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Altcoins To Watch

Cryptocurrencies are becoming increasingly popular in the modern world, and many investors have turned to alternative coins, or altcoins, as a means of diversifying their portfolios. Much like traditional investments such as stocks and bonds, altcoins offer different risks and rewards for the investor. This article will provide an overview of some of the most popular altcoins to watch in 2020. By exploring both the advantages and disadvantages associated with each option, readers can gain insight into which ones might be best suited to their investing needs. With this knowledge at hand, they can make informed decisions regarding their financial future.

Key Takeaways

  • Altcoins offer different risks and rewards compared to traditional investments.
  • Altcoins worth watching have fast transaction speeds, low fees, and scalability.
  • Altcoins can diversify investment portfolios and have potential for growth.
  • Some popular altcoins to watch include Ethereum, Litecoin, Ripple (XRP), and Bitcoin Cash (BCH).

Ethereum (ETH)

Ethereum is a major cryptocurrency platform that has seen significant growth and development since its launch in 2015. It is built on blockchain technology, allowing users to create and execute smart contracts securely. Ethereum also supports decentralized applications (dApps), providing developers with an incentive to build on the platform. The ability to use Ethereum for automated payments or even prediction markets make it an attractive choice for investors looking for innovative solutions. However, there are some security risks associated with Ethereum, as the code can be manipulated by malicious actors who have access to the network. Despite this, Ethereum remains one of the most popular altcoins to watch as its value continues to increase over time. As a result of its many advantages, Ethereum has become an important part of the cryptocurrency ecosystem and is likely to remain so in the future. Transitioning into Litecoin (LTC), it is another altcoin that has grown in popularity thanks to its low transaction fees and fast confirmation times.

Litecoin (LTC)

Litecoin (LTC) is a cryptocurrency that has been gaining attention due to its faster transaction times and lower transaction fees than other established cryptocurrencies such as Bitcoin. Transactions on the Litecoin network are said to be confirmed four times faster than Bitcoin, allowing users to receive their funds much quicker. In addition, fees for Litecoin transactions are also substantially lower than those for Bitcoin, making it an attractive option for cost-sensitive users. These advantages make Litecoin an interesting alternative in the growing cryptocurrency market.

Faster Transactions

Cryptocurrencies boasting faster transactions than the industry standard have been gaining traction in recent times, leaving many investors wondering which ones to watch. In particular, altcoins such as Litecoin (LTC) stand out for their ability to process payments quickly and securely:

  • Transactions can be completed in minutes compared to Bitcoin’s 10 minutes;
  • Smart contracts are available for secure and verifiable agreements;
  • DeFi platforms offer a range of financial services on the blockchain;
  • Lower transaction fees than other major cryptocurrencies.

This makes Litecoin particularly attractive for those who prioritize quick transfers with lower costs. However, fast transactions alone are not enough to make an altcoin viable – they must also be accompanied by low fees and effective security solutions such as strong encryption technology. Moving forward, it will be important to consider how these advantages stack up against one another when evaluating potential altcoins to watch.

Lower Transaction Fees

Lower transaction fees have become increasingly important in the cryptocurrency landscape, as they are a crucial factor in determining which digital assets will stand out from the crowd. Fee reduction strategies have been implemented by many altcoins to bring down costs for users. By conducting a cost benefits analysis, we can better understand which altcoins offer the most efficient fee structures and make transactions more affordable for everyone.

The table below outlines some of the leading altcoins that have taken strides towards reducing their transaction fees:

AltcoinAverage Transaction Fee (USD)Year of Launch
Bitcoin0.502009
Litecoin0.022011
Ethereum0.11  2015  
Dash  0.02  2014  

These four coins are just a few examples of how altcoins are taking steps to reduce their associated transaction fees, making them more attractive than other digital currencies on the market. As such, these coins should be watched closely when analyzing the crypto space as they may continue to gain traction due to their low cost model and improved user experience when transferring funds quickly and securely across the chain network with minimal expense incurred. Without question, this is an area where many cryptocurrencies will continue to innovate in order to remain competitive; thus signaling potential growth opportunities for investors interested in exploring new projects within this sphere.

Ripple (XRP)

Ripple, represented by XRP, is a digital asset that has been gaining traction among investors due to its impressive rate of growth. Ripple’s main utility is as a payment method and it can be used for cross-border payments, remittances, and other financial transactions:

  • Ripple as a Payment Method:
  • Ripple provides fast transaction times with an average of 4-5 seconds per transaction.
  • It also offers low transaction costs compared to other payment methods.
  • XRP Utility Use Cases:
  • XRP utility is being used in various industries such as banking, finance, and healthcare.
  • The digital asset has the potential to revolutionize the way people transact online by eliminating third parties and providing instant settlement of payments.
    Ripple’s potential makes it an altcoin worth watching in order to understand what advantages it might offer over Bitcoin Cash (BCH).

Bitcoin Cash (BCH)

Bitcoin Cash (BCH) is a cryptocurrency that was created in 2017 as a result of a hard fork from Bitcoin. It has some key features that differ from the original Bitcoin, mainly an increased block size limit and transaction throughput which enables faster transaction confirmation. These differences allow it to compete with other cryptocurrencies by providing faster transaction speeds and lower fees than its predecessor.

Increased Block Size

Increases in block size have allowed for a greater amount of transactions to be processed within the blockchain technology, consequently providing users with faster transaction speeds. Security enhancements and network security are also improved due to increased block sizes, as the larger blocks help reduce the amount of time it takes to process a single transaction. This has resulted in an increase in transaction throughput, allowing for more transactions per second without compromising on security or speed. In addition, larger blocks enable miners to receive higher rewards from mining operations. All these benefits make increased block size an important factor when considering which altcoins to watch out for.

Increased Transaction Throughput

Increasing the block sizes of a blockchain is not the only way to increase transaction throughput. Alternative methods, such as the Lightning Network and Atomic Swaps, have become increasingly popular. The Lightning Network is an off-chain scaling solution that allows two parties to create a bi-directional payment channel through which they can make multiple transactions without having to wait for all of them to be confirmed on the blockchain. This results in much faster transaction times and lower fees than if each individual transaction had to be recorded on the blockchain. Atomic Swaps are another approach, where two users can directly exchange tokens across different blockchains without using an intermediary service or relying on slow confirmation times from miners. Both of these solutions can help alleviate congestion in a blockchain network and improve its scalability by making it more efficient at handling larger numbers of transactions. With this increased scalability comes great potential for altcoins that are able to implement them, allowing them to process more transactions per second than their competitors while maintaining a high level of decentralization and security. As such, any altcoin that successfully implements either of these solutions should be watched closely as it could prove to be very successful in terms of adoption and growth in value over time.

EOS

EOS is a blockchain-based platform that enables developers to build decentralized applications (dApps). It offers scalability and speed capabilities that make it suitable for the development of large scale dApps. Its consensus model is designed to allow for millions of transactions per second, making it possible to create applications with high throughputs.

Decentralized Applications

Decentralized Applications (DApps) are rapidly emerging as a prominent trend in the crypto space, with many claiming it to be “the future of blockchain”. DApps are built on top of open source platforms and leverage smart contract technology for security purposes, allowing them to run without requiring trust from any third-party intermediary. This table provides an overview of the three main components that power DApps: | Component | Description | Examples | |———–|————-|———-| | Smart Contract Security | Securing transactions using cryptographic algorithms and immutable data structures | Ethereum Virtual Machine, Bitcoin Scripting language | Open Source Platforms | Decentralized platform for hosting applications | Ethereum, EOS, Hyperledger Fabric | Distributed Network Computing | Computing power distributed across a network of computers | Bitcoin Mining Pool, EOS Block Producers

As these technologies continue to evolve, DApps will become increasingly powerful tools that can create new use cases not previously possible with traditional software applications. Furthermore, these applications may reduce transaction costs while increasing scalability by leveraging their distributed networks.

Scalability

By leveraging their distributed network, DApps have the potential to dramatically improve scalability and reduce transaction costs. To achieve this goal, blockchain networks such as Bitcoin use Proof of Work (PoW) consensus mechanisms that operate on a global scale. Other projects like the Lightning Network are attempting to build second layer solutions to offload some of the transactions away from the mainchain in order to further increase scalability. Additionally, many altcoins are working on innovative scaling solutions such as sharding and sidechains for greater throughput. With advances in technology, it is likely that these methods will soon be commonplace for DApps to increase scalability and reduce costs.

In conclusion, when considering which altcoins to watch out for scalability improvements, one should consider those with PoW or Lightning Network implementations as well as those utilizing cutting-edge techniques such as sharding and sidechains. By keeping up with these trends, one can get ahead of the curve when investing in altcoins offering improved scalability features. This paves way for a more informed decision when choosing which altcoin has the most potential moving forward into the future.

Cardano (ADA)

Cardano is a decentralized public blockchain platform designed to be an open source cryptocurrency project, but what makes it stand out from others? Cardano is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. It combines groundbreaking technologies such as Ouroboros Proof of Stake and Plutus smart contract language. This allows for advanced features such as delegated proof-of-stake consensus, sidechains, scalability through sharding, and security improvements.

The Cardano platform also integrates two layers for its protocol: the settlement layer (SL) which handles ADA transactions and the control layer (CL) that handles Smart Contracts written in Plutus. The SL ensures transaction security by implementing Ouroboros PoS while the CL provides powerful computational capabilities and flexibility for developers with support for custom Smart Contract code. Additionally, due to its layered architecture, Cardano eliminates many common security concerns associated with other platforms like Ethereum.FeatureBenefits
Ouroboros Proof of StakeEnsures secure transactions on SL layer
Plutus smart contract languageAllows developers to write custom code on CL Layer
Layered ArchitectureEliminates common security concerns associated with other platforms like Ethereum

This makes Cardano one of the most innovative projects in terms of technical capabilities and scalability solutions compared to its competitors in the space. Transitioning into this new era of blockchain technology requires continuous innovation from projects like Cardano which brings forth new possibilities in terms of applications built on top of blockchains.

TRON (TRX)

Continuing on from the discussion of Cardano (ADA), another altcoin worth watching is TRON (TRX). Founded in 2017, TRON has become one of the most popular and widely used cryptocurrencies. The network’s primary goal is to build a global free content entertainment system that allows users to receive rewards for their contributions. By connecting creators with consumers, it enables digital asset ownership and eliminates intermediaries such as Apple’s App Store and Google Play.

One key factor contributing to the success of TRON is its ability to compete against other chains like Ethereum in terms of scalability and transaction speed. It also offers attractive mining incentives, which makes it an attractive choice for miners looking to maximize profits. With increased adoption by developers, investors, and users alike, TRON is likely to remain an important cryptocurrency worth watching in 2021 and beyond. As such, it could prove beneficial for those looking for alternative investment opportunities outside of Bitcoin. In the next section we will discuss Monero (XMR), another promising altcoin worth considering.

Monero (XMR)

Monero (XMR) is a decentralized digital currency that offers secure, private transactions and untraceable payments. It utilizes a cryptographic system called ‘ring signature’ which allows for the transaction to be made without revealing the source, amount or destination of the funds being exchanged. This system has far reaching privacy implications and potential applications in areas such as finance and online commerce. Monero also uses an algorithm to enable mining with consumer grade hardware, allowing miners with less powerful machines to join in on the process. As such, it has gained increasing popularity among those seeking greater privacy when making payments online. The ability to remain anonymous while transacting makes Monero an attractive option for those wishing to preserve their financial anonymity. Transitioning into Stellar (XLM), its consensus protocol enables users to conduct near-instantaneous transactions at low cost with high security assurance.

Stellar (XLM)

Stellar (XLM) is a cryptocurrency that has been gaining popularity due to its low transaction fees and fast settlement times. It was founded by Jed McCaleb, one of the founders of Ripple, and uses a consensus algorithm as its security measure instead of Proof-of-Work. This allows it to be more energy-efficient than Bitcoin and other PoW coins. Additionally, Stellar is considered easier to use than some cryptocurrencies because it has an easy-to-understand interface which allows users to send and receive funds quickly without needing much technical knowledge. Furthermore, it also supports multiple currency pairs for transactions so users can trade between different coins easily with minimal fees. In terms of security measures, Stellar ensures that no single entity controls the network through its decentralized structure. Moreover, since transactions are settled within seconds on the blockchain, there is less risk of fraud or theft compared to other networks. All in all, Stellar offers great features such as low transaction costs, fast settlements and ease of use that makes it an attractive option for those looking for an alternative cryptocurrency investment option. As such, it’s definitely worth keeping an eye on this altcoin in the coming years. With these advantages in mind, we now turn our attention to Neo; another altcoin that has been gaining traction recently due to its innovative technology and potential applications in enterprise solutions.

NEO

NEO is rapidly emerging as a powerhouse in the world of cryptocurrencies, boasting an impressive technology that could revolutionize enterprise solutions with its cutting-edge features. The NEO platform offers users the ability to create and execute smart contracts on their network. These smart contracts are able to facilitate transactions between two parties quickly and securely without needing a third party intermediary. Additionally, developers can easily create their own decentralized applications (dApps) on top of the NEO platform, allowing for greater flexibility and scalability than other blockchain networks. Furthermore, the NEO development team has created multiple projects such as NeoX and NeoQ which enhance the security of their network while making it easier for users to interact with it. All these features make NEO one of the most promising altcoins currently available in terms of functionality and utility value. As such, it is no surprise that many investors have taken notice of this project’s potential and are beginning to invest heavily into it. With its robust technology and strong fundamentals, there is no doubt that NEO will continue to be a major player in the future of blockchain technology. Transitioning now to Dash (DASH), another popular altcoin worth watching…

Dash (DASH)

Like NEO, Dash is an open source cryptocurrency that uses blockchain technology to enable secure and fast transactions. It was initially released in January 2014 and its primary goal is to create a peer-to-peer digital currency system that is both easy to use and offers quick transaction times. One of the main features of Dash is its masternode network; this allows users to earn rewards by staking their coins for mining or trading purposes. The system also enables faster payments than most other cryptocurrencies, as well as making it easier for users to send money across borders with minimal fees. In addition, it has a unique governance model which gives stakeholders the power to make decisions about how the network should be managed. As such, Dash has become one of the most popular altcoins today due to its user-friendly interface and ability to facilitate fast transactions. By providing security measures such as two-factor authentication and multi-signature wallets, it ensures that users can securely store their funds while trading or mining with ease. With these key features in place, Dash has become a great choice for those looking for an alternative form of digital payment that is reliable and secure. Its growing popularity makes it an altcoin worth keeping an eye on moving forward.

As the world continues to move towards more efficient forms of digital payments, new technologies are emerging that offer innovative solutions for transferring money quickly and securely across borders without incurring high fees or long wait times. Zcash (ZEC) is one such technology offering private transactions between parties using cryptography technology, making it a contender worth watching when considering different altcoins available today.

Zcash (ZEC)

Zcash (ZEC) is an open-source cryptocurrency that uses advanced cryptography to ensure secure and private transactions. By utilizing a specialized zero-knowledge proof protocol, Zcash users are able to make anonymous transactions while still maintaining the security of their funds. This privacy-oriented approach has made Zcash an attractive coin for users looking for greater financial freedom.

The security implications of using Zcash are significant, as it provides a level of anonymity that is not available with other coins. Furthermore, transaction data is encrypted in a way that ensures only the sender and receiver can access it, providing additional protection from malicious third parties. Additionally, because Zcash miners do not have direct access to user data, they cannot censor or modify transactions in any way. This makes the network more secure than those with traditional mining models where miners can view transaction data and manipulate blocks at will. With these features in place, Zcash offers an unprecedented level of security and privacy compared to other cryptocurrencies on the market today.

IOTA (MIOTA)

IOTA (MIOTA) is a distributed ledger technology (DLT) protocol that leverages Directed Acyclic Graphs (DAGs) to provide fast and secure transactions. The main focus of IOTA is to enable IoT based transactions through its network, which can be used for machine-to-machine payments, smart contracts, data storage and many more applications. Compared to other blockchains, IOTA’s DAG architecture makes it much more efficient in terms of speed and scalability. Furthermore, the security implications of this architecture are far greater than those of traditional blockchain networks as there are no miners involved in the consensus process.

The key features offered by IOTA include zero transaction fees, near instant confirmations, scalability without compromising on security and privacy protection for users’ data. It also provides support for distributed applications that can be deployed across different devices running the IOTA protocol. As such, IOTA has gained significant attention from investors over the past few years due to its potential as an innovative DLT solution offering various advantages compared to its competitors. With its unique approach towards providing faster and more secure transactions with little or no costs associated with them, IOTA could become one of the most promising altcoins to watch in 2021. Transitioning into the subsequent section about ‘tezos (xtz)’ will further explore how these advantages could lead to even greater success in this highly competitive market.

Tezos (XTZ)

Tezos (XTZ) is a decentralized blockchain platform that utilizes a delegated proof-of-stake consensus mechanism to provide enhanced security and scalability for its users. It enables the development of smart contracts and dApps on its network, as well as provides developers with the ability to integrate their own security protocols into the platform. Among its key features are:

  • The provision of self-amending functionality, which allows Tezos codebase to upgrade without having to hard fork the entire blockchain;
  • A Liquid Proof-of-Stake consensus algorithm, which enables stakeholders to participate in network governance with minimal resources;
  • Formal verification capabilities, enabling developers who use Tezos’s programming language Michelson to mathematically prove the correctness of their Smart Contracts.

Tezos’s unique Smart Contracts functionalities and advanced Security Protocols make it an attractive altcoin for investors looking for reliable and secure cryptocurrency investments. Its potential for growth makes it one of the most promising altcoins in 2020. With these qualities, Tezos is certainly worth watching out for as an investor or trader this year. Moving forward we can explore ‘Chainlink (LINK)’ as another altcoin worth considering.

Chainlink (LINK)

Chainlink (LINK) is a decentralized oracle network that enables the secure, reliable delivery of data to smart contracts and other blockchain applications. The Chainlink network has been designed with decentralization in mind, allowing for external data sources such as price feeds to be connected securely and reliably without any single point of failure. This makes it an ideal platform for powering Decentralized Finance (DeFi) applications, allowing users to bet on asset prices and manage their portfolios with greater confidence. Furthermore, the Chainlink network provides a secure layer between smart contracts and external resources, ensuring that data is delivered accurately and securely. This has wide-ranging implications for developers looking to build DeFi protocols, providing them with more reliable access to real-world information than ever before.

Frequently Asked Questions

What is the difference between Altcoins and Cryptocurrencies?

Cryptocurrencies are digital assets, based on blockchain technology, that use cryptography to secure and verify transactions. Altcoins are alternative cryptocurrencies that differ from the original cryptocurrency in terms of mining rewards, token economics or other features. They have their own blockchains and offer different advantages over traditional currencies.

What are the benefits of investing in Altcoins?

"Investing in altcoins has the potential to bring diversification benefits, as well as unique buying strategies. Like a patchwork quilt, investing in a variety of altcoins can create an overall portfolio that is greater than its individual components. Through research and analysis, investors can capitalize on the potential price movements of different coins and tokens."

What are the risks associated with Altcoins?

Investing in altcoins carries risks such as buying pressure, pump and dump schemes, market volatility, and liquidity. These can lead to financial losses if not managed properly.

How much money should I invest in Altcoins?

Careful consideration and market analysis are key when investing in any asset. Wise strategies involve carefully weighing risk and reward, as each situation can be unique. One should make sure to research the current market trends in order to decide how much money, if any, is worth investing in altcoins.

What factors should I consider when deciding which Altcoin to invest in?

When deciding which altcoin to invest in, one should consider technical analysis such as price action and chart patterns, as well as market sentiment surrounding the coin. This requires an objective, informed analysis of data to make a prudent investment decision.

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