Altcoins have been making headlines in the cryptocurrency world as investors and traders look for the next big thing after Bitcoin. With so many options to choose from, it can be challenging to find the best altcoins to buy that will offer the best potential returns. To help you navigate this exciting market, we’ve compiled a list of the top 10 altcoins worth considering. We’ll also explore what makes altcoins different and the pros and cons of investing in them.
Please remember that this article does not constitute investment advice. Don’t forget to do your own research.
What Is an Altcoin?
An altcoin is any cryptocurrency other than Bitcoin. These digital currencies are built on blockchain technology and often have different features and functions than Bitcoin, such as enhanced privacy or unique consensus mechanisms. Some altcoins serve as the foundation for decentralized applications, while others are designed for specific industries or use cases. They can facilitate transactions, enable governance solutions, underlie reward schemes, and more.
The Pros and Cons of Investing in Altcoins
Before diving into our list, let’s explore the benefits and drawbacks of investing in altcoins.
Pros
- Potential for high returns. While Bitcoin is the most well-known cryptocurrency, many altcoins have experienced significant gains, sometimes even outpacing Bitcoin’s growth.
- Diversification. Investing in altcoins can help diversify your crypto portfolio, reducing your overall risk.
- Innovation. Many altcoins offer unique features and capabilities, such as serving as utility tokens for dApps. These innovations can drive significant demand and adoption, potentially leading to increased market value.
- Accessibility. As the cryptocurrency market continues to grow, more and more platforms offer support for altcoins, making it easier for investors to buy, sell, and trade them.
Cons
- Volatility. Altcoins can be highly volatile: their values are prone to experience dramatic changes in a short period. This can make them risky investments for those unprepared for potential losses.
- Lack of regulation. The crypto space is still relatively unregulated, which can leave investors vulnerable to scams and fraudulent schemes.
- Competition. With thousands of altcoins available, competition can be fierce, making it difficult to pick the crypto assets that will deliver the best returns.
- Liquidity. Some altcoins may have low trading volumes, so one may have a hard time trying to buy or sell them at desired prices.
The 10 Best Altcoins to Buy
With all these pros and cons in mind, let’s explore our list of the 10 best altcoins to buy.
Ethereum (ETH)
Ethereum, created by Vitalik Buterin, is the second-largest cryptocurrency by market cap. It is widely regarded as the leading platform for decentralized applications (dApps). With the recent Ethereum 2.0 upgrade, the Ethereum network has transitioned to a proof-of-stake (PoS) consensus mechanism, which will continue to improve the project’s scalability, security, and energy efficiency in the long run. Ethereum’s strong developer community and ecosystem make it a top choice for investors looking to diversify their portfolios.
Binance Coin (BNB)
Binance Coin is the native utility token of Binance, the world’s largest crypto exchange by trading volume, which was co-founded by Changpeng Zhao in 2017. BNB offers several use cases, including discounted trading fees on the Binance platform, participation in token sales on the Binance Launchpad, and the ability to stake BNB for passive income. Apart from being integrated into various decentralized applications (dApps), Binance Coin is the native token for the Binance Smart Chain, a fast and low-cost blockchain designed for building dApps and smart contracts.
Cardano (ADA)
Cardano is a third-generation blockchain platform that aims to address the scalability, interoperability, and sustainability issues faced by first- and second-generation blockchains like Bitcoin and Ethereum. Cardano uses a unique proof-of-stake consensus mechanism called Ouroboros, which is designed to be more energy-efficient and secure. With a strong focus on academic research and peer review, Cardano has attracted a growing community of developers and investors.
Polkadot (DOT)
Polkadot is a blockchain platform that enables the seamless communication and transfer of data between different blockchains. It aims to solve the problem of interoperability between various blockchain networks, allowing them to work together smoothly. Polkadot uses a unique consensus mechanism called Nominated Proof-of-Stake (NPoS) and introduces the concept of parachains, which are individual blockchains connected to the main Polkadot network. Polkadot’s innovative approach and potential to enable cross-chain communication make it an attractive investment.
Chainlink (LINK)
Chainlink is a decentralized oracle network that connects real-world data to smart contracts on the blockchain. Oracles are essential for smart contracts to access off-chain information, such as price data, event outcomes, or any other external data source. Chainlink’s decentralized network of oracles helps ensure the reliability and security of the data fed into smart contracts. The platform has also developed CCIP, a decentralized interoperability project that creates links between various decentralized networks and Chainlink. Thanks to this, as well as to the growing number of partnerships and integrations across various industries, Chainlink is poised to play a crucial role in the expanding world of web3 and dApps.
Litecoin (LTC)
Litecoin, frequently referred to as the “silver to Bitcoin’s gold,” is designed to be a faster and more efficient version of Bitcoin. With a block time of just 2.5 minutes (compared to Bitcoin’s 10 minutes), Litecoin transactions are processed more quickly, making it an attractive option for everyday use. Litecoin also utilizes a different hashing algorithm called Scrypt, which is considered to be more ASIC-resistant, promoting greater decentralization in mining. As one of the oldest and most established altcoins, Litecoin continues to be a popular choice for investors.
Monero (XMR)
Monero is a privacy-focused cryptocurrency that uses advanced cryptographic techniques to ensure secure and private crypto transactions. Unlike many other cryptocurrencies with transparent blockchain ledgers, Monero transactions are obfuscated, making it difficult for third parties to trace the source, destination, or amount. Monero’s commitment to privacy and fungibility has made it a popular choice for users who value these attributes.
Aave (AAVE)
Aave is a decentralized finance (DeFi) platform that enables users to lend, borrow, and earn interest on various cryptocurrencies without intermediaries like banks. Aave’s token, AAVE, can be used for governance decisions, staking for passive income, and as collateral for borrowing. The platform’s innovative features, such as flash loans and credit delegation, have contributed to its rapid growth and popularity within the DeFi ecosystem. As DeFi continues to expand, Aave’s potential for growth makes it an attractive altcoin for investors.
Uniswap (UNI)
Uniswap is a decentralized exchange (DEX) that allows users to trade cryptocurrencies directly from their wallets without a centralized intermediary. Built on the Ethereum blockchain, Uniswap uses an innovative automated market maker (AMM) system that replaces traditional order books with liquidity pools. UNI, the native governance token of the Uniswap platform, allows its holders to participate in decision-making and earn fees from the platform’s trading activity. As the popularity of decentralized exchanges grows, Uniswap and its UNI token stand to benefit.
Cosmos (ATOM)
Cosmos is a decentralized network of interoperable blockchains designed to create the “Internet of Blockchains.” The Cosmos ecosystem enables different blockchain networks to communicate and transfer value seamlessly, solving the problem of fragmentation and interoperability in the blockchain space. ATOM, the native token of Cosmos, is used for governance, staking, and securing the network. Cosmos’ ambitious vision and innovative technology have the potential to transform the blockchain landscape, making it an attractive investment option for those looking to diversify their portfolios.
Other Altcoins to Buy
The altcoins we’ve mentioned in this article are all relatively well-established. Whereas many other crypto projects may not have the same high market cap, they are still worth looking into due to their similar upside potential.
For example, you can consider investing in play-to-earn and metaverse crypto projects like Decentraland (MANA) or Splinterlands (their native token is Splintershards, SPS). Many of these crypto tokens are used as a medium of exchange on their respective platforms, which gives them use cases for as long as their game/project is popular. If you want to invest in P2E cryptocurrencies, it is sometimes worthwhile to evaluate their potential and existing marketing measures instead of their current market capitalization.
Besides, a meme coin like Shiba Inu can still be considered an altcoin to watch: despite its lack of any unique use case, SHIB has an incredibly reliable and passionate community behind it. The same goes for other meme coins like DOGE.
Stablecoins like USD Coin or USDT can become a good relatively risk-free “padding” for your portfolio. Their current price doesn’t matter as much in terms of investment value — you need to evaluate them in terms of reliability instead.
Finally, you can look into projects dealing with new uncharted territories like web3. For example, the LTO Network (LTO) — a project that provides hybrid enterprise solutions for both public and private services.
Crypto exchanges these days are brimming with promising altcoins. If you don’t know what digital asset to commit to, try investing in several of them but in smaller amounts.
Final Thoughts
As the cryptocurrency market continues to mature and evolve, crypto investors find more and more profitable opportunities in the altcoin space. By considering factors such as current market cap and token price, technological innovations, and use cases, you can pick assets that best align with your investment goal, thus making informed decisions about which altcoins to buy.
It’s important to remember that investing in altcoins carries inherent risks, and the crypto market can be volatile. Always do your own research and consider your risk tolerance before investing in any cryptocurrency. Keep in mind factors such as high token inflation, potential security risks, lack of coherent promotion for the project, and so on.
As you explore these altcoins and the broader crypto market landscape, don’t forget to consider the importance of privacy and security. Don’t share your crypto wallet keys with anyone, and avoid accounts that promise you free coins and offer those “Get rich quick” schemes. Research all projects you want to invest in and see what the community has to say about them.
FAQ
Where can I buy new altcoins?
Most major cryptocurrency exchanges list all big altcoins. When it comes to new promising coins and tokens, it can be a bit harder to find a platform where they are listed. Make sure to check the reliability of the centralized or decentralized platform you’re using before committing to it, as well as their transaction fees and transaction speed.
Binance, Uniswap, Huobi, and, of course, our own platform are all crypto exchanges that have fair rates and fees and often list new interesting projects.
How do I find altcoins with upside potential?
To gauge the altcoin’s potential, one may perform technical analysis and read community posts on the token. Business analysis of the project may help stay in the loop as well.
Remember that looking for successful crypto projects can sometimes be like a lottery. No market expert will ever be able to conclusively say whether a coin will give you huge returns or not. A cryptocurrency can have everything it needs to hit it big but still ultimately fail and never even board the rocket to the moon. Be careful, and don’t put all your funds into just one project, no matter how promising it looks.
What is the best crypto investment right now?
Stablecoins, NFTs, altcoins, and, of course, Bitcoin can all still be good crypto investments. What matters the most is how your chosen crypto project will fit into your existing portfolio. It is typically recommended to diversify your investments.
If you’re wondering what NFTs to buy right now, you can check out our article on promising non-fungible tokens.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
