Posted by Investing in cryptocurrencies is a long-term decision that proves profitable. However, if you are keen to invest in the cryptocurrency market, there is a lot more you need to know before investing. Although investments look apparently simple, many new investors may fail to hold on to the investments after the initial moves. One of the biggest benefits of investing in the digital currencies is they the issuance and the operations are not under the control of a bank or financial transactions. If you are interested in bitcoin trading, visit bitcoin evolution app to acquire an utter guide to crypto trading.
There are several established cryptocurrencies present in the market right now. While some of them may appreciate in value, others may differ. If Bitcoin is the only cryptocurrency you know, here are the other three top cryptocurrencies besides Bitcoin you need to know.
- Ethereum
One of the first alternatives to Bitcoin you need to know is Ethereum or a decentralized platform of software that ads the decentralized apps and the smart contracts to be created and run without any control, downtime, or fraud from the third party. The aim of Ethereum is the creation of a wide range of financial products that are decentralized and anyone can access with ease irrespective of faith, ethnicity, and nationality.
- The apps on Ethereum runs on ether or a specific cryptographic token that aids in moving around the Ethereum platform with ease and is the priority of developers looking forward to developing and running apps inside the Ethereum platform.
- Ethereum has become popular among those investors who are keen to purchase other digital currencies based on ether.
- At present, Ethereum is the second largest digital wallet after Bitcoin.
- Experts suggest that Ethereum can codify, secure, and decentralize with ease.
Although not as strong as Bitcoin, the smart contracts that make the currency work is an added advantage.
- Litecoin
Litecoin came into existence in 2011 and identified as one of the top cryptocurrencies resembling Bitcoin. There is no surprise that Bitcoin would be referred as the new silver or gold. The digital currency is based on an open-source network of global payment that is free from the intervention of a centralized authority; instead Litecoin uses scrypt and can be easily decoded with top-grade central processing units. Even though Litecoin resembles Bitcoin in several different ways, the block generation rate is faster and it offers a quick transaction time.
Undoubtedly, the growing popularity of Litecoin makes it one of the most accepted modes of digital cash. Hence, a huge growth is expected from it in the coming times.
- Polkadot
Among the top three cryptocurrencies other than Bitcoin is Polkadot or DOT that aims towards providing interoperability among the rest of the blockchains.
- The protocol of this digital currency is made to connect with blockchains that are with or without permission and contain oracles that allow the systems to function together under a single roof.
- However, the basic component of Polkadot is the relay chain that aids in interoperability of various networks. Moreover, it promotes parallel blockchains, parachains with the native tokens.
- Polkadot is different from Ethereum platform in that it helps in the creation of own blockchains and utilizes the security of the existing chain. On the other hand, Ethereum only assists in the creation of dApps.
- However, Ethereum allows developers to create new blockchains, although with their security measures and exposes the new projects to attacks as the larger is the blockchain the higher is the security.
- Polkadot was the brainchild of Gavin Wood, Ethereum’s core founder who differed in opinion about the future of the project. The market capitalization of this digital wallet is pretty much high and satisfactory.
- Polkadot provides support to about one hundred parachains on its platform and aid the communication of distinct blockchains.
- Litecoin bears a testimony to stake blockchain and is a positive solution for smart contract blockchains.
When choosing Bitcoin trading app, you need to make the choice carefully. If you are thinking that it is nice to buy cryptocurrencies and make fast money, remember that you may not hit the jackpot overnight. There are many a slip between the cup and the lip, so you need to identify the pros and cons carefully before investing.