Bitcoin vs Ethereum vs other Coins: The beginner guide

 

        You might have heard the names of Bitcoin and Ethereum, the two most common cryptocurrencies, but what is the difference between them? Are they the same kind of digital money or are they used to do something different? We are going to discuss the key distinctions in simple words in this guide, so that you can understand.

What is Bitcoin (BTC)?

    Launched: 2009

    Intention: intended to be electronic money (e-money).

    Primary Applications:

            Allows the transfer of money across the world without banks.

    Special Feature:

            Small amount of 21 million coins, and is thus scarce as gold.

    👉Bitcoin has been labeled digital gold - primarily store of value and money.

What is Ethereum (ETH)?

    Launched: 2015

    Founder: Team (led by Vitalik Buterin) joined in 2014.

    Purpose: Supplied not only with money but also with smart contracts and decentralized                             applications (dApps).

    Primary Applications:

                    Allows developers to create applications such as games, marketplaces and finance                        products.

    Special Feature:

                    Has programming language, and is therefore very flexible.

    👉 Ethereum is a kind of a digital computer - it is not only capable of making payments but it         can  also run full programs.

What About Other Coins (Altcoins)?

         There are thousands of other cryptocurrencies besides Bitcoin and Ethereum. These are referred to  as altcoins (alternative coins). Some examples:

             ⏩Binance Coin (BNB): It is used in the Binance exchange.

             ⏩Ripple (XRP): Dedicated to the rapid and inexpensive transfer of money across                             borders.

             ⏩Tether (USDT): Stablecoin pegged to the US dollar (it is not changing much).

             ⏩Solana (SOL): Solana is very fast and relatively inexpensive compared to Ethereum.

    👉 Altcoins usually target certain issues such as speed, low charges, or a fixed value.

Let’s Wrap It Up

        Bitcoin = most useful to store and move value (as digital gold).

        Ether = ideal smart contracts and decentralized applications.

        Altcoins = lots of other applications, depending on the project.

            It is essential to learn about the fundamentals of Bitcoin and Ethereum as a newcomer before      delving into the other coins. Every cryptocurrency plays its part in the increasingly digital world.

 Suggested Reads / Related Articles :  

       👉What are the most common terms used in Cryptocurrency: A guide to beginners.