There are several factors that you need to pay attention to in order to choose the right cryptocurrency for you. It is evident that there are numerous possibilities and it is sometimes difficult to make the right decision. However, by following several simple rules, you will understand the principle of the choice and understand what coins are better and more profitable.
The most important factor is the technology underlying the currency. They largely determine whether a particular currency will be successful or not. This, in part, explains the popularity and capitalization of Bitcoin, the first cryptocurrency created on the basis of the blockchain. Today, there are many other coins that offer faster transactions, additional functionality, and various add-ons.
It is notable that Bitcoin, which is the first cryptocurrency created on the basis of blockchain technology, remains in the lead. Its founder is Satoshi Nakamoto, whose identity has not yet been established. This is a peer-to-peer payment network, within which a special encryption algorithm is used. In that way, it is evident that Bitcoin is a promising cryptocurrency.
Bitcoin allows you to conduct completely anonymous transactions. The network is protected from hacking as well as DDoS attacks. The first cryptocurrency was one of the main popularizers of blockchain technology. The issuing of new coins is made through mining within the framework of the mechanism of Proof of Work. Users use computers to perform special task calculations. The main task of the miners is to create new blocks and enter transactions into them.
It is a promising cryptocurrency that was created by the Canadian programmer. The platform allows you to develop various decentralized applications and use smart contracts. The idea of creating a promising cryptocurrency Ethereum appeared in 2013. Developers collected $18 million in crowdfunding. Unlike Bitcoin, the Ethereum offers not only a peer-to-peer network for conducting secure transactions but also a number of other functions, including smart contracts.
The contracts allow you to conclude transactions between the parties without intermediaries in the face of lawyers. In such contracts, all conditions are prescribed, including the transfer of funds from one side to the other. As soon as they are executed, money is automatically credited to the account of the supplier of goods and services.
In the capitalization list Coinmarketcap, Ripple is ranked third. The protocol was launched in 2012. The main goal of the project is to provide safe and fast transactions. The protocol supports the payment of money, crypto-currencies, goods, or bonuses. At the basis of the protocol of perspective, cryptocurrency is an open distributed database, in which the negotiation process is used.
Due to this, users can make transactions in a fully decentralized system. To approve the transaction, you need two members, who also specify proxies. If they do not exist, the system independently determines those who will verify the operation. In that way, Ripple becomes extremely beneficial for the users and is one of the fast developing currencies in 2018.