copy and adapt the code and create their own new coins. It also means that anyone is free to join or transact on its network.

What other important cryptocurrencies are there?

Many cryptocurrencies have become significant or promised to do so. For example, Dogecoin is a meme-based joke coin that shot to fame when Tesla CEO Elon Musk promoted the coin on social media. In addition to Dogecoin and the other currencies listed above, several other Bitcoin forks exist, such as Bitcoin Gold and Bitcoin SV. Other important tokens include Ripple (XRP), Solana, USD Coin and Tezos.

Why is Bitcoin still the most important cryptocurrency?

Despite the emergence of thousands of competitors, Bitcoin — the original cryptocurrency — remains the dominant player in terms of usage and economic value. As of January 2022, each coin (BTC) is worth about $37,500 with a market cap of over $707 billion.

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