itcoin spawned a whole market of alternative cryptocurrencies. Today there are more than 5000 of these ‘altcoins’.
Altcoins can be a good way to diversify your crypto holdings, especially given the additional features they offer.
Cryptocurrency trading is not regulated in the UK. If something goes wrong, you won’t get any compensation. Your capital is at risk, which means you could lose some or all of your investment.
Trade with eToro.
Trade in multiple assets including stocks, ETFs and cryptocurrencies; For both novices and experts
CFDs are complex instruments and carry the risk of losing money quickly due to leverage. 68% of retail investor accounts lose money when trading CFDs with eToro. Cryptocurrency investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk.
1. Ether (ETH)
Ether is the native token of Ethereum and the second largest cryptocurrency in the world. Ethereum is a global software platform that supports decentralized applications, smart contracts and financial transactions, as well as mining and storing non-fungible tokens (NFTs).
Launched in 2015, ETH has amassed a market cap of over £144 billion as of July 26, 2022. The price of the crypto peaked at £3,815 in August 2021, and each token is now worth £1,165.
2. Bitcoin Cash (BCH)
Bitcoin Cash was the result of a hard fork in the original Bitcoin project in 2017. A separate group of contributors wanted to increase the size of the blocks in the Bitcoin blockchain to include more transactions.
Bitcoin Cash has the same proof of work consensus mechanism and the same hard cap of 21 million coins as Bitcoin. As of July 26, 2022, one Bitcoin Cash token is worth £95.51.
3. Litecoin (LTC)
Litecoin was one of Bitcoin’s early challengers when it launched back in 2011.
Litecoin uses a proof-of-work consensus mechanism similar to bitcoin, meaning new coins are created to reward miners for processing transactions on its blockchain. However, Litecoin’s new script algorithm makes transactions faster than Bitcoin.
Litecoin reached £326 in May 2021. As of 26 July 2022, one LTC is worth around £44.
4. Solana (SOL)
Like Ethereum, the Solana blockchain was built to host decentralized applications (dApps). A relative newcomer, Solana and its SOL cryptocurrency launched in 2020.
Solana’s low transaction fees make it more affordable than its competitors. The Solana blockchain can process up to 65,000 transactions per second via ‘proof of history’.
A timestamp affixed to each block creates a permanent record of the transactions in the order in which they were committed. As of 26 July 2022, SOL costs £29.53.
4. Cardano (ADA)
Created in 2017 by the co-founders of Ethereum, ADA is the native cryptocurrency of the Cardano blockchain. Cardano uses a proof-of-stake consensus mechanism to verify transactions instead of proof-of-work.
It requires much less energy than its proof-of-work counterparts, as users on the network use their tokens for the opportunity to be validators rather than power-hungry machines. Use to crack the encryption used in proof-of-work systems.
On 26 July 2022, one Cardano was worth 38p – down from a peak of £2.45 in September 2021.
5. Dogecoin (DOGE)
What started as a parody of cryptocurrencies quickly became the world’s largest memecoin.
DOGE hit the exchange in 2013 and used distributed ledger technology derived from Litecoin.
In May 2021, the price of MimiCoin reached 46p. Much of DOGE’s positive price movement has come after support from Tesla founder and entrepreneur Elon Musk. However, by July 2022, the price of DOGE has fallen to around 5p.