10 Important Cryptocurrencies Except From Bitcoin

Bitcoin has not only been a trendsetter, ushering in a wave of cryptocurrencies built on a decentralized peer-to-peer network, but it has also become the de facto standard for cryptocurrencies, inspiring an ever-growing legion of followers and spinoffs.

Because it is not the only cryptocurrency available, it is critical to investigate others and determine which ones, other than Bitcoin, are performing well. Here are some cryptocurrencies that have survived steep price increases and drops.

What Are Cryptocurrencies?

Before delving deeper into some of these Bitcoin (BTC) alternatives, let's take a step back and define terms like cryptocurrency and altcoin. A cryptocurrency, in broad terms, is virtual or digital money in the form of tokens or "coins." Though some cryptocurrencies have entered the physical world through credit cards or other projects, the vast majority remain completely intangible.

The term "crypto" refers to the complex cryptography that enables the creation and processing of digital currencies and their transactions across decentralized systems. Along with this crucial "crypto" feature is a shared commitment to decentralization; cryptocurrencies are typically developed as code by teams who include mechanisms for issuance (often, but not always, through a process known as mining) and other controls.

Cryptocurrencies are almost always designed to be free of government manipulation and control—though, as the industry has grown in popularity, this fundamental aspect has come under scrutiny. Altcoins, and in some cases shitcoins, are cryptocurrencies modeled after Bitcoin that have frequently attempted to present themselves as modified or improved versions of Bitcoin. Though some of these currencies may have some impressive features that Bitcoin does not, an altcoin has yet to match the level of security that Bitcoin's networks achieve.

Types of Altcoins

Cryptocurrencies

Cryptocurrencies are designed to make payments by sending value (similar to digital money) across a decentralized network of users. Many altcoins (those that are not Bitcoin or Ethereum) are classified in this manner and are sometimes referred to as value tokens.

Tokens

There are also blockchain-based tokens that serve a purpose other than monetary value. A token issued as part of an initial coin offering (ICO) that represents a stake in a blockchain or decentralized finance (DeFi) project is one example. Security tokens are tokens that are linked to the value of a company or project (as in securities like stocks, not safety).

Other tokens serve a specific purpose or perform a specific function. Storj tokens, which enable people to share files across a decentralized network, or Namecoin, which provides decentralized Domain Name System (DNS) service for Internet addresses, are two examples. These are referred to as utility tokens.

While many crypto users understand and appreciate these distinctions, traders and lay investors may miss them because all types of tokens tend to trade in the same way on crypto exchanges.

1. Ethereum (ETH)

Ethereum (ETH), the first Bitcoin alternative on our list, is a decentralized software platform that allows smart contracts and decentralized applications (dApps) to be built and run without downtime, fraud, control, or interference from a third party. The goal of Ethereum is to create a decentralized suite of financial products that anyone in the world, regardless of nationality, ethnicity, or faith, can freely access. This aspect makes the implications for those in some countries more compelling, because those who lack state infrastructure and identification can obtain bank accounts, loans, insurance, and a variety of other financial products.

Ethereum applications are powered by ether, the platform's proprietary cryptographic token. Ether (ETH) is a vehicle for moving around the Ethereum platform and is primarily sought by developers looking to develop and run applications within Ethereum, as well as investors looking to purchase other digital currencies using ether.

Ether, which debuted in 2015, is now the second-largest digital currency by market capitalization after Bitcoin, though it lags far behind the dominant cryptocurrency. Ether had a market cap of $169.5 billion as of September 18, 2022, trading at around $1,383 per ETH.

2. Tether (USDT)

Tether (USDT) was one of the first and most popular of a class of cryptocurrencies known as stablecoins, which aim to reduce volatility by tying their market value to a currency or other external reference point. Because most digital currencies, including major ones like Bitcoin, have experienced frequent periods of extreme volatility, Tether and other stablecoins attempt to smooth out price fluctuations in order to attract users who would otherwise be wary.

Tether's value is directly linked to the value of the US dollar. The system enables users to make transfers from other cryptocurrencies back to US dollars more quickly than converting to regular currency.

Tether, which was founded in 2014, describes itself as "a blockchain-enabled platform...to make it easier to use fiat currency digitally." This cryptocurrency, in effect, allows individuals to use a blockchain network and related technologies to transact in traditional currencies while minimizing the volatility and complexity that are frequently associated with digital currencies.

Tether is the third-largest cryptocurrency by market capitalization as of September 18, 2022, with a market cap of $67.9 billion and a per token value of $1.00.

3. USD Coin (USDC)

USD Coin, another stablecoin, pegs its price to the US dollar with fiat-collateralized reserves, which means it holds an amount of fiat currency equal to the amount of USD Coin in circulation. The Centre Consortium, which includes Circle and Coinbase, launched USD Coin in 2018. Circle is subject to regulation because it is based in the United States, making USD Coin a regulated stablecoin.

USD Coin has a market cap of $55.5 billion and a price per coin of $1.00 as of September 18, 2022. It ranked fourth in terms of market capitalization and trading volume.

4. Binance Coin (BNB)

Binance Coin (BNB) is a utility cryptocurrency that serves as a payment method for trading fees on the Binance Exchange. By market capitalization, it is the third-largest cryptocurrency.

Those who use the token as payment for the exchange can trade at a reduced rate.

Binance Coin's blockchain also serves as the foundation for Binance's decentralized exchange. The Binance Exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world based on trading volumes.

Binance Coin began as an ERC-20 token that ran on the Ethereum blockchain. It eventually got its own mainnet. The network employs the PoS consensus model. Binance Coin has a $44.1 billion market capitalization as of September 18, 2022, with one BNB worth around $273.34.

5. Binance USD (BUSD)

Binance USD was created as a stablecoin pegged to the US dollar by the cryptocurrency exchange Binance. The stablecoin was approved by the New York State Department of Financial Services, making it regulated as well.

BUSD had a market cap of $20.5 billion and was trading at $1.00 per coin on September 18, 2022.