Five Biggest Competitors of Bitcoin

Bitcoin has dominated the market since its inception and is still known as the most valuable cryptocurrency among others. There was a time when only Bitcoin was used for crypto trading, but now many other currencies have imitated the model of Bitcoin and are trying to dominate the market. But still, the tandem of the two Crypto and Bitcoin is stable. Healthy competition is necessary for the betterment of the traders because it offers more opportunities to gain more.

Many other cryptocurrencies have been developed over time to give Bitcoin tough competition. These currencies operate in a Peer-to-peer model that solves complicated mathematical problems and algorithms to make a transaction. Cryptocurrencies other than Bitcoin are user-friendly and can be used for trading via the internet. Following are the five challenging digital currencies to the Bitcoin;

  1. Ethereum

Possibly the 2nd most renowned cryptocurrency is Ethereum in the list of most credible digital money. Ethereum possesses most of the features same as Bitcoin, but there are some differences too. Bitcoin is just a currency, while Ethereum has some unique features. The main feature of Ethereum is the provision of the platform to the developers for building blockchain-based smart contracts and the creation of decentralized apps.

Ethereum took the initiative of smart contracts. These are distinctive agreements; that automatically execute themselves when they find a pre-defined situation. Ethereum has raised its portability by updating its technology from proof-of-work to –proof-of-stake.

Why Invest in Ethereum? (Or Not)

Cryptocurrencies are constantly emerging, and Ethereum is one of the safest platforms to invest in. It lies in the list of top 10 cryptocurrencies that are stable in terms of prices. It is usable at most places for trading, and the number of places is continuously growing over time.

  1. Ripple

Individuals usually like the idea of digital currency, but still, there is a fear of losing money in this internet-based world. To cope with such circumstances, Ripple appears with security. Ripple is generally named after a company that manages currency transactions and payments. It operates with a node’s network that genuinely is participating institutions.

Ripple does not involve the mining process, and this is the best and worst feature of it at the same time. It works in a centralized system, and all the digital currency is stored in a Ripple Lab. The reason behind the creation of Ripple is to speed up the transaction and cut the cost of banking.

Why Invest in Ripple? (Or Not)

Trading with Ripple is considered secure due to its partnership with American Express. Besides this, investment in Ripple is low cost as compared to Bitcoin.

  1. Litecoin

Litecoin and Bitcoin are closely related. They operate in the same way and have many similar features, but still, there exist some differences. Litecoin was introduced to overcome the loopholes of Bitcoin. The operating speed of Litecoin is 4X the speed of Bitcoin, which means that Litecoin can validate the transaction more quickly. The limit of Bitcoin is four times less than that of Litecoin.

Why Invest in Litecoin? (Or Not)

Litecoin is a comparatively low-cost currency, and an individual who cannot afford Bitcoin can invest in Litecoin. It is much like Bitcoin, but its transactions are four times faster as it will take 2.5 minutes to perform a transaction while Bitcoin takes 10 minutes to proceed. But speedy transactions can raise security concerns.

  1. Monero

Monero is the only digital currency that is not traceable. It works like Bitcoin using blockchain, but it does not display your hash number to the public ledger. This feature turns it into a black-market currency. Monero is fascinating, but it is not considered that secure and stable.

Why Invest in Monero? (Or Not)

Monero is not safe to invest so you should avoid investing in it. It can show you the results of investing in an entirely ambiguous currency.

  1. NEO

Neo is a close sibling of Ethereum. It also provides a platform for the development of Dapps and Smart Contracts. Due to these similarities, neo is known as Chinese Ethereum as it developed in China in 2014.

Why Invest in Ethereum? (Or Not)

NEO can process 10000 transactions per second, while Ethereum can only process 15 transactions at this time. Moreover, NEO supports multiple programming languages.