Bitcoin Alternatives: What is the best alternative to Bitcoin?
It is the oldest and most well-known cryptocurrency in the world; Bitcoin. Recently, this currency has been in the news more and more often and extreme price increases and decreases have caused a lot of uncertainty. In this article, you will learn all about investing in Bitcoin alternatives and which Bitcoin alternative is best for you.
Investing in Bitcoin Alternatives in 4 Steps
1 - Choose a broker: Choose a broker or crypto exchange where you can invest in cryptocurrency, we recommend eToro!
2 - Deposit money: Transfer money to your account using one of the many available payment methods.
3 - Search for Bitcoin Alternatives: Choose a suitable alternative to Bitcoin from the list of cryptocurrencies.
4 - Invest in the best Bitcoin alternative: Choose how much to invest and complete the transaction.
Interested in finding the best alternative to Bitcoin? Create an account with a broker using the green button!
There are thousands of alternatives to Bitcoin and they are growing all the time. The many different cryptocurrency projects have great differences and therefore not every cryptocurrency is a suitable Bitcoin alternative. In this article, you will learn more about what is the best alternative to Bitcoin.
What are Bitcoin Alternatives?
More and more people are looking for a suitable alternative to Bitcoin. The most common reason is Bitcoin's energy consumption.
Bitcoin uses a lot of power to maintain its network, more power than some major countries.
In addition, the Chinese government has also announced that it wants to ban Bitcoin mining and trading in the future.
Whether these are all good reasons to stop using bitcoins and start looking for bitcoin alternatives is not for everyone to decide. If you are interested in investing in environmentally friendly cryptocurrency, you should indeed look for Bitcoin alternatives.
Bitcoin is basically not used as a means of payment at the moment, most investors who invest in Bitcoin do so because they see Bitcoin as a store of value. This is because there is a maximum amount of 21 million Bitcoins.
More Bitcoins will never come to market while your Euros can be printed by central banks as much as they want without any problem. So, an alternative to Bitcoin does not have to be a means of payment, it just has to be a limited edition, stable-value asset.
How can I invest in Bitcoin alternatives?
To get started investing in Bitcoin alternatives for yourself, we have put together a simple step-by-step plan below. It covers everything from opening an account with a broker to investing in Bitcoin alternatives.
To read more about what makes a good alternative bitcoin and why, follow these steps.
Step 1: Choose an online broker | Step 4: Find the best alternative to Bitcoin |
Step 2: Create an account | Step 5: Invest in Bitcoin Alternatives |
Step 3: Deposit money | Start directly at eToro |
Step 1: Choose an online broker
The first choice is immediately one of the most important choices you will make, so you should take your time. When you choose a broker or crypto exchange, you immediately have a large choice, while there are very large differences between the platforms.
So first of all, take a good look at the offer of a broker or crypto exchange. If you only want to invest in Bitcoin alternatives, you should look for a place with a large supply of cryptocurrencies.
It is also good to look at the costs you incur with a platform. These costs vary a lot and not only the amount, but also the way the costs are calculated.
eToro
A very popular broker is eToro. Not only experienced, but also novice investors are using it worldwide.
When you use eToro, there are many useful factors that make investing easier.
One example is their convenient free demo account. This allows you to practice investing, without having to put in your own money.
Also handy about eToro is the copy trading feature, which copies trading accounts in order to add to your portfolio.
In addition, eToro also offers many different trading products to invest in. Not only crypto currencies, but also stocks, commodities, ETFs and forex are options to invest in.
When you invest in stocks or ETFs, you even pay 0% commission. Another advantageous fact is that your first investment is already possible with the minimum deposit of only $50.
Capital.com
Another suitable broker for concluding CFDs on cryptocurrencies is Capital.com. This broker is only a few years old, but has grown considerably and has several offices in Europe.
Because of these offices, they are also licensed by regulators such as CySEC and the British FCA. Because of this you can be sure that you can invest safely at this broker.
Capital.com offers a wide range of cryptocurrencies, but you can also invest in other trading products such as shares, ETFs, commodities and currencies. This way you can build a diverse portfolio without having to go to another platform.
Want to read more about Capital.com before making your choice? Check out our review of this broker or go to Capital.com right away!
Bitvavo
Bitvavo is a completely different platform than eToro, Libertex and Capital.com. This is because at this crypto exchange you can invest in the coins themselves, you trade all coins on the platform with other traders at Bitvavo.
The platform of Bitvavo was launched in 2018 in Amsterdam. So this Dutch crypto exchange has only been around for a few years, but is already very popular with Dutch crypto investors.
Bitvavo is also a good place to go for Bitcoin alternatives, they now have a range of over 50 different cryptocurrencies. This crypto exchange was one of the first Dutch companies with a registration with De Nederlandsche Bank.
Since new rules for cryptocurrency companies came into effect, everyone had to apply for this registration. Bitvavo is one of the companies that complied with the legislation and therefore received the registration.
Libertex
Let's start with one of the most popular brokers in Europe; Libertex. This broker has been around for over 25 years and has a lot of customers all over the continent.
Libertex is a broker where you can trade many different products, but all in the form of CFDs. With cryptocurrency, you do not receive the coins themselves, but you enter into a contract with Libertex.
At this broker, you can invest in more than 50 different digital coins. So there is always a good alternative to bitcoin.
Libertex is also a good place to invest in products other than cryptocurrencies. You can choose from shares, ETFs, indices, commodities and currencies.
Start at Libertex right away or read our full Libertex review first to be able to make a better choice.
Step 2: Create an account
After choosing a broker or crypto exchange, it's time to create an account with the chosen platform. In this example, we will look at the broker eToro.
You simply create an account by providing an email address and password. From that moment on, you get access to the eToro platform via a free demo account.
For the real money account, you have to complete a verification by sending a copy of your ID and filling out a questionnaire.
Step 3: Deposit money into account
Once your account has been verified you can deposit money to your account. At eToro, you do this easily via a payment method such as iDeal, PayPal or bank transfer.
Very nice about eToro is that you have the low initial fee of only $50.
There are several payment methods and multiple banks to choose from
Step 4: Find the Best Alternative For Bitcoin
Once the money is in your account you can start looking for bitcoin alternatives to invest in. You can easily search between the different cryptocurrencies at eToro.
In the list of cryptocurrencies you can filter on price fluctuations over certain periods. This way you can also immediately see which coins are doing well.
Step 5: Invest in Bitcoin Alternatives
Once you have found a good Bitcoin alternative, you can click on this currency to go to the market of this cryptocurrency. As soon as you click on one of the currencies, you will see the screen shown below.
You'll immediately get to see what the price looks like and you'll be able to examine it further by means of the "examine" button. Apart from that you'll be able to adjust the chart according to your own preference.
What is the Best Alternative to Bitcoin?
Let's get right to the point; there is no single Bitcoin alternative that stands out that we can recommend here. There are many different cryptocurrency projects that generally have their own technology and network.
Below we will discuss a few coins that offer basically the same functionality as Bitcoin and can solve some of the major drawbacks or problems of Bitcoin. These are coins with their own blockchain network that can work as an alternative to Bitcoin.
1. Ethereum (ETH)
The best known cryptocurrency besides Bitcoin is Ethereum. Ethereum has also been around for years and has a number of improvements over Bitcoin, including an 8 times faster transaction speed.
Whereas Bitcoin is primarily a currency that you can invest in to convert your currency to digital, Ethereum is more of a platform. The Ethereum blockchain network makes it possible to run all kinds of applications on this network.
The most important examples of this are the possibility to create ERC-20 tokens on this network, so you can easily create your own cryptocurrency without having to develop a blockchain network. Smart contracts also enable you to develop even more applications on the Ethereum network.
Partly because Ethereum has its own network and its own applications, it is seen by many as an alternative to Bitcoin. Instead of following all the technology of the major currency, Ethereum has really brought an alternative Bitcoin to the market.
2. Cardano (ADA)
Cardano is a very interesting cryptocurrency for anyone looking for a good alternative to Bitcoin. Instead of the energy-consuming Proof-of-Work mining system that Bitcoin uses, Cardano has implemented Proof-of-Stake that should allow for higher scalability and significantly less energy consumption.
You will see the term "scalability" frequently in your search for Bitcoin alternatives. Scalability is a big problem with Bitcoin, because energy consumption is increasing and the more the network is used, the harder it is to have energy available for it.
Cardano does not have this problem, because Proof of Stake does not require complicated algorithms and therefore has low energy consumption, low transaction costs, and faster transaction speeds than Bitcoin.
3. Nano (NANO)
Just like Cardano, the cryptocurrency Nano uses Proof-of-Stake. What is special about this currency is that transactions are sent immediately and there are never any transaction fees charged on sending or receiving this currency.
After Elon Musk's tweet in which the Tesla CEO announced that he would not accept Bitcoin as a means of payment, many cryptocurrency prices plummeted. Together with Cardano, Nano was one of the rising stocks after this tweet.
The fact that Nano uses very little energy, that transactions are very fast and that there are no transaction fees means that, unlike Bitcoin, Nano can also be used as a real means of payment.
4. Dogecoin (DOGE)
Dogecoin was launched as a joke and is perhaps best thought of as a light version of Bitcoin. The biggest difference is in the price, where Bitcoin is worth tens of thousands of Euros, Dogecoin has never exceeded the Euro.
This is because Dogecoin now has about 130 billion coins on the market compared to the 18 to 19 million Bitcoins. In addition, there will never be more than 21 million Bitcoins on the market while with Dogecoin there is no limit to the total number of coins on the market.
Basically, Dogecoin is much less developed than Bitcoin and therefore much less secure. It was a kind of joke which was capitalised on by well-known people such as, once again, Elon Musk.
Dogecoin initially seems to have a much higher risk. Where Bitcoin has a logical value because of its rock-solid security, Dogecoin has no other application that seems to solve Bitcoin's major problems. On the other hand, Dogecoin does have a Shiba Inu dog as its logo and that is also worth something.
Where is the best place to invest in Bitcoin Alternatives?
The best broker to get started with Bitcoin alternatives is eToro. At this broker, you can use leverage to artificially increase your investment or set a stop-loss or take-profit to reduce your risk.
At eToro, you have the choice of all major cryptocurrency projects, so there is always a suitable alternative to Bitcoin. In addition, as a beginner, you can also start investing from low amounts at eToro.
Pros and cons of investing in Bitcoin Alternatives
Lorem ipsum dolor sit amet, consectetur adipiscing elit sed eiusmod
Conclusion:
Tip: Invest in several bitcoin alternatives at the same time to spread your risk, this way you can be sure that if one project fails to perform as expected, you can fall back on other investments.
Tips Before You Start Investing Bitcoin Alternatives
Investing in Bitcoin is often a risky business. Bitcoin prices have shown several times that they can fall dramatically and you can lose a lot of money if you invest in the wrong time.
Bitcoin alternatives have also suffered huge declines, and most currencies have suffered even more extreme declines than Bitcoin. So keep in mind that some investments may take years, if ever, to pay off.
In addition, smaller coins are more likely to have security problems. Many cryptocurrency projects have already been stopped because it turned out that there was no value in them or because the developers ran away with the money.
So be careful what you invest in and learn more about the currency to see if it is the best alternative to Bitcoin. Want to start investing in Bitcoin? Read our article to buy bitcoin or find out how much bitcoin is worth now.
Frequently Asked Questions
There are many different cryptocurrencies that claim to do the same as Bitcoin or to be better than it. What is the best alternative to Bitcoin seems unpredictable, other major cryptocurrencies such as Ethereum, Cardano, Ripple, and Dogecoin have shown similar price increases to Bitcoin throughout history.
Which platform is best for you depends on which coins you would like to buy and how you want to invest. eToro is a good broker to start investing in Bitcoin alternatives as you can start from a low amount at eToro.
That depends on your own preferences, Bitcoin has obvious problems such as energy consumption and slow transaction speed. However, Bitcoin is still an interesting investment because of its popularity, limited edition and the fact that it continues to evolve.
Investing in currencies other than Bitcoin is best suited to people who have some understanding of the technology behind cryptocurrencies. If you stop investing in Bitcoin, you are taking a big risk with your crypto portfolio, Bitcoin often remains the most resilient when the market collapses.
Lately, the main focus of Bitcoin has been the power consumption of the network. Mining bitcoins requires computers with very powerful hardware to solve algorithms, which consumes a lot of energy.
Other disadvantages of Bitcoin are its slow transaction speed and relatively high transaction fees.
Bitcoin Alternatives: Conclusion
There has been a lot of news about Bitcoin lately, and there has also been an increasing amount of talk about the disadvantages of the world's most famous cryptocurrency. Especially the high energy consumption has been mentioned a lot lately, for example by Tesla top executive Elon Musk.
Bitcoin was once the first cryptocurrency, and since then thousands of other coins have been released, many of which claim to be 'better' than Bitcoin. Among them are a number of Bitcoin alternatives that may be of interest to you.
The best place to invest in Bitcoin alternatives is at online broker eToro. Here you can choose from a wide range of cryptocurrencies and you have a lot of extra options to customize your investment.
