In 2023, there are over 20,000 cryptocurrencies available, collectively valued at more than USD 2 trillion. The daily trading volumes often exceed $75 billion. A multitude of global investors are actively obtaining crypto assets. To simplify the process of selecting altcoins for a digital asset portfolio in our increasingly digital world, our analysts have created a comprehensive list of recommended top altcoins and secure platforms for purchasing them.
October 2023’s Top Best Altcoin Picks for Investment
Cardano (ADA) – Backed by a Solid Proof-of-Stake Blockchain Platform
Cardano, a blockchain platform based on a proof-of-stake system, aims to empower individuals who seek positive change and promote transparency. The platform takes its name from Gerolamo Cardano, a renowned polymath of the 16th century.
Established in 2017, Cardano introduced the ADA token as its digital currency, paying homage to Ada Lovelace—the world’s first computer programmer. Through voting mechanisms, ADA token holders actively participate in making decisions within the network.
The platform uses modular blockchain technology, allowing for the creation of decentralized apps and smart contracts. Notably, the Alonzo hard fork—a significant upgrade announced by Charles Hoskinson in August 2021—led to a remarkable surge of 116% in Cardano’s price.
On September 12, 2021, Cardano officially went live with an impressive deployment of over 100 smart contracts within 24 hours of operation. Moreover, one of its standout features is its ability to facilitate secure storage of educational credentials and detect counterfeit practices.
Ethereum (ETH) – The first altcoin ever released, second oldest to Bitcoin
Ethereum, an open-source blockchain, is a platform that aims to revolutionize app development. It boasts its native currency, Ether, and supports various cryptocurrencies and smart contracts. Since its launch in 2015, Ethereum has witnessed remarkable ROI growth, currently exceeding 270%.
By prioritizing decentralization and security, Ethereum empowers programmers worldwide to create software immune to censorship and fraud. Noteworthy network upgrades like the “London” release in 2021 have significantly enhanced Ethereum’s functionality.
Ripple (XRP) – Backed by a Global Digital Transaction Network
Ripple Labs Inc. developed XRP, a cryptocurrency designed for global payments to challenge traditional banking systems. Boasting low transaction fees and speedy completion, XRP emerged in 2012 under the guidance of Chris Larsen and Jed McCaleb, building upon Ryan Fugger’s XRP Ledger.
Despite forging partnerships with prominent banks following its name change to Ripple, the company faced regulatory challenges in the United States, being accused of operating as unregistered securities and facing ongoing legal battles. Additionally, early on, allegations of deceptive advertising were brought against them.
Solana (SOL) – A Relatively New, Fast-growing, and Greener Alternative to Larger Altcoins
Solana, a blockchain project based in Geneva, Switzerland, is dedicated to revolutionizing decentralized finance (DeFi) solutions. By utilizing an open-source and permissionless system, Solana empowers developers to create decentralized applications (DApps).
Its unique hybrid consensus method and remarkable scalability have garnered attention from individual traders and renowned institutions. At the moment, the price of Solana stands at USD 114.49, demonstrating a slight decline of 0.20 percent over the past 24 hours.
Moreover, its market capitalization amounts to an impressive $37,221,287,633, while circulation consists of approximately 325,110,998 SOL coins with no information on maximum supply.
Binance Coin (BNB) – A Utility Coin Based on its Own Exchange Platform
Launched in July 2017, Binance has emerged as the leading player in the world of cryptocurrency exchanges, with a vision to centralize this domain within global finance. It has built an extensive ecosystem encompassing Binance Chain and various sub-projects that rely on BNB.
What sets it apart is its decentralized network based on blockchain technology. Constant innovation serves as its competitive advantage, with aspirations to become a blockchain infrastructure provider. The significant surge in the price of BNB in 2021 has garnered attention from business investors.
Litecoin (LTC) – First Altcoin out after Bitcoin, Launched in 2011
Litecoin (LTC) is currently valued at USD 131.51, boasting a 24-hour trading volume of USD 930,079,840. It has witnessed a slight price increase of 0.21%. CoinMarketCap places LTC at the respectable 21st spot, with a market cap totaling $9,199,867,922.
Introduced in 2011 by Charlie Lee, a former Google engineer, Litecoin serves as a swifter and more cost-effective alternative to Bitcoin. This digital currency facilitates speedy block generation times and offers minimal transaction fees for microtransactions and point-of-sale payments.
What are Altcoins?
In cryptocurrencies, Bitcoin (BTC) stands as a well-known pioneer. Other digital currencies, referred to as altcoins or alternative coins, exist alongside Bitcoin. While many altcoins share similarities with Bitcoin, they also have specific differences. For instance, certain altcoins employ unique consensus mechanisms to validate transactions and create chains of data blocks. Additionally, altcoins often utilize specialized contracts to offer distinct capabilities like reduced price volatility or lottery features.
Best Exchange to Buy Altcoins
When it comes to trading altcoins, numerous exchanges are available, each with its unique features. eToro stands out as our top recommendation for a secure and regulated platform.
Authorized by the FCA, eToro offers a range of 75+ cryptocurrencies through various convenient channels such as eWallets, PayPal, and cards. This globally acclaimed crypto exchange made its recent expansion to engage US investors in 2023. With its user-friendly design, eToro caters to both beginner and experienced traders not only in the UK, Australia, and Europe but also beyond.
How to Invest in Altcoins
“Trade crypto assets on eToro using two fundamental approaches:
Contracts For Difference (CFD) allow individuals to participate in the fluctuation of cryptoasset prices without their assets. This investment tool empowers investors and traders to capitalize on changes in security prices, offering potential profits.
Let’s have a look and see how these two methods compare.
Buy the Underlying Asset
Converting traditional currency, such as US dollars, to crypto tokens like Bitcoin through eToro provides individuals with ownership and control. This approach offers the potential for gains as cryptocurrency values rise; however, it also carries the risk of losses during price drops.
By employing this strategy, individuals can maintain complete control over their assets and easily manage wallet storage, transfers, exchanges, and real-world purchases using cryptocurrencies. For instance, one could purchase $1,000 worth of Bitcoin. Moreover, eToro facilitates secure and user-friendly digital wallet services to ensure the safe storage and management of assets.
CFDs facilitate speculative trading on asset price movements without requiring ownership. For instance, platforms like Crypto.com offer Bitcoin CFDs, allowing traders to profit from rising and falling markets and utilize leverage for increased exposure. It’s important to note that engaging in CFD trading does not grant ownership of cryptocurrency tokens, which means they cannot be stored or used for transactions.
Why Buy Altcoins?
For individuals investing in cryptocurrency and willing to invest time in research, it is advisable to explore altcoins. These alternative coins offer a range of use cases beyond Bitcoin. However, navigating the vast landscape of cryptocurrencies can be overwhelming, particularly because altcoins come with higher risks. It is crucial to seek reputable projects while simultaneously managing risk and allocating altcoins conservatively within your portfolio.
Risks of Buying Altcoins
Altcoins, despite their seemingly harmless nature, carry inherent risks. Their smaller market size compared to Bitcoin results in reduced stability and increased volatility. Furthermore, differentiating between altcoins and understanding their various use cases is a complete task. It is worth noting that many altcoins have experienced initial success but ultimately failed, posing a potential risk for investors as new altcoins continue to emerge.
How Much Should You Invest in Altcoins
Investing in Altcoins requires a deep understanding of the market due to their high volatility. It is crucial to support what you can afford to lose and consider diversifying with Bitcoin for added stability. We highly recommend Bitcoin Minetrix as it offers strong utility and the potential for impressive performance in cryptocurrency. However, approach Altcoins cautiously and keep essential funds separate to minimize risks.
In 2023, three altcoins stand out as potential investments: Ethereum (ETH), Cardano (ADA), and Polkadot (DOT). These cryptocurrencies boast promising technology and practical applications. However, conducting thorough research and assessing your risk tolerance before venturing into the volatile crypto market is vital. Additionally, diversifying your investment portfolio is strongly recommended.