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Introduction
Cryptocurrency has recently gained much attention in the financial sector, with Bitcoin being the most popular and widely used digital currency. However, Bitcoin is not the only cryptocurrency. There are numerous other alternative cryptocurrencies, popularly referred to as altcoins, which have their own characteristics and advantages. In this article, we are going to discuss some of the most promising altcoins and explain why you should consider investing in them.
1. Ethereum (ETH)
Ethereum is one of the most popular cryptocurrencies after Bitcoin. It is a decentralized open source platform that enables the creation of smart contracts and decentralized applications (DApps). Ethereum’s own token is Ether (ETH) that supports these applications and implement smart contracts.
The major advantage of Ethereum is that it can support decentralized finance (DeFi) apps. These apps are aimed at providing the same services as traditional finance, including lending and borrowing, but without the need for intermediaries such as banks. DeFi has grown exponentially, with billions of funds being locked in various DeFi protocols.
Investing in Ethereum can be seen as a bet on the future of decentralized applications and the possibility to disrupt traditional financial systems. As more programmers start to build on the Ethereum platform, the demand for Ether should increase, which will drive the price up.
2. Ripple (XRP)
Ripple is a digital currency developed to enhance the efficiency of cross-border transactions and reduce costs. Ripple is not as decentralized as Bitcoin and Ethereum, but this has led to a lot of controversy in the cryptocurrency community, Ripple has however been able to form relationships with large financial institutions.
