You might have heard various stories about cryptocurrency and how it is bringing in revolutions in the traditional monetary system. However, some of these stories have formed from speculations while some are based on true events.
Distinguishing between the rumors and truth is certainly difficult for amateurs or people who don’t have access to relevant pieces of information about the cryptocurrency. One latest rumor that is being circulating in air is about how bitcoin is the ultimate form of cryptocurrency. Having said that, we think it is your responsibility to make you more insightful and perceptive about cryptocurrencies and bitcoin.
Cryptocurrency- an overview
Cryptocurrency is a digital currency which doesn’t have any physical existence. You can hold them like the pennies and the notes or can’t see them like you see the bonds or any other traditional form of money. So, what exactly is this currency?
Cryptocurrencies are maintained in the form of transactional balance in a ledger like chain called the blockchain. Just like every other international currency, each crypto has a particular valuation, which luckily isn’t subjected to inflation rates.
Unlike other currencies, cryptocurrencies aren’t controlled by a centralized authority. As an automatic consequence, no regulatory or government body can exercise any control over the cryptocurrencies. This is why trading in this virtual currency is so flexible and lenient.
The first cryptocurrency- bitcoin
Since cryptocurrency rose to fame after the launch of bitcoin in 2008, it is considered to be the first true form of virtual currency. Bitcoin was created by an anonymous team who called themselves as Satoshi Nakamoto. This was the first white paper currency whose functionalities and working were backed up by facts, experimental data, and real-time results. Perhaps this is the reason why bitcoin was accepted widely even at a time when cryptocurrency was in its embryonic stage.
Everything to know about bitcoin
Before focusing on the rumors about bitcoin being the main decisive factor of the crypto market, as a trader it is your responsibility to learn everything about this currency. This will give you enough transparency and enlightenment to judge whether you want to deal in bitcoin solely or want to try other virtual currencies also.
- Decentralized currency: bitcoin is decentralized, which means the traditional currency valuation rules set and governed by the centralized authorities across the globe wouldn’t be applicable for bitcoin.
- Lesser inflation rate: bitcoin being decentralized isn’t affected greatly by the daily inflation rates which cause a decrease in other currency prices like USD, INR, GBP, and so on. As a result, no matter how many bitcoins you have, the total valuation will never drop terrifically.
- Volatile currency: even though bitcoins aren’t affecting much by the inflation rates, other price movement factors like economy, and change in supply and demand industry have introduced volatility in this virtual currency. This is why trading in bitcoin is lucrative.
- Non-reversible transactions: one of the downsides of bitcoin transaction is that the transfers can’t be reversed once processed and confirmed. One can only get back the amount he has processed if the receiver is refunding the same.
- Anonymity: every transaction detail is stored on the blockchain ledger and every user has an access to the block. However, it is only the transaction details which are being showed. No information about the identity of the two parties are revealed.
Why trading only in bitcoin isn’t a feasible option for traders?
Even though bitcoin is the largest traded cryptocurrency presently in 2021, it is not the only viable option that the traders have on platforms like immediateedge.biz. Despite having several benefits, ruling out the negative points won’t do any good. So, keeping everything aside, let’s find out the reasons for which traders are now thinking about alternate cryptocurrencies.
- Unavailability: one of the downsides of trading in bitcoin is that the traders don’t have complete flexibility. Not all the crypto trade platform offers bitcoin trading, which is definitely a huge disadvantage.
- Price decrease: If you are trading solely in bitcoin, you won’t be able to make profitable deals during the decrease of its price. At the same time, you won’t be able to deal in other crypto whose prices are increasing.
- Complexity: bitcoin is one of the most complex cryptocurrencies to exist till date. This is why many traders fail to understand the proper trading strategies involving this virtual currency.
- Transaction speed: another major disadvantage of bitcoin trading is the average transaction speed. Several new cryptocurrencies are there which are offering fast transactions as compared to bitcoin.
Top cryptocurrencies other than bitcoin in 2021.
Since we have discussed the four major flaws of bitcoin, don’t you think learning about the alternative options will be good for your cryptocurrency trading?
Obviously it will be and on account of that, we have spoken about the top cryptocurrencies you can try trading in 2021.
This cryptocurrency is based on the proof-of-stake structure. Polkadot’s blockchain is itself cased on a relay structure which will allow the interoperability of other blockchains in both cross-sectional and parallel directions. This currency was created by Gavin Wood and he had ensured that the users can trade without any limitation in terms of security. As of 2021, the market cap of Polkadot is around $11 billion.
Ether, traded on the popular platform of ethereum is the second largest traded cryptocurrency after bitcoin. This platform was created in a way where the downtime and fraudulent cases can be prevented, thereby providing higher level of security to the traders. Also, with the constant updates in the Ethereum platform, transaction speeds have improved a lot which will help you to grab an opportunity easily in the crypto market. In 2021, Ethereum is having a market cap of roughly $135 billion.
If you do not wish to deviate completely from bitcoin, BCH or Bitcoin Cash is an amazing alternative. BCH has an increased block size up to 8 MB which will help in storing more records and allowing traders to make fast transactions. This is one of the major differences that has resulted in the rising popularity of the BCH since 2017 when it launched in the market. Being a new currency, its market cap is low, approximately about $9 billion.
Cryptocurrency is soaring high in terms of flexibility, transactions, and trade volumes. Despite being in its budding stage, the market is providing more opportunities to the prospective traders, thereby earning their interest. And, now since there are several other cryptocurrencies, a trader won’t have to deal with the flaws of bitcoin.