Cryptocurrency is a word that everyone around the globe has become familiar with. Terms like Bitcoin, blockchain, etc have become a part of our daily life now. Although most of us are familiar with the basics of cryptocurrency, there is still a lot left to understand. While Bitcoin is the oldest and most popular cryptocurrency and has low barriers to entry because of being available across the board, it is high-risk crypto with high volatility. Just investing in Bitcoin will not do wonders for your portfolio and it will be a good idea to branch out and invest in other upcoming currencies as well.

What Are Altcoins?

Altcoins are by definition, all cryptocurrencies other than Bitcoin. While they may have some similarities, these were created to act as alternatives to Bitcoin. Altcoins are primarily different by way of the services that they offer like smart contracts, low price volatility and DApps. There are several types of altcoins namely mining-based, stablecoins, security tokens, meme coins and utility tokens. All altcoins have their own pros and cons so getting a good understanding before investing in them is important. To make this a little easier, here is a list of top altcoins that can be invested in.

1. Litecoin

Litecoin is a valuable coin that has gained significant investor attention, despite the fact that it is not among the top ten cryptos in terms of market capitalization. Litecoin remains an attractive alternative for anyone wishing to move big amounts of money because its crypto network has shown to perform transactions four times faster than Bitcoin. Litecoin’s market capitalization is expected to rise in tandem with its adoption, according to investors. The price of Litecoin is currently $140.59 (litecoin to INR), with a market capitalization of $9,763,022,000.

2. Ethereum

Ethereum is one of the fastest-growing cryptocurrencies, surpassed Bitcoin in 2021, and experts predict that this trend will continue into 2022. The surge in Ethereum’s value can be credited in large part to the growth of the DeFi (Decentralized Finance) market and the widespread adoption of NFTs (Non-Fungible Tokens). Ethereum is currently trading at $3,130.36 per token, with a market capitalization of around $370 billion. When Ethereum switches from a proof-of-work (PoW) to a proof-of-stake (PoS) architecture in 2022, prices are predicted to skyrocket, pushing Ethereum well over the $10,000 barrier.

3. NKN Coin

The largest blockchain network in the world is the Network Infrastructure for Decentralized Internet (NKN). It allows for peer-to-peer (P2P) data sharing and networking in order to construct dapps with excess bandwidth. The NKN coin is meant to encourage individuals to share their network connectivity and pay for services on the platform by offering them incentives to do so.

4. Tether

Tether, the third-largest cryptocurrency by market capitalization, is a stable coin that is supposed to be linked to the dollar and hence has a constant value of $1. Tether has less swings than Bitcoin because its value is linked to the US dollar. As a result, it is one of the finest Bitcoin alternatives. Tether is one of the most stable cryptocurrencies, making it an attractive investment option for investors concerned about the crypto markets’ severe volatility.

5. Solana

Solana (SOL) earned the most gains in 2021, rising from a low of $1 at the start of the year to as high as $200 by the conclusion, making it one of the best cryptocurrencies to buy in for 2022. Solana is now trading at $136.08, making it the seventh-largest cryptocurrency by market capitalization. Solana’s success can be due in part to its unique blockchain technology, which combines ‘proof-of-stake’ with Solana’s ‘proof-of-history.’ This makes Solana transactions faster and less expensive, putting it in direct rivalry with Ethereum. Solana prices are anticipated to reach $300 by the end of 2022.

6. Avalanche

Investors who purchased Avalanche (AVAX) at the start of 2021 were in for a huge windfall. AVAX, which started the year at $3.207 per token, was valued at $103.60 per token in December 2021, a 3130.43 percent growth. Avalanche is expected to rise higher in 2022, with prices exceeding $200, according to experts, after giving investors 34x profits over the year. If you’re looking for the next big cryptocurrency to erupt in 2022, look no further than Avalanche, a relatively unknown cryptocurrency at the start of 2021 that has since evolved to become one of the fastest-growing, with a market valuation of more than $20 billion. AVAX is now available for $84.98.

7. Ripple

Do you want to make a low-risk investment with the possibility for higher returns? The solution is Ripple (XRP). Ripple’s native cryptocurrency, XRP, is a blockchain-based digital payment network and protocol. Ripple is one of the finest altcoins to invest in 2022, as it is now the eighth-largest cryptocurrency by market capitalization. Ripple is currently trading at $0.7444, up from $0.221 at the start of the year 2021, a gain of more than 270 percent. Ripple prices are predicted to be between $3 and $5 in 2022, according to analysts.

While BTC dominated the market, it declined to nearly half at 40% by the end of 2021, from far above 70% at the start of the year. Altcoins are clearly the best alternative for anyone looking for a varied portfolio and will make for good investments.

Difference Between Altcoins and Defi Coins

Defi has been around for just over a year, but it still has a small user base. Compared to other cryptocurrencies, Dai has a much smaller user base. Its popularity stems from its unique back story, which is the reason for the relatively low adoption rate. The number of users and transactions is about 21,000, which is not very impressive. However, if the Defi community can be kept together, it could see a massive surge in the future.

Another advantage of Defi coins is their low volatility. Unlike other cryptocurrencies, a Defi coin has much lower volatility. This makes it a good choice for investors who want to make a profit without investing a lot of money. It’s also easier to find a buyer than a seller. There are plenty of reputable cryptocurrency exchanges to choose from. The market cap of a popular altcoin may be higher than its low liquidity, but the risks associated with investing in it are lower than those of smaller crypto.

Currently, the discussion about altcoins vs Defi coins is dominated by newer apps. Dai, a bitcoin-like digital token, aims to be a global currency untouchable by central banks. As a result, its value is pegged to the U.S. dollar, reducing bitcoin volatility. Other newer altcoins are Compound and Dharma. These two apps allow users to make deposits in virtual banks and earn interest.