July 29th, 2018
Last year the value of Bitcoin soared, grabbing the attention of millions around the world. Seeing the price trends, many came forward and invested in Bitcoin. This is what caused consumers to buy bitcoins. However, Bitcoin is not the only digital currency in circulation, there are many other cryptocurrencies on the market. Investing in digital currencies is a common activity for investors nowadays, the right investment can yield you millions of dollars in a few years’ time. Many business groups and online shopping sites have started accepting digital currencies as a mode of payment, luring digital currency enthusiasts to deepen their investments.
The most popular digital currency in circulation, Bitcoin is the currency that started the cryptocurrency trend. Bitcoin is currently the biggest market cap at almost $41 billion, and even though it has only recently dominated headlines, the currency has been exchanged since 2010. Today, Bitcoin is widely accepted and used with virtually no weaknesses found within the currency trading system. Used as both a stored value and a payment system, Bitcoin enables users to easily send and receive currencies thanks to the blockchain system as well making it easy to buy bitcoins. To get a better sense of cryptocurrencies, you need to understand the blockchain technology and its features.
Put simply, Blockchain is a digital ledger which stores every network transaction as data chunk, referred to as the “block.” Every user within the network has blockchain copies so when you are sending Bitcointo your friends, the transaction is visible to everyone in the network.
Litecoin is an alternative to Bitcoin which attempts to address all issues which hold Bitcoin down. While not as resilient as Ethereum, Litecoin is still a preferred method of payment by many throughout the world. Most popular online exchange platforms, like Bitcoin of America, allow you to buy and sell Litecoin if that is your preferred cryptocurrency. Most BTM machines installed around the country will also help you buy Litecoin at ease. Litecoin is considered to be the second tier of cryptocurrencies below Bitcoin. In the past few months, the price of Litecoin has risen considerably gaining the attention of enthusiasts from around the world.
Ethereum is another popular alternative to Bitcoin Using this digital currency allows users to do everything at ease, but its main purpose is to be a platform with decentralized applications. Many projects have started sprouting up based on Ethereum and developers have noticed some of its qualities that make it preferred to Bitcoin. The price of Ethereum has skyrocketed in the last few years, however relative to Bitcoin it is still very affordable, making it an ideal investment for many today.
Monero is another popular digital currency similar to Bitcoin which aims to solve the issue of unidentified transactions. This digital currency was initially perceived to be a method of money laundering, but now it aims to change that image. The basic difference between Bitcoin and Monero is that Bitcoin features transparent Blockchain with all transactions being recorded and made public. Monero, on the other hand, comes with an opaque transaction method. While still relatively new in the cryptocurrency market, many users have been drawn to the anonymous aspect of exchange Monero offers.
Apart from the currencies mentioned above, there are several other digital currencies such as Zcach, Bancor, EOS, Tezos, and many others are popping up daily. With the volatile nature of these currencies, it is difficult to predict which one will be the superstar coin of tomorrow. User adoption is one important success factor when it comes to cryptocurrencies; both Bitcoin and Ethereum have accomplished this making both extremely popular. Many coins are still in their introductory stage making it difficult to know which currency will be next to have its “Bitcoin Moment” and create buzz around the market. Even though the majority will just buy bitcoins, users are exploring other alternatives. Till then, start using any of these popular currencies as you begin your cryptocurrency investments.