With so many cryptocurrency options, it’s important for consumers to understand the unique differences and features of each one.
Do you remember the early days of Bitcoin—back when it was the only cryptocurrency? Those days have come and gone—and in 2018, there are hundreds of cryptocurrencies in circulation and counting.
For the modern consumer, there’s much work to be done in figuring out which cryptocurrencies offer the best investment and the greatest utility, and when to buy, sell, or hold. With such a diverse pool of options in the market and fluctuations in price happening by the minute, research is necessary when making buying decisions.
Here, we break down the features of a few popular options that are available on Uphold that you might want to include in your cryptocurrency profile:
We’ll start with the original. In 2009, a new “peer-to-peer electronic cash system” was announced, and with it, the world’s first decentralized cryptocurrency known as Bitcoin (BTC).
Bitcoin is a favorite among cryptocurrency investors, and that’s partly because it’s been around so long—it’s a familiar cryptocurrency, and thus has become a legacy choice. Bitcoin was the starting point for other developers, which is why its core features are present in other cryptocurrencies such as:
Ethereum (ETH) is an online open software platform—a distributed public blockchain network, not unlike Bitcoin itself. The difference is that Ethereum encourages new development of decentralized applications to earn ether, a type of crypto token that’s used within the Ethereum network.
ETH is both a tradeable cryptocurrency as well as a way for individuals to pay transactional fees within the Ethereum network. Ethereum’s strength has always been its utility across multiple industries with the invention of smart contracts. So, if you’re someone who enjoys an ecosystem of developers and entrepreneurs, Ethereum has the advantage.
Litecoin (LTC) has been around since 2011 when creator Charlie Lee wanted to find a way to make cryptocurrency transactions faster and cheaper. Lee noticed that many people interested in BTC were “hodling” and thus the purpose of day-to-day transactions could be lost. Even though in 2018, LTC can be equally “hodled”--its simpler market value makes it more merchant-friendly.
Litecoin is less expensive, faster, and has a higher maximum of coins compared to Bitcoin (Bitcoin has a maximum of 21 million coins and Litecoin has 84 million). For consumers, it can serve as a useful complement—not necessarily replacing another cryptocurrency but adding a little diversity to the portfolio.
They say Litecoin is “silver” to Bitcoin’s “gold”. Dash? That’s “cash”. Dash (DASH) was born in the same ideological vein as LTC, to make day-to-day transactions more efficient for cryptocurrency buyers. Developed by Evan Duffield during 2014-2015 with its launch, Dash was created to increase the privacy and speed of transactions. Thanks to a system using Masternodes along with miners, transactions can be near-instant.
XRP, native currency on the Ripple global settlement network, was developed not for disruption but for respectability. It’s the chosen crypto for large banks and financial institutions, and since its 2012 inception, it has been adopted by some well-known corporations.
Whereas Bitcoin features miners working across a peer-to-peer network, there is no mining of XRP. This is why many larger entities prefer XRP since the Ripple company has centralized control of the network--which also means XRP has the benefits of crypto with the institutional security of traditional financial systems.
With its unique features, Dash has even become popular with payroll. This cryptocurrency is one to watch out for as potentially becoming more consumer-friendly over time.
Where to Buy, Sell, and Store Your Cryptocurrency
Whether you’re planning your first cryptocurrency investment or you’re an old pro looking to branch out and expand your profile, make sure your funds are secure with an Uphold account. Uphold makes it easy to move between fiat and cryptocurrencies instantly (with over 30+ currencies and commodities available!), which is essential for consumers who need to adapt quickly to the changing market.
