When many think of cryptocurrency, Bitcoin is usually the first name that comes to mind. Bitcoin is undeniably the most popular and valuable digital currency, but it’s not the only player in the game. So, if you’re already investing in Bitcoin, these altcoins are worth knowing and even adding to your portfolio.
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1. Ethereum (ETH)
“Ethereum is still a buy for me. The granddaddy of smart contract blockchains, more OGs live and build on Ethereum and its L2 than any other chain. Ethereum is the home of DeFi and a wonderful place to learn about that burgeoning technology. It’s also the only other crypto to have an ETF,” said Johny Gabriele, head of decentralized finance at CryptoOracle.
Ethereum is the second-largest cryptocurrency by market cap after Bitcoin. Its goal is to create a financial system that anyone can access regardless of nationality, even in nations where traditional banking isn’t an option. This opens up possibilities like banking services, loans and insurance for those without access to financial institutions.
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2. Binance Coin (BNB)
Binance Coin began as a token for Binance Exchange but has become a key player in the crypto space. Originally built on Ethereum, BNB eventually moved to its blockchain. It now uses a proof-of-stake model, which helps it process transactions quickly and efficiently.
“Binance uses its chain for CeFi and DeFi operations and has a Layer 2, called opBNB, that uses Optimism rollups. It hasn’t taken off like Coinbase has, but it’s still good. The CeFi exchange carries around 30 million users, while the DeFi chain has 800 protocols and nearly one million active wallets,” said Matthew Ruley, director of content at Dypto Crypto.
3. Tether (USDT)
Tether is one of the most well-known stablecoins. Unlike other cryptocurrencies that experience wild price swings, Tether is tied to the U.S. dollar, making it the best option for those who want to avoid the ups and downs of the crypto market.
“These guys operate like a small country. They buy up government debt. I think somewhere around $80 billion in Treasury bills at the moment. But they also buy bonds in pesos, yuan and euros to fund their stablecoin operations in those tokenized assets,” said Matthew. “So if you want something simple with as little smart contract risk as possible, it’s a decent option.”
4. Solana (SOL)
“Renowned for its high-speed blockchain and low transaction costs, Solana excels in DeFi projects. Its efficiency and developer-friendly environment position it as a strong contender among newer blockchain platforms,” suggested Ronen Cojocaru, founder of 8081.
Solana is sometimes called an “Ethereum killer” because it can handle up to 65,000 transactions per second faster than Ethereum. Since its launch in 2017, this altcoin has grown rapidly, attracting millions of users and developers. It’s the fourth-largest cryptocurrency by market cap.
5. Ripple (XRP)
XRP is the token used on the XRP Ledger, a payment platform created by Ripple. XRP aims to make international payments faster and cheaper, especially for banks and financial institutions.
“Ripple is a fine project. I like everything they’re trying to do. However, the constant battle with the SEC isn’t a good look. And that’s the thing investors look at. Even though the vast majority of crypto users aren’t in the U.S., they still look over here to see what’s going on, and Gensler and Powell’s words can generate large market swings,” Matthew said. “I think it’s a highly speculative investment, and there are better projects currently flying under the radar in both CeFi and DeFi.”
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This article originally appeared on GOBankingRates.com: If You Invest In Bitcoin, Experts Say These Are 5 Other Important Cryptos for You To Know
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
