The Cryptocurrency market is growing very fast because new coins are being launched with every passing day.
Currently, the global cryptocurrency market is valued at $ 1.49 billion in 2020, is set to reach around $ 4.94 billion by 2023, growing at CAGR of over 12.8% .
Cryptocurrency trading is not just about buying and selling, in fact, it is about making good profits. You can even become a millionaire if you know which altcoins to buy. For this, it is essential to research and invest in those coins that have the potential to grow.
Around 97% of people are now confident in cryptocurrency as an investment vehicle, and 55% consider it to be a long-term wealth-building strategy.
You must be wondering what are altcoins? Altcoins comprise all coins except Bitcoin. If you are a beginner in cryptocurrency and do not know what this online trading is all about, then have a look at this article . You will get answers to some common FAQs that will help you to learn more about crypto.
Even though bitcoin is the king of all coins but nowadays, several altcoins are booming very fast. Many investors avoid investing in bitcoin because of its high price and risk. This is the major reason many investors look forward to diversifying their portfolio with profitable altcoins. Here is a list of top altcoins to buy that can potentially make you a millionaire in the future.
The First Altcoin to Buy: Ethereum (ETH)
The interesting about Ethereum is that it is a blockchain platform as well as a cryptocurrency. This coin is most liked among investors because it has increased in value rapidly over the years. In terms of market capitalization, Ethereum is on the second number. Its market capitalization is over $ 472 billion.
Do you know the price of Ethereum rose from about $ 15 to over $ 4800 within just 5 years?
The Ethereum (ETH) price in USD soared to new heights in November 2021, reaching over 4,800 US dollars. Ethereum hit the news when a digital art piece was sold as the world’s most expensive NFT for over 38,000 ETH – or 69.3 million US dollars. The rally on Ethereum came from technological developments that caused much excitement among traders, such as ” Berlin update ” and the launch of Uniswap V3 in May 2021
Vitalik Buterin, a professional programmer, decided to work on Ethereum in 2013. The development phase started and crowdfunded in 2014, whereas the network went live in 2015. This platform gained instant popularity as it allows anyone to deploy immutable and permanently decentralized applications onto it .
This helps users to interact. The DeFi (Decentralized finance) apps offer an extensive variety of financial services without the involvement of financial intermediaries. Besides, Ethereum also permits to exchange and create NFTs. NFTs are a type of token that is non-interchangeable. They are sold in the online market as a unique piece of art.
Even though Ethereum is the oldest and largest altcoin, but the goal of Ethereum network is completely different from Bitcoin. Initially, this blockchain introduced smart contracts. Smart contracts are codes that are programmed to operate dApps or decentralized applications.
Presently, 2,921 dApps are operating on the Ethereum network. This network is a platform to dApps for NFTs, decentralized finance (DeFi), socializing, and gaming. The success of the network is one of the major reasons why Ethereum has significantly outperformed Bitcoin in the past few years. These are the major reasons that you must consider this altcoin to buy and hold if you want to start investing in crypto.
The Second Altcoin to Buy: Cardano (ADA)
ADA is another altcoin that has created hype in recent years. This cryptocurrency was created by cryptography experts, mathematicians, and engineers with a research-based approach.
One of the co-founders of Cardano Project is Charles Hoskinson, who is also among the founding members of Ethereum. Charles left the Ethereum project due to some disagreements with the team and worked to create ADA.
The team focused on peer-reviewed research and extensive experimentation to create Cardano’s blockchain. There are over 120 research papers based on blockchain technology written by the researchers of Cardano’s project.
ADA comes in the list of top altcoins to buy as it stands out several big cryptocurrencies due to continuous growth. In fact, many crypto experts claim that its blockchain is highly proficient and label it as “Killer of Ethereum” because it has outclassed PoS consensus model.
However, ADA is still in its initial stages and has a long way to go to get success in DeFi applications. Similar to Ethereum, Cardano’s objective is also to become the top financial operating system worldwide. It aims to launch DeFi products and offer solutions for lawful contract tracing, voter fraud, and chain interoperability.
In terms of market capitalization, Cardano stands at the 8th position as of March 2022. The project claims to be more secure and adaptable. It is constantly working on its development and for protection against hackers.
It takes less energy to complete a transaction on Cardano than on a larger network like Bitcoin. This means transactions are faster and cheaper. Last year, Cardano launched a “hard fork,” an upgrade that increased functionality, enabling smart contract deployment.
The Third Altcoin to Buy: DOT (Polkadot)
This coin has a unique PoS that focuses to deliver interoperability to other blockchains. The Polka Dot project is programmed to connect oracles and blockchains so that all systems can work simultaneously in a single place. The relay chain of Polkadot is its major component. It enables the interoperability of unstable networks. Polka Dot even allows parallel blockchains with their built-in tokens for particular cases.
What differentiates DOT from other cryptocurrencies, specifically from Ethereum, is the fact that instead of only creating dApps, it offers developers to make their blockchain. Thus, developers can utilize the same security feature that the DOT chain possess already. This feature of DOT is called shared security.
In the case of Ethereum, developers are allowed to make new blockchains. But they are responsible to take their security measures. This may sometimes lead to smaller and new projects prone to cyberattacks.
Gavin Wood was the creator of Polkadot, who was also a co-founding member of the Ethereum platform. The market capitalization of Polka Dot was around $ 17.4 billion in March 2022.
Do you know that OTC-listed Deutsche Telekom AG (ticker: DTEGY) – Europe’s largest telecom company – bought some of Polkadot’s native DOT cryptocurrency in December, as part of its initiative to integrate cryptocurrency into its accounting system
The Fourth Altcoin to Buy: USDT (Tether)
Tether, also known as USDT, comes in the list of top altcoins to buy having great potential in the future. Currently, the market cap of USDT is $ 80 billion. This coin is backed by Euro and US dollars (fiat currencies) and is available for just $ 1. Thus, it is a stable coin.
According to Letitia James, the New York Attorney General, the holders of USDT can redeem tethers anytime, at the rate of 1 $ from the tether Company. This was announced by Letitia after having a settlement with USDT developers in 2021.
Statista’s research into trading volume for various coins found that Tether is the highest-traded cryptocurrency in 2021. In terms of market cap, it is ranked in the third position.
This coin is specifically liked by those investors who want to stay away from the volatility and complexity that come with other altcoins. Because of its stable nature, USDT helps to smooth out frequent price changes, thus attracting cautious investors.
The Fifth Altcoin to Buy: XLM (Stellar)
It is an open blockchain network programmed to offer enterprise solutions. It connects with financial organizations when huge transactions take place.
It takes a lot of time, high costs and involves several intermediaries for large transactions between investment firms and banks. However, with the XLM network, transactions can be done instantly with little cost and no intermediaries. This is why many investors are keen to buy and hold XLM.
XLM price prediction range from $ 0.5580217 in 2024, over $ 1.854 in 2026, to the most optimistic one $ 2.42765 by 2027.
The Sixth Altcoin to Buy: Binance Coin (BNB)
Launched in 2017, BNB is a popular altcoin that you can add in your investment portfolio to trade as well as to pay transaction fees on Binance. Changpeng Zhao was the founding member of the Binance Exchange. It is one of the most famous and extensively used exchanges worldwide.
Initially, BNB was operated on Ethereum network, as an ERC-20 token. Now BNB has launched its own network which uses a PoS consensus model. BNB has come a long way since its creation. Now it not just facilitates trades but also used for purchasing goods from markets and to book travel arrangements as many companies and stores have accepted BNB as a payment mode.
If you are a BNB holder, then the good news is that you can get good discounts while paying fees on the blockchain. This discount feature has attracted many investors and now it has a facilitating force and growing community that assist traders in day-to-day operations. The current market capitalization of Binance Coin is $ 61.0 billion.
Conclusion
There is no doubt that Bitcoin is the biggest of all the coins present in the market right now. But it takes a lot of capital to get a good profit from Bitcoin. Now you do not need to worry, as Bitcoin is not the end of the world. You can still get rich by investing in altcoins and potentially become a millionaire in the future. So, what are you waiting for? Follow this article’s top list of altcoins to buy now!
Do you want to know where to buy altcoins? Learn about the different types of exchanges and choose the best as per your requirements.