Bitcoin stands as the most popular cryptocurrency in the world; it’s also the oldest crypto asset, which is why it’s the most known among the general public. The evolution of Bitcoin has been an interesting topic to discuss since there isn’t much information about how it came to light in the first place.
This cryptocurrency started as an open-source code, and it was advertised as a new system for electronic transactions. Bitcoin has gone through several changes since it was first introduced, and thankfully, it’s being accepted globally as a reliable digital currency for people.
However, there are also other cryptocurrencies (known as altcoins) that are derived from Bitcoin’s open-source code, and some of them have recently surpassed Bitcoin in many aspects. While Bitcoin remains one of the best cryptocurrencies to date, it’s good to analyze other options that have also made a positive impact on the economy worldwide.
It’s also vital to take a look at reliable trading platforms regardless of the asset you’re going to trade, which is why we’re also going to talk about cryptocurrency trading with INX.
Things to Consider
While Bitcoin surpassed the $60,000 mark not long ago, it doesn’t mean that it’s more valuable to potential investors. Keep in mind that Bitcoin currently provides a total supply of 21 million tokens. It’s possible for Bitcoin’s protocol to allow a larger supply in the future, but for now, 21 million is the limit for miners.
Taking that into consideration, Bitcoin is currently generating a return of 108% in investments, and it’s sitting at 18.68 million tokens mined out of the 21 million supply. Some altcoins don’t have such as high price yet, but they offer much higher returns for the investment, beating Bitcoin.
In this case, we’re going to talk about these assets that currently offer a higher return rate for investors and what made them that popular.
Ethereum is often considered the best alternative to Bitcoin; this asset’s goal is to create a “decentralized suite of financial products with worldwide access.” Launched in 2015, Ethereum came with a total supply of 72 million coins, and it has been used for NFT exchanges and initial coin offerings.
This crypto’s creator made Ethereum as a way to bringing a new platform with a more general scripting language, which would allow attaching stocks and property to the blockchain in the future.
Ethereum has scaled in popularity recently, but it also went through Bitcoin’s security and scalability concerns among investors. Currently, Ethereum is going under development to get an upgrade, called Ethereum 2.0. This update’s purpose is to increase the transaction throughput of 15 transactions per second to thousands of transactions per second, achieved by splitting the transaction workload into many blockchains running simultaneously.
Overall, Bitcoin was developed for peer-to-peer transactions, similarly to fiat currencies, whereas Ethereum also provides a platform that allows investors to build distributed applications and smart contracts.
Recently, Ethereum has shown to give a YTD return of 197%, which is slightly higher than Bitcoin’s. While Bitcoin is still more popular than Ethereum, the latter has superior technology which can make it more viable in the future.
Dogecoin has always been a fun cryptocurrency to study. First, it’s important to note that Dogecoin was developed as a joke in 2013. This cryptocurrency features the image of the “Doge” meme which has circulated on the internet for several years now.
While it wasn’t that popular at first, many people used it for micro-tips on social media. Additionally, Dogecoin was released with no market cap, meaning that the coin supply can go up indefinitely.
Dogecoin didn’t get that much attention until this year after Tesla’s CEO, Elon Musk, started tweeting about it. This cryptocurrency has increased over 2,000% in value since the beginning of 2021, beating Bitcoin, Ethereum, and XRP.
Both Dogecoin and Bitcoin are based on blockchain technology, However, the main difference relies on scarcity. Bitcoin currently has a market cap; once miners reach that cap, they’re only going to earn transaction fees. On the other hand, Dogecoin is currently infinite, meaning that miners can mine it as much as they want forever.
Cardano got an increase of over 766% over the past 12 months, which is slightly higher than Bitcoin’s growth over the same period. This cryptocurrency is often shown as a great alternative to Bitcoin since it has a low entry barrier but has a lot of potential for investors.
The difference between Cardano and Bitcoin is that the former came to light as a proof-of-stake blockchain. Additionally, this asset is governed by the Cardano Foundation, EMURGO, and IOHK, meaning that it’s not decentralized as Bitcoin is. Overall, Cardano has gone through a steady but effective development phase, making it a potentially reliable cryptocurrency for the future.
However, it’s important to note that Cardano and Bitcoin have slightly different uses for investors, so it may be more or less suited for you depending on what you’re going to do with it.
While Stellar didn’t experience such a high increase as Cardano, it still went through a 588% increase in return, which is about triple of Bitcoin’s increase. The difference between the two assets is that Stellar works with a much higher payment network speed by speeding up supply chains.
This means that transactions with other coins can take days or weeks to get approved, whereas Stellar transactions can potentially take seconds to get completed. Additionally, Stellar has been reported to been working with the Ukrainian government to create a new digital asset ecosystem for its central bank.
Overall, Stellar has proven to be a great option for cross-border and cross-asset transactions, making it a viable option in the future.
Why Invest in Altcoins Instead of Bitcoin?
While Bitcoin remains the “king” of cryptocurrencies, its derivate altcoins have improved upon its infrastructure, making them more viable options in the future and increasing their value over Bitcoin’s.
Bitcoin doesn’t have a low entry barrier since it’s so popular. People who want a safer investment option may go for low entry coins, such as Cardano, to make the most out of its potential. Keep in mind that the investors that made vast profits from Bitcoin were the ones that invested in it during its early stages.
Final Thoughts – Cryptocurrency Trading With INX
Whether you want to trade Bitcoin, Ethereum, or XRP, you must work with a reliable platform that can protect your funds at any point of your sessions. In this case, cryptocurrency trading with INX is one of the best options you can take today!
INX’s goal is to establish a new trading ecosystem for digital tokens that works with the appropriate regulations and data protection policies. With INX, you’re getting the opportunity to buy/sell cryptocurrencies and security tokens, monitor the market and make technical analysis with the right tools.
Overall, INX aims to be a top-rated listing and trading solution for cryptocurrencies and security tokens, and with the help of its platform, you’re going to be able to make the most out of your trading.
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