This week’s Guest post comes from our friends at Bitcoinfy.net
If you are reading this, it means you already have an interest in cryptocurrencies. But, just how much do you know about the top performing crypto coins? According to Coin Lore, a platform that provides crypto prices, there are over 2000 cryptocurrencies and the number is rising. A cryptocurrency can be created at any time, which is why it is so hard to keep track of all the new ones. However, if you are keen on investing in cryptos, it is advisable to simply look at the top 10 most relevant cryptocurrencies and study them carefully to see which one fits your investment portfolio.
Fortunately, unlike a few years ago, the internet is full of great content regarding cryptocurrencies that can help you make an informed decision. For instance, analysts at Bitcoinfy.net published an informative infographic on cryptocurrency stats that can give you all the basics you might need before investing in this tech.
We’ve broken down the infographic and highlighted 2 most fundamental characteristics used to compare top performing cryptocurrencies. Let us take a look.
The top-performing cryptocurrencies have different transaction speeds. The number of transactions per second is determined by the size of a block. Although Bitcoin is still the leading crypto, it has limitations when it comes to block capacity. Currently, it is limited to only 2MB. This makes it only able to handle approximately 10 transactions per second.
In comparison, Bitcoin cash came in and extended the block size to 8MB which allows it to handle about 61 transactions per second with transaction settlement time of 60 minutes. Bitcoin’s time is 78 minutes. Ethereum has the fastest, with an average transaction settlement speed of 6 minutes.
While transaction speed might not affect a buyer’s decision, it is an important factor to consider for those who want to invest in mining cryptocurrencies.
Crypto mining is the backbone of cryptocurrencies and involves confirming transactions in blockchains. In the case of Bitcoin, the miners who compute these blockchains are rewarded with new bitcoins and transaction fees.
Most cryptocurrencies halve their rewards after a set number of blocks has been solved.
However, a higher ranked crypto coin is likely to give stable, consistent and have high rewards. According to the info graphic, Bitcoin has a mining reward of $71,151.34. It also happens to have the highest market capitalization. Litecoin miners, on the other hand, can pocket about $1,065.78 in mining rewards.
The two factors mentioned above are the main characteristics of any cryptocurrency. All other aspects such as the value of crypto are simply breakdowns of the two discussed above. Smart choices lead to smart investment and the information provided in this post should clear the path for your journey through the world of cryptocurrencies.
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