Differences Between Bitcoin and Other Cryptocurrencies

By: | Updated: May-21, 2022
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Cryptocurrency is one of the hot topics in today’s era, and investing in it is a complete process that goes beyond choosing a coin you like and buying it. As a matter of fact, the count of cryptocurrencies has reached around 10,000 in 2022.

However, with a number this large, it is understandable that anyone can be confused about how to get into the crypto world. Therefore, we have made this guide to give people like you an idea of the differences between cryptocurrencies. However, before we get to that, let’s first define what crypto is and how it works.

What’s Crypto?

Differences Between Bitcoin and Other Cryptocurrencies

Over the past few years, cryptocurrency has managed to acquire rapid traction as an approving form of digital currency. Cryptocurrency happens to be a digitalized virtual currency that operates without any centralized bank or authority. It can be used by anyone to make purchases of a number of different things.

Not only for purchases, but crypto is also viewed by many people as a great form of investment. However, since it has a really volatile nature, people who are not patient or faint-hearted people are not recommended to invest in it.

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How Does It Work?

Fiat payments and transactions often involve an intermediary party like a bank to carry out successfully. However, things tend to be pretty different when it comes to bitcoin and other crypto transactions. Since no central authority oversees such transactions, cryptocurrencies use blockchain technology to carry out transactions successfully.

Blockchain happens to be a digital ledger that keeps track of all the crypto transactions. Every time a crypto transaction takes place, it is added to the blockchain. If you’re wondering, the blockchain can neither be edited nor replicated. Hence, this is what makes it entirely secure and reliable.

Bitcoin, along with other cryptocurrencies, can be used to pay directly to purchase items. However, direct payments are not standardized yet, and many brands refuse to accept cryptocurrencies as a direct payment method. To tackle that, you can purchase gift cards of different brands at reliable sites like Coingate. These gift cards can then be redeemed at the respective stores to acquire the equivalent amount and purchase anything you like.

What Are the Most Popular Cryptocurrencies?

As stated above, around 10,000 cryptocurrencies exist in today’s time. However, not all of these have great value or clear future potential for growth. That being said, let’s take a look at some of the most popular cryptocurrencies available in the market.

1.    Bitcoin

Bitcoin is the pioneer of all cryptocurrencies and is the most popular and highly valued among all. Despite its high volatility, Bitcoin has been the top choice of nearly all the individuals who wish to step into the crypto world.

2.    Ethereum

Ethereum is one of the most famous cryptocurrencies other than Bitcoin. As a matter of fact, it is the second-largest crypto by market cap and lies on the Ethereum network.

3.    Cardano

Cardano is another famous cryptocurrency and uses a relatively new technology called Ouroboros. It was created with a research-based approach and is said to be a more secure and scalable way to maintain decentralization.

4.    Dogecoin

Initially created as a parody or meme cryptocurrency, Dogecoin now rests among the most popular cryptocurrencies. It saw a surge in value around the beginning of the summer season of 2021. Even Elon Musk weighed in on Dogecoin, which played a part in making it popular.

What Are the Differences Between The Mighty Bitcoin and Other Popular Cryptocurrencies?

Let’s take a look at the head-to-head differences between Bitcoin and other popular cryptocurrencies.

1.    Main Aim

The primary aim of Bitcoin is to simplify and increase the speed of transactions without government restrictions. However, even though other popular cryptocurrencies fulfill this aim, some of them may provide an even low-cost transaction fee compared to Bitcoin. Not just that, but they may be more secure than Bitcoin with a newer and more advanced blockchain.

2.    Popularity

No doubt, Bitcoin takes the lead here as it is the most popular cryptocurrency. However, even though other popular cryptocurrencies like Ethereum have gained quite the fame, they’re still not as popular as Bitcoin.

3.    Status

Bitcoin transactions happen to be anonymous, which is why their details in the ledger are also viewed as meaningless numbers that aren’t in a particular sequence. However, other popular cryptocurrencies follow transparency in their dealings.

4.    Total Supply

Being the most popular and most used one, around 18.9 million Bitcoins have been mined, and only 2.1 million more are to be released. However, other newer cryptocurrencies haven’t been mined that much.

So, Which Cryptocurrency Is Really Better in The End?

Well, there is no definite answer to this question as each cryptocurrency tends to provide its own benefits. While Bitcoin may be considered the most popular one, it is highly volatile. However, other cryptocurrencies may not be as popular right now, but they indeed have the potential to grow in the future.

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