As a trend leader, Bitcoin has also become the standard for cryptocurrencies, encouraging an ever-growing army of followers and spin-offs.
Key Takeaways
- To put it another way, a cryptocurrency is a distributed and decentralized ledger of digital tokens or “coins.”
- Since the birth of Bitcoin in 2009, cryptocurrencies have evolved tremendously, and a new digital currency might be unveiled as soon as today.
- The popularity, user base, and market capitalization of Bitcoin have kept it at the top of the list of cryptocurrencies.
- Decentralized financial systems (DeFi) are being aided by other virtual currencies like Ethereum.
- It has been argued that certain best Bitcoin alternatives, such proof-of-stake (PoS), offer newer features in comparison to Bitcoin, such as the capacity to process more transactions per second.
Read More: Best Crypto Wallets for Bitcoin
What are Cryptocurrencies?
Let’s take a step back and define a few concepts like “cryptocurrency” and “altcoin” before diving into some of these alternatives to BTC. When used widely, the term “cryptocurrency” refers to digital or virtual currency in the form of “coins.” With the exception of credit cards or other tangible initiatives, the vast majority of cryptocurrencies remain virtual.
Complex cryptography is used to create and handle digital currencies and transactions over distributed networks, thus the term “crypto.” There is a strong focus on decentralization that goes hand in hand with the “crypto” attribute. Cryptocurrencies are often created as code by teams that implement mechanisms for issuance and other controls (often but not always via a process known as mining).
The core component of the cryptocurrency sector is that it is supposed to be free of government manipulation and control, however, this has come under scrutiny as the industry has risen in popularity. Altcoins and shitcoins, a group of cryptocurrencies based on Bitcoin, are generally referred to as altcoins and shitcoins, respectively. Altcoins, even if they can boast features that Bitcoin doesn’t, have yet to match the level of security achieved by the Bitcoin’s networks.
Other than Bitcoin, the following digital currencies that are best bitcoin alternatives will be discussed in detail. There is, however, a caveat: A list like this can never be completely comprehensive. As of January 2022, there were more than 8,000 different cryptocurrencies in existence. Even though many cryptos have little to no fanfare or trading volume, some of them have a committed following of supporters and investors who are very loyal.
To top it all off, the world of cryptocurrencies is constantly evolving, and the next big digital token could be unveiled as early as this morning. Even though Bitcoin is widely regarded as the first cryptocurrency, analysts use a wide range of methods to evaluate tokens that are not based on BTC. Analysts, for example, tend to place a lot of emphasis on the relative market capitalization of different cryptocurrencies.
10 Best Bitcoin Alternatives - Top Cryptocurrencies to invest in 2022
1. Ethereum (ETH)
Rating: 9.2 out of 10
We’ll start with Ethereum (ETH), a decentralized platform for building and running smart contracts and decentralized apps (dApps) free of third-party intervention, fraud, or control. Ether is certainly the best Bitcoin alternative we have. There is a decentralized financial platform that anybody in the world, regardless of country, race or religion, may use for free. Those state identifications and without state infrastructure may acquire access to bank accounts, insurance, loans, and a range of other financial goods in several nations because of this.
Pros
- Numerous ways to trade Ethereum
- It is the 2nd best Crypto
- It is the hub of crypto market
- More secure than others
Cons
- Struggles with scaling
- Complicated programming language
- High Transaction fees
2. Litecoin (LTC)
Rating: 9.0 out of 10
Since its inception in 2011, Litecoin (LTC) has frequently been referred to as “the silver to Bitcoin’s gold,” and it was one of the first cryptocurrencies to do so. Charlie Lee, a former Google developer and MIT alumnus, designed it.
Open-source worldwide payment network based on scrypt as a PoW, that can be decoded by consumer-grade central processing units, is the foundation of Litecoin’s decentralized network (CPUs). A quicker block production rate means that transactions are confirmed more quickly with Litecoin than they are with Bitcoin.
Pros
- Faster transaction confirmation
- Lower fees than others
- Long-standing reputation
- Explosive returns
Cons
- The reputation got tarnished with the founder’s asset sale
- Does not have the impact same as Bitcoin
3. Cardano (ADA)
Rating: 8.8 out of 10
It is a “Ouroboros proof-of-stake” cryptocurrency developed by a team of engineers, mathematicians, and cryptography specialists. As one of Ethereum’s original five co-founders, Charles Hoskinson was a key cog in this project’s inception. He quit Ethereum because he didn’t like the direction the project was going in, and he went on to help establish Cardano in its place.
Cardano’s blockchain was developed via considerable experimentation and peer-reviewed research by the team behind it. More than 120 articles on blockchain technology have been authored by the experts behind this project. Cardano is built on the findings of this work.
Pros
- Great development team
- Academic backing
- Uses multiple layers
- Open-source platform
- Third-generation blockchain
Cons
- It is still in development
- Wants to implement a voting system
4. Polkadot (DOT)
Rating: 8.8 out of 10
In order to facilitate interoperability across blockchains, Polkadot is a unique PoS coin. Using its protocol, blockchains and oracles, both with and without authorization may be linked together to function as a single system. Using Polkadot’s relay chain, different networks may communicate with one other. Parachains, or alternative blockchains, with their own native currency for particular use cases are also possible.
Polkadot differs from Ethereum in that developers may build their own blockchains while still using the security that currently exists on Polkadot’s chain. If you’re a developer who wants to establish new blockchains, you’ll need your own security procedures, which might leave smaller projects vulnerable to assault since the bigger a blockchain, the more protection it offers. Shared security is a Polkadot term for this notion.
Pros
- Allows for shared security within the network
- Communication between multiple platforms
- High Technical prowess
- Powerful advisors
Cons
- High competition
- Long wait time
5. Bitcoin Cash (BCH)
Rating: 8.6 out of 10
To date, Bitcoin Cash BCH has been the most popular and successful hard fork of the original Bitcoin, making it an essential part of cryptocurrency history. Developers and miners discuss and argue in the bitcoin industry, leading to forks. Changes to the fundamental code of a digital currency must be approved by a majority of the currency’s users, which is impossible owing to the decentralized nature of digital currencies.
Pros
- It is Decentralized
- It is scalable
- Bitcoin Cash is highly efficient
- Low transaction costs
Cons
- Low adoption
- Has branding issues
6. Stellar (XLM)
Rating: 8.4 out of 10
In order to facilitate large-scale transactions, the Stellar (XLM) blockchain network connects financial institutions. It used to take several days, numerous middlemen, and a lot of money to complete large transactions between banks and investment companies, but these transactions are now practically instantaneous and they cost little to nothing for the parties involved.
Despite its positioning as a business blockchain for institutional transactions, anybody may use Stellar. Cross-border transactions in any currency are possible thanks to the technology. Lumens are the primary currency of Stellar (XLM). Users can only transact on the network if they have Lumens.
Pros
- It can process thousands of transactions/ second
- Improved trade volume
- Improved daily use rates
- Constant upgrades to its network
Cons
- Strong competition from Ripple
- Relatively unpopular
7. Dogecoin (DOGE)
Rating: 8.4 out of 10
One of the first “memecoins,” Dogecoin (DOGE), made quite a stir in 2021 when its price surged. Some large enterprises, like the Dallas Mavericks, Kronos, and SpaceX, an American aerospace firm controlled by Elon Musk, accept the currency as a means of payment.
Billy Markus and Jackson Palmer, two software programmers, founded Dogecoin in 2013. Apparently, Markus and Palmer created the coin as a parody of the irrational speculative nature of the crypto market.
During the week when Elon Musk was slated to appear on SNL, the price of DOGE reached an all-time high of 68 cents. According to CoinMarketCap, Dogecoin’s market capitalization is $20 billion as of December 2021, making it the 12th biggest cryptocurrency.
Pros
- Profitable
- Engages with Social Media Fans
- Positive comments by Elon Musk
- Has a friendly feel
Cons
- Relies on its fun nature
- Much reliance on Elon Musk for the drive in price
8. Binance Coin (BNB)
Rating: 8.0 out of 10
For costs related to trading on the Binance Exchange, Binance Coin (BNB) serves as a utility coin. This coin has the third-largest market value. Those that pay using the token get a discount on their exchange.
Binance’s decentralized exchange runs on the same blockchain as Binance Coin. Changpeng Zhao launched the Binance Exchange, which is now one of the world’s most commonly utilized exchanges by volume of trade.
Initial versions of Binance Coin were based on the Ethereum network and used the ERC-20 standard. It was later launched on its own network. A PoS consensus model is used in the network. Currently, Binance Coin has a market capitalization of $73.3 billion and a value of $435 per BNB.
Pros
- Unique burndown policy
- Acts as a discount coupon
- Highly popular
- Low fees and fast transactions
Cons
- Heavily centralized
- Regulators want to take it down
9. Tether (USDT)
Rating: 7.8 out of 10
Stablecoins, such as Tether (USDT), try to limit price volatility by tying their market value to a certain currency or to other external reference points. Tether and other stablecoins aim to reduce price swings in order to attract consumers who would otherwise be wary of digital currencies due to their frequent and dramatic volatility, even among large ones like Bitcoin. Tether’s value is closely linked to the US dollar’s value. By using the system, users may send money from other cryptocurrencies back to US dollars in a fraction of the time it would take if they converted to fiat cash.
Pros
- Faster transaction time
- Values stability
- Low fees
- High capitalization
Cons
- Centralization status
- Opacity
10. Monero (XMR)
Rating: 7.8 out of 10
Cryptocurrency Monero (XMR) is untraceable, safe, and private. Cryptocurrency aficionados flocked to this open-source coin when it was first introduced in April 2014. For this cryptocurrency, the development is entirely volunteer and community-driven.
In order to provide perfect anonymity, Monero uses a technology known as “ring signatures,” which encrypts all transactions. At least one actual participant appears in the collection of signatures, but it’s impossible to tell which of them is genuine since they all seem legitimate.
Pros
- Quality and research team
- Excellent mining algorithm
- Merger with the I2P Layer
- Block limit flexibility
Cons
- No specific voting mechanism
- Uses Proof of Work
Conclusion
Out of over 4,000 crypto tokens in the market currently, these 10 have made it to the top! They have all been selected based on what current authoritative stats are saying. You can now conduct a research on each of these best bitcoin alternatives and see which one of these is better for you.