Currently, technology is the engine that moves the world; it is what has led everything to migrate towards the digital world and money does not escape from it; it is one of the most striking changes in the economy, since it is now possible to pay with virtual money.
The term cryptocurrency has spread throughout the world, revolutionizing the current economic structure and changing the way of carrying out traditional commercial operations, becoming a secure, global and instantaneous form of payment that came to stay; granting enormous power and changing the way of performing traditional business operations.
These are the most popular cryptocurrencies:
Bitcoin since its launching in 2009, it has become the most famous, exchanged and valuable cryptocurrency. It is distinguished by being efficient, transparent and unalterable. Allowing direct transactions from person to person, without agents.
Litecoin Created by Charles Lee, in 2011 it is based on the same code as bitcoin but with some adjustments designed to address two of its predecessor’s limitations: transaction speed and access to the mining process.
Ethereum It made its debut in 2015 incorporating the basic premise of Bitcoin’s blockchain, but it has a faster transaction speed than Litecoin; it also came with its own virtual person-to-person network, unlike dedicated servers or a platform of mining.
Which one is the best?
There are significant differences between these three that could be used to form a rational basis for investing or exploring in one rather than another.
Bitcoin is the fashion option. If you are looking for a cryptocurrency that has the advantage of making you look like the first one to have it, an unparalleled popular visibility and having a higher market capitalization, it is obvious. On the downside, it is now almost impossible to achieve profitability but, after having increased more than 1,000 percent in the last year, it could have spent most of its growth potential. (This is debatable, nobody knows anything).
Litecoin offers its own advantages. Its creator is a known and active entity in the cryptocurrency community. It has a capacity for faster transactions – a potential advantage in itself, which also provides a set of options for different uses than bitcoin. In addition, it still offers the potential for profitability, unlike bitcoin.
Ethereum has the backing of some big names – what could be a benefit or a disadvantage, according to your opinion on the complex financial sector. It has the potential of intrinsic value such as Litecoin or Bitcoin, but also more obvious commercial applications. And, like Bitcoin, it has detonated hundreds of other currencies that have been created using its underlying blockchain technology.
Regardless of which one you find most attractive, do your own research before investing in any of these cryptocurrencies.