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How Do Different Cryptocurrencies Stack Up?
Are you thinking about placing some money in the growing financial craze of cryptocurrencies?
A wide number of different cryptocurrencies exist, and each of them have their own unique features to consider when you’re choosing one as an investment asset. Bitcoin is obviously the most famous (and popular) 'crypto', but what about Ethereum? Litecoin? Ripple? The list goes on and on.
Cryptocurrency—for those of you who don’t yet know—is a form of encrypted digital money that can be regulated and transferred without the need for a central bank. Bitcoin was the world’s first cryptocurrency, but today there exist over 1300 different varieties.
Each publicly available cryptocurrency currently holds a different share of the market, but that’s far from the only difference between them. Different tokens also boast different transaction times, require different amounts of memory to mine them, and have different block sizes (block size refers to the amount of data that can be carried in each “batch” that is shared on the blockchain—the secure digital ledger through which Bitcoin and most other cryptos record transactions).
As cryptocurrencies have become more mainstream, new ones have had to develop their own unique features to stand out from the pack. Some have concentrated on growing their block sizes, while others make use of specific mining hardware, provide greater levels of privacy for their users or focus on keeping their transaction speeds as fast as possible.
If you plan on using cryptocurrencies to pay for goods and services (or even accepting them as a form of payment at your business) then all of these factors should be researched carefully. However, even as a mere investor, it pays to know how each of these details could affect the market value of a token before you put your money into it.
The infographic below breaks down the differences between some of the most popular cryptos on the market today so that you can orient yourself and begin learning more about the ones that interest you. Have a look, and use the information you learn to help you conduct targeted research that can lead to rewarding investments.