Interest in crypto is once again on the rise after Bitcoin’s (CCC:BTC) record-breaking 2020.
Crypto exchanges and online trading platforms have seen a spike in activity. The crypto rally is driven by record amounts of fiscal and monetary stimulus, as well as fears about currencies and inflation. With worldwide recessionary pressure, the novel coronavirus pandemic raging, and political chaos in the U.S., this is hardly surprising. The growing uncertainty is fueling the digital economy as new technology becomes more accessible.
Additionally, I want to touch upon the growing adoption of crypto as a payment method. Online payments system providers Paypal Holdings (NASDAQ:PYPL) and Square (NYSE:SQ) now allow their users and merchants to buy, sell, hold and accept Bitcoin and other cryptocurrencies as a form of payment. Much of Italy’s banking sector now uses Spunta, a blockchain network utilizing technology from New York-based firm R3. Meanwhile, big banks are figuring out how they can monetize from the blockchain. JPMorgan Chase recently went live with its in-house digital currency JPM Coin for the first time with a large technology client.
Ultimately, it looks like an excellent time to invest in crypto.
However, now that you have decided to take the plunge, your attention should turn to what options you have to play the market. Bitcoin’s record-breaking rally has led to a surge in retail investor interest in the cryptocurrency market.
That said, here are five crypto options that you can add to your portfolio that is not bitcoin:
- Ethereum (CCC:ETH-USD)
- Litecoin (CCC:LTC-USD)
- Tether (CCC:USDT-USD)
- Stellar (CCC:XLM-USD)
- Cardano (CCC:ADA-USD)
Non-Bitcoin Crypto to Watch: Ethereum (ETH)
One of the most commonly cited alternatives to Bitcoin is Ethereum, a decentralized, open-source blockchain featuring smart contract functionality. Through Ethereum, you can have free access to their cr no mater who you are. This makes it a very enticing prospect for citizens of countries lacking the state infrastructure to access bayptonk accounts, loans, insurance or other financial services.
Furthermore, the applications on Ethereum run on Ether, the cryptocurrency of the Ethereum network. It is the second-largest cryptocurrency by market capitalization, after Bitcoin. Ethereum now hopes to change its consensus algorithm from proof-of-work to proof-of-stake, allowing for faster transaction speeds. Proof-of-stake helps to secure the network and process the transactions faster.
In exchange, you get Ether similar to an interesting account. It differs from Bitcoin’s proof-of-work mechanism, where you get more Bitcoin for processing transactions. The cryptocurrency is trading at $1,627, leading to a $186.38 billion market cap.
Litecoin is an early bitcoin spinoff or altcoin, starting in October 2011. Technically the cryptocurrency is nearly identical to Bitcoin….