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Why Is Bitcoin Different From Other Digital Currencies

by Nina Smith

The popular cryptocurrency known as bitcoin is ruling today’s world. People are interested in this cryptocurrency because of many reasons. The foremost reason is that it is more profitable than other digital currencies. But what are the differences between digital currency and bitcoin? You might be confused about it. Now, you don’t have to worry. We have prepared this article to discuss them in detail. 

It is essential to know whether bitcoin is an excellent option to invest in or not. To find out this, you must research well before making any decision. However, if you are already investing in this cryptocurrency, you should know better ways to earn more profit. You can visit the site to know more about the same.

Technology has evolved in the past few years, and it will continue to improve in the future. Due to improved technology, people’s lives have become more accessible than before. They have many options to make money online. Trading is one of the most popular ways through which people earn massive amounts of profits. The demand for cryptocurrencies is increasing with time because they have better earning potential. There are over 1300 cryptocurrencies. Sometimes, it is hard to choose one among them. Therefore, gaining some extensive knowledge about them is necessary.

What are the characteristics of bitcoins?

Source: weforum.org

Bitcoins are a type of cryptocurrency that has many unique characteristics.

  • More transparency: You might already know that all the transactions regarding bitcoins are visible to the owners. The ledger board helps to make the transactions visible to the owners. However, one cannot find out how many digital coins a person has.
  • Easy to set up: The setting up of this cryptocurrency is pretty simple. You don’t have to worry about going through a lengthy procedure as banks demand. There are many platforms where you can set up your account and start trading in bitcoins. So, even if you are a beginner, you can quickly learn how to make money from them.
  • The user remains anonymous: Another unique feature of this crypto is that you don’t have to verify your documents to make an account for investment. On the contrary, you have to submit your original documents to the bank to start an account. Also, you will remain anonymous as long as you are buying or selling bitcoins. No one can track who you are through your account if you are a bitcoin owner.
  • Transactions are fast: Bitcoin transactions are faster than any other method. The technology used in this crypto can send digital coins to any geographical location of the world. However, the speed of the transactions depends on various factors. In the case of bank transactions, they take at least a week to complete.
  • A decentralized form of currency: Bitcoin is a decentralized form of currency. Banks are not involved in the transactions. The demand in the market determines the value of this crypto. The main objective of bitcoin’s creator is to make a system with no involvement of banks.
  • Price is volatile: The price of virtual coins is volatile. You can’t predict their price on your own as it depends on different factors.

How is bitcoin different from other cryptocurrencies?

Source: dnaindia.com

As we mentioned earlier, there are many different digital currencies, but the most famous is bitcoin. It is also different from them in many ways. The significant cryptocurrencies other than bitcoins are ether, EOS, NEO, stellar (XLM), and ripple.

  • Ether: It is a digital currency that uses the Ethereum network. You can create decentralized apps with this crypto. This network provides more stability to the users. The speed of the transactions is pretty impressive compared to other networks.
  • EOS: EOS uses a blockchain system produced by EOS.IO. The transaction speed depends on the load of the system. The demand for EOS is likely to increase in the future.
  • NEO: It is a digital currency that is operated by the NEO network. The process is similar to the Ethereum network. However, the NEO team has set up some rules and regulations to control the whole network. The new users need to verify themselves before joining the network. It might not be a fully decentralized form of currency.
  • Stellar (XLM): Stellar is a network where one can process transactions in various currencies. Lumens is the cryptocurrency that uses this network.
  • Ripple: It is a digital currency that uses the RippleNet network. Various banks also use this network for transactions. So, one cannot fully prove that it is a decentralized currency.

Significant differences between bitcoins and other cryptocurrencies are as follows-

Source: dollarsandsense.sg

  • Reputation- The reputation of bitcoins is better than other digital currencies. The main reason behind it is that it is the first-ever cryptocurrency introduced in the world. Now, the time has changed because many cryptocurrencies are here in the market. People have many options for investing and earning money. However, bitcoin remains one of the leading virtual currencies in the world.
  • Demand: There’s a close connection between reputation and demand. As the reputation of this crypto is better, its demand is also increasing with time. Many investors believe that bitcoin is suitable for investment in various ways. Therefore, they always prefer to choose bitcoins over other digital currencies.
  • Higher profit potential- Although the price of bitcoins is unpredictable, it has a higher profit potential. The market conditions decide the value of bitcoins. According to many experts, the value of bitcoins will increase rapidly in the future. It might be beneficial for current as well as new investors.
  • More straightforward process- It doesn’t matter if you are a beginner or not. The process of buying and selling digital coins is pretty simple than other cryptocurrencies. All you need to do is research to learn about it more precisely.

Final Words

We have concluded that understanding the differences between bitcoin and other digital currencies is challenging from the above information. However, it is possible with sufficient knowledge. We hope this article gave you all the necessary information you were looking for. Now, you can easily decide on investment in any digital currency.