Go for Ethereum and Litecoin, why only Bitcoin?

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We know that Bitcoin has taken the financial world by a storm. But, is Bitcoin the only hot-shot cryptocurrency? Let’s find out.

The two most popular cryptocurrencies other than Bitcoin are:

  1. Ethereum
  2. Litecoin

You can read about Bitcoin here.

How is Ethereum similar to Bitcoin?

  1. Both are open source digital currencies (powered by blockchain technology).
  2. Used to make anonymous transactions.
  3. Both have digital coins. (Bitcoin has bitcoin and Ethereum has Ether).

How is Ethereum different from Bitcoin?

Ethereum has the second largest market cap in the cryptocurrency world. Unlike Bitcoin’s blockchain, ether’s blockchain, Ethereum features an additional technology called Smart Contracts. Smart Contracts are computer codes that simplify the contracts by automating the supply chain logistics and eliminating the compliance procedures. It entirely eliminates the middle man in a contract.

Unlike Bitcoin, Ethereum allows to program transactions rather than just tracking them. Smart Contracts let you exchange not only money, but also stocks, properties, or anything without having to go through the middle man.

On one hand, Bitcoin is all about payment technology, on the other hand Ethereum has a whole platter of real world applications ranging from politics, healthcare, gambling to banking. Hence, Ethereum is becoming popular in the circle of big corporates. In Feb 2017, Enterprise Ethereum Alliance was founded with the aim to allow corporate and startups to make use of the Ethereum Blockchain technology.

Moving onto Litecoin, third most popular cryptocurrency:

How is Litecoin similar to Bitcoin?

  1. Both are open source digital currencies (powered by blockchain technology).
  2. Used to make anonymous transactions.
  3. Both have digital coins.

How is Litecoin different from Bitcoin?

Litecoin was born in 2011 and is often referred to as the silver to Bitcoin’s gold. The official Litecoin site says: “Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world.” Litecoin’s aim is not to compete against Bitcoin, instead to act as a complimentary payment solution platform. Some modifications were done to Bitcoin’s core code to form Litecoin, to enable wide spread adaptability. This led to an increase of 4x in the transaction speed of Litecoin when compared to Bitcoin. Due to the decrease in transaction time, legitimacy of the transaction can be confirmed much quicker and also a much higher number of transactions can be performed in the same time frame.

Should You Invest in Ethereum or Litecoin?

There is no one-fit-for-all answer to this. It is absolutely your choice but for making a smart choice you should evaluate his/her financial position and determine whether he/she can take a huge risk in hope of a huge return. It should be noted that Ethereum and Litecoin are currencies and should be treated as those. When you buy them, you will not get shares or stocks of Ethereum or Litecoin, instead your rupees will be traded for these digital coins.  You will earn only is someone in the future is willing to buy your coins at a higher price than what you bought them at, as there are no dividends. Keep one thing in mind, RBI has already warned twice about putting money in Bitcoins or other cryptocurrencies, it may be possible that these are banned in future. On a positive note, since there are such high fluctuations in these markets, you might end up making a big buck before any restrictive government regulations are implemented.

To check out how to buy Litecoin or Ethereum in India, you can visit, www.koinex.in

Author:
Akanksha Goel | LinkedIn