The present generation folks are acquainted with the name Bitcoin which has become extremely popular over the years. However, there are also other cryptocurrencies apart from Bitcoin which have gained plenty of recognition in recent times. Among them, the names Litecoin and Ripple deserve special mention. Nevertheless, the most famous digital Chinese currency is undoubtedly Bitcoin which was introduced to the market much before the other cryptocurrencies.
As a matter of fact, you’ll come across more than 1,300 digital currencies that are circulating in the market right now. It will be imperative for you to have a proper understanding of these cryptocurrencies before thinking of investing and trading in them. For this, it will be a good idea to download the official trading app on your mobile gadget or computer at the earliest. In this article, you will get knowledge on selected three such cryptocurrencies, namely, Bitcoin, Ripple, and Litecoin and other info which have provided some understanding on them that can be helpful to you.
Overview of Bitcoin
At first, one might talk about Bitcoin which is perhaps the most well-known cryptocurrency of all time. As a result, it is quite natural for Bitcoin to be the most typical choice of platform in the crypto market for investors. It is a fact that each digital currency comes with its own ecosystem. While talking about Bitcoin, this particular cryptocurrency is based on the concept of blockchain which can be compared with a ledger in a financial institution.
Bitcoin is not controlled by any third party, and a network of miners is responsible for running it at present. These miners are known to operate high-powered computers for creating blocks and blocks of Bitcoin until they are able to create a big chain. Its value is extremely high and it is known as digital gold instead of being termed electronic money. However, one significant drawback with Bitcoin is that it is extremely volatile.
It will not be possible to reverse a Bitcoin transaction after it has been done, and only that person will be able to get back the transaction in the long run. This implies that it will be feasible for you to perform business only with those individuals and companies on whom you have faith and trust.
Bitcoin has the ability to discover spelling mistakes and it will not be able to send your cash to any invalid address mistakenly. However, it will be a good idea to have controls in place for safety as well as redundancy. Anybody will be able to see the transactions and balance of any Bitcoin address since every Bitcoin transaction will be stored perpetually on the network.
One particular thing can act as a limit when it comes to Bitcoin. This digital currency will be completed with 21 million tokens. However, one good thing about Bitcoin is that one can divide it so that it becomes simple for individuals to purchase Bitcoin.
Overview of Ripple
Here, it will be good for you to know that the name of this digital currency happens to be XRP and not Ripple coin. The total number of this currency cannot be increased since it is not possible to create or mine XRP.
Ripple coin had been created in the year 2012 for encouraging financial transactions globally. Even today, it emphasizes making global money exchange risk-free and smooth. Many large financial institutions and banks were attracted by this feature of XRP over the years. Although 100 million Ripple coins were mined prior to the introduction of XRP, not all the coins are in circulation in the market right now.
Overview of Litecoin
It happens to be the lighter version of Bitcoin and its nearest rival as well. According to its founder, Litecoin is faster compared to Bitcoin. In fact, Litecoin will take approximately 2 minutes to complete one transaction; on the other hand, Bitcoin will take almost 300 minutes to do the same. As against 21 million Bitcoins, there are 84 million Litecoins at present. Both Bitcoin and Litecoin are similar in many ways, and one notable difference happens to be the speed of the transaction.
Bitcoin is the leading cryptocurrency right now on the market. Its demand is also more because of its small supply.
Final thoughts
All these 3 cryptocurrencies mentioned here are deflationary. One can expect their numbers to decrease with the passage of time, and their value to increase as well.
