If you’re venturing into the realm of cryptocurrencies, chances are Bitcoin has caught your attention. But what is the next Bitcoin? Are there other digital coins worth considering?
As we navigate the ups and downs of the crypto landscape, it’s natural to wonder about potential investments that could yield substantial returns. Could there be a cryptocurrency poised to replicate Bitcoin’s success?
Bitcoin unquestionably wears the crown as the premier cryptocurrency at this juncture, overshadowing all others. Yet, a lineup of contenders is emerging, each vying for the spotlight as the potential “next big thing” in the world of digital currencies.
In this article, we will unveil five of the best cryptocurrencies that will likely do better than Bitcoin in Canada.
What is the Next Bitcoin: 5 Cryptocurrencies to Watch in 2024
In the vast sea of cryptocurrencies that extends far beyond Bitcoin, exploring each one could become an endless endeavour. After all, not every digital currency boasts the traction necessary to warrant serious consideration.
To navigate this landscape more effectively, we will focus on the five best crypto coins that have caught our attention as potential successors to Bitcoin’s throne:
1. Ethereum (ETH)
In the landscape of cryptocurrencies, one name stands out as a formidable contender – Ethereum (ETH). Operating as a decentralised blockchain, Ethereum utilises its native currency called Ether. This digital ecosystem facilitates smart contracts and is a foundation for creating and operating other cryptocurrencies. Acquiring Ethereum is a hassle-free process, adding to its appeal.
Despite facing challenges like persistent high gas fees that impact Ethereum projects, the platform has managed to maintain its supremacy in the realm of smart contracts. Conceived by Vitalik Buterin in 2013, Ethereum boasts an impressive market capitalisation exceeding $315 billion.
What sets Ethereum apart is its extensive support for blockchain smart contracts, Decentralised Applications (dApps), and Decentralised Autonomous Organisations (DAOs). These features collectively make it an exceptionally versatile blockchain option. Moreover, Ethereum has made substantial contributions to the world of Initial Coin Offerings (ICOs) by pioneering the ERC-20 standard tokens.
However, Ethereum’s transition to a Proof of Stake (PoS) Consensus Protocol has been a work in progress, eagerly anticipated by the cryptocurrency community. Unfortunately, delays in this transition have cast a shadow over the network’s speed and reputation, highlighting a downside to its journey.
Pros
- They have very visible and socially engaging leadership
- The potent functionality of the Ethereum Blockchain
- Ethereum has clarity in terms of regulatory obligation
- Ethereum is backed by notable venture capitalists such as Naval Ravikant and Union Square Ventures
Cons
- Delay in shifting to proof of stake consensus protocol
2. Binance Coin (BNB)
Binance Coin, a prominent contender in the cryptocurrency space, stepped onto the scene in 2017 as the official token of Binance – one of the largest cryptocurrency exchanges globally.
Initially based on the Ethereum blockchain, BNB has since migrated to the Binance Chain, the proprietary blockchain of the Binance network. As this network continues its expansion, Binance Coin stands to gain significant traction in tandem with the cryptocurrency market’s growth.
With a market capitalisation of $63 billion, Binance Coin carries notable weight in the digital currency landscape. One of its distinctive features lies in the exemption it offers from transaction fees for users on the Binance platform. Instead of the typical transaction fee structure, where traders pay a nominal fee per trade, Binance Coin can be employed to offset these fees. This unique attribute renders Binance Coin exceptionally valuable to traders leveraging the Binance exchange.
But how does this mechanism work? Binance introduces a rebate system spanning the initial five years since its inception. The scheme operates on a sliding scale, granting a substantial 50% fee rebate for users employing Binance Coin during the first year. This incentive structure bolsters the coin’s utility and appeal, contributing to its potential surge in value.
Pros
- Binance Coin is one of the most extensively traded tokens.
- The value of coins is constantly increasing, mainly because Binance redeems 20% of the tokens every quarter
- BNB Coin is not limited to Binance Exchange, as it can be traded on other cryptocurrency exchanges.
- It is very reliable as it was created by the largest cryptocurrency exchange Binance.
Cons
- About 80% of tokens are owned by Binance Exchange.
- Binance is often a target for cyber attacks.
3. Solana (SOL)
In the fast-paced realm of blockchain technology, Solana has emerged as an influential player with the potential to rival Ethereum. With unparalleled transaction speed and an environmentally conscious approach, Solana is poised to redefine the cryptocurrency landscape.
As one of the fastest blockchains globally, Solana’s allure has attracted early adopters seeking swift transactions. Boasting an impressive capacity of over 50,000 transactions per second, it presents strong competition to Ethereum, its primary competitor.
Diverging from Ethereum’s ecosystem, which supports various digital projects, Solana similarly nurtures various DeFi, NFTs, and Web3 ventures. Its remarkably low transaction fees set it apart, offering a cost-effective advantage.
Conceived in 2017 by Anatoly Yakovenko, Solana has rapidly risen, now boasting a market capitalization of $28 billion. Yet, its standout feature remains its transaction speed, positioning it as a potent rival to Ethereum and Binance Coin within the realm of altcoins, primarily due to its exceptional pace.
Solana’s distinctiveness shines through its capability to process tens of thousands of transactions per second, starkly contrasting Ethereum’s approximately 13 transactions per second. Unlike Ethereum’s energy-intensive proof-of-work model, Solana employs a blend of proof-of-history (PoH) and proof-of-stake (PoS) mechanisms, delivering efficiency without compromising security.
Notably, Solana’s commitment to sustainability has become a hallmark. In a landscape grappling with environmental concerns, Solana’s approach stands out. Unlike Bitcoin’s carbon-heavy proof-of-work model, which produces emissions akin to a nation, Solana’s operations prioritise eco-friendliness. This eco-conscious stance starkly contrasts Elon Musk’s decision to cease Bitcoin payments for Tesla, driven by environmental apprehensions.
Pros
- Solana is known for its high transaction speed
- Ease of verification is also a selling point of theirs
- It uses proof of history to improve overall efficiency
- Its operations are environmentally friendly
Cons
- Solana has a relatively smaller community of users than its competitors
- Its blockchain has a history of having instabilities
- It has relatively fewer projects going on
4. Cardano (ADA)
Cardano might be the next prospect to capture your attention if you’re pondering the world of cryptocurrency investments. Cardano is a secure platform for seamless transactions and enhanced privacy built upon the innovative Ouroboros blockchain protocol. When you come across the term ADA, it’s closely tied to Cardano.
Diverging from the resource-intensive “proof-of-work” approach used by Bitcoin and Ethereum, Cardano adopts a “proof-of-stake” mechanism to validate transactions on its blockchain. This transition translates to significantly quicker transaction times and a lighter environmental footprint.
Back in 2015, Cardano was brought to life by Charles Hoskinson. Presently boasting a market capitalisation of $28 billion, it’s a notable player in the crypto landscape. Notably, the developers of Cardano opted for an open-source codebase, fostering accessibility and benefits for a wide array of individuals within the crypto and blockchain communities.
Cardano’s development’s fundamental objective revolves around fostering effective interactions among diverse cryptocurrencies spanning various networks and platforms. At its core, Cardano seeks to transform blockchain technology into a collaborative endeavour, facilitating synergy rather than silos.
Amidst the assortment of consensus protocols available, Cardano’s developers opted for the energy-efficient path of the Proof of Stake (PoS) approach. Although this shift simplifies coin mining, concerns about centralisation have been raised, as it empowers a limited number of validators to determine which blocks are validated.
This trade-off highlights the ongoing deliberations within the Cardano community regarding maintaining a balance between efficiency and decentralisation.
Pros
- Open-source code
- A team with high credibility
- Double layered character
- Energy-saving consensus protocol
Cons
- Centralisation concerns
- Security vulnerability
5. Ripple (XRP)
Ripple, a renowned platform for efficient international transactions, has also introduced its native token, XRP, built upon the open-source XRP Ledger blockchain.
Setting itself apart, XRP transactions achieve remarkable speed, processing in a mere 3-5 seconds, starkly contrasting to Bitcoin’s time-consuming several minutes. Moreover, its operational efficiency translates into minimal energy consumption.
Debuting in 2012, XRP has swiftly established itself with a substantial market cap of $35 billion. The platform, aptly named Ripple, plays a pivotal role by seamlessly connecting banks, payment providers, and digital asset exchanges through RippleNet. This synergy offers an unparalleled global money transfer experience; swift, transparent, and economically viable.
The impact amplifies as Ripple enables banks to conduct instantaneous international payments, slashing costs and ensuring transparency. It also extends the advantage to banks and payment providers, granting them access to untapped markets while curbing costs, thanks to its digital asset, XRP. XRP is the epitome of rapidity and scalability in the digital asset landscape.
Pros
- Near-zero transaction fee
- Super-fast transaction speed
- Global partnerships
- Robust customer support
Cons
- Centralized ecosystem
- Tailor-made for large corporations
Why Are Cryptocurrencies Important?
Blockchain-based cryptocurrencies like Bitcoin operate on decentralised platforms, enabling direct peer-to-peer transactions and contracts without intermediaries like banks or courts.
This disruptive potential could reshape finance, democratising transactions. In the past decade, cryptocurrencies surged, amassing a collective market capitalisation exceeding $1.75 trillion.
Among competitors, Bitcoin remains dominant in usage and value. Each Bitcoin coin was valued at around $44,000 in February 2022, with a total market capitalisation surpassing $830 billion.
Bitcoin’s momentum endures, promising longevity. Most cryptocurrencies stem from Bitcoin, leveraging its open-source code and resilient design.
This openness allows anyone to create new coins, fostering inclusivity. It welcomes individuals to participate in the network and conduct transactions, reflecting the collaborative spirit of the cryptocurrency realm.
How To Buy Cryptocurrency in Canada
Acquiring cryptocurrency in Canada is a straightforward and efficient process. Just adhere to these clear steps to get started:
1. Set Up an Account With a Cryptocurrency Exchange or Broker
Much like establishing an account for stock trading, you’ll need to create a trading account. Two main options exist: cryptocurrency exchanges such as Coinbase, Binance, and Gemini, which facilitate direct buyer-seller matches, or brokers like Robinhood and SoFi, which handle the trading on your behalf.
Exchanges typically offer lower fees but present more intricate interfaces, while brokers boast simpler interfaces with fewer complications. Remember that brokers might charge higher fees and offer a more limited range of coins.
2. Fund Your Account
Before diving into cryptocurrency trading, you must have the means to finance your purchases. This could involve linking a bank account, executing a wire transfer, or utilizing debit/credit card payments. Ensure that your account holds the necessary funds.
3. Execute Your Cryptocurrency Order
With your account set up and funded, the next step is to select the cryptocurrency you wish to purchase. Specify the number of coins you desire or opt for fractional shares by indicating a dollar amount.
Following these steps, you’ll be well on your way to acquiring Bitcoin or any other cryptocurrency of interest. For your convenience, here are some widely utilised cryptocurrency exchanges suitable for buying and selling:
How Safe Are Cryptocurrencies?
When it comes to the safety of transactions involving cryptocurrencies, there’s a reassuring level of security woven into their systems. These digital currencies are designed with a strong emphasis on safeguarding assets, ensuring a protective environment for users.
Take Bitcoin, for instance. It’s renowned for its robust security measures, meticulously constructed to thwart the efforts of hackers. The primary vulnerabilities, however, stem from how investors choose to store their cryptocurrency keys. This aspect is distinct from the inherent security of the transactions executed on the blockchain.
To navigate these security nuances effectively, one golden rule stands out: keep your cryptocurrency keys secure. By diligently safeguarding your keys, you’re taking a significant step towards maintaining the integrity of your digital assets.
Final Thoughts on What is the Next Bitcoin
As we navigate the dynamic landscape of cryptocurrencies, the burning question remains: What is the next Bitcoin? While Bitcoin has undoubtedly paved the way for digital currencies, the journey is far from over. Exploring the realm of potential contenders is an exciting endeavour ripe with opportunities to discover the next groundbreaking crypto phenomenon.
So, fellow enthusiasts, let’s stay vigilant and curious as we delve into the world of emerging digital assets. Keep an eye out for those gems that might redefine the industry, and remember – the next big thing could be just around the corner.
FAQs on What is the Next Bitcoin
Who controls cryptocurrencies?
It is important to note that the developers of cryptocurrencies can set specific parameters, such as guidelines for buying or selling cryptocurrency. No one in particular controls crypto.
What are cryptocurrency wallets?
Crypto wallets are simply platforms for securely storing digital assets like Bitcoin. Users can hold a wallet through an exchange account or a custody wallet and even from outside the exchange. In fact, cryptocurrency wallets help store your cryptocurrency’s private keys on the blockchain.
What is blockchain?
Blockchain technology is essentially a transparent, publicly accessible, trustless, and secure ledger. It helps to secure the transfer of the ownership of units of value by using proof of work consensus and public-key encryption methods.
It leverages decentralized consensus for maintaining the network. This ultimately means it excludes intermediaries such as the government, banks, or corporations from the process.
