Amid the rally in the cryptocurrency market, now is the time to consider some cryptos that are better than Bitcoin (BTC-USD). Although BTC may never be usurped from its throne as the king of decentralized currencies, it may not be as flexible or robust as others in specific situations. Furthermore, diversifying one’s portfolio with different coins may lead to stronger gains overall.
So, in this article, we’ll discuss three cryptos that are better than Bitcoin. That way, you can unlock more value from your portfolio and expose yourself to different segments of the market.
Here are three coins for you to consider.
Ethereum (ETH-USD)
Ethereum (ETH-USD) wins over Bitcoin due to better ecosystem support and more efficient use of energy through proof-of-stake.
While Bitcoin may be monolithic, Ethereum is comparatively more diverse due to the community’s ability to host and scale decentralized applications on its platforms and allow investors to stake their Ethereum-based tokens for strong APY returns.
What’s better is that while the market is focused on a proposed Bitcoin ETF, there’s also an Ether ETF proposal in the making. Companies like Fidelity National Financial (NYSE:FNF) have submitted applications for an ETF over the past few years, and more are expected to be lodged in the future. That would give retail investors and institutions direct exposure to ETH without owning the underlying, offloading custody risk and making it generally more accessible overall.
That makes ETH one of those cryptos that are better than Bitcoin.
Cardano (ADA-USD)
Cardano (ADA-USD) stands out for its research-driven approach to blockchain development with its Ouroboros network. Although ADA also uses proof-of-work, its architecture is designed to be less energy-intensive than Bitcoin’s.
ADA stands out as a pick because if history repeats itself as in previous rallies, altcoins should also rally along with Bitcoin and for a few weeks after the upcoming halving event. What gives ADA an advantage in this case is its market capitalization, which stands at an eighth position in Coinmarketcap’s rankings.
Since ADA’s market cap is far smaller than Bitcoin’s, and the total amount of coins in circulation for ADA is not far off Bitcoin’s max supply, ADA could undergo a far stronger rally amid the halving event. Some analysts predict that it could increase by 2,800%.
Unlike other altcoins that come and go, ADA has stood the test of time and is one of those tokens most investors would keep in their portfolios whether a massive rally takes place, finding the sweet spot between risk and reward. That puts it on the list of cryptos that are better than Bitcoin.
Solana (SOL-USD)
Solana (SOL-USD) is my risky contrarian play to ride out the halving event and for a long-term hold. SOL is known for its exceptionally high throughput and low transaction costs via its unique proof-of-history consensus mechanism combined with proof-of-stake.
Unfortunately, SOL took an enormous reputational hit amid the FTX exchange collapsing in 2022. At one point, it had lost 94.2% of its value. Most of the damage came from Sam Bankman-Fried praising the token despite a lack of direct exposure to FTX and Alameda Research.
SOL could be undervalued and oversold. Its all-time high was $260, but it currently trades for around $69.56 at the time of writing. It then has a lot of room to surge higher to make up for the ground it lost in the FTX fiasco.
Then, on a fundamental level, some analysts have posited that SOL could further benefit from the rise of meme coins in its ecosystems. These coins are wildly speculative as they usually have no utility or real intrinsic value besides what someone is willing to pay. Due to their fundamentals, they could rise the most out of all ecosystem tokens.
Some of the hottest meme coins, like Bonk (BONK-USD), are based on SOL, so owning the underlying may give investors good exposure to a solid network as well as potentially explosive gains moving forward.
On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.