Getting Started With Cryptocurrencies3 min read
Investing in the cryptocurrency market space is often complex especially for the traditional investors. This is because investing directly in Cryptocurrency requires the use of new technologies, tools and adopting some new concepts.
If you decide to dip your toes in the CryptoCurrency world, you will need to have a clear picture of what to do and what to expect.
Be it BTC, Litecoin, ETH or any of the 1300 tokens, buying and selling cryptocurrencies require you to choose an Exchange that deals in the products you want.
Being the most famous decentralized cryptocurrency, BTC leads the crypto space so dominantly that the terms crypto and BTC are sometimes used interchangeably. However, the matter of fact is that there are other cryptocurrencies as well that can be relied upon for making crypto-investments.
Litecoin, also referred to as ‘silver to BTC’s gold’ is an open-source decentralized payment network that functions without involving an intermediary.
How does Litecoin vary from BTC? Well, both are similar in many ways, however the block generation of Litecoin is much faster than that of BTC. This is making the investors around the world open to accept Litecoin.
Charlie Lee, a former engineer at Google founded Litecoin in 2011. Though Litecoin does not have the anonymity technology of BTC, recent reports have shown that Litecoin is preferred after BTC because of its persistence. Another factor that favours Litecoin is the BTC SegWit technology that means secure peer-to-peer trading of currencies without involving exchange participation.
Launched in the year 2015, ETH is a decentralized software platform that enables distributed applications and smart contracts to function without third party interference. The currency is the ether that is like an accelerator within the ETH platform. In the leading cryptocurrencies space, ETH. is the second most preferred choice after BTC.
Zcash gained attention in the latter part of 2016 and focuses on solving the problem of anonymous transactions. To understand the currency, let’s take it as “if BTC is like HTTP for money, Zcash is HTTPS”.
The currency offers the choice of the shielded transaction to maintain the transparency, privacy and security of transactions. This means the investors can transfer data in the form of encrypted code.
Originally known as darkcoin, Dash is a more selective version of BTC. It was launched in January 2014 by Evan Duffield with the name Xcoin. It is also known as the Decentralized Autonomous Organization or simply DAO. The coin was meant to eradicate all the prevailing limitations of BTC. Currently, BTC has earned a substantial position in the space of cryptocurrencies.
The alternative to virtual currency that promises secured and anonymous transactions through peer-to-peer networking is cryptocurrency. The key to making a lot of money is to make the right investment at the right moment. In comparison to making the everyday money, cryptocurrency models function without involving any middle man as a decentralized digital mechanism. In this distributed cryptocurrency mechanism, the continuous activity is issued, managed and endorsed by the community peer network. The cryptocurrency is known for its speedy transactions over any other mode such as digital wallets and other mediums.
In addition to the above discussed, other top cryptocurrencies include Monero (XMR), BTC Cash (BCH). EOS and Ripple (XRP).
Although BTC is the trend setter and is leading the race, other currencies have also made their significant position and are growing in preference each day. Considering the trend, the other cryptos will have a long way to stay and might soon give BTC a real tough time to maintain its position.
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