Like many people, you are probably always on the hunt for ways to make more money. If you have patience, time, and are willing to learn, investing can be an excellent method to bring in more money.
If you have seen anything in recent weeks about news in finance, you may be aware that cryptocurrencies have seen a huge rally. If you are new to virtual currencies, you may only have heard of Bitcoin. However, there are many other cryptocurrencies in the market.
This may leave you to wonder in which cryptocurrency you should invest. Keep reading to find out about the many other cryptos besides Bitcoin.
What Is a Cryptocurrency?
Back when Bitcoin first began making its rounds in the news, it may have led you to scoff or wonder… what is Bitcoin? Bitcoin is the premier cryptocurrency and is currently the most valuable.
Cryptocurrency is digital money that appears as “coins”. The main feature that cryptocurrencies share is decentralization. This means that no sole entity, whether a government or independent organization, controls the system attached to each crypto.
Another feature of cryptos is that people can “mine” them. This is done by people using computers to solve complex mathematical equations. Once you solve an equation, you receive coins.
Some businesses have even begun to accept these virtual currencies as a form of payment. Bitcoin is the most popular crypto and so a myriad of large companies accept it as payment. Other businesses accept many of the other cryptos, but Bitcoin has the distinction of attracting big businesses.
Cryptocurrencies in the Market
Even though Bitcoin is the most popular digital token and valuable unless you have plenty of excess cash, investing in this crypto may be difficult. Below are some of the best cryptocurrencies you can buy.
Most cryptos use blockchain technology to keep track of bitcoin transactions. These transactions are kept within “blocks” of data of up to one megabyte.
As Bitcoin grew in popularity, these “blocks” of data began to fill up, which put a drag on transactions. This also saw a rise in transaction fees.
As a solution to this problem, some Bitcoin developers would go on to create Bitcoin Cash. The “blocks” in this blockchain can hold up to eight megabytes of data. This allows for faster, cheaper, and more frequent transactions.
While less popular than Bitcoin, Bitcoin Cash has excellent scalability with a promising possibility of growth.
Ethereum is a software that uses a digital token with the name Ether. The big draw of Ethereum is that the software employs smart contracts.
Smart contracts are contracts that are two parties can set up like a regular contract. When the conditions of the contract are complete, the automatic exchange of Ether executes as payment.
Ethereum also allows Decentralized Applications to run on its software, which is immune to fraud and interference from third parties. Ethereum is currently the second-largest crypto, after Bitcoin.
Litecoin got its start in 2011 and was one of the first cryptocurrencies to follow Bitcoin’s model. It uses an open-source and decentralized global payment network.
Litecoin is like its predecessor in many ways but has a notable difference. It generates blocks faster which allows for faster transaction and confirmation time.
Many developers accept Litecoin as a form of payment, but some businesses do as well. Many of these businesses are crypto-based, but Overstock allows for payment on its site. Litecoin is also the official cryptocurrency of the Miami Dolphins and fans attending home games can use Litecoin as payment when they attend.
Binance Coin is similar to Ethereum in that both are more than just a cryptocurrency.
When it got its start, Ethereum was the host for Binance. When the Binance crypto exchange, DEX (decentralized exchange), came online in 2017, Binance would make its home there.
The Binance DEX allows its users to buy and sell binance coins but also allows cryptocurrency conversion. The platform allows users to convert one type of cryptocurrency to another.
This has let the Binance DEX become the biggest crypto exchange in the world by volume. You can also get a discount on transaction fees if you use binance coins to pay them.
Cardano is interesting because its creation was done with research by engineers, mathematicians, and cryptography experts. This gives it the distinction of having a powerhouse team of academics behind it.
Charles Hoskinson, one of the creators of Ethereum, left the project when he thought it was going in a direction he didn’t like. He would later go on to co-create Cardano.
The research team at Cardano would create it through plenty of experimentation and peer-reviewed research. All the researchers have written papers on blockchain technology, totaling over ninety. This research is the foundation of Cardano’s blockchain.
Its financial applications are not as robust as Ethereum’s yet, but its sheer potential has people calling it “the Ethereum killer“.
Tron is a crypto that functions as a digital token as well as a decentralized peer-to-peer network for sharing content. Many entertainment companies make a profit by selling their users’ data.
Using Tron leaves no digital footprints. This allows creators to sell their content for Tronix, Tron’s form of currency.
The capabilities of this platform and its currency make it a quality speculative investment.
News for the Real and Digital World
If you found this article on the best cryptocurrencies in the market helpful, we invite you to check out the rest of our site. We have news with a focus on the digital world as it relates to many different sectors of life. We also have articles about life in the real world.
Check out more of our content here, and see what we have to offer.