Should You Trade Bitcoin or Different Cryptocurrency Coins?
Cryptocurrency has been a real game-changer for investors. It has been gaining fame since 2017, the moment Bitcoin transitioned and boosted from $600per coin to $4,700 in 2016. Once investors started noticing a 6x return on investments per year, everyone started paying more attention. Bitcoin is one of the biggest names in the Cryptocurrency game, and surely you have heard of it by now.
It can seem very tempting to invest in Cryptocurrency like Bitcoin, but there are many other Cryptocurrencies in the mix. Consequently, you may want to pay attention to those as well. Read further below to find out whether you should consider other Cryptocurrencies or stick to trading Bitcoin.
What are Cryptocurrencies?
To give you better insight into Cryptocurrency, there are types of digital currencies that you can use for online transactions and purchases. You can use very few of them for offline purchases. One of the most noteworthy Cryptocurrencies out there is Bitcoin, but there are many other players in the Cryptocurrency game, including Litecoin, Bitcoin Cash, Ethereum, and more. When choosing a particular Cryptocurrency, they carry more in price compared to US Dollars, similar to other currencies. You can also convert Cryptocurrency into pounds, Euros, and any other international currency.
What is Bitcoin
As mentioned earlier, Bitcoin is one of the most famous types of Cryptocurrencies out there that has boosted performance, and since 2017, attracts investors every day. Originally, Bitcoin was of the value of a silver and gold coin. Since the dollar had the US government's support by the "full faith and credit strategy," Bitcoin and other Cryptocurrencies came up with a different means. These are made through computers and are on the constant run throughout the world.
Should I Trade Bitcoin?
If you're a new trader, you're probably wondering if it's too late to trade Bitcoin and if, instead, you should consider other Cryptocurrencies. If you ask a few investors, you will get mixed reviews, as some feel like Bitcoin is way past its peak, and some strongly believe that its value could increase over time. There is a slight chance that you could be late in the Bitcoin game, but the thing is that you never really know when and if Bitcoin's value will increase and if your other investments are safe.
To predict or know what will happen, you need to form a strategy. If you're really keen on investing in Cryptocurrency, then Bitcoin might be your best and most available option, but it is safe to say that you can trade with different Cryptocurrency coins.
Other Cryptocurrency Coins You Can Trade
As mentioned earlier, there are many other Cryptocurrency coins you can trade besides Bitcoin. Mentioned below are some of the best Cryptocurrencies ranked after the excellence of Bitcoin:
Ether, short for Ethereum, is part of the Ethereum Cryptocurrency network. This Cryptocurrency also uses to release and code their own decentralized applications and make smart contracts that automatically make clauses. Most of the small Ether amounts are destroyed as transactions and are then processed. This prevents any hackers from getting to the network. You might want to consider retarding Ethereum as its transaction speed is fast and functions beyond crypto. They may have an uncapped supply, though, which could be inflationary, and that's something to consider.
Litecoin is known as the silver to Bitcoin gold as it is the second most popular Cryptocurrency after Bitcoin. The supply of Litecoin, which is 84 million coins, is four times greater than that of Bitcoin. This is one of the main attractive differences between Bitcoin and Litecoin and has a very fast transaction speed. However, Litecoin has a very low market capitalization compared to Bitcoin.
Bitcoin cash was created when there was a slowdown in the initial Bitcoin, and this is a proper standalone digital currency. Bitcoin cash was a great response to the slowdown in Bitcoin transactions and the poor inability of Bitcoin not being able to reach a consensus on proper upgrades. The block size of Bitcoin cash is about 8nm compared to Bitcoin, which is at 1mn. This means it processes more transactions than Bitcoin.
With so many Cryptocurrency options available, it's hard to choose one type, especially when Bitcoin has received the most attention. It's good to explore your trade options with crypto, but it's also a risk. Trading in Bitcoin might be a good experience and an excellent outcome for you, but you never know you might experience the same with other Cryptocurrencies as well.