The cryptocurrency industry is filled with different coins, with Bitcoin being the original and the rest deemed as an alternative. That was how “Altcoin” was derived. In this article, the differences between some of the major coins and their uses will be covered.
Currently, Bitcoin has higher liquidity and usage. Its market capitalisation stands at $93 billion, way higher than the second largest cryptocurrency, Ethereum at $19 billion. There has also been more use cases as actual form of payment in travel and retail.
Nevertheless, Bitcoin does has drawbacks despite its value. For instance, scalability issues led to the fork of Bitcoin Cash back in 2017 and others like Litecoin which offer lower average transaction fees and/or confirmation times. However, these cryptocurrencies have lower adoption and many merchants are concerned with volatility.
There are thousands of altcoins available and each have their own characteristics. Some of them are faster or possibly better investment options, which gives certain advantages in terms of trading.
The major ones offered on ecxx.com include:
|Ethereum||A public, open-sourced Blockchain-based platform that features smart contract functionality.|
|XRP||An on-demand option for banks and payment providers to source liquidity for cross-border payments.|
|Bitcoin Cash||An upgraded version of the Bitcoin Core software that is faster and offer lower transaction fees.|
|EOS||EOS.IO is a decentralized operating system based on blockchain powered by the native cryptocurrency EOS.|
|Litecoin||A peer-to-peer cryptocurrency and codebase fork of Bitcoin which also offers faster transaction time and lower fees than Bitcoin.|
|Tether||A cryptocurrency which is 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD and are also called “stable coins”.|
|NEO||A community-based blockchain project aiming to create a ‘smart economy’ by incorporating digital assets, digital identities, and smart contracts.|
Other Uses of Cryptocurrencies
Apart from faster transaction and lower fees, cryptocurrencies may also help in ways such as confidentiality, privacy and fraud reduction. Others believe that economic freedom will be enhanced.
Cryptocurrencies do serve more purpose than payment, some of which include:
- Private transactions
- Non-cash remittances
- Store of value/wealth
- Investment in start-ups
- Battling electoral fraud
In future, altcoins may also gain more ground with their specific roles in the market. As of now, Bitcoin still remains the leading cryptocurrency. ecxx.com is currently offering 0%* trading fee for a limited time to help traders maximise their opportunities. Sign up for an account here.
Do exercise due diligence by researching about any cryptocurrency before investing. If you enjoyed the article, please feel free to share it!
Digital asset trading comes with high risk. ecxx.com only provide users with an online exchange platform and do not provide investment, tax or legal advice. ecxx.com is not responsible for any review of the assets and your trading strategies. There is also no guarantee against losses. Should you choose to trade, you need to be aware of and accept three important considerations: 1. Liquidity 2. Diversification 3. Loss of Capital. Please consult with your financial advisor before trading.