The most important cryptocurrencies you need to know about

If you are new to the world of crypto, likely, you have only heard one term- Bitcoin. It, however, isn’t the only cryptocurrency that exists. The world of crypto is as deep as it is wide.

What is cryptocurrency?

Let us first give you a refresher to banish any questions from your mind. Cryptocurrency is digital money that does not exist in the physical form, such as notes or coins. What sets it apart is that cryptocurrency operates in a democratized manner. It means that no institute, including a bank, government, or organization, has any control or authority over it.

As mentioned before, Bitcoin is the most famous cryptocurrency known across the world, but it is not the only one. Now, let us get to know the other cryptocurrencies better so you can expand your knowledge and investment portfolio.

What is Ethereum (ETH)

It was launched in the crypto market so that smart contracts and decentralized applications (dapps) could be built and not face issues, like third-party interference, fraud, control, or downtime. Currently, it has the second-largest market share as compared to Bitcoin. What sets it apart from Bitcoin is that as compared to it, the time taken to add a block to the blockchain in Ethereum is very low. It effectively solves one of the largest issues traders have with Bitcoin.

What is Bitcoin Cash (BCH)

It is one of the most known and successful hard forks to come from the original Bitcoin. A fork happens because of the debates and arguments that take place between the developers and the miners. When the factions do not agree, the currency gets split. It gave rise to Bitcoin Cash in 2017 because of issues with its scalability. Currently, Bitcoin limits the size of blocks to one megabyte (MB). Bitcoin Cash increases the same size, from one to eight MBs, ensuring more transactions take place, faster.

What is Litecoin (LTC)

Litecoin was launched in 2011 and is known as the silver to Bitcoin’s gold. It is based on a global payment network that is open-sourced and not under the control of any central authority. As a proof of work, it uses scrypt that is decoded using consumer-grade CPUs. As compared to Bitcoin, it has a faster rate of generation of blocks, ensuring transactions are confirmed faster.

With this newfound information by your side, you can start trading in different exchanges that might suit your tastes better. In case you have any more questions, we would be happy to answer them at Netcoins.

Related posts:

What an incredible gift it would be to be born with an artistic mind and the ability to bring those artistic ideas to life. Not everyone is born with this ability, but Saman Ansari is a professional…

Content often needs to be solution-based and without a clear template, your work can quickly become a list of directives that make the reader feel you are wasting their time. Worse, they bounce off…

Sonus Complete is a dietary supplement that claims to provide relief from tinnitus, a medical condition that causes a ringing or buzzing sound in the ears. This condition affects millions of people…