Whenever someone talks about cryptocurrencies, the second name that comes to mind is Bitcoin. However, this is because BTC is the first cryptocurrency ever. There are many more cryptocurrencies in the world. And the second-best one among them all is Ethereum. So although it is second to Bitcoin, it is still at the top place.
But what is an altcoin?
You might be thinking this question if this is your first time hearing about altcoin. This name is from “alt, from alternative” and “coin for crypto coins”. So this is the name given to all other cryptocurrencies other than Bitcoin. BTC was the pioneer in crypto which is why most of the credit is given to it. But when someone talks about all other currencies other than Bitcoin, they use the term “altcoin”.
So if this is something that interests you and you want to invest in Ethereum, this is a good choice. If you want to learn more about it, you can read more at the-ethereumcode-pro.com.
Expectations from Ethereum
Crypto traders and miners are expecting a lot from Ethereum. It is said to be one of the best cryptocurrencies, the daily trade volume for Ethereum is also quite high. Therefore, it is expected that Ethereum will surpass Bitcoin in the near future. That is why its chances of becoming the number one cryptocurrency are quite high. Therefore, it won’t be wrong to say that Ethereum is the most popular altcoin.
How it is different from BTC
Ethereum is somewhat different from BTC despite the fact that it is a cryptocurrency. Unlike BTC, Ether is a decentralized software platform. It allows you to build dApps i.e. decentralized applications and smart contracts. In addition to this, the applications will be safe from 3rd party interference and downtown. Furthermore, you could control it in a better way and also prevent any fraud.
Thus, it provides financial products that you can use without any worry. You can make limitless transactions and that too without any 3rd party interference. No one can trace you back and you will be able to transfer the money to any part of the world. So if you are working with someone from a country where there is no proper security for money transfer, you can choose to pay through Ethereum.
Proof-of-work to Proof-of-stake
Before December 2023, Ethereum was using the Proof-of-work (PoW) algorithm. But afterward, it changed to Proof-of-stake (PoS). Thanks to this algorithmic change, Ethereum now needs less energy to run. In addition to this, this algorithm has also improved its transaction speed. Therefore, you can now easily make transactions without much delay.
Deflation and volatilization market
The only negative thing (not so negative) about the crypto market that we hear is its market volatility. Although this is also the factor behind the success of a lot of traders but this is the only riskier aspect of this world.
But the new PoS algorithm has worked on the betterment of deflation. Therefore, Ethereum can now work in a deflationary economic environment of the market.
What happens is that the investors can stake their Ether coins in the network. So instead of watching the market, you can make an investment just like in stock trading. This is a secure and better method to earn safe money. You won’t risk anything. If the currency is making profits, you will too. But not that, this will also reduce the risk level and will not completely erase it.
Ethereum was also growing gradually just like Bitcoin. However, the all-time high record was set in the May of 2023. Ether reached its highest value and crossed the 4000 USD mark. This made headlines because it was a sudden surge. During the early days of May, the price was at $3100 and it went to $4000.
Even after that, the price did not go down. Instead, it rose but gradually. This not only provided a better profit ratio for the investors but also attracted more investors. Traders were predicting a further rise in the prices and that is why new traders were also getting more interest.
Afterward, in September 2023, there was another increase of 10 percent in the price mark. So even the new investors made amazing profits from it.
However, in January of 2023, both BTC and Ethereum faced a downfall. It was almost a crash because millions of dollars were removed from the market in just 24 hours. Bitcoin got a hit of 8.8 percent while Ethereum suffered from almost an 18 percent downfall.
The reason behind this price surge
Pandemic has negatively affected almost every business except for the online ones. Therefore, we saw an immense rise in online businesses and online shopping too. A lot of people started online shopping and this was a booming period for online business owners.
In addition to this, BTC also saw a good time in this period. Because the options were limited and offline shopping was decreasing, investors started taking interest in BTC. They invested a huge sum of money and BTC gained more and more.
Thanks to the popularity of BTC, other altcoins also gained a lot from it. This sudden surge in the prices of Ethereum was also thanks to the BTC’s popularity.
But apart from this, Ethereum also made some changes in its system. For example, the Point-of-Skate algorithmic change. These changes also brought some positive changes in the prices.
The negative market growth of Ethereum and Bitcoin provided an opportunity for other altcoins. So when people took out their money from these top 2 currencies, they started investing in others.
There are some other options available for investors. So if you do not want to invest all of your amount in BTC or Ethereum. You can go for these options.
- Litecoin (LTC)
- Dogecoin (DOGE)
- Binance coin (BNB)
- Monero (XMR)
- Tether (USDT)
- Stellar (XLM)
- Bitcoin Cash (BCH)
- Polkadot (DOT)
- Cardano (ADA)