It can be difficult for traders to keep pace with the constantly changing market as the world of cryptocurrency continues to grow. To stay on top of the competition, traders need to know the top altcoins and what drives their success.
This blog post will examine some of the top altcoins that you should be keeping an eye on in 2020.
1. Ethereum (ETH)
Ethereum is one of most popular cryptocurrencies other than Bitcoin. In fact, it’s often referred to the silver to Bitcoin’s golden. It is a blockchain platform that allows developers create decentralized apps (dApps) as well as smart contracts.
The robust ecosystem is one of the main reasons for Ethereum’s success. It is backed by many developers, businesses and its utility extends far beyond a means of exchange. Ethereum adds a layer to traditional industries like finance, real estate and supply chain management, adding transparency and security.
Ethereum’s steady performance is another factor that makes it a popular choice among traders. While its prices may fluctuate over time, its chart shows a general upward trajectory.
2. Chainlink (LINK).
Chainlink, a decentralized Oracle network, aims to bridge a gap between smart contracts and real world data. By providing this connection to smart contract developers, they can create complex dApps including DeFi protocols and gaming and sports betting applications.
LINK is a native cryptocurrency for the Chainlink network. It is becoming increasingly popular with investors and traders thanks to its strong fundamentals and consistent growth.
Chainlink’s security features are a key benefit. It is based on a network of Nodes that makes it difficult for cybercriminals and hackers to manipulate data.
Uniswap a decentralized protocol for financial transactions built on top the Ethereum blockchain. It allows the exchange of cryptocurrency without the need for intermediaries and centralized exchanges.
UNI is Uniswap’s native cryptocurrency. Its value is directly linked to the success of Uniswap. It is important that you understand that UNI does not act as a medium for exchange. In exchange for rewards, it provides the protocol with liquidity.
Uniswap has a unique automated market maker (AMM), which allows for dynamic price setting. This means that the exchange rates of a cryptocurrency are determined by a mathematical formula, not by buyers and seller.
Aave is a decentralized, open-source protocol that allows lending and borrowing of cryptocurrency without the use of intermediaries or central institutions. It is built upon the Ethereum blockchain, and uses smart contracts to facilitate transaction.
AAVE is a native cryptocurrency of Aave. It is used as a means to pay for fees, and votes within the Aave protocol. AAVE holders also enjoy certain privileges such as voting on governance and revenue sharing.
Aave’s flexibility is a major advantage. Users can customize their borrowing or lending of cryptocurrencies to meet their individual needs. Aave’s flexibility has made it a popular choice among traders who are looking to get exposure to a variety of cryptocurrencies.
5. Polkadot (DOT)
Polkadot allows interoperability across different blockchain networks. It was created to address the interoperability, scalability, and scalability issues that traditional blockchain protocols face.
DOT is a native cryptocurrency for the Polkadot blockchain. It is used to stake and govern, and its value depends on the success of the Polkadot eco-system.
Polkadot has the ability to facilitate cross chain transactions. This means different blockchain networks are able to communicate with each other. This could greatly improve efficiency and reduce transaction costs.
It is important for traders to be aware of the top altcoins in 2021 as the cryptocurrency market continues its evolution. There are many promising projects and protocol options to choose from. However, it is important to understand the fundamental drivers behind each cryptocurrency to make informed investment decisions.
By staying up-to-date on the latest news in the cryptocurrency market, traders can benefit from emerging trends and stay ahead of their competition.