5 Important Differences Between Cryptocurrencies

Source: pixabay.com

Crypto talks are one of the most exciting topics nowadays, and it stays popular among consumers for a long time. Since Bitcoin appeared first, the interest in it, and later for the other currencies are getting bigger every day. And it’s understandable, because the people are seeing a revolutionary way to earn money and get rich, especially when the rates are going up, and they can make more money for their crypto savings.

It sounds easy and simple, but if you take an active part in it, you can’t deny the fact it’s pretty complicated too. When Bitcoin was invented, the only way to put your hands on it (not literally) was to mine it for yourself, through the blockchain, solving complicated cryptographic tasks, and get rewarded with it. As you know, it requires a lot of electricity, and also powerful computers, and it’s considered the most expensive way to earn Bitcoins.

But, when other cryptocurrencies appeared on the market, they created conditions for something new – the trading market. People are able to earn crypto coins by trading, which is a more affordable way to earn them. For more info check https://bitcoins-era.io. Also, knowing that there are thousands of cryptocurrencies available, doesn’t mean they are similar or the same. They work in a different way, and today, we will talk about a few of the most popular cryptocurrencies and their features:

1. Availability

Source: pixabay.com

As we said, most of these currencies are available through trading. But, if you want to earn them by yourself it may not be easy like that. Bitcoins require a whole computer center with powerful machines that mine through the blockchain data and dig them up after the block is completed.

Ethereum is developed through a platform, and you earn tokens, that can later be exchanged for that day’s ETC to fiat currency rates. It also comes with some kind of blockchain, but it doesn’t require that type of mining. Ripple is a product of a payment protocol based in the USA, and it’s only available to invest in it.

2. The transaction speed

Source: pixabay.com

Even though BTC is the best-known cryptocurrency in the world, the transaction speed is the slowest among them all. On the other hand, it doesn’t mean you have to wait for days until it’s completed. But compared to the other cryptocurrencies, which need only a small part of the second to complete the transaction, for BTC transfers you will need more time, but the money will be received in a short period of time. For example, it can only handle 7 BTC transactions every second, 20 ETC transactions or even 2,800 for the cryptocurrency known as EOS.

3. The supply

Source: pixabay.com

Some of the crypto coins have a limited supply, even though it’s big. Sadly, but the maximum supply of Bitcoins available is 21 million, and most of them are already mined. The same amount goes for Bitcoin Cash. When it comes to Litecoin, there are 84 million available. But, there is no upper limit to Ethereum or Stellar, which is also good. On the other hand, that means they don’t have a great chance to grow a lot, and their rates will always be lower compared to Bitcoin.

4. Not all of them require mining equipment

Source: unsplash.com

When we talk about cryptocurrencies, most people consider they will need to mine them. But, not every concept is like that. Sometimes, you can simply join a trading platform, buy the coins you want, and store them in your digital wallet, until they hit the wanted price and you decide to exchange them for real money.

5. People are not equally interested in them

Source: unsplash.com

When the hype is big around something, it becomes vulnerable. Today it’s easy to invest in Bitcoin without having to mine it, but knowing how popular it is, all the exchanging platforms are always at high risk of hacker attacks.

So, probably you see where we are getting. Investing in less interesting cryptocurrencies gives them stability, because there is no huge interest at the same time, and they have a chance to grow and develop properly. Bitcoin is proof that not all the hype is good for the products. Its price goes up and down every minute, and there is always a risk of a complete fail. That’s why there are already a few fractions that are more stable than it.

Why is trading better than mining?

Source: pixabay.com

One of the differences we mentioned in this article is a huge benefit for the consumers and investors. Trading is a simple way to get money for your crypto savings at the right time. You put them, and you wait for the right moment and right exchanging price, and then go for it. The fact that the crypto market is still volatile because of the changes of interests makes the whole thing more exciting.

There can be rapid changes every hour, but also that brings some risk of losing money over the night. That’s why you have to manage the risks, no matter how stable your choice seems. Trades are available every part of the day. The more people are interested in some particular cryptocurrency, the more liquid it becomes.

Also, you have a chance to decide if you want to do it right now, for additional excitement in your life, or you want to dedicate your time and money and create a strategy and long-term plan. There are plenty of differences between the cryptocurrencies, but some things are common for them all. No matter how stable they seem, there is always a risk for the whole market to crash down in a few minutes.

But, as of the current situation, that won’t happen anytime soon, so you still have time to do something new in your life, and take some risky steps. Who knows, some of them may work perfectly for you. You only have to be informed about the changes all the time. That will prevent bad decisions and losing money in the long term.


Please enter your comment!
Please enter your name here

92  −    =  87