Clear comparison of major crypto currencies
The inception of block chain technology has seen many types of crypto currencies crop up. Each of these currencies has its own features which makes it unique from each other. While it is true that these currencies operate under the same scope, their individual features make their returns and other benefits to an investor to vary. Understanding some of these features can be all you need to select the best coin to expand your investment portfolio. In this article, we shall compare these coins with an aim of helping an investor choose the most appropriate one for his investment needs.
This is the most popular crypto currency ever launched on the block chain technology. Launched in 2009, bitcoin has remained unbeaten, appreciating in value as time goes. While many of the crypto currencies are facing major challenges in the market, bitcoin is gaining wide acceptance across the world. This coin enjoys wide recognition due to its signature name, being the first crypto currency ever launched since the inception of block chain technology. While it is true that this is the favorite for most investors, one must know that it is not for beginners. To invest and be able to make profits in bitcoin, one must have a large capital base. This is most unlikely with beginners.
Ripple is another coin on the block chain technology. This coin is different from bitcoin in the sense that while bitcoin is a direct currency, ripple is more of a “middleman” kind of thing. Its purpose is to aid in all global FX transactions. For one to be able to use this coin, he is required to pay some fee, popularly known as XRP tokens. While this coin has a high potential to grow, it faces one major challenge, most of the investors are still skeptical with it.
Ethereum software works in a similar way with bitcoin. The only difference is, instead of mining bitcoin with this software, miners will be mining ether. Ether is what actually fuels the ethereum network. Just as XRP tokens are used to pay for services on ripple, ether is also used to pay for transactional services on ethereum network.
Litecoin is one of those coins whose performance is actually not so promising. Perhaps the reason for this is because it wasn’t developed to be original, but to be an alternative to bitcoin. At around 2011, bitcoin’s cost was too high. Average people could not afford the costly bitcoin mining computer. The developers saw it wise to develop a coin that can help absorb those who want to invest but couldn’t afford mining bitcoin. Its value is low, and at the same time it is affordable. The only problem is that its market share has been taken by other major currencies.
Bitcoin cash is just a subset of the original bitcoin. It was launched not so long ago. The development of this coin seems to have any purpose at all, other than to serve the self-interest of the developers. This is so because when you look at the circumstances that led to its development are suspicious. This coin was formed due to disagreements among the developers of the main bitcoin. Some of the developers were not so sure about the future of bitcoin while others knew well that the coin would perform well. Those who were not satisfied decided to develop bitcoin cash to cushion themselves against any eventuality that might befall bitcoin.