The best altcoins to invest in 2024

What are the best altcoins available on the market in 2024? The cryptocurrency market is in turmoil. In recent months, prices have risen, pushing many users to search for the best alternative cryptocurrencies to Bitcoin to buy, or the best altcoins to invest in in 2024.

Money.it has drawn up a ranking, based on the market capitalization and reliability of the projects, together with an in-depth explanation of the characteristics and prospects of each cryptocurrency reported. The world of cryptocurrencies is vast and ever-expanding, thanks to the regular introduction of new altcoins. This is, therefore, a different ranking from the best overall cryptocurrencies to invest in 2024.

Altcoins, or alternative cryptocurrencies, include all digital currencies other than Bitcoin. Although Bitcoin is the most well-known and widespread cryptocurrency, many other altcoins offer unique characteristics and potential investment opportunities. Whether you’re an experienced or novice investor, get ready to find out which are the best altcoins to watch in 2024.

What are altcoins?

The basic definition is quite simple: the term “altcoin” means all cryptocurrencies, with exception of Bitcoin. “Alt” is an abbreviation of “alternative”. Altcoins are therefore all alternative coins to Bitcoin.

The term "altcoin" appeared for the first time in 2011, on the occasion of the launch of a crypto known as Namecoin, and is still used today to differentiate Nakamoto’s token from the many digital coins minted in recent years.

Most of these, upon closer inspection, are simple utility/reward tokens, designed above all to work on specific apps or platforms. Others, however, have gained billions of market shares. There is Ethereum, second only to BTC, which owes its success to the underlying blockchain technology, Tether, a stablecoin linked to the US dollar with a ratio of 1 :1 and Binance Coin, the digital currency of the US exchange Binance, and many others.

Bitcoin and altcoins are closely linked, to the point that whenever news breaks out to inflate or deflate the price of the former, the latter also ends up following its trend, upwards or downwards. Except for Ethereum, perhaps the only altcoin that aims to undermine Bitcoin by riding the boom of decentralized finance (DeFi), the others simply carve out their space in the crypto-currency segment, and it is not uncommon for projects to be aborted.

The best altcoins in 2024

To draw up the ranking of the best altcoins on Money.it, we have carefully selected each cryptocurrency reported based on market capitalization - a key indicator of stability and relative potential.

Market capitalization is calculated by multiplying the price of the altcoin by the total circulating supply, i.e. the number of tokens placed on the market. This metric is crucial because it provides information on the size and market dominance of each altcoin, reflecting investor confidence and its value in the cryptocurrency ecosystem.

Altcoins with higher market capitalization, such as Ethereum and Tether, are often considered safer investments as they are more established and have already demonstrated some resilience in the market.

Below, we report the exact market capitalization at the time of writing of the 10 best altcoins available on the market. To a greater or lesser extent, they all offer a certain balance between growth potential and stability, making them attractive to both new and experienced investors.

Updated on 16/01/2024 at 16:00

1. Ethereum (ETH)

Ethereum is first in the ranking of the best altcoins (as of January 2024).

Ethereum has earned a prominent position in the crypto world, becoming the second largest by market capitalization after Bitcoin. Launched in 2015 by Vitalik Buterin and Gavin Wood, Ethereum is a global, decentralized platform that offers not only cryptocurrencies but also the ability to create smart contracts and decentralized applications (dApp).

In this article, we will explore Ethereum in-depth, analyzing its functioning, its strengths, and its prospects. An important aspect that differentiates Ethereum from Bitcoin is the use of smart contracts. Smart contracts are computer codes that automatically perform specified actions when certain conditions are met.

These contracts make it possible to automate complex financial transactions and allow developers to create a wide range of decentralized applications.

The Ethereum network is based on a blockchain, a distributed ledger that keeps track of all transactions and smart contracts. This blockchain is supported by a large network of nodes, which verify and record transactions and maintain the state of the network.

Smart contracts are central to the functioning of Ethereum, allowing the automatic execution of actions specified in code when conditions are met.

2. Tether (USDT)

Tether it is second in the ranking of the best altcoins (as of January 2024).

Tether is a stablecoin, a type of cryptocurrency designed to be stable and pegged to the value of a traditional fiat currency, such as the US dollar.

It was created to provide users with a digital currency that offers the benefits of blockchain technology, such as fast and secure transactions while mitigating the volatility often associated with other cryptocurrencies.

Tether works by maintaining reserves of the currency to which it is pegged, in this case, the US dollar, to support the value of each Tether token. These reserves are held transparently and are regularly audited to ensure there are sufficient funds to support the value of Tether in circulation. The way Tether works is through a process called tokenization.

When a user wants to purchase Tether tokens, they can do so by depositing fiat currency into an authorized exchange or through a Tether-enabled wallet. The user’s fiat currency is then converted into an equivalent amount of tokens, which are issued on the blockchain. Each tether represents one unit of the fiat currency to which it is pegged. Once the user has acquired Tether, it can be used for various purposes, such as making payments, trading on cryptocurrency exchanges, or storing value.

Because Tether tokens are pegged to a fiat currency, their value remains relatively stable, making them an attractive option for users who want to avoid the volatility often associated with other cryptocurrencies. Overall, Tether offers users a stable and secure digital currency option that combines the benefits of blockchain technology with the stability of fiat currencies. By maintaining reserves and ensuring transparency, Tether aims to provide users with a reliable and trustworthy digital currency solution.

3. BNB (BNB)

BNB is third in the ranking of the best altcoins (as of January 2024).

Binance Coin (BNB) is a cryptocurrency created by Binance, one of the largest and most popular cryptocurrency exchanges in the world. BNB operates on the Binance Chain and serves as a native token for the Binance ecosystem.

It was initially launched as an ERC-20 token on the Ethereum blockchain but later migrated to its own blockchain. BNB has several functions within the Binance ecosystem. First, it is used as a utility token to pay transaction fees on the Binance exchange. By using BNB to pay commissions, users can enjoy discounts and incentives, making it a convenient option for frequent traders.

Additionally, BNB can be used to participate in token sales on the Binance Launchpad platform, which provides the opportunity to invest in promising blockchain projects. Another important use case of BNB is its role in the Binance DEX (Decentralized Exchange). BNB is the main trading pair on the DEX, meaning that all other tokens listed on the platform are traded against BNB.

This highlights the importance of BNB as a core asset for trading and liquidity within the decentralized exchange. Additionally, Binance has introduced several initiatives to promote the adoption and usefulness of BNB. These include the creation of a decentralized marketplace where users can buy and sell digital assets using BNB and the launch of a BNB-backed stablecoin called BUSD (Binance USD).

On the technical side, BNB works with a proof-of-stake (PoS) consensus mechanism, which allows BNB holders to participate in the block validation process and earn additional tokens as a reward. This incentivizes users to hold and stake their BNB, thus increasing the security and decentralization of the network.

Overall, Binance Coin (BNB) is a versatile cryptocurrency that plays a crucial role in the Binance ecosystem. From reducing trading fees to participating in token sales and fueling decentralized trading, BNB offers several benefits to users while contributing to the growth and development of the cryptocurrency industry at large.

4. Solana (SOL)

Solana is fourth in the ranking of the best altcoins (as of January 2024).

Solana is a high-performance blockchain platform that aims to provide fast, secure, and scalable solutions for decentralized applications (dApps) and cryptocurrencies.

Built on a unique consensus mechanism called Proof of History (PoH), Solana is designed to handle thousands of transactions per second, making it one of the fastest blockchain networks in existence. At its core, Solana leverages a combination of technologies and innovations to achieve its high performance. The Proof of History mechanism timestamps each transaction within a block, establishing an immutable and verifiable order of events.

This allows Solana to process transactions in parallel, significantly increasing its throughput compared to traditional blockchains. Additionally, Solana uses a network of validators to confirm and validate transactions, ensuring the security and integrity of the network.

A key feature of Solana is its scalability. Unlike many other blockchain platforms that face congestion and high fees during peak usage, Solana’s architecture is designed to handle increased demand without sacrificing performance. Using a unique combination of sharding and parallel processing, Solana can scale out, meaning you can add more validators and hardware resources to increase its capacity.

Another important aspect of Solana’s design is its focus on developer-friendly tools and infrastructure. The Solana ecosystem offers a comprehensive set of software development kits (SDKs), libraries, and APIs that allow developers to create and deploy dApps with ease. This includes support for popular programming languages, such as Rust and C, and integration with existing development tools, such as Docker and Visual Studio Code.

In conclusion, Solana is a high-performance blockchain platform that offers rapid transaction processing, scalability, and easy-to-use tools for developers. By leveraging innovative technologies such as Proof of History and a network of validators, Solana aims to address the limitations of traditional blockchains and provide a solid infrastructure for the future of decentralized applications and cryptocurrencies.

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5. XRP

XRP is fifth in the ranking of the best altcoins (as of January 2024).

XRP is a digital currency created by Ripple Labs, a technology company focused on providing cross-border payment solutions. It was designed to facilitate fast and low-cost international transactions.

Unlike other cryptocurrencies like Bitcoin, XRP does not rely on a blockchain to function. Instead, it uses a consensus algorithm called XRP Ledger to validate and confirm transactions. The XRP Ledger is a decentralized, open-source blockchain-like technology that serves as the backbone of the XRP ecosystem. It is operated by a network of independent validators who reach a consensus on the validity of transactions. This consensus mechanism allows for fast and efficient transaction settlement, with XRP transactions confirmed within seconds.

One of the main features of XRP is its ability to bridge different currencies and facilitate the transfer of value across borders. This is done through the use of gateways, entities that issue and redeem assets on the XRP Ledger. For example, a gateway can issue USD tokens on the XRP Ledger, which can then be sent to another gateway and redeemed for actual USD. This allows users to send and receive different currencies using XRP as an intermediary asset, eliminating the need for traditional banking intermediaries and reducing costs. In addition to its role as a bridge currency, XRP also serves as a liquidity tool for financial institutions.

Ripple has developed a suite of products, collectively known as RippleNet, that leverage XRP to improve liquidity management and enable faster cheaper cross-border payments. By holding XRP and using it as a bridge currency, financial institutions can reduce their reliance on pre-funded accounts in different currencies, freeing up capital and reducing costs. Overall, XRP is a digital currency designed to facilitate fast and low-cost international transactions. It operates on the XRP Ledger, a decentralized consensus-based network, and can be used as a bridge currency to facilitate the transfer of value across borders.

Thanks to its innovative technology and widespread adoption by financial institutions, XRP has the potential to revolutionize the global payments industry.

6. USDC (USDC)

USDC is sixth in the ranking of the best altcoins (as of January 2024).

USDC, short for USD Coin, is a type of stablecoin that operates on the Ethereum blockchain. It was launched by the Center Consortium, a collaboration between Circle and Coinbase, in 2018. USDC was designed to provide a stable and secure digital currency that is backed by the US dollar on a one-to-one basis.

This means that for every USDC token in circulation, there is an equivalent amount of US dollars in reserve. The way USDC works is through a process called tokenization. When a user wants to obtain USDC, they can do so by depositing US dollars into a regulated bank account and then using a platform like Circle or Coinbase to convert those dollars into USDC tokens.

These tokens can then be sent, received or stored on the Ethereum blockchain. The process can also work in reverse, allowing users to convert their USDC tokens back into US dollars. One of the main advantages of USDC is its stability. Unlike other cryptocurrencies such as Bitcoin or Ethereum, which are known for their price volatility, the value of USDC remains relatively stable because it is pegged to the US dollar. This stability makes it an attractive option for individuals and businesses looking to conduct digital transactions without the risk of price fluctuations.

In addition to its stability, USDC offers several advantages over traditional banking systems. Transactions using USDC can be completed quickly and securely, with low fees and without the need for intermediaries such as banks. Additionally, USDC offers greater transparency as all transactions are recorded on the Ethereum blockchain, which anyone can access.

Overall, USDC is a digital currency that offers stability, security, and efficiency in transactions. Its ability to be seamlessly converted between traditional fiat currencies and digital assets makes it an important tool in the growing decentralized finance ecosystem.

7. Cardano (ADA)

Cardano is seventh in the ranking of the best altcoins (as of January 2024).

Cardano is a blockchain platform that aims to provide a more secure and sustainable infrastructure for the development of decentralized applications and smart contracts. It was founded by a group of experts in the field of cryptography and computer science, to address some of the main challenges of existing blockchain platforms, such as scalability, sustainability, and interoperability.

At its core, Cardano uses a layered architecture that separates the settlement layer from the computation layer. The settlement layer is responsible for managing the transfer of value and maintaining the ledger, while the compute layer is where smart contracts and applications are executed. This separation allows for greater flexibility and scalability, as different layers can be updated or changed without affecting the entire system.

Cardano also employs a unique consensus algorithm called Ouroboros, designed to be secure, scalable, and energy efficient. Unlike traditional proof-of-work algorithms used by other blockchains like Bitcoin, Ouroboros is based on a proof-of-stake model. This means that instead of miners competing to solve complex mathematical puzzles, stakeholders are chosen to validate transactions based on the amount of ADA (Cardano’s native cryptocurrency) they own.

Additionally, Cardano incorporates a rigorous peer review process for its development, with each update going through multiple stages of academic research and formal verification. This approach ensures that the platform is built on sound scientific principles and can withstand rigorous scrutiny. It also promotes transparency, as all protocol changes and updates are publicly documented and open for review. In summary, Cardano is a blockchain platform that aims to provide a more secure and sustainable infrastructure for decentralized applications and smart contracts.

Through its layered architecture, unique consensus algorithm, and rigorous development process, it seeks to address the key challenges of existing blockchain platforms. With its focus on security, scalability, and sustainability, Cardano has the potential to revolutionize the way we interact with blockchain technology.

8. Avalanche (AVAX)

Avalanche is eighth in the ranking of the best altcoins (as of January 2024).

Avalanche is a decentralized platform that aims to provide high performance, scalability, and security to the digital asset industry. It was developed by Ava Labs and uses a new consensus protocol called Avalanche.

This protocol enables fast and efficient transactions and represents a promising solution to the challenges faced by traditional blockchain networks. The Avalanche platform operates on a unique consensus mechanism, known as the Avalanche consensus. Unlike other consensus algorithms, Avalanche does not rely on a fixed set of validators to reach consensus. Instead, it allows a large number of participants to validate transactions simultaneously. This approach ensures that the network can process transactions quickly and efficiently, even during periods of high demand.

One of Avalanche’s key features is its ability to support multiple virtual machines (VMs), allowing developers to build and deploy smart contracts using different programming languages. This flexibility allows the platform to attract a diverse range of developers and opens up new possibilities for decentralized applications (dApps) to be built on the Avalanche network. Avalanche also prioritizes security, with built-in mechanisms to protect against attacks and ensure the integrity of the platform.

Avalanche’s consensus protocol uses a randomization process to select validators, reducing the risk of collusion and making it difficult for malicious actors to manipulate the network. Additionally, the platform incorporates measures such as asset-specific subnets and role-based access control to improve security and privacy.

Overall, the Avalanche cryptocurrency offers a promising solution to the scalability and performance limitations of traditional blockchain networks. With its innovative consensus protocol, support for multiple virtual machines, and robust security features, Avalanche has the potential to revolutionize the digital asset industry and drive the adoption of decentralized applications.

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9. Dogecoin (DOGE)

Dogecoin is ninth in the ranking of the best altcoins (as of January 2024).

Dogecoin is a cryptocurrency created in 2013 as a light-hearted and fun alternative to Bitcoin. It takes its name from the popular "Doge" meme featuring a Shiba Inu dog with captions written in broken English.

Dogecoin has quickly gained popularity and has developed a strong online community, known as "Shibes", who actively trade and use digital currency. Dogecoin operates on a decentralized peer-to-peer network, similar to other cryptocurrencies. This means that there is no central authority or governing body that controls or regulates transactions.

Instead, transactions are verified by a network of computers, or nodes, that maintain a public ledger called a blockchain. The blockchain is a digital record of all Dogecoin transactions that have ever occurred. It is distributed across multiple computers, making it difficult for a single entity to manipulate or corrupt data. New transactions are added to the blockchain in blocks, created through a process called mining.

Mining is how new Dogecoins are created and transactions are confirmed. Miners use their computing power to solve complex mathematical problems, and when they succeed in solving a problem, they add a new block of transactions to the blockchain and are rewarded with a certain number of Dogecoins.

A unique feature of Dogecoin is its inflationary supply. Unlike Bitcoin, which has a limited supply of 21 million coins, Dogecoin does not have a maximum supply. In contrast, there is an annual inflation rate of around 5.2%, meaning that new coins are constantly being put into circulation. Dogecoin has gained popularity for its use in charitable donations and online tipping. Thanks to its low transaction fees and fast confirmation times, it has become a popular choice for online microtransactions and tipping.

The Dogecoin community has also been involved in various charitable initiatives, such as raising funds for clean water projects and sponsoring athletes at the Olympics.

In conclusion, Dogecoin is a decentralized cryptocurrency that operates on a peer-to-peer network. It uses mining to create new coins and confirm transactions, and its unique inflationary offering sets it apart from other cryptocurrencies. With its active community and use in charitable efforts, Dogecoin has proven to be more than just a meme-based cryptocurrency.

10. Polkadot (DOT)

Polkadot is tenth in the ranking of the best altcoins (as of January 2024).

Polkadot is a cryptocurrency that aims to solve the problem of interoperability between different blockchains. It was created by Gavin Wood, co-founder of Ethereum, to create a decentralized network that allows different blockchains to communicate and share information. Polkadot is based on a multi-chain structure that allows cross-transfers of any type of data or assets.

This means that different blockchains can interact with each other, allowing the seamless transfer of goods and information between different chains. Polkadot’s architecture is based on a chain of relays, which serves as a central hub for all connected blockchains. This relay chain is responsible for coordinating communication between the different chains and ensuring its security and scalability. In addition to the relay chain, Polkadot also consists of parachains, which are individual blockchains that can be customized to serve specific purposes.

These parachains can connect to the relay chain and interact with other parachains, allowing for greater network flexibility and scalability. One of the main features of Polkadot is its ability to update and evolve. Through its governance mechanism, network stakeholders can propose and vote on changes to the protocol, allowing for continuous improvement and adaptation to changing market conditions.

Overall, Polkadot is a cryptocurrency that aims to solve the problem of interoperability between different blockchains. By creating a decentralized network that enables seamless communication and transfer of assets between chains, Polkadot has the potential to revolutionize the blockchain industry and unlock new possibilities for decentralized applications and digital assets.

Where to buy altcoins

When it comes to buying altcoins, investors have several options available.

One of the most popular and convenient ways is to turn to a cryptocurrency exchange. These online platforms allow users to buy and sell different types of cryptocurrencies, including altcoins. Some well-known exchanges are Cryptosmart, Coinbase, Binance, and Kraken. These platforms offer an easy-to-use interface and a large selection of altcoins to choose from. Additionally, they offer multiple payment methods, such as credit card, bank transfer, and even PayPal, making it easier for investors to purchase altcoins.

Another option for purchasing altcoins is decentralized exchanges (DEXs). DEXs operate on a peer-to-peer network and do not rely on a central authority. This means that users have full control of their funds and can trade directly with other individuals. Some popular decentralized exchanges are Uniswap, SushiSwap, and PancakeSwap. These platforms are known for their low fees and high level of security. However, they can be more complex to use than traditional exchanges and liquidity can be limited for some altcoins.

Additionally, some altcoins may be available for purchase directly from their official websites or through initial coin offerings (ICO). ICOs are fundraising events where new cryptocurrencies are offered to the public for the first time. Investors can participate in an ICO by purchasing tokens with fiat currency or existing cryptocurrencies. However, it is important to conduct thorough research before investing in an ICO, as cases of fraudulent projects have occurred.

Finally, when it comes to investing in altcoins, using Contracts for Difference (CFD) can be a valid option. CFDs allow traders to speculate on the price movements of altcoins without actually owning the underlying assets. This means that investors can profit from both rising and falling altcoin prices, making CFDs a versatile trading tool. An advantage of buying altcoins with CFDs is that it allows you to access a wide range of altcoins without the need to create individual portfolios for each cryptocurrency. This can save time and effort for investors who want exposure to multiple altcoins. Additionally, trading altcoins with CFDs allows for the use of leverage, meaning traders can potentially amplify their profits.

However, it is important to note that leverage can also increase risk, as losses can also be magnified. In conclusion, there are several ways to purchase altcoins, including cryptocurrency exchanges, decentralized exchanges, and direct purchases from official websites or ICOs or via CFDs. Each option has advantages and disadvantages, so investors should consider factors such as convenience, security, fees, and available altcoin options before making a decision. It is also advisable to keep yourself informed about the latest developments in the cryptocurrency market and seek advice from experienced traders or financial professionals.

Conclusion

If you are looking for the best altcoins to invest in 2024, the ones listed in this guide are options to consider. However, choosing the right altcoin depends on your needs and investment strategy. Be sure to do thorough research and carefully evaluate the risks before making an investment decision. Always remember that the cryptocurrency market is highly volatile and investing involves risk. Always do your research and consult a financial advisor before making investment decisions.

|DISCLAIMER The information and considerations contained in this article should not be used as the sole or principal basis on which to make investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and their disclosure does not constitute and is not to be considered an offer or solicitation to public savings.|

Original article published on Money.it Italy 2024-01-17 07:51:00. Original title: Migliori altcoin nel 2024