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Five Biggest Competitors of Bitcoin

If you have heard about cryptocurrency, there are great chances that the second most common name you must have heard of is bitcoin. Bitcoin, being probably the most famous and profitable of all the digital currencies out there. Investors consider it their first choice when they decide to put their money into crypto trading. However, it’s not the ONLY digital currency that can give you profit. There are lots of other competitors of bitcoin that have gained a lot of fame. To know more about them, visit allin1bitcoins.com/bitcoin-revolution/.

Understanding cryptocurrencies

Cryptocurrency is basically digital currency that people use to make payments. A decentralized system has some transmission value, using which people can buy or sell merchandise. Alternatively, they are also referred to as value tokens.

Some cryptocurrencies are based on blockchains; they perform a bit different function from regular money! They use the method of ICO, initial coin offering, through which a token gets issued to them. This showcases their stake in the blockchain. Once an investor connects the tokens to a company’s value, it turns into a security token and has a higher value than the normal cryptocurrency token.

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If you are looking for digital currencies other than that of bitcoin, here are a few options you must explore!

1.     Ethereum

Ethereum is one of the most trusted cryptocurrencies after bitcoin. It is a software platform that is decentralized, just like bitcoins. Through it, investors are able to make smart contracts. A lot of apps are available that work in such a systemized way that the chances of fraud and downtime are reduced to a minimum!

The safety and reliability offered by Ethereum are further enhanced by the fact that two years ago, it came up with its consensus algorithm. This made the whole system move from the proof of work to the proof of stake. It has minimized the energy that a cryptocurrency-based digital system uses in transactions and regular activities. The usage of a far lesser level of energy and offering an enhanced transaction speed has garnered a lot of attention from the globalists and financial giants.

The security that Ethereum offers to investors is also top-notch. This is owing to the fact that it asks the participants to stake the ether as a part of the proof of stake. With this, the security of the network enhances manifold, and so does the transaction process. Any person who stakes his ether with the system gets ether as a reward. Hence, it can be deemed as an interest payment post the connectivity.

2.     Litecoin

Litecoin, developed by a former engineer at Google, is also quite a reliable form of cryptocurrency that has its believers spread across the globe. The fact that there is no central authority to control it sets it apart from others. It gives it an open-source network that lets the whole world make secure payments.

What makes Litecoin better than Bitcoin is its ability to have a block generation rate much faster than that of the latter. Hence, it is increasingly having quite an extensive market share and has capitalized it with a value of around 10$ billion. This has made this digital currency to be one of the fastest-growing currencies in the World.

3.     Polkadot

Polkadot, just like bitcoin and Litecoin, has been gaining a lot of attention from investors over the last few years. What makes it a reliable currency is its ability to deliver interoperability through other blockchains. The makers have designed it in such a way that it can connect two blockchains together, no matter permissioned or permissionless. This makes it possible for all the connected chains to work together.

Conclusion

The digital currencies, cryptocurrencies, are in one way or the other a form of bitcoin with different features and specialties. They have the ability to use open-source codes, which make the connectivity vast and global. As there is no central command authority, the access of the investors is also wide. It has opened new horizons for them to invest heavily and wait for the market trends and speculations to play their part in bringing profit for them. Since, there is no central command activity that’s why there are a lot of chances of fraudulent activity too so before investing needed to do research before!




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