Posted by

While cryptocurrency has only recently become a popular term in finance, it has been around for a long time. Before names like Bitcoin, Ethereum, and Litecoin even existed, there were attempts to create a decentralized currency.

David Chaum, a respected cryptographer, launched ECash, an anonymous system in the 1990s but it failed. Chaum built the system on currently existing government financial principles and infrastructure like credit cards. RPOW, BitGold, B-Money were also created but failed.

Cryptographers could not get past specific challenges that they faced at the time. The first challenge was how to achieve true decentralization and the second was the issue of double spending. The prevention of double spending meant the use of a third-party clearing house. This wasn’t acceptable because to achieve the type of innovative digital finance they wanted; the system had to be independent of any institution. In 2008, cryptographers finally stumbled on the information they had been searching for when an anonymous contender released the blueprint for a digital currency known as Bitcoin. It showed the technical specifications of the blockchain — a decentralized technology that creates a trustless, permissionless system and eliminates the problem of double spending. This new technology took the world by storm, later leading to changes in the financial industry as well as other industries such as real estate. With the cryptocurrency revolution, came many coins, tokens, and altcoins. Here, we take a deep dive into the similarities and differences between some of the most popular and valued ones: Bitcoin, Ethereum, and Litecoin.



Bitcoin is a digital currency, created as a store of value for the anonymous exchange of goods and services online. It typically has all the properties of a more traditional currency and can be broken down into smaller parts, up to eight decimal places. It’s also the largest cryptocurrency by market capitalization.


Bitcoin first originated in 2008 when an anonymous programmer under the pseudonym of Satoshi Nakamoto released a paper in a cryptography mailing list. This paper detailed the workings of a new digital currency, built on blockchain technology. The virtual currency was designed to imitate the key qualities of traditional money while providing anonymity, transparency and eliminating the need for a third party.

Researchers tried to find out the identity of this anonymous programmer, all to no avail. It became a mystery to the cryptography community who could not ignore this act of charity, containing a brilliant solution that had eluded them for so long.

The technology behind Bitcoin is open source, meaning that developers can modify it according to guidelines in the paper. Nakamoto aimed to create a currency that would be uniform, scarce, portable, durable and valuable, without the risk of double spending. This was achieved by creating a mathematical problem that would only ever have 21 million possible solutions. These solutions would represent Bitcoins, ensuring that only a finite amount of the currency would ever exist. This solution created scarcity, an essential property of any valuable item.

When Bitcoin was first released, it wasn’t well-known or widely accepted by the general public, and for up to eight months, it had no value. Critics laughed at the idea of a random digital currency that would be able to up-end the use of paper money as a means of exchange. However, software programmers continued to adjust the technology.

In October 2009, Bitcoin was valued for the first time when the New Liberty Standard published its exchange rate, listing the value of 1 USD to 1309.03 BTC. Soon after, in December, the second version of Bitcoin was released, and more people started spending the currency. Read More


Bitcoin transactions are conducted on a public ledger known as a “blockchain.” When a user exchanges another currency for Bitcoin, the balance is kept in a Bitcoin wallet.


Transactions are records of value exchanges between two parties. They occur whenever a payment has been made and typically consist of four main parts:

  1. Output
  2. Input
  3. Hash
  4. Type

The output of a transaction contains information vital to the outgoing payment, usually the address that BTC is being sent to and the number of tokens being sent. The input, on the other hand, contains relevant information on where the payment is coming from, i.e., the sender’s details. The information contained in the input are:

  • The hash of the incoming value (to identify the transaction)
  • Incoming amount of coins
  • Output index
  • Sender’s address and signature.

Just like the process of sending money from one bank account to another, the output is similar to entering the account details of the receiver. The receiver would be able to view the amount sent, the transaction number, and the sender’s details. Transactions also come in various types, usually regular, reward, and fee transactions. Regular transactions are the normal exchanges that occur between two parties sending and receiving Bitcoins.

When users send coins, they pay a fee that allows that transaction to be added to the blockchain which acts as proof that the transaction indeed occurred. The process of adding transactions to the blockchain is done by a select group of people called miners.

When miners confirm new transactions by adding them to the blockchain, they’re awarded a preset amount of coins in the form of a reward transaction. This confirmation usually takes about 10 minutes for Bitcoin and attracts a fee of about $2.


Just like traditional money needs to be held in physical wallets and bank accounts to keep it safe and create accountability, Bitcoin is held in wallets. Technically, a wallet gives user ownership of a certain balance and facilitates the retrieval and transfer of coins from one address to another.

When a user exchanges fiat currency like the US dollar for BTC, it can be transferred to a wallet at a particular Bitcoin address. From this wallet, users can decide also to spend their BTC tokens which are transferred to a destination address. While wallets are commonly web-based, there are other forms of wallets which include mobile wallets, desktop wallets, and hardware wallets.

Bitcoin Wallet


Web wallets can be accessed from anywhere as long as a user is online via a browser. These wallets store a user’s private key online and are susceptible to hackers. It’s essential to ensure that online wallets are backed up and encrypted. This ensures that it can still be accessed by its owner even when compromised. Some notable web-based wallet providers are Coinbase, Electrum, and


Desktop wallets are better for users who prefer their wallets in a more controlled environment, rather than online. Desktop wallets store information concerning Bitcoin transactions and can be downloaded and stored on a user’s desktop. This type of wallet also allows a user to create an address as well as a private key which will be used to send and receive Bitcoin.

While desktop wallets are a good option, they have the disadvantage of being fixed in just one place. If users want to access their wallets, it can only be done on the desktop of the computer it was installed on. This dramatically limits use and can be inconvenient for users who travel or have to be away from their desktops for other reasons. Some notable desktop wallets are Armory, Multibit and Bitcoin Core.


This type of wallet is usually in the form of a mobile application which can be accessed on any mobile device. Just like traditional banking apps, the owner of the mobile wallet can carry out Bitcoin transactions at any time. This is a better option for mobile users who need to make quick purchases frequently. Some mobile wallets are Bitcoin wallet and Mycelium wallet.


These wallets provide more security than any other type because they’re separated from a user’s computer, ensuring that they can’t be hacked unless they’re physically stolen. They’re usually in the form of devices which can be plugged into the USB port of a computer. Some hardware wallets like the Ledger Nano S can sign off on users’ Bitcoin transactions with their private key. They generally cost between $100 to $300 and are a better option for storing a significant amount of Bitcoins.


An exchange is an online destination where users trade cryptocurrency, in this case, Bitcoin. For example, if one user would like to exchange USD for BTC from another user, an exchange may be necessary to facilitate the payment. In regular exchanges, sellers usually set a minimum trade price, relative to the current BTC price against the currency they would like to trade.

This minimum price is called an ‘order’ and is entered into the exchange’s order ledger. Buyers may also set orders containing the minimum price they wish to buy BTC at. After orders have been set, the exchange matches both parties and carries out the transaction. Although Bitcoin transaction confirmation takes up to 10 minutes, the exchange instantaneously carries out the transaction. In peer-to-peer exchanges, buyers and sellers are matched using software which allows them to carry out transactions on their own, without an intermediary to facilitate the transaction. The system is completely decentralized just like the technology, which Bitcoin itself is built on. Unfortunately, because the users on peer-to-peer exchanges are left to do their trades independently, they bear the full risk of fraud and theft.


Just as software applications get system updates, it’s possible to update a blockchain to include changes to the way it operates. Bitcoin usage is guided by software known as the Bitcoin protocol. It specifies vital principles of blockchain operation such as the size of blocks, mining process, and other technical information.

In some cases, Bitcoin developers along with miners decide to make changes to the way the blockchain is operated. Unfortunately, these changes are not always agreed upon by everyone. The result is that a group of users and miners form a new blockchain branch known as a fork. A fork can either be ‘hard’ or ‘soft’ and maintains the history of the original blockchain up until the block on which the fork occurred.

Bitcoin Fork


In the case of a soft fork, the new branch is backward compatible with the old one, just like the way a Microsoft Word 2016 document can be opened in Microsoft Word 2009 application because it’s backward compatible. However, there are features of the soft fork that won’t work on the original blockchain. Hard forks, on the other hand, are not compatible with the original blockchain. Users on the old blockchain will no longer be able to interact with users on the new one.

Due to several issues, especially the size of blocks, several Bitcoin hard forks have been made. The most notable one— Bitcoin Cash— was forked on August 1, 2017. While the size of blocks in the original Bitcoin blockchain is 1MB, Bitcoin Cash has blocks the size of 8MB. Some miners argue against the move, citing reduced fees per transactions since users no longer have to pay high fees for priority mining. Other miners support the move saying that miners can now earn more in fees since there will be eight times more transactions on each block.

Users who had BTC were given the same number of Bitcoin cash tokens as long as their coins were not held on exchanges and their keys were available. So, if a user had 50 Bitcoins on the original blockchain, then they would also have 50 Bitcoin Cash after the split. Forks have since become a way to implement new properties and functions to the initial open-source Bitcoin blockchain design. Other notable Bitcoin forks are Bitcoin Gold and Bitcoin Unlimited.


Since the rise in the price of Bitcoin, more investors have trooped in from all over the world to take their profitable spots in the cryptocurrency market. In fact, in March 2017, the currency already had up to 5 million unique users. This figure has continued to grow, and in December 2017 when Bitcoin hit an all-time high of almost $20,000, the number of unique users grew to over 13 million in a buying frenzy that experts have likened to the California Gold Rush of 1848.

Despite the rush to acquire Bitcoins, the general opinion is tied between viewing Bitcoin investment as a smart move and viewing it as a foolish one. On the one hand, Bitcoin is celebrated as a commodity that will continue to rise in price as the influx of new users causes increased demand. On the other hand, speculators adamantly argue that Bitcoin has no intrinsic value and therefore is not a good investment.

It’s also believed that for the currency to become mainstream, it would have to be backed by government policies, and this would bring a sense of centralization to the system. The currency and blockchain system has also been compared to a Ponzi scheme and boiler room scheme in which worthless stock was hyped to investors who eventually lost their money.


Despite varying public opinions, several people have made millions from investing in Bitcoin. Popular hype surrounds the favorable volatility of cryptocurrency, leading to some general confusion about how to make any money from it. There are several ways to maximize ownership of Bitcoin.


Traditional “buy low and sell high” methods have been proven to work well with the cryptocurrency. Another way to invest without playing the markets is by funding Bitcoin startups through Initial Coin Offerings (ICOs).


Although the rewards can be great, it’s also extremely risky. ICO whitepapers can be immensely deceptive, and some startups end up disappearing with investors coins and leaving them with worthless products and tokens.

One recent example is the case of Modern Tech, a Vietnamese startup that raised $660 million from 32,000 investors after promising returns of 48% per month. Shortly after a series of dubious activities, the company disappeared, leaving investors confused. More scams have occurred, but none of them negate the fact that many investors have made good money from funding ICOs. It’s just important to be careful when selecting which ones to pour money into.


Lending Bitcoin to margin traders and individuals who wish to spend their coins without touching their wallet savings can have profitable results. On average, peer-to-peer lending services yield better returns than traditional bank lending. An added advantage of partaking in this venture is that the price increase of Bitcoin leads to higher returns.

Bitfinex and Poloniex are reputable exchanges with secure lending platforms. Any of these platforms can be used once an investor has created a wallet on them. Users should be careful when choosing who to lend Bitcoins to as they’re more difficult to recover when a debtor defaults on a payment.


The first recorded Bitcoin exchange was from a user who paid 10,000 Bitcoins for two boxes of pizza. After that, the currency was used by most software developers who knew how it worked.

Subsequently, it was known as a medium of exchange in illegal businesses such as drug dealing, illegally obtained ammunition, dangerous software and even child trafficking. Due to the need for anonymous, untraceable transactions by these illegal traders, a cryptocurrency like Bitcoin was a perfect choice.

However, as its popularity and user-base increase, a new wave of businesses have begun accepting the cryptocurrency as a medium of exchange.


  • Bitcoin Coffee, Haydenville, MA
  • Coupa Café, Palo Alto
  • – 12 restaurants in San Francisco Bay Area on this platform accept Bitcoins
  • Foodler – A restaurant delivery company in North America
  • KFC Canada
  • Old Fitzroy Pub, Sydney, Australia
  • Pembury Tavern, London, England
  • – Domino’s Pizza can be bought on the platform using Bitcoins
  • Subway
  • Whole Foods


  • Grooveshark
  • Intuit
  • Lumfile
  • Microsoft
  • Namecheap
  • PureVPN
  • Reddit
  • The Internet Archive


  • Canada State Republican Party
  • Fight for the Future
  • Museum of the Coastal Bend, Texas
  • San Jose Earthquakes (San Jose California Professional Soccer Team (MLS))
  • Save the Children
  • The Libertarian Party, United States
  • Wikipedia


  • Playboy


  • Badoo
  • OkCupid
  • Dream Lover


  • MIT Coop Store – Massachusetts Institute of Technology student bookstore


  • GameStop
  • Gap
  • Green Man Gaming
  • JCPenney
  • Zynga


  • Braintree
  • NCR Silver
  • PSP Mollie
  • SimplePay
  • Stripe


  • LOT Polish Airlines, Poland
  • One Shot hotel chain, Spain
  • Virgin Galactic
  • WebJet


  • Gyft
  • Overstock


  • Alza – Largest Czech online retailer
  • Etsy – An online craft purchase center
  • Famsa – The largest retailer in Mexico
  • i-Pmart – A Malaysian electronics online retailer
  • Jeffersons Store – A streetwear retailer
  • – A medical equipment supply retailer
  • – Online electronics retailer
  • Rakuten – A Japanese e-commerce company
  • – An e-commerce center for multiple sellers
  • ShopJoy – An Australian online gift retailer


Miners are rewarded with 12.5 BTC for each block they add to the blockchain. The reward is halved every 210,000 blocks (roughly every four years) to ensure that supply is controlled. This allows for a gradual introduction of new coins into the system, creating balance.

When the first block was mined, the reward paid to the miner was 50 BTC, a figure that has been halved twice already. As specified by Nakamoto in the original paper, there will only ever be 21 million Bitcoins in existence. Currently, in June 2018, over 17 million of those coins have already been mined.

After all 21 million BTC are mined, miners may no longer be incentivized to mine additional blocks. This may threaten the structure of the blockchain because if miners reduce, confirmation speeds will slow down significantly while transaction fees will most likely increase. Individuals may also hold on tightly to their Bitcoins, making it difficult for new users to get them. This will inevitably result in a BTC price increase.


As the largest cryptocurrency, there has been a lot of Bitcoin news and its blockchain. A good portion of that news centers around regulations and the mainstream acceptance of BTC as a means of payment. Here are some notable Bitcoin blockchain news headlines.

  • June 2018 – Bithumb, the 6th largest Bitcoin exchange was hacked with $3 million worth of cryptocurrency stolen.
  • June 2018 – Bitcoin released its core version 0.16.


Ethereum is a peer-to-peer based platform on which decentralized applications can be built. Since its release in July 2015, Ethereum has risen to the top as the second largest cryptocurrency with a market cap of approximately $50 billion. In a market flowing with thousands of cryptocurrencies, it has quickly become the topic of many debates, not just for its similarities to Bitcoin, but its differences as well. So what makes it so unique?

Ethereum was proposed in 2013 by Vitalik Buterin, a Canadian-born cryptocurrency developer. Later in 2014, it was funded via a crowd sale event in which there were 11.9 million pre-mined ETH. It was fully released in 2015 and has quickly risen since then. Ethereum tokens, known as “Ether” have become a conventional means of exchange on various blockchain-based applications and continue to grow in value.


Read more on Ethereum


A smart contract is a type of virtual contract containing written code and uploaded to the blockchain. It lives on the blockchain, usually in the form of an “if-then” statement and self-executes when the conditions specified within the contract are met. This execution is run across every node in the blockchain for confirmation.

For example, a user may want to buy in-app tokens on a game app using Ethereum. For this purchase, a smart contract is set up, specifying that if such a user pays a certain amount of Ethereum, then the game will award them a certain amount of in-app tokens.

The entire process is carried out on the blockchain and can be validated by anyone. Due to this transparency, it’s difficult to tamper with transactions on the Ethereum blockchain. One great advantage of smart contracts is that they eliminate the need for third parties. Transactions can be finalized without filling out papers, dealing with lawyers, or paying expensive processing fees.

Automation as an advantage only constitutes one side of the coin because this quality can be a huge disadvantage, too. Software programs are prone to bugs, and that’s why updated versions usually come with bug fixes. In the event of a bug occurring in a smart contract, the contract will still execute on the blockchain, and the results can be disastrous.

A recent example is the case of The DAO, a decentralized autonomous organization which served as an investment fund. Members of the organization invested Ether which bought them tokens and the right to vote on what the fund would be used for. The entire system was facilitated by a series of smart contracts, from the donation of Ether to voting and final investment.

The DAO, slated for a 28-day crowd sale, went live in April 2016 and, by the end of the funding window, it had raised $150 million from about 11,000 investors. While the Ethereum blockchain itself securely runs smart contracts, the onus lies on the independent developers of these contracts to fix all bugs.

Unfortunately, a weakness in the code was discovered by a hacker and used to drain over 3.6 million ETH into a new DAO. Since the contract merely acted as it was supposed to, the actions of the hacker were technically not illegal.

As far as traditional contracts go, context and intention are considered in a court in the event of any similar misconduct. Smart contracts, on the other hand, are made up of written code and will follow that code no matter the situation. This often strikes the question of whether the reward of smart contracts is worth the risk after all.


There are four primary functions of Smart Contracts:

  1. They act as software libraries by providing certain functions to other contracts.
  2. Smart contracts manage ongoing contract relationships between several users. Some examples are insurance, escrow, subscriptions and other financial contracts.
  3. They hold and maintain data that other contracts or members of the outside world can use. For example, a smart contract may hold the protocol for a currency, membership data for certain organizations, and updated company lists.
  4. They act as forwarding contracts which make an access procedure more complicated by introducing additional measures. These measures usually involve sending an incoming message to a specific destination after preset conditions are met.

One example is the case of multiple ownership of a particular asset. A contract may wait until a certain number of owners have signed a message with their private keys before sending the message to others. Another example is an extra account authentication process or a contract that allows users to override a transaction limit by presenting a complicated procedure.


Each program run on the nodes of the Ethereum blockchain uses an exact amount of processing power. To conserve power and maintain the integrity of the system, it’s imperative to avoid any unnecessary activity. To regulate activity, all Ethereum programs are given a cost in gas for them to run. Gas is a measure of processing power per program in Ether. As the processing power increases, so will the amount of Ether needed to keep its contracts running.


After implementing a data storage layer, and smart contract, application social constructs can be stacked on them. This is the area that users directly interact with. It contains content such as usernames, payment information, and subscription history. Depending on the application, decentralized payment platforms such as OPEN API can be added to the mix.

Together, these layers comprise the backbone of DApps. Currently, several applications exist, stretching across different industries. Some notable DApps are OmiseGo, a payment platform that uses smart contracts to offer global banking services without the need for a bank account. Another is Cryptokitties, a collectibles app making waves, especially in the art industry.


To a beginner, the idea of using Ethereum and its associated applications may seem intimidating. However, it’s quite straightforward once the system becomes familiar. Ethereum has proven to be versatile, and there are different ways in which it can be used.


Like other cryptocurrencies including BTC, ETH has an exchange rate against other digital currencies and fiat currencies including the US dollar. This means that it’s set at a constantly fluctuating price that is affected by market forces of supply and demand.

Due to this property, Ether can be used as a store of value which can either increase and yield profits or decrease and lead to losses. Although ETH is the second largest cryptocurrency, the ETH price (currently trading at $500) is nowhere near that of BTC ($6,500). Despite this price gap, it’s possible to make a profit by buying Ethereum when the price is low and selling when high.

To store and exchange Ethereum, users must have a secure ETH wallet. Apart from storing a user’s balance, it will store private keys as well. These wallets come in the same form as Bitcoin wallets – web-based, mobile, desktop, and hardware.

It’s important to note that while the use of a wallet conveniently eliminates third-party exchanges, there is also a huge disadvantage. In the event of the loss of a private key, there is no chance of recovery and all the Ether in that wallet will be lost. Depending on the amount of Ether in a wallet, this incident can be disastrous to the user.


To buy Ether, users can either physically locate people willing to trade or use exchanges. Exchanges help users buy ETH by matching them with other users willing to sell. Typically, on these exchanges, a user will be expected to sign up and enter any relevant details. Users may also have to exchange their traditional currency for BTC then exchange BTC for ETH because Bitcoin is more popular and it’s easier to find people willing to sell.


Litecoin is a peer-based cryptocurrency that was created to address some of the issues associated with the Bitcoin blockchain. These issues include transaction confirmation speed, scalability, mining process, and transaction fees. It was created by Charlie Lee, a Google developer at the time.

Lee was unimpressed with the wait time of 10 minutes or more that users have to endure when using Bitcoin. He set about working on his cryptocurrency by copying the Bitcoin open source software and making changes to it. In October 2011, Litecoin was released, and by November 2013, it had reached a market cap of $1 billion. Litecoin is currently the sixth largest cryptocurrency by market cap after Bitcoin, Ethereum, Ripple, Bitcoin cash, and EOS. The value of its market cap currently lies at approximately $5.7 billion and its price is currently about $100, with a peak price of $375.29 in December 2017.

download (6)


Litecoin operates using blockchain technology, just like Bitcoin. While Litecoin is a separate entity from Bitcoin, the two cryptocurrencies work in very similar ways. However, their differences also play a significant role in the progression of Litecoin.


Initially, Litecoin was mainly created to solve the problem of transaction speed. On the Bitcoin blockchain, it takes roughly 10 minutes for miners to add a new block to the blockchain. Transactions on the platform cannot be confirmed without this mining process and in cases where there are any mining problems, users may have to endure an even longer wait time.

Litecoin, on the other hand, has a transaction speed of 2.5 minutes, which is better for several reasons. Firstly, merchants can now transact freely in four times the amount of time it would take with Bitcoin. Frequent micropayments can also be achieved using Litecoin because if one transaction takes 2.5 minutes then, theoretically, each person would be able to carry out over 500 transactions each day.

The transaction speed is also great for miners. Where Bitcoin mining power is controlled by a concentrated batch of people, Litecoin mining is more decentralized. Theoretically, the fast block confirmation time allows more miners to mine blocks and receive rewards. This leads to a better distribution of rewards.

Another difference between Bitcoin vs Litecoin is that while the former will only have 21 million tokens in existence, the latter will have 84 million. Due to the transaction confirmation time of 2.5 minutes, Litecoin blocks get mined four times faster than Bitcoin.

To make up for the speed and ensure the gradual progression of the system, the total supply of LTC is capped at four times that of BTC. Litecoin also has lower transaction fees than Bitcoin, making it easier to carry out several transactions on its blockchain. The average transaction fee is $0.108 with a median fee of $0.036.


The Litecoin blockchain is a decentralized ledger just like that of Bitcoin and uses the proof-of-work system for mining new blocks. However, there are some fundamental differences in the Litecoin block explorer as well as the block mining process. First of all, while Bitcoin uses the SHA-256 hashing algorithm in its mining process, Litecoin uses Scrypt. This was an intentional move by Lee to make LTC mining a more decentralized process.

In Bitcoin mining, large devices known as ASIC can run code that solves mathematical puzzles at the same time. While ASIC provides immense computational power, it can be expensive, and for this reason, average individuals cannot mine BTC. Scrypt, on the other hand, is more serialized than SHA-256.

Running parallel operations will take up a vast amount of memory, so miners run them one after the other. This means that anyone with access to memory in the form of a memory card can mine LTC, ultimately making the process more decentralized.

The first mined block on Litecoin had a block reward of 50 LTC. This mining reward will be halved every 840,000 blocks. Transactions on the blockchain can be viewed using Blockcypher, the Litecoin blockchain explorer.


The growth pattern of LTC has shown that investment in the cryptocurrency is better over a long-term period. While there is no assurance of a fast increase in LTC price any time soon, its community remains unfazed. LTC price predictions continue to flood the internet with varying opinions. In January 2017, 1 LTC had a value of $4, and by December of the same year, it had risen by more than 9,000% to a peak price of $375.29.

If a user had invested $5,000 in Litecoin in January 2017, then by December 2017, it would have increased to $469,112 at peak price. While this may sound like enough reason to pour money into Litecoin, it should be kept in mind that losses can occur as well. Users who bought LTC at a triple-digit price are currently facing those losses as LTC drops below $100 in what has been termed a “market correction.”

According to analysts and blockchain enthusiasts, the rapid drop in Litecoin price may signify an impending price explosion. If that is the case, then it would be reasonable to buy low and hold for a long time (maybe years). Even though the cryptocurrency is nowhere near Bitcoin in price, it continues to be a boon to investors.


Whether a user is new to cryptocurrency or not, the whole exchange process can be very confusing. There are a lot of questions, such as Ethereum pass Bitcoin? Is Ethereum better than Bitcoin? How do you even go about exchanges? And, can you exchange one cryptocurrency for another like maybe Bitcoin for Litecoin and vice versa? Apart from questions like these, there are other technicalities like market analysis and coin-watching.

The best way to go about unbundling blockchain is by studying the facts and taking little steps. For pricing, the facts are simple when comparing Bitcoin vs Ethereum. The former had a price growth of about 1,000% while the latter grew by about 10,000%. Despite having a higher overall price, the figures show that Bitcoin may not be as good for investment as Ethereum. As for Bitcoin vs Litecoin, the same trend appears where the smaller cryptocurrency had a better price growth than Bitcoin. Figuring out which of the cryptocurrencies is better will depend on the user’s preference. All three coins have shown potential to revolutionize investing in their different ways. However, one thing is clear: they all seem to yield better results from long-term investment. These days, anyone can make a Litecoin, Bitcoin or Ethereum price prediction. It’s important to weed out the ones that don’t show any true logic behind them before using them as an investment guideline.

Price-monitoring can be done on sites like Coinmarketcap to see the rise and fall of both the prices and a market cap of different coins. Exchanges like Binance also show current prices and allow users to exchange one cryptocurrency for another. It’s possible to exchange Bitcoin for Ethereum, Bitcoin for Litecoin and so on.

Virtual symbols of the coin bitcoin, litecoin and ethereum on  b


All three cryptocurrencies use similar wallets. Mobile, desktop, web and hardware wallets are acceptable on their platforms. The safest option is hardware wallets because they’re offline and can’t be hacked. Such wallets can be stored in a safety deposit box or even a vault at home depending on the value of their contents.


For those looking to understand and perform cryptocurrency mining, there are significant differences between the way Bitcoin, Ether and Litecoin are mined. Bitcoin mining uses the SHA-256 hashing method to ensure that miners solve a challenging puzzle. They show a solution known as the proof-of-work and add new blocks to the blockchain after. The current block reward is about 12.5 BTC valued at almost $83,000.

Ethereum, on the other hand, switched from the proof-of-work to the proof-of-stake method in which new blocks are minted, not mined. In proof-of-stake, a node puts up an amount of its personal Ether as a stake. The node with the highest stake is chosen to validate the next block. Validators bet on blocks to show that they don’t have any malicious transactions on them. If a malicious block is validated, the validators lose their stake. However, if the block isn’t malicious, then the validator gets a reward proportional to their bet.

Litecoin mining also involves the proof-of-work protocol like Bitcoin. However, Scrypt is used in place of SHA-256 to mitigate the problems associated with mining centralization and energy use. Scrypt allows any user with access to extra memory to become a miner without buying expensive ASIC devices like Bitcoin miners. The current Litecoin block reward is 25 LTC valued at about $2,500 at the time of writing.


Cryptocurrency is relatively new and is still being studied and continuously improved upon. Market experiments are still occurring, and businesses continue to find new ways to accept blockchain technology. This is evident in the fast growth of platforms like Ethereum, the Enterprise Ethereum Alliance and recent partnerships like that of sites like Pornhub and Verge cryptocurrency. While this may sound exciting, investors should not get too carried away as there are many ways to lose money in crypto investing. Research the market and how it constantly changes while leaving room for unpredictable outcomes. Although the field of cryptocurrency is still quite young, Bitcoin, Ethereum, and Litecoin have earned their places as giants that continue to drive innovation in one way or the other

This article was originally published at and by MINTDICE . Read more about it on

Want More Info about Cryptocurrency?

hqdefault (1)


One comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s