What are the differences between crypto-currencies ?

What are the differences between crypto-currencies ?

There are a large number of crypto-currencies, which means that it can sometimes be difficult to find. To help you see more clearly, we have decided to explain to you the differences that exist between the various families of crypto-currencies in terms of their use makes the most sense.

Bitcoin, a real stallion

Bitcoin is the crypto-currency the most well known. Indeed, it is Bitcoin that has established most of the principles and rules. It is also the crypto-currency that wins the most success. You can buy or sell, but also use them to make purchases on the Internet. Indeed, it is the crypto-currency that is accepted in many places. It is expected that 21 million Bitcoin are generated.

The coins infrastructure

These are crypto-currencies rather special because they will usually comprise a whole ecosystem with them. In this ecosystem, the crypto-currency is not a goal, but rather a tool among others. They are versatile, but generally not very accessible and rather reserved to a professional or semi-professional. However, they are thought of as real alternatives to the financial systems that they are intended to replace. Among these currencies, infrastructure, you will find Ethereum.

The alternate currency to Bitcoin

In regards to crypto-currencies, we therefore consider Bitcoin as a stallion. So this is not very surprising to see that many currencies are running on the same system. Of course, each of them brings its share of innovations, for example, treatment times of more transactions or short a currency exchange service built-in. In addition, it is generally the crypto-currencies that are the easiest to use and the offers that they offer is usually rather full. Among these alternatives, you will find, for example Litecoin.

The currencies anonymous

This is the type of crypto-currencies that certainly looks like the more the payment in cash. It allows you to pay completely anonymous and avoid that the body retains any track of your financial activities. If this type of crypto-currency is sometimes disparaged for the possibilities that it offers, including money laundering, purchase of illegal products or the financing of terrorism, it can also be reassuring. This anonymity not only ensures a certain discretion, but it can also reassure vis-à-vis the hacking and theft of data. Among these currencies, anonymous, you will find, for example, Monero.

Currencies financial instruments

This is certainly more obscure, since they usually have only one use : to be mined to be exchanged for Bitcoin. In addition, these are currencies that do not usually offer no or little long-term prospects. They are finally coins that disappear fairly quickly before being replaced by others. Even if some may show a little interest, they are really not the crypto-currencies are the most interesting.

What you must remember

  • Among the different crypto-currencies, Bitcoin is used for reference and the others are compared.
  • You will find different types of crypto-currencies, which may allow you to pay anonymously, to undermine, to find a good alternative to Bitcoin, or offer their own ecosystem.