In Coinmarketcap, a reference site to see the prices of the main cryptocurrencies, there are already listings over 6,600 digital assets, with significant differences between them. Although not all are so important or used.
In this article we are going to tell you some general concepts and the main distinctions between three of the most popular digital assets of the moment: Bitcoin, Ethereum and Litecoin.
Why are there so many cryptocurrencies?
Bitcoin, the first and most famous of them, paved the way for the monetary revolution that we are experiencing. Through the technology used by Satoshi Nakamoto, the pseudonym chosen by the creator(s) of BTC, digital assets became increasingly popular.
The crypto market is open so that every person or company with the right knowledge can create their own currency. But for one of them to grow up for adoption, must represent a good idea or apply a technology that attracts users.
Many cryptocurrencies were created to improve some aspect of Bitcoin. It is common for new digital currencies to present solutions or evolutions to older ones.
But despite this being something vital for the health of the market, Bitcoin continues to be a reference and having the highest capitalization in the sector, in addition to a good reputation in your code.
If you want to know how buy Bitcoins in pesos and in Argentina, you can review this guide step by step, and also check your price in real time. And if you feel that you still don’t know enough about this cryptocurrency, don’t forget to read our Bitcoin Guide.
Litecoin, the cryptocurrency for fast operations
As for Litecoin, it is a currency released in 2011 by Charlie Lee, who announced it as “a light version of Bitcoin”. If symbolically BTC is “the gold of cryptocurrencies”, then LTC would be the “silver”.
Litecoin’s code is totally inspired by Bitcoin, therefore the validation of the operation and the way of transferring cryptocurrencies is very similar. But there are substantial differences in the project.
For example, instead of the 21 million units that is the maximum mined in Bitcoin, for Litecoin that figure will amount to 84 million tokens. This increased availability makes its price stay well below that of BTC.
On the other hand, Litecoin was programmed so that transactions can be confirmed faster than in Bitcoin, where the estimate is about 10 minutes and can go up in cases of network overload. Litecoin can resolve transactions in 2-3 minutes.
Ethereum, the decentralized development platform
In their general ideas as cryptocurrencies, Bitcoin and Ethereum are very similar. But Ethereum was created to be much more than a digital currency.
Ethereum offers a platform for the software development open source implements smart contracts (smart contracts) in its code and allows the emergence of decentralized applications (DApps).
The Ethereum blockchain not only functions as a financial system, but also allows the creation of programs within your network in a reliable, immutable and fraud-proof way.
For this innovation in the use of blockchain technology, Ehtereum conquered a prominent place in the market, and is currently behind only Bitcoin in market capitalization.
If you want to know how buy Ethereum in pesos and in Argentina, you can review this guide step by step, and also check your price in real time. And if you feel that you still don’t know enough about this interesting network, don’t forget to read our Ethereum Guide.
With so many cryptocurrencies, which one to buy?
There are hundreds of reliable digital currencies with fantastic projects, but also hundreds of other dubious ones with a very questionable future.
The decision on buy or not a digital asset, and in any case which one, should be based on the study and analysis of the risks and possibilities of each network.
A good practice can be creation of a portfolio, where the investment is diversified in more than one cryptocurrency. Thus, the most important values can be placed in the most reliable projects, and smaller ones can be “risky” on more recent assets.