With Bitcoin coming back into the limelight and many global names associated with it, it is now a much-known term. Along with many other cryptocurrencies, other much-heard names like Ripple and Litecoin also been highlighted. Of all these names, Bitcoin Trading is the most famous because it was the first to come into the market after many such cryptocurrencies followed suit.
In today’s time, there are approximately 1,300 types of cryptocurrencies that are circulating in the financial investment market. To invest in any one of these cryptocurrencies, you must have an overall better understanding of these cryptocurrencies. To know whichcryptocurrency to invest in, continue reading this article till the end.
Overview of Bitcoins
First comes at the list one of the top-performing cryptocurrencies of all time, i,e. Bitcoin.Among all the popular forms of cryptocurrencies ruling in the financial investment market, Bitcoin ranks at the top to date. Bitcoin, no doubt, is the most common choice of platform for investors in the crypto market. Any day anyone would run for it. Every cryptocurrency has a different ecosystem of its own. If we talk about Bitcoins, this form of cryptocurrency runs on the concept of a blockchain that is as good as a ledger in a bank.
Instead of any third party controlling Bitcoins, it is run by a network of miners performing on high-powered computers. Then they add that to a block. In this way block after block is built, and finally, a big chain is created. It is so highly valued that instead of being called electronic money, it is referred to as digital gold. It has one main drawback – it is very volatile.
Bitcoin runs on the fact that there must be proof of the work done wherein all verify all the transactions. It also uses a cryptographic hash SHA – 256, and the function of this hash is to transform the input to an output that has a fixed length and is finally encrypted.
But in Bitcoin, there is one thing that acts as a limit. Bitcoin is complete with 21 million tokens. But it has another plus point that it can be divided and becomes easy for people to buy it. Without spending much, you can buy it. It has a market cap of $900 billion.
Overview of Ripple
Ripple is an over-the-border solution for people wanting to make payments again using blockchain technology. This form of payment is suited for big financial institutions. Payments via the bank are time-consuming and cost much money, but with Ripple around, you can relax. Ripple is coming out with a technology that will help such people or institutions. High-value transactions benefit from this in four seconds without even paying fees for that. Till date, Ripple ranks to be at the top offastest-evolvingcryptocurrencies.
Ripple is known as XRP in the market. cAs of now, there are atotal of 100 billion Ripple coins in the market but only a few are circulating in the market.
Overview of Litecoins
It is Bitcoin’s nearest rival and is its lighter version of it. Its founder, Charlie Lee, has said that it is faster than Bitcoin. While Bitcoin takes around 300 minutes to make the transaction, Litecoin will do it in a little over 2 minutes. It has 84 million coins as against the 21 million Bitcoins. And of all these, only 54, 293, 533 coins are being circulated. Both Litecoin and Bitcoin are similar, except in these two spheres of fast transactions and no fee charged.
Litecoin works with proof of work, but a lot of memory is accessed that CPU or GPU cannot give here. This also uses the hash SHA -256 but with more memory. Here the processing is much faster than Bitcoin because of the high memory.
The leading Cryptocurrency is Bitcoin, and this is why it commands a high market value. Since Bitcoin has a small supply, its demand also increases.
Conclusion
Finally, if you are planningto invest in the crypto market, it is advised that you come to an informed decision and prepare yourself to choose from any of these three cryptocurrency to start trading.