Since bitcoin was introduced into the crypto community, hundreds of cryptocurrencies have entered the market because of its high volatility and outstanding benefits it provides. Many alternative cryptocurrencies or altcoins have been launched – following the success of Bitcoin, and they have grown to 700 in number. Some are being sold cheaper than Bitcoin, while some tend to be more accessible than Bitcoin.

Maybe you have already heard about bitcoin, Ethereum, and Litecoin and some mysterious things about how it works, but this time you will be entering the world of cryptocurrency and understand what are the playful currencies inside the cryptocurrency.

1. Bitcoin
Although some are unaware of its existence, Bitcoin is the world’s first and most popular cryptocurrency; it stands as a worldwide payment system. Bitcoin has no bank; it is based on mathematical proofs. Just like the technology of E-mail, no one owns nor controls the design of Bitcoin. Even the group and person behind it remain a secret; only the pseudonym Satoshi Nakamoto has been introduced to the public.

You must first sign up for an online wallet to have a BTC on hand. Yes, a virtual wallet for virtual money, there are sorts of online wallets you can sign up for, and they’re all free to use. Next is to buy a BTC directly from other people using marketplaces online, but you can also use digital currency exchangers like Coinbase, Kraken, Bit stamp, CEX.IO, and Bitfinex. Most exchanger requires connecting any of your cards or bank accounts to make a purchase. You can now go to the exchange’s buy section and select the amount of bitcoin you want. Bitcoin changes its value from time to time; it can increase or decrease value – no one knows.

Bitcoin has a public ledger called ‘Blockchain,’ which records every Bitcoin transaction. The blockchain has a growing list of records called blocks secured by cryptography; once the block has been recorded, it can’t be altered anymore.

Bitcoin can be used to purchase goods, send money, book travel online, and buy digital products – by this; transactions are made with no middle man, meaning no banks involved.

2. Ethereum
In 2011 a programmer named Vitalik Buterin from Toronto first grew interested in BTC. Buterin, a 19-year-old at that time, had found the online news website Bitcoin Magazine and wrote hundreds of articles about the cryptocurrency world. In the year 2013, Buterin released the white paper. Which describes an alternative platform designed for any decentralized application a developer wants to build. The system was then called Ethereum; just like Bitcoin, Ethereum is also a distributed public blockchain
network. There are some technical differences between the two cryptocurrencies because, in Ethereum, miners work to earn Ether instead of mining.

Ether is a piece of code that allows the program or application to run – no one owns Ethereum, but its
system supporting its function isn’t free. Unlike Bitcoin, Ether doesn’t have a cap limit of 13 million Ethers are mined annually.

To buy an Ether, you need to find it online or a person who has it and at the same time wants to trade it for cash. There is also another option if you want to have an Ether on hand; some try to
purchase a Bitcoin first from trusted BTC exchangers, then trade it for Ethereum.

3. Litecoin
This cryptocurrency is also generated by mining; it was created by
Google’s former engineer Charles Lee in October 2011. Litecoin was created to enhance the speed of mining from the opposed time of 10 minutes to 2.5 minutes when generating a block. The said online
currency has faster transactions than BTC because it uses a “script algorithm,” which favors a large amount of high-speed RAM; that’s why the script is called the ‘memory hard problem.’

Like Bitcoin, Litecoin has a limit of 84 million coins and a market cap of $540 274,528.26.
 Litecoin can handle the high volume of transactions
 Reduces double-spending attack
 Fast confirmation, especially for merchants

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