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Comparison of types of cryptocurrency

Comparison of types of cryptocurrency

In most people's understanding, there is an unwavering sign of equality between the words cryptocurrency and Bitcoin. Many do not even know about the existence of other digital money. Investors, of course, know, but in the mass of their prefer to earn it with the help of "grandfather", as respectful in trading sometimes called the first and most weighty on all major indicators cryptocurrency.

 

Meanwhile, according to the authoritative in the professional environment resource Coinmarketcap, the number of altcoins is more than 2000. Some sources can find a figure of 6000. As you can see, even roughly counting cryptocurrencies is a difficult task. But in any case, 99% of them belong to the category of shitkins, that is, actually garbage coins of no interest. Why do they then get a life? Because there is a minuscule chance to buy an unknown newcomer, who will quickly develop and bring profits not at times, but tens and hundreds of times higher costs.

 

ESSENTIAL ALTCOINS

 

Altcoins began to appear two years after Bitcoin, in 2011. Among the first generation of competitors to this day lived and safely exists Lightcoin (Litecoin). The creation focused on the openness of the source code, which would allow it to be changed or copied to everyone. Bitcoin is called digital gold, and Lightcoin - digital silver, which seems to imply the second most important among all.

 

However, ethereum has been the real second-largest in terms of major indicators for a long time. Its principle of action works on the basis of smart contracts. This allows you to speed up the transfer of data, in which this currency surpasses Bitcoin.

 

Ripple. The priority of the creators was to increase processing speed and bandwidth with a significant reduction in commission fees.

 

Tether (USDT).  This currency is original in that it has a direct connection with the U.S. dollar and according to the idea of the developers is its kind of digital analogue. Each token is backed by the fiat currency of the world's most powerful economy, which is available in a special reserve fund.

 

CRYPTOCURRENCY COMPARISON OPTIONS

 

The main parameter in most cryptocurrency ratings is market capitalization, that is, the total value of all coins at the moment. Bitcoin has it many times and ten times more than the pursuers behind it. But even projects with low capitalization and a small amount of crypto-monitors can grow significantly in price if there is good demand for them.

 

Also important is the volume of trading, in which Bitcoin also has no worthy competitors. In general, the number of transactions with a certain type of cryptocurrency speaks about its demand among investors and traders. More purchases - more trust.

 

Volatility range. Currencies with a smooth schedule of movement are more suitable for investment, with frequent sharp movements - for trading. Among the first stand out staples, these are the projects with the least changes in value and risk, respectively.

 

Fees. For the ownership of more popular crypto monitors, those who want to pay more than for transactions with currencies from the bottom of the ratings. The number of crypto monitors released, various technical solutions of the creators, the duration of the project's existence, its evaluation by reputable experts and more may also matter.

 

In any case, the ideal cryptocurrency does not exist, otherwise, it would function in the only form. And this should be remembered when choosing the best option for you.

21.12.2020
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