Bitcoin is the first cryptocurrency that appeared in 2009 and became the beginning of DeFi. As its recognition grew, the crypto space also expanded, resulting in alternative cryptocurrencies.
Since the blockchain is open source, almost anyone with internet access can create an altcoin. The development of the cryptocurrency market has led to thousands of new altcoins, which are now popular around the world. In today's article from Notum, we will look at what is considered an altcoin and pay attention to top 10 altcoins that are profitable to invest in 2024.
What Are Altcoins in Crypto?
At a time when the crypto market consisted of only a few crypto assets, all cryptocurrencies except Bitcoin were considered altcoins. Since Bitcoin was the first cryptocurrency, all other coins were its alternatives, hence the name “altcoins.”
However, the crypto market has expanded and evolved, offering an incredible variety of coins. Crypto use cases have also changed and expanded, and many of them are now far more than just means of exchange.
Interesting fact! Since cryptocurrency has significantly expanded its original functions, not all coins and tokens are now alternatives or competitors to Bitcoin.
In the modern crypto space, altcoins are usually divided into:
- Cryptocurrencies. This type of altcoins is mainly used for payments. They transfer value through a decentralized network of users.
- Tokens. These altcoins are also based on blockchain and are most often intended for purposes other than finance. Tokens can represent a stake in a blockchain, DeFi project, or perform governance, utility, security and other functions.
How To Invest In Altcoins?
You should start your investing journey with the following steps:
1. Choose the altcoins that are right for you
Pay attention to promising coins recommended by reputable sites and projects, study their characteristics, main features and advantages and choose a couple of altcoins to buy.
2. Decide on an exchange
After selecting altcoins, consider several exchanges that support them. Look for well-known options with high liquidity, which will allow you to buy altcoins quickly and close to their market value. Do not forget to find out about fees and rates on the selected exchange.
3. Buy altcoins
Leading exchanges have a huge number of guides and tutorials regarding how to buy cryptocurrencies. After purchasing, you can send altcoins to your crypto wallet and wait for the asset to increase in price and bring you profit.
4. Explore alternative income options
Instead of just holding crypto, you can research other types of investments such as staking, farming, yield aggregation, lending, etc., which will bring you additional profit.
Important! Notum offers users a simple and convenient “Investments” tab that allows them to receive additional income from their crypto assets.
Best 10 Altcoins to Invest
Now the crypto market offers a huge number of popular altcoins to invest in, and it’s quite easy to get lost in this variety. That is why the Notum team has made the top 10 best altcoins to invest in 2024.
1. Ethereum (ETH)
- Overview
Ethereum is the second largest cryptocurrency and is the main alternative to Bitcoin. Ethereum can be described as a distributed computing network allowing users to run dApps and host smart contracts.
- Key Features
Ethereum is the biggest cryptocurrency after Bitcoin and number one on the altcoin market
ETH market capitalization exceeds $354 billion
Ethereum is famous for its high transaction fees which makes users seek for cheaper options
- Why Invest in Ethereum?
Due to PoS instead of PoW, Ethereum has improved long-term sustainability and scalability. Also, since its blockchain has become home to a huge number of other altcoins and applications, Ethereum will remain one of the leading cryptocurrencies on the market.
2. Solana (SOL)
- Overview
Solana is a platform created for scalable dApps that blew up the virtual world due to memecoins such as BONK, created on its basis. Solana beats the giant Ethereum due to its lower transaction fees and its speed.
- Key Features
The SOL token ranks fifth in the world in terms of market capitalization at $60.4 billion
Due to the use of PoH mechanism, Solana can handle more than 65,000 TPS
Low transaction costs make Solana a beneficial process for both users and developers
- Why invest in Solana?
Solana is an popular altcoin investment due to its processing of a huge number of transactions at low cost makes it a scalable approach for both decentralized applications and financial systems. Moreover, since the fall of 2023, the token price has increased by almost 750%, which indicates significant growth potential.
3. Chainlink (LINK)
- Overview
Chainlink blockchain acts as an intermediary and offers the infrastructure to connect non-blockchain organizations with blockchain platforms, making it a unique DeFi solution.
- Key Features
LINK token is used to pay network operators, and is also utilized as collateral for network smart contract agreements
The Oracle Chainlink network offers a decentralized method for transferring external data to smart contracts
LINK is among the top 15 cryptos by market capitalization of $7.2 billion
- Why Invest in Chainlink?
Chainlink provides a robust infrastructure to seamlessly connect blockchain-based applications to external data sources, making it an attractive investment in 2024.
4. Cardano (ADA)
- Overview
Cardano is one of the first blockchain platforms to use a PoS consensus mechanism, thereby providing users with faster transactions. As a blockchain solution, Cardano offers higher levels of security and lower fees than its competitors.
- Key Features
Cardano improves energy efficiency, security and scalability
The platform offers a high level of innovation due to its focus on academic research
ADA ranks 10th crypto by market capitalization of $12.3 billion
- Why Invest in Cardano?
Cardano’s layered architecture and focus on interoperability make the platform a universal solution for future dApps and blockchain innovations. Moreover, Cardano’s Vasil Hark Fork, launched in the fall of 2023, strengthens Cardano’s position among the top list of altcoins this year.
5. Uniswap (UNI)
- Overview
Not only is Uniswap a leader in the decentralized exchange sector, but is also the main decentralized trading protocol that offers automated token trading without central entities’ involvement.
- Key Features
Uniswap operates under DAO, governed by its native token UNI
The platform facilitates crypto trading without centralized intermediaries
UNI is among the top 25 tokens by market capitalization of $4.4 billion
- Why Invest in Uniswap?
As the native token of one of the most popular DEXs, UNI has high demand and liquidity, making it a good investment option.
6. Avalanche (AVAX)
- Overview
Avalanche is an open-source blockchain that uses smart contracts to support blockchain projects. Avalanche aims to become the leading blockchain of choice for smart contracts, replacing Ethereum in the process. Instead of a single blockchain, Avalanche is a network of multiple independent but interoperable blockchains.
- Key Features
Avalanche offers higher transaction output without sacrificing scalability
AVAX token is used to pay on-chain transaction processing fees and protect the Avalanche network
AVAX ranks 12th by market capitalization at $9.6 billion
- Why Invest in Avalanche?
Avalanche strives to solve the blockchain trilemma and become the fastest, most scalable and most secure blockchain network in the world, which continually attracts the attention of the crypto world and makes AVAX a great investment option.
7. BNB (BNB)
- Overview
Binance is the world's largest cryptocurrency exchange by global daily trading volume, which strives to make cryptocurrency an alternative to traditional finance. The platform processes billions of transactions per day and has a native utility token BNB.
- Key Features
BNB is used to pay trading fees, receive discounts on the platform, and can also be utilized for lending, farming, staking, etc.
Binance has its own blockchain, Binance Smart Chain (BSC), which supports smart contracts and dApps, providing high performance and low fees
BNB is the 4th largest cryptocurrency in the world by market capitalization of $72 billion
- Why Invest in BNB?
Since BNB is an important component of the Binance ecosystem, powering dApps on BSC, it is already an attractive option in 2024. Moreover, due to its token burn mechanism, the number of tokens decreases, which increases the price and demand.
8. XRP (XRP)
- Overview
Ripple is a unique technology that enables fast and secure money transfers using its native coin, XRP. Ripple allows financial institutions to seamlessly process cross-border payments at lower costs and increased speed compared to traditional methods.
- Key Features
Ripple offers a set of services that are used by huge global payment networks and leading financial institutions
XRP is renowned for its fast transaction confirmations and minimal transaction fees, making it more efficient and accessible to users
XRP's market capitalization exceeds $23.5 billion and makes it the 7th most popular altcoin in the world
- Why Invest in XRP?
XRP is highly popular among key players in the financial industry and stands out due to its unique approach to DeFi, making it a good investment decision in 2024.
9. Tron (TRX)
- Overview
Tron is a decentralized blockchain that has evolved into a fully decentralized autonomous organization (DAO). Using blockchain and peer-to-peer technology, Tron eliminates the need for intermediaries and allows content creators to host and sell content directly.
- Key Features
TRX ranks 11th in the world by market capitalization at $11 billion
Content creators receive TRX as compensation for publishing their content
With Tron, content creators can bypass fees missed by intermediaries like YouTube or Apple
- Why Invest in Tron?
Tron's scalability, low transaction costs, and lack of intermediaries make Tron a great investment option in 2024. Also, TRX Cryto has grown over 5,380% since its launch until the summer of 2024, making it one of the fastest growing cryptocurrencies in the world.
10. Polygon (MATIC)
- Overview
Polygon is an Ethereum-based scaling platform that allows developers to build dApps with low transaction fees. The uniqueness of Polygon is that it turns Ethereum into a multi-chain system
- Key Features
Using proof-of-stake sidechains, Polygon offers users more than 65,000 TPS with 2 seconds confirmation time
MATIC token is used to protect the chain and pay fees for network transactions
MATIC is among the top 20 cryptocurrencies by market capitalization of $4.6 billion
- Why Invest in Polygon?
Due to its role in the Ethereum ecosystem, low transaction costs and improved speed for dApps, Polygon remains a popular investment option in 2024. Moreover, its growing ecosystem and partnerships with large projects increase MATIC's potential as an investment.
Conclusion
As the cryptocurrency market matures, more and more altcoins are emerging, each demonstrating unique features and promising opportunities. However, while investing in altcoins, it is important to pay attention to the projects behind them, take into account the state of the market and analyze the behavior of the coin to predict its future prospects.