If you’ve been following Bitcoin (BTC) trading and cryptocurrencies in general, you might be wondering if there are any other virtual coins out there that can make you a ton of money as well. While Bitcoin remains the world’s most popular cryptocurrency, there are some competitors that are actually worth buying and trading. In the following list, we’ll introduce you to the top five alternatives to Bitcoin for trading, including alternate ways to trade that could help you increase your profits:
Ripple (XRP) is a relatively unique and progressive form of cryptocurrency because it uses a consensus ledger as a method of confirmation, without requiring the use of computer-based mining. This interesting approach is making it one of the fastest growing Bitcoin alternatives. In particular, trading XRP through CFDs – learn more about that here – has become a popular favorite in recent times.
Litecoin (LTC) is sometimes referred to as the little brother of bitcoin, with a 2011 foundation that was only two years behind BTC’s 2009 inception. It does offer a couple of advantages over Bitcoin in that it utilises faster block generation techniques and can, therefore, facilitate quicker transaction confirmations.
Ethereum (ETH) is a type of currency that is used on the Ethereum software platform and is popular with developers who are looking to create and use apps on the platform. However, it is also useful for investors and traders who want to use ETH to buy other forms of cryptocurrency and benefit from the exchange rate.
Zcash (ZEC) is an open-source cryptocurrency that aims to provide additional privacy and security features. In their system, all of the transactions are still recorded in a blockchain ledger, but personal details such as the names of the senders and receivers remain private.
Monero (MXR) uses a proprietary technique known as ring signatures to ensure complete privacy for its users. As of Feb 2019, MXR had an overall market size of more than 800 million, so this is still a relatively new cryptocurrency that could have the potential for exponential growth.
Why Not Trade All of Them at the Same Time?
A truly proficient trader would have no problem trading all of the above cryptocurrencies along with Bitcoin at the same time. Would that be beneficial in comparison to only trading Bitcoin? The answer to that depends on how well you do in each market. However, there will certainly be days when one of your “other” cryptocurrencies performs better than Bitcoin, so it makes sense to have a diversified strategy when it comes to investing and trading in cryptocurrencies.
Keep a journal of your progress and take note of which currencies and platforms are bringing the best results, then dedicate the majority of your next week’s trading budget into the methods that are already working. By slowly diversifying your trading strategy, you’ll be building a more sustainable and lucrative career as a trader since you won’t be completely dependent on a single market or currency type.