One of the biggest mistakes people make when they start getting involved with cryptocurrencies is limiting themselves to the top ones only. Or even worse, they think that bitcoin is the only one they can trust and should buy into. But the reality is that there are tons of very valuable coins out there with different potentials for earnings, and only buying bitcoin is a bad strategy if you want to maximize your returns. Here are some cryptocurrencies that should be on your radar outside of bitcoin.
Ether is the name of the coin powering the massive Ethereum blockchain network. It is the second most important coin after bitcoin and is one that every investor should consider investing in.
One of the things that make ether such a good investment is that it has an actual utility, which gives it intrinsic value. Another good thing about Ether is its visible and active governance, which steers the direction of the coin. This means that they can interfere to contract or expand supply to counter extreme volatility.
If this is a coin that interests you, you can visit https://www.okx.com/markets/prices/ethereum-eth to check out its price in real-time.
XRP is another very important coin and one that everyone who’s truly involved in cryptocurrency knows. XRP is a special coin too as it was made specifically to help legacy companies use the blockchain to support their operations.
The XRP coin is exchanged on the open market and is exchanged over the Ripple network. Its goal is to facilitate money transfers across jurisdictions and can help banks and other financial institutions circumvent the SWIFT system which can be very sluggish. A lot of major companies have tried working on the Ripple network and bought tokens for transactions, and we could see a day when most financial institutions own at least some XRP to support their transaction flow.
Tether is very different from all the other coins on this list. The sole goal of Tether is to provide a crypto asset that will be stable but easily exchangeable over cryptocurrency exchanges.
Tether is electronically pegged and backed to the U.S. dollar, which gives it added stability, but is accepted on virtually all crypto exchanges on the planet, unlike the dollar. This gives the ability to trade crypto either through exchanges or between users very easily. It can also be used by companies wanting to keep their crypto assets liquid without worrying about them wildly fluctuating in value.
Litecoin is a “hard fork” of bitcoin meaning that it is a coin that is based on bitcoin but was modified to make up for some of its weaknesses. You see, Bitcoin has a very fundamental problem, and it’s the small size of the blocks on its blockchain, which limits the number of transactions the network can process per second.
Litecoin has much larger blocks, which allow its network to process a lot more transitions per second. Bitcoin can only process about seven transactions per second while Litecoin can process 56. Fees are lower too. This is why Litecoin is a must for anyone looking for a coin that has the potential upside of Bitcoin but with more transactional power.
All of these coins should be considered if you were thinking of investing in cryptocurrency. Diversifying your assets will allow you to make more money in the long term and will also make you much more agile and flexible over the markets.