We live in the era of digital currencies. Having appeared less than 10 years ago, the concept of cryptocurrencies is already widespread today. Despite such a short period of time, there are already more than a thousand different cryptocurrencies on the market, and ICOs occur almost every day.
As we get used to the new, rapidly growing market, it is important to try to understand what is happening to it, which coins are worth paying attention to and see the difference between cryptocurrencies – including in order to make a trading exchange.
What are cryptocurrencies?
Cryptocurrencies - to date, this is an incalculable number of alternative digital coins. Unlike any other form of money, even electronic, cryptocurrencies are decentralized. That is, they do not have a single management body, and each person in the chain is an equal user. Neither the company, nor the developers, nor the state has control over crypto coins.
Another important feature of this form of money is a peer-to-peer (P2P) tool that allows individual users to buy and sell goods to each other directly, without the mediation of banks or other third-party companies and individuals. Directly to each other. Some cryptocurrencies are anonymous, but you can't say this about absolutely every coin. Let's look at where you can find a clear list of differences in cryptocurrencies.
Cryptocurrency comparison table
In such a huge amount of cryptocurrencies and data that determine their current state and prospects, it is very easy to get confused. You can spend hours manually using queries to crypto compare each currency pair. Therefore, on Godex.io there is a cryptocurrency comparison table where you can easily compare cryptocurrencies across all important parameters, such as:
- Circulating supply
- Max supply
- Cmc rank
- Volume 24h
- Percent change 1h
- Market cap
Bitcoin is not only the world's leading cryptocurrency, but also the main coin to exchange on the exchange. Most exchanges, including Godex, do not exchange fiat money for crypto tokens. And since Godex is a completely anonymous platform, which is one of the most important features, this is only possible if you exchange a crypto coin for another crypto coin.
Therefore, first of all, it is worth talking about comparing bitcoin with other cryptomonets. Therefore, at the bottom of any page on Godex, you will find the most basic currency pairs with BTC. By selecting the "All Pairs" button, you can find a comparison of 2 absolutely any of the 200+ coins available on the platform.
Bitcoin vs other major cryptocurrencies
Bitcoin is the most important, popular, expensive and valuable cryptocurrency. For such a conclusion, you do not even need to resort to a crypto compare. The idea of Bitcoin was based on the desire to create not just another "piece of paper" that represents real money, such as gold, but an analogue of gold itself. Take the properties of gold, thanks to which it is an ideal money, and make an electronic currency based on them.
Since December 2020, Bitcoin has shown strong growth and experts predict an even more valuable future. But let's make crypto compare – i mean, compare Bitcoin vs other currencies.
Bitcoin Cash appeared as a result of the Bitcoin hard fork and became an independent currency, by the way, very successful. Some developers insisted on increasing the block size in the blockchain of the first cryptocurrency. They believed that the creator of the asset, Satoshi Nakamoto, meant primarily low-cost peer-to-peer transactions as the main value of the new technology.
Now the BCH network is updated every six months. When the community can't come to a consensus, the chain splits.
Ripple is the world's first distributed global currency exchange. Ripple also includes the concept of ripples — XRP) - an electronic currency.
Ethereum is a public database with the ability to store digital transactions for an unlimited time. It is also important to note that no key management systems are required to maintain and secure such a database. Instead, the platform operates as a "defenseless" transaction system – a framework in which individuals can make peer-to-peer transactions, with neither party having any obligations to the other or third parties. ETH is a built-in digital token on the Ethereum blockchain.
Monero is a very important and revolutionary technology. It allows you to hide the sender, recipient, amounts, and transaction history. Monero allows users to make confidential transactions in a decentralized network and resist possible attempts of regulation by the government. Monero is true digital cash.
Litecoin is an electronic p2p cryptocurrency, a fork of the more famous Bitcoin, created in October 2011. Litecoin has gathered all the strengths of this currency, while adding an increase in the speed of transactions and the total number of coins.
Why are the difference between cryptocurrencies important for traders?
There are several important criteria by which traders evaluate coins. For example, cryptocurrency speed comparison is one of the key ones, since the transaction speed is very important for each participant of the transaction. We will name the main ones that affect not so much the current value of coins, but the prospect of its growth. What are these criteria of crypto compare:
- Number of coins in circulation
- Total number of coins
- The possibility and conditions of cryptocurrency mining
- Coin release rate
- Transaction speed and scalability
- Reputation of the development team
- Decentralised applications
Supply & Demand
Each of the above criteria ultimately affects the supply and demand of cryptocurrencies, that is, it forms its value, prospects for growth and increase in value. For example, the limitation of coins as a result causes an increase in value, with other positive circumstances, due to the limitation. Bitcoin is now increasingly difficult to mine and eventually there will be a certain number of tokens, which greatly increases the interest in this coin, among other things.
The reputation in the market and in the press also strongly affects the value of coins. Recently, there is more and more evidence of how information support can stimulate the growth of the coin price. If you are not aware of the recent case with the increase in the value of the Dogecoin coin with the help of Reddit users, we recommend reading.
Therefore, it is important for traders to keep track of all this and regularly conduct crypto compare.