When Bitcoin went live in 2009, countless developers realized the potential of the then-new cryptocurrency. In this realization, they’ve made cryptocurrencies of their own called ‘altcoins’. Each with their own prices, features and followers, these tokens were made to function as new alternatives to Bitcoin for different user goals.
Learn about these altcoins at Casino Days and find the best ones for you to invest in to enjoy their many incredible features. So start your investment journey today by reading the altcoin guide below.
Defining altcoins
Altcoins are simply all cryptocurrencies that aren’t Bitcoin. However, since Bitcoin is the first cryptocurrency, many of these coins patterned their software processes and overall functionality after Bitcoin.
For example, Litecoin (LTC) uses the same Proof-of-Work (PoW) functionality that Bitcoin uses. In doing so, mining LTC tokens is similar to mining BTC as it requires members of the network to solve complex mathematical problems.
Today, the number of altcoins available for you to invest in has risen to more than 15,000, each with its own purpose and function to help you out.
Altcoin variants
Aside from wanting to own a potentially billion-dollar asset, the reason developers made altcoins was to accomplish things Bitcoin couldn’t. Whether it’s to allow a faster transaction process or be able to execute certain tasks through a blockchain, the reasons why different altcoins were created vary.
This diversity in purpose and functionality brought forth a wide range of altcoin variants. To learn more about them in detail, check them out below:
Mining-based
This type of cryptocurrency are obtained through the aforementioned Proof-of-Work system. In PoW, miners solve mathematical problems and verify data to complete transactions. In exchange, they receive newly minted coins. This mining process is based directly on the Bitcoin network.
Some mining-based cryptocurrencies you can invest in include first-generation crypto such as Ethereum (ETH) and Litecoin (LTC).
Stable coins
As evident by its name, stablecoins are the most stable cryptocurrency variants out there. Since it’s connected to less volatile assets like fiat currency, oil and gold, it remains stable against any price drops in the crypto market.
An example of this in practice is the Tether (USDT) token. It’s valued at 1:1 with the US Dollar, so you won’t have to worry about the price dropping and losing your investment.
Utility
Some crypto companies create blockchain that offer decentralised services. But for you to access these, you’ll need their specific utility token that functions within their network first.
For example, cryptocurrency exchange Binance uses Binance Coin (BNB) to lower transaction fees. Using this to pay transaction fees automatically gives users a discount.
Other utility tokens you can invest in include Filecoin (FIL) and Domain Name System (DNS).
Meme
As cryptocurrencies rose to fame, many sceptics, including then-Adobe product manager, Jackson Palmer made jokes about it. Seeing how ridiculous it is, Palmer drew up his own ‘cryptocurrency’ with the Doge meme at the centre of the coin.
With many netizens finding it hilarious, the ‘Dogecoin’ got a lot of attention. However, when Palmer met IBM developer Billy Markus, Dogecoin went from being a funny joke to a real cryptocurrency that has now become a billion-dollar asset. Due to this, more developers followed Palmer and Markus’ footsteps and made their own meme-based cryptocurrencies.
Aside from the Dogecoin (DOGE), other meme tokens to invest in include Shiba Inu (SHIB), Dogelon Mars (ELON) and Monacoin (MONA).
Security tokens
When you buy these tokens, it’s like you’re buying stocks from a company. This is because they allow you to earn, experience a variety of rewards and services in your chosen network and even vote on community decisions.
For example, Chilliz (CHZ) allows you to make decisions with the sports team you’re supporting.
Best altcoins to purchase
As mentioned above, there are 15,000+ tokens available, making it challenging as to which one you should choose. Fortunately, Casino Days has prepared some tokens you can invest in:
Ethereum (ETH) – Mining-Based
- Rank: #2 (After Bitcoin)
- Current price: $3,917.44
- Market cap: $467,959,280,637
For developers who create smart contracts and distributed applications (dApps), Ethereum is an ideal token to purchase. In having ETC, your business can improve as it has swift transaction process times, combat censorship and keep your online transactions safe from third-party access.
Tether (USDT) – Stablecoin
- Rank: #4
- Current price: $1
- Market cap: $76,432,984,436
Created to connect fiat to cryptocurrencies, Tether is one of the tokens used to fight off the volatility of other altcoins. It’s also incredibly stable, safe and cheap in terms of transaction charges when purchasing tokens using fiat currencies.
In terms of value, Tether follows a 1-to-1 ratio with the U.S. dollar to combat its own volatility. However, despite the connection, it can’t be converted to US dollars.
Filecoin (FIL) – Utility
- Rank: #34
- Current price: $35.84
- Market cap: $5,004,315,956
When purchasing FILs, you get to buy digital storage/retrieval opportunities through peer-to-peer processes. In doing so, you’re assured of long-term storage for any of your important items.
Dogecoin (DOGE) – Meme
- Rank: #12
- Current price: $0.1706
- Market cap: $22,622,119,288
Unlike all the other tokens on this list, DOGE doesn’t have a unique purpose that’s different from Bitcoin—it’s simply a cheaper alternative to the token. DOGE is also known to be faster than BTC, with a transaction time of a minute compared to the latter’s 10.
Due to this, DOGE is used by countless supporters and nicknamed the ‘people’s cryptocurrency’. One of these supporters is Tesla and Space-X CEO, Elon Musk, who even allowed the token to be used as a form of payment for his company.
Chiliz (CHZ) – Security token
- Rank: #76
- Current price: $0.2632
- Market cap: $1,567,596,579
Chiliz allows you to take part in the decision-making processes of your favourite teams in football, e-sports and much more. Due to your inclusion, you can help create merchandise designs, communicate with your sports heroes and earn discounts for merchandise.