Top ten bitcoin alternatives you should know about

Other cryptocurrencies to watch

Below are some of the emerging alt coins that, although still much smaller than bitcoin and its challengers, have the potential to be the next big thing:

OmiseGo (OMG)

OmiseGo, a relative latecomer, uses public ethereum-based technology, with the goal of allowing people to use it via traditional digital wallets. It is marketed to those people in Asia that have previously had little access to banking services, and aims to become the payment gateway for Asia – already firms such as McDonalds in Thailand have begun accepting the currency. The price reached a high of nearly $12 in late August 2017, before falling back towards $10.

Golem (GNT)

The golem network is being dubbed the ‘Airbnb of computing’ – it is a supercomputer that breaks down a task, and distributes it to computers all over the world so that less computing power is required by a single PC. The system is available for users to rent using Golem Network Tokens (GNT). The golem network is based on an ethereum smart contract, so users’ transactions are recorded onto the ethereum blockchain.

Monero (XMR)

Monero (XMR) is a privacy coin that was launched in 2014. Like Zcash, it is designed to avoid tracking – it does so by mixing the coins used in every transaction. In the last two months of 2017, Monero quadrupled in value to $349, making it one of the fastest-rising digital currencies – even faster than bitcoin, which only doubled in the same period. Going forward, Monero’s price is likely to see increasing price volatility that could make it an interesting choice for traders.

Dash (DASH)

Originally released as Xcoin in 2014, and rebranded as dash in 2015, the open source peer-to-peer cryptocurrency can be used to make payments online and in-store, straight from a digital wallet. Like bitcoin, dash is popularly held as an investment but it attempts make up for bitcoin’s shortcomings in transaction speed and decision making. Dash can confirm transactions in as little as four seconds and has a voting system in place to allow for the smooth implementation of changes – unlike bitcoin, which remains ungoverned.

NEO (NEO)

NEO – often referred to as China’s response to ethereum – is a blockchain and coin system that transfers currency between users. Though it uses many of the same features and technologies as ethereum, NEO’s vision is to establish a new smart economy by converting all physical asset transfers (such as rent and bills) to NEO digital smart contracts.

Stellar (XLM)

Stellar was founded in 2014 by Jeb McCaleb, who also founded ripple – and like ripple, stellar aims to provide a method of no-fuss international transactions. Stellar has more than 16 billion tokens, called Lumen. The Stellar team promises to cut down the transaction time of bitcoin, and provide the same service at just a fraction of the cost.

The future of bitcoin

Most investors buy bitcoin and hold it, hoping the coins increase in value. However, increasingly we are seeing bitcoin being accepted as a form of payment – by retailers such as Microsoft and Tesla, and even charities. Though it is too early to tell whether bitcoin will be used widely as a currency, it is definitely being increasingly incorporated into the mainstream.

Despite mass speculation about the bitcoin bubble popping, it is unlikely that a crash be the end of cryptocurrencies entirely. With the amount of publicity and investment all cryptocurrencies – not just bitcoin – have received, it seems that the demand will continue. What we are seeing now could just be the beginning of cryptocurrencies and their potential.

What cryptocurrencies can you trade with IG?

When you trade CFDs on a cryptocurrency, you are speculating on price movements in the underlying market, without buying the token itself. As there is no need to deal with an exchange, or create a digital wallet, you can be set up and ready to trade much faster.

IG offers you the opportunity to trade on the price movements of three popular cryptocurrencies:

• Bitcoin (USD)
• Ether (USD)
• Litecoin (USD)