- Bitcoin is seen by many investors as “digital gold”, with safe-haven and store-of-value properties. It is suitable for investors who are looking for long-term stable appreciation and hedge functions.
- Ether supports a wide range of applications and is highly innovative, with an active development community and continuous technological upgrades. It is suitable for investors interested in blockchain technology applications and innovation.
- Solana’s investment advantages include extremely high processing speed and scalability, low transaction costs, and support for a wide range of innovative applications. It is suitable for pioneering investors looking for high-speed transactions and new technology applications.
When it comes to investing in cryptocurrencies, bitcoin (BTC), ether (ETH), and solana (SOL) are three mainstream currencies with widespread interest and investment potential.
Also read: What is the overall cryptocurrency market cap?
Bitcoin (BTC)
Bitcoin, launched by Satoshi Nakamoto in 2009, is the first and most recognisable cryptocurrency. It aims to create a decentralised digital currency system that records transactions through a distributed ledger technology called blockchain.
Bitcoin’s blockchain uses a Proof of Work (PoW) mechanism to verify transactions and create new units of currency. This mechanism requires miners to solve complex mathematical problems using high-powered computing devices to earn the right to record transactions and the reward of newly minted bitcoins.
Bitcoin is viewed by many investors as “digital gold” with safe-haven and store-of-value properties. Although its price is highly volatile, it has long been a leader in cryptocurrency market capitalisation. Bitcoin’s global recognition and liquidity make it the preferred entry currency for new investors.
Bitcoin’s market-leading position, high liquidity, safe-haven asset attributes, and widespread acceptance have made it highly desirable to investors. However, uncertainties regarding its price volatility, technical safety, regulatory risks and market acceptance also require investors to carefully consider and weigh them in their investment decisions.
Also read: Bitfarms boosts BTC mining capacity with 51,908 ASICs acquisition
Ether (ETH)
Launched in 2015 by Vitalik Buterin and others, ether is the second largest cryptocurrency after bitcoin. It is not just a payment tool, but a platform for smart contracts and decentralised applications (DApps).
Ether introduces the concept of “smart contracts”, which allow developers to deploy self-executing programs on their blockchain. This feature extends the scope of the blockchain to support complex financial, social, and business systems.
Ether has a huge ecosystem due to its support for a wide range of applications, including financial services, gaming, art, and non-homogenised tokens (NFTs). It is second only to bitcoin in terms of market capitalisation and is the platform of choice for many innovative blockchain projects.
Solana (SOL)
Solana is a newer cryptocurrency founded in 2017 by Anatoly Yakovenko to provide a high-performance blockchain platform that solves the scalability issues of traditional blockchains.
Solana uses a unique consensus mechanism – Proof of Stake (PoS) combined with Proof of History (PoH). This innovative technology allows solana to handle tens of thousands of transactions per second (TPS), far exceeding other cryptocurrency platforms.
Despite being a latecomer, solana has quickly gained market attention for its fast processing speeds and low transaction costs. Solana is particularly favoured by developers of high-frequency trading and complex applications.
