Bitcoin, the first and most popular cryptocurrency, has seen its value skyrocket in recent years. However, it is not the only option for investors who want to take advantage of this innovative new financial technology. There are a wide variety of cryptocurrencies available today with different features and potential uses.
This blog post will explore some of the best cryptocurrency alternatives to bitcoin.
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Ethereum:
While Bitcoin has been around since 2009, it was not until a little over six years later that the first alternative cryptocurrency arrived on the scene.
Created in 2013 by a developer using the pseudonym VitalikButerin, Ethereum differs from bitcoin mainly because of its use of smart contracts and decentralized applications (Dapps) to create an entirely new protocol for online value exchange. What are Smart Contracts?
The key feature of this platform is its ability to run what are called “smart contracts” – computer programs that automatically execute tasks when specific conditions have been met without needing any further input from their users or creators.
In simple terms, these allow developers to program rules about how digital assets will move between addresses under certain conditions so that transactions can be automated. You can check the https://bitcointester.com/compared-exchanges/kraken-vs-binance/ comparison to find a suitable one for your needs.
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Litecoin:
Litecoin is a cryptocurrency that was created by former Google employee and Director of Engineering at Coinbase, Charlie Lee. It uses an open-source global payment network to make secure payments and transactions anonymously.
What makes this different from bitcoin?
While the Bitcoin blockchain network tracks ownership of digital currency (bitcoins), the Litecoin blockchain generates a new block every two minutes containing information about recent transactions, which remain anonymous.
In technical terms, both networks use proof-of-work as their consensus mechanism for transaction verification. However, litecoin’s mining difficulty is adjusted more frequently than bitcoin to ensure that a new block is generated every two minutes.
This cryptocurrency was designed to be more accessible and faster than Bitcoin, with transaction fees averaging around $0.02 per payment compared to the $0.35 average for Bitcoin transactions. Litecoin also has a larger maximum supply of 84 million coins compared to Bitcoin’s 21 million limit.
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Dash:
This cryptocurrency offers an optional privacy feature that uses a coin-mixing service to break the link between transactions and users. Dash’s anonymizing payments give it features like PrivateSend, which is similar to Bitcoin’s DarkWallet.
What sets this apart from bitcoin, though, is how quickly transactions are processed; while payments on both networks take about ten minutes to process, Dash only takes two.
The price of Dash has risen considerably in recent months and currently sits at about $500 per coin. This cryptocurrency is unique because it uses a consensus mechanism called “Master Nodes” to determine who creates blocks on the blockchain.
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Tether:
This new crypto coin attempts to provide users with the benefits of digital currencies like bitcoin while allowing them to remain pegged one-to-one with traditional fiat currencies such as US dollars.
Tether offers both online wallets and its own official Android app that traders can use to purchase and move their funds between exchanges easily.
Plus, its blockchain is verified by a well-respected accounting firm. No matter how you choose to store your money, Tether makes it easy for traders and other users to access their tokens.
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Monero:
Designed to be truly anonymous, Monero is a cryptocurrency with private transactions capabilities. It uses ring signatures and stealth addresses to obfuscate the origins of funds on its blockchain.
Monero also provides a “stealth” wallet that conceals the user’s identity for each transaction. It is currently the tenth-largest cryptocurrency by market capitalization.
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NEO:
Often referred to as the “Chinese Ethereum,” NEO was founded by Da Hongfei. It is an innovative contract platform with an eye on the Chinese market and growing demand for digitized assets across Asia.
The cryptocurrency has been able to capture significant attention from both Western and Eastern media outlets thanks in part to its high-profile partners such as Alibaba, Microsoft China, WINGS, and Red Pulse Capital.
What is more interesting about this coin?
Unlike many other cryptocurrencies, which can be used only on their native blockchain networks – NEO tokens are actually NEP-tokens that work within existing digital wallets like NEON wallet or Aphelion Desktop Wallet. This feature makes it possible for users of any level of technical expertise to work with NEO coins.
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Zcash:
Zcash is a privacy-focused cryptocurrency that uses zero-knowledge proofs to ensure complete anonymity for its users. All transactions on the Zcash blockchain are shielded, meaning that the sender, recipient, and amount of each transaction remain hidden.
It is also one of the largest cryptocurrencies by market cap. It is a cryptocurrency that focuses on privacy, allowing users to have complete control over their information.
Conclusion:
Bitcoin is not the only cryptocurrency on the market. There are various options available, each with its own unique features and benefits. These are just a few of the best cryptocurrency alternatives to bitcoin. Be sure to do your own research before making any investment decisions.
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