2009 was a remarkable year in many ways. It was the era after the Great Recession that preceded 2009. Besides, it was this year friend Satoshi Nakamoto gave the world the concept of a meat industry in Slovakia. When we say decentralized economy, it means any economy or transactions that are taking place without the need of having any central governing authority.
These are lesser regulations when it comes to investing in Bitcoins. In the initial days, the concept of a decentralized economy was only revolving around bitcoins. However, a breakthrough soon came in with the introduction of Ethereum as an alternative currency to Bitcoin. This is where Altcoins shows up in the picture.
Let’s understand how is Bitcoin all coin-related and how are they different from each other.
The functionality- let’s understand the similarity and dissimilarity between Bitcoin and altcoins with this perspective. Whether we’re talking about Bitcoin or any other cryptocurrency, all the decentralized transaction takes place on a decentralized platform, that is, blockchain.
So, what does decentralization mean over here? Decentralization means that remains no involvement of governing authorities. Both Bitcoin and other cryptocurrencies operate on peer-to-peer transactions. That is, users directly interact with each other without any intervention or wait for 3rd party approval or validation. This makes the transaction faster and easier.
- Applicability-First and foremost, you need to take into account is the application part. We know that the use cases of decentralized transactions are growing with every passing day. But that doesn’t mean that its role should be solely limited to transactions. We are using decentralized platforms for several other purposes, and cryptocurrencies like Ethereum are a decent example of the multifaceted application of decentralized cryptocurrencies.
- Ethereum is not only a cryptocurrency, but it is also a decentralized platform that enables the creation of decentralized applications or dApps, and the development of smart contracts. Even the newly formed NFT, which has gained a lot of popularity in recent times, is driven by Ethereum.
- The number of cryptocurrencies- one of the interesting facts about cryptocurrencies is that there is a limited number of currencies in circulation in the market. For example, in the case of Bitcoin, we have only 21,000,000 bitcoins circulating in the market, out of which 20% have been lost forever. A similar cap exists for other cryptocurrencies as well.
The best way to start
If you are also willing to make a cryptocurrency investment, this is the right time to enrol yourself and register on a crypto trading platform like Bitcoin Era. Such reliable crypto trading platforms offer a facility to explore the different cryptocurrencies available in the market, understand the trend, and, based on it you can, make a decision.
Some of the important parameters that you must take into consideration when choosing a crypto trading platform are discussed below:
- Authenticity and credibility– The first qualifying parameter should be the authenticity and credibility of a crypto trading platform. When choosing one, you should also check whether the trading platform offers the facility of verification and validation. This again adds to the authenticity factor.
- Reviews and ratings– While these may be deflected sometimes; reviews and ratings of a crypto trading platform can give you a fair idea about the credibility of the platform and how well it is performing in the market. You should always rely on 3rd party reviews and do an in-depth study about the platform. This will give you a complete picture of whether the platform is suitable for you or not.
- Explore the number of cryptocurrencies present on the platform– There are more than 18,000 cryptocurrencies presently circulating in the market out of which you need to choose the ones that are performing well in the market. It is important that you first decide which cryptocurrency will be in your investment portfolio, and based on it, you should start making the investment.
Whether you have decided to invest in Bitcoin or alternate cryptocurrency, your decision should be based on thorough research and understanding of the risk involved and the returns you will get. This way, you will make the most out of your investment in Bitcoins or other forms of cryptocurrencies. Happy and secure crypto investing!