The digital currency industry has been ever-present from the moment the first example of it saw the light of day back in 2009. Back then, when bitcoin stepped onto the scene and changed both technology and finance forever, a few people recognized its potential immediately. It took the wider population some years to understand what it is, how it works, and whether or not it can be useful. Fast forward some 12 years and a single bitcoin is worth around $40,000.
However, it is hardly the only cryptocurrency out there in the world, and neither is it the only one worth your time, nerves, and investment money. By some estimates, there are over 2,000 cryptos in existence today, with new ones coming and going away each year. This crazy amount of potential investment opportunities cannot and must not be ignored especially if you are looking for lucrative ways of making additional money on the side. Passive income is done the best way with the help of virtual currencies, so why wait?
Since it took other types of digital money a few years to catch up to the king called bitcoin, it is currently by far the most valuable one you can pick and invest in. By the time others started joining in bitcoin was already way ahead, a trend that is still relevant. Despite this, you should always diversify your investment portfolio and spread the total amount you are ready to put down among a few prominent cheaper cryptocurrencies. Now, mind that by cheaper we generally mean anything that is not BTC, since it is incomparably more valuable and famous.
In the article ahead you will learn everything there is about cheaper digital money. If you are still wondering about whether you should invest in cheaper cryptocurrencies and would like to learn more about the prices and the market in general, make sure to click here. Following is the list of the best options with their prices at the moment of writing.
1. Ethereum (ETH) – $1,218
The second most popular and valuable cryptocurrency is ethereum, first launched in 2015. It is the best alternative for anyone looking to invest in something other than BTC. It also has the second-largest market cap (around $15.6 billion), but the difference between then is still enormous. In 2020, it was only one tenth of what bitcoin has. EHT is actually a decentralized software platform and not just a digital coin. The coin is actually called ether. The platform it is based on enables smart contracts and DApps (decentralized apps), which can run without any frauds, scams, control, third party interference, or even downtime. Ether is the token these apps and programs run on, and it practically serves as a vehicle that moves throughout the whole system. The best use of this form of cryptocurrency is definitely achieved by developers who run and develop apps within the ethereum platform. However, more and more investors are also looking to make more purchases of other virtual currencies through ether.
2. Litecoin (LTC) – $142.30
Launched two years after bitcoin in 2011, it is among the first clones and competitors of bitcoin. This crypto tried to capitalize on the initial success and estimations of bitcoin and it has done somewhat of a good job. People generally think of and refer to it as silver in comparison to bitcoin’s gold, which is fair. Charlie Lee, a graduate of MIT and a former engineer with Google, based it on the open-source global payment network no central authority controls. While it is similar to bitcoin in many ways (including the catchy and similar name), its rate of block generation is faster. This means that all the transaction and confirmation times are shorter making this a more efficient cryptocurrency. Developers and investors like it and use it alike, but merchants and various business owners have started accepting it at legitimate payment too. For the better part of 2020, the market cap of litecoin was over $3 billion. It has a lot of potential and should therefore be on your radar.
3. Ripple (XRP) – $0.274
Before you ask why ripple is worth so little, bear in mind that not all digital currencies are the same nor are they used for the same things. Here we have a real-time global settlement network that works by offering users a certain, low-cost, and near-instant access to international payments. Ripple was launched in 2012, which makes it one of the oldest in existence. It is advertised as something that enables the banks to settle payments across the border in real time, using end to end transparency and low costs. There is no mining because its ledger is unique. Instead, the whole total was pre-mined before the initial launch so you cannot create more of it as time goes by. There is only removing and introducing XRP from the market supply if the guidelines of the network allow it. This basic difference is what makes ripple different from bitcoin, ethereum, and the others. No mining means no computing power needed, resulting in less network latency and minimal electricity bills. In January of 2020, the market cap for XRP was $9.2 billion, making it one of the most valuable in the world.
- Tether (USDT) – $1- January 2020 market cap of $4.6 billion
- Bitcoin Cash (BCH) – $482- January 2020 market cap of $4.4 billion
- Diem (formerly Libra) – $1.35 – New cryptocurrency with a bright future, proposed by Facebook
- Monero (XMR) – $160.146 – January 2020 market cap of nearly $1 billion
Conclusion and Takeaways
Basically, to answer the titular question simply, yes, you should definitely invest in cheaper cryptocurrencies. The reason behind it is that the worth per coin is not always the best judge of how much the coin is actually worth. As mentioned, there are plenty of ways these digital currencies can be utilized and they are never really interchangeable. This is exactly why you should diversify your investments and opt to invest in much more than one single cryptocurrency. If you already have money in bitcoin, it is definitely time to start thinking about the rest of them.