London, UK, January 12, 2021, ZEXPRWIRE, If you’re new to the world of cryptocurrency, the sheer amount of options out there can be overwhelming: BTC, XRP, LTC, BCH, DASH, ADA…and the list goes on.
Bitcoin is widely understood to be a solid cryptocurrency investment, but what about all those other options? What makes them all different, and are any of them worth putting money into?
Keep reading to learn which coins you should invest in when buying crypto.
What Makes Each Cryptocurrency Different?
Although almost all cryptocurrencies are mined through blockchain, there are several factors that set each one apart. This means that each time you buy a new cryptocurrency, you are making a new investment and taking on additional risk.
Bitcoin is the crypto that has been around for the longest. It has the most investors and the highest value. It is also accepted in the widest variety of places, including some physical locations.
All these factors speak to Bitcoin’s staying power and comparative stability.
Other crypto, sometimes referred to as altcoins, is much more volatile and uncertain. Let’s look at some specific altcoins.
Ethereum is probably the second-most accepted cryptocurrency to bitcoin at the moment. It works fairly similarly to BTC as well. It is also open source and powered by blockchain.
The main difference is the lower value and less certainty about staying power.
Bitcoin Cash (BCH)
Bitcoin Cash was formed when it took a hard fork from Bitcoin. Some developers and investors disagreed to the extent that they wanted to create a different branch currency.
Transactions happen a little faster in Bitcoin Cash than standard Bitcoin. The similarity in names between these two entirely different currencies has led to some understandable confusion. Bitcoin Cash is worth much less than Bitcoin, so this can lead to people losing a lot of money.
Ripple is unique among cryptocurrencies in that it doesn’t need to be mined. Ripple is directly backed by several partner banks and other financial institutions, which they refer to as “nodes.” Ripple is even partnered with American Express.
This institutional backing does provide a certain assurance of stability that other crypto lacks. However, for most, the appeal of cryptocurrency is its decentralized nature and the fact that it isn’t attached to large financial institutions. Privacy is also always a concern when large financial institutions are involved.
Monero, on the other hand, aims to set itself apart by providing extra anonymity. Monero does not share your online address when you make a transaction of any kind.
Unfortunately, this additional anonymity, among other security flaws, seems to have made Monero prone to hacking.
Advice on Buying Crypto Other Than Bitcoin
As you can see, not all cryptos are the same. While buying crypto involves a certain amount of inherent risk and acceptance of volatility, Bitcoin is the most stable and usable option out there.
If you are going to invest in altcoins, we recommend investing 5% or less of your savings. Check out our website to learn the best ways to get started investing in Bitcoin, as well as other crypto.
(Syndicated press content is neither written, edited or endorsed by ED Times)