The crypto market is recovering after the catastrophic events towards the end of 2022. This growth period has led more people to start looking to buy or invest in cryptocurrencies. Many of them are looking for alternatives to Bitcoin that are growing quickly or will do in the coming years.
These altcoins allow traders and investors to diversify beyond Bitcoin and open up additional investment opportunities. Below, we will look at six of the most interesting altcoins to watch in 2023.
1 Eth
Eth is the main cryptocurrency tied to the Ethereum network, although most people use the two terms interchangeably. Developers use Ethereum to run numerous applications on the blockchain, including games, smart contracts, and financial transactions. It is also the go-to option for storing non-fungible tokens (NFTs) and mining.
With a market capitalization of about $210 billion, it is the biggest competitor to Bitcoin and, therefore, the second most popular cryptocurrency. The extensive range of applications that can run on the Ethereum network makes it an excellent investment opinion.
With its growth expected to continue in the following years, you can follow its progress and even trade it on easyMarkets, where you can also see how it is performing and will continue performing against Bitcoin.
2 Tether
Tether was launched in 2017 and is considered an altcoin and one of the most popular stablecoins. Its stablecoin claim comes from the fact that it is tied to a fiat currency, the US dollar.
When a new Tether coin is issued, the creator keeps $1 in their reserve. They then destroy one Tether for each dollar an investor decides to cash out. Because of this, Tether always has a value of around $1.
Its stability also makes it an excellent option for transferring value since it is likely to retain its value compared to other more volatile coins whose value depends on supply and demand movements.
3 Litecoin
Litecoin was launched to address the many flaws and weaknesses people saw with Bitcoin. It is, therefore, one of the first altcoins to enter the market. Its main advantage is that it has faster processing times and lower transaction fees compared to Bitcoin. Litecoin users also want to break up the mining monopolies that typically exist in Bitcoin mining.
Litecoin has followed a different path compared to Bitcoin, even though it wanted to be its alternative. Bitcoin has transformed into an excellent store of value, and Litecoin has positioned itself as the best way to facilitate transactions and exchanges in today’s economies and those of the future.
Bitcoin has an 84 million coin cap, which affects its price dynamics and scarcity.
4 Binance Coin (BNB)
This altcoin is issued by Binance, one of the largest cryptocurrency trading platforms in the world. It uses the Ethereum blockchain; Binance introduced it in 2017. The exchange issued 200 million coins in its initial coin offering, and it regularly buys and destroys some of its cryptocurrencies.
By burning cryptocurrencies like this, the platform reduces supply, which causes the price to increase. The price increases create additional demand, triggering the price to increase even further.
Traders and Investors can buy the coin through Binance. It has a market capitalization of about $30 billion.
5 Cardano
Cardano is very similar to Ethereum in many ways. Firstly, it is one of the earliest advocates for the proof-of-work mechanism, as Ethereum was in the past. It is also a very popular option for creating smart contracts, something the Ethereum blockchain has been used for since its inception.
Like Ethereum has ETH, Cardano has ADA, which offers very low fees and much better security compared to most other altcoins.
Investors should keep an eye on Cardano because there is so much going for it right now, and its increased utility is likely to see it grow by a few orders of magnitude in the next five years.
6 Tron (TRX)
Ton is the cryptocurrency tied to the Tron blockchain. This blockchain was conceptualized for use as a content-sharing platform in 2017. Its main use is allowing users to share Dapps (Decentralised Apps). It also uses a proof of stake consensus, like Ethereum started doing after it made significant changes to its network.
Tron remains an option for those looking for profitable altcoins, and its price is rallying in mid-2023. However, it remains one of the more volatile altcoins. Its huge price swings could mean massive profits or massive losses. It is one to keep an eye on and even invest a little in, but also to be overly cautious about.
Conclusion
Bitcoin remains the most popular cryptocurrency in the world; it is also the one with the most demand. Altcoins have emerged to address different issues with Bitcoin, such as its perceived slow transactions and high transaction speeds, and to perform different functions compared to Bitcoin, such as enabling smart contracts. These altcoins can be great investment options if you know where to look and when to invest, but they present the same investment risks that all other investments and Bitcoin come with.
