Bitcoin is a digital currency that is being used for online operations. Technically, each Bitcoin represents a computer file that is being stored in the digital wallet. Every transaction that you make with Bitcoin is stored in a public spreadsheet called a blockchain.
Once you obtained a Bitcoins you can use it to pay for products, services, transfer it to another person, trade, etc. Today Bitcoin is being the most popular and the most expensive currency in the world. One of the reasons for such popularity of Bitcoin is a security.
Thanks to the blockchain system all the transactions are being recorded and this makes it impossible to fake the Bitcoin, copy it, or use somebody's. But even though all the transactions are recorded, users are completely anonymous and you cannot know who is the account owner.
The creation of Bitcoins is called mining. In this process, the miners are providing services for the network. Their task, in this case, is to process and secure the transactions and in exchange, they are receiving Bitcoins.
Ethereum is a completely decentralized, blockchain-based system that includes a network, Internet browser, coding language, payment system, and the cryptocurrency. The system is not being under the control of any organization or government and is fully anonymous.
Different from the Bitcoin, Ethereum significantly expanded its capabilities. When the Bitcoin is just a cryptocurrency, Ethereum created its own network, coding language based on a blockchain, Internet browser, and allowed its users to create and deploy applications.
The process of creating the Ethereum cryptocurrency is also mining and it works similarly to the mining of blockchain. The only difference in this process is that Ethereum cryptocurrency takes less time to be created. For example, if the creation of the Bitcoin takes 12 minutes, the Ether takes more or less 12 seconds.
Litecoin is a peer-to-peer digital currency that allows you to commit online payments all over the world. The payment system, similar to other cryptocurrencies, is decentralized and fully anonymous. Today Litecoin is a cryptocurrency that is the most alike to the Bitcoin. But the difference between them is that Litecoin is much cheaper and provides faster transactions.
This cryptocurrency is not controlled by anybody and is being created by mining. The creation of one Litecoin takes approximately 2.5 minutes, which is way faster than Bitcoin. The reason for this is a different mining algorithm that allows you to add blocks to the blockchain faster
The purpose of the Litecoin is simpler than, for example, Bitcoin. This cryptocurrency is created for usage in small everyday transactions, that is why it is faster in creating and usage. The Bitcoin, on the contrary, was developed for a long-term investment.
• Direct purchase
The basic way to buy a Bitcoin is to receive it from another person through the Internet. The transactions are performed through particular platforms and are absolutely anonymous. This method is also one of the oldest types of Bitcoin purchase.
• ATM
A new innovative concept of purchasing Bitcoin are the ATMs. The number of machines is growing and attracting more people every day. The biggest advantage of such service is the simplicity of operation. And the only disadvantage is the commissions that can reach 8%.
• Exchanges
One more innovation in the crypto world is the exchanges that allow you to buy, sell or exchange your Bitcoin to any other currency. Such systems are very popular and simple in use, and a lot of them have mobile applications. One single disadvantage, that the systems can apply KYC and AML measures, which means the collection of personal information.
Ripple is similar to Ethereum went further than just cryptocurrency. In 2012 the Ripple Labs Inc. developed a system that now includes a payment system, currency exchange, and remittance network.
What differs this cryptocurrency from the others is that it doesn’t use blockchain mining to create new crypto coins. Instead of this, Ripple uses a consensus mechanism that confirms every transaction through certain servers.
Another important difference and advantage of Ripple are that it’s very fast. The creation and transaction of this cryptocurrency take only a few seconds and takes significantly less energy for all the operations.
The cryptocurrency Ripple is not that expensive and popular as, for example, Bitcoin or Ether, and for the moment, it is not fighting to reach the 1st place among other currencies. The main purpose of this system is to be the best of the payment systems like Swift or Payoneer
NEO is a cryptocurrency and also blockchain-based platform that develops decentralization and digitalization of various systems. The main feature of this system is that it is defined as a smart economy system, which includes digital assets, identity, and smart contracts.
The difference that NEO has among other cryptocurrencies is that uses a smart contract system and works with several programming languages instead of just one, like, for example, Ethereum. Moreover, the NEO system supports digital commerce and digital identity system.
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