Compare cryptocurrencies against each other and start trading cryptocurrency CFDs with IG. We offer more than ten of the most popular cryptocurrencies, including bitcoin, ether, litecoin, EOS, stellar (XLM) and NEO. The differences between each cryptocurrency can offer insights into how the value of each coin will change over time.
Cryptocurrency comparison table
The table below shows how the cryptocurrencies IG offers compare. Further down we explain how these factors may influence the cryptocurrencies’ valuations, and why they matter to traders.
|Bitcoin (BTC)1||Bitcoin cash (BCH)1||Ether (ETH)1||Litecoin (LTC)1||EOS (EOS)2||Stellar (XLM)3||Chainlink (LINK)4||Polkadot (DOT)5||Dogecoin (DOGE)6||Uniswap (UNI)7||Cardano (ADA)8|
|Circulating supply||>17 million||>17 million||>102 million||>58 million||>906 million||>18 billion||>400 million||>980 million||>130 billion||>700 million||>33 billion|
|Maximum supply||21 million||21 million||No upper limit||84 million||No upper limit||No upper limit||1 billion||No upper limit||No upper limit||1 billion||45 billion|
|Current mining/release rate||12.5 per block||12.5 per block||3 per block||25 per block||Up to 5% inflation per year||Up to 1% inflation per year||Up to 13% inflation per year||Up to 10% inflation per year||<5% inflation per year||Up to 2% inflation per year||Up to 2.06% inflation per year|
|Transactions per second (maximum)||7||60||20||56||2800||1000||50,000||1000||33||0.6||250|
|Block time (approximate)||10 minutes||10 minutes||15 seconds||2 minutes 30 seconds||0.5 seconds||5 seconds||15 seconds||6 seconds||1 minute||Up to 20 minutes||20 seconds|
Bitcoin vs other major cryptocurrencies
Cryptocurrencies are virtual currencies which operate independently of banks and governments but can still be exchanged – or speculated on – just like any physical currency. Launched in 2009, bitcoin was the first decentralised cryptocurrency. Since then, thousands more cryptocurrencies, known as altcoins, have launched.
While bitcoin remains the market leader, cryptocurrencies including bitcoin cash, bitcoin gold, ether, litecoin, ripple, EOS, stellar (XLM) and NEO could challenge in the future because of rising demand, expanded applications, and technological advances.
The original, and (for now) the biggest by market capitalisation. It was launched in 2009 by Satoshi Nakamoto, a pseudonym for the mysterious person or group who created it, to secure payments across a peer-to-peer network. It aims to eliminate the need for a trusted third party, democratise money and ensure that transactions are anonymous.
Biggest pro: best known cryptocurrency
Biggest con: slow transaction speeds, requires specialist mining equipment
Bitcoin cash (BCH)
Bitcoin cash is a standalone digital currency, created as an offshoot of bitcoin in August 2017 by a ‘hard fork’. This was in response to the slowdown in bitcoin transaction speeds and the network’s inability to reach consensus on proposed upgrades. Bitcoin cash’s maximum block size is 8mb, compared to 1mb for bitcoin, enabling it to process more transactions each second.
Biggest pro: faster transaction times than bitcoin
Biggest con: requires specialist mining equipment
Ripple is a cryptocurrency that underpins a payment network called RippleNet – used by major banks and financial institutions including Santander and American Express. Ripple operates in a very different way to other digital currencies, which has led some to question its credentials as a true decentralised cryptocurrency.
Biggest pro: lightning fast transaction speeds
Biggest con: RippleNet can be used without its underlying cryptocurrency, ripple
Stellar is a payment network that operates in a similar way to RippleNet and can process transactions in multiple currencies. It is underpinned by a cryptocurrency called lumens (XLM), which is commonly referred to as ‘stellar’ (including on the IG platform). Lumens can be used for payments on the network but also play an anti-spam role, as each transaction requires a small transaction fee, which is paid for in the cryptocurrency.
Biggest pro: integrates with banks, used to process transactions in multiple currencies
Biggest con: cryptocurrency not as widely recognised as some other
Ether is the cryptocurrency of the Ethereum network, which enables users to code and release their own 'decentralised applications (dapps)' and create ‘smart’ contracts that automatically enforce their clauses. Small amounts of ether are destroyed as transactions are processed, preventing hackers from spamming the network.
Biggest pro: use beyond cryptocurrency on the Ethereum network, fast transaction speeds
Biggest con: uncapped supply means that it could be inflationary
Litecoin is designed to be ‘silver to bitcoin’s gold’, according to its founder Charlie Lee. And just as the supply of silver outstrips the supply of gold, Litecoin’s maximum supply of 84 million coins is four times greater than bitcoin’s. There are also some fundamental technological differences between the two.
Biggest pro: fast transaction speeds
Biggest con: low market capitalisation compared to bitcoin
EOS is the cryptocurrency of EOS.IO, a blockchain platform that is said to replicate the key functionality of a computer’s hardware and operating system. It provides tools and services for developers to build dapps, including user accounts, authentication and databases. Responsibility for processing and other operations is distributed across the network, which its designers claim will enable it to scale to millions of transactions per second in the future.
Biggest pro: integrated with the EOS.IO network, fast transaction speeds
Biggest con: uncapped supply means that it could be inflationary
NEO is the name of both the cryptocurrency and the network it runs on. This network is like Ethereum in that it enables users to create decentralised apps and smart contracts. However, what sets NEO apart is that its network is currently tightly controlled by ‘NEO Team’, who require users to have a verifiable identity on the network.
Biggest pro: integrated with the NEO network, compliant with regulations in many jurisdictions
Biggest con: may not be truly decentralised
Why do differences between cryptocurrencies matter to traders?
The differences between cryptocurrencies matter to traders because they give vital clues as to how supply and demand for each coin may change over time, in turn influencing market prices and how cryptocurrencies are traded.
Circulating supply and upper limit
The supply of coins plays an important role in setting market prices. All other things being equal, the scarcer the coin, the more valuable it should be. Bitcoin and bitcoin cash each have an upper limit of 21 million coins, while Litecoin and ripple have expanded maximum supplies of 84 million and 100 billion respectively. These coins will be deflationary once all the coins have been mined or released, while coins like ether – with no fixed limit – have the potential to be inflationary, depending on how much is ‘burnt’ or lost.
Cryptocurrency mining and release rates
The supply of coins changes over time as new coins are mined or released. Mining is the process by which ‘blocks’ of transactions are verified, and new coins released. Bitcoin is currently mined at a rate of 12.5 new coins for every verified block, with the reward halving roughly every four years (the final bitcoins will be mined around the year 2140). Ripple coins, on the other hand, were pre-mined by its founders and are currently being released at a rate of one billion per month.
Despite having fewer applications than many of its newer competitors, Bitcoin’s value has soared over the last few years, and it remains the biggest cryptocurrency by market capitalisation. This suggests that reputation remains an important factor in cryptocurrency valuations. Press coverage is likely to be an important factor here, with negative press – for example following a major wallet hack – tending to have a negative impact on prices.
While bitcoin, bitcoin cash, and litecoin are standalone cryptocurrencies, ether and ripple exist as part of wider networks with expanded applications. If the popularity of these networks increases or they are adopted by mainstream businesses, demand for their underlying cryptocurrencies could surge.
Transaction speed and scalability
As adoption of cryptocurrencies accelerates, transaction speeds and their ability to handle a high volume of transactions is likely to come under increased scrutiny. Scalability could also be influenced by blockchain size and security, as these factors will affect the profitability of mining, speed of the associated network, and willingness of users to buy and use coins. Traders should therefore pay attention to software updates and forks to see how scaling technology evolves.
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You might be interested in…
1 Coin Market Cap, 2018; Medium, 2018; How Much, 2018; BitInfoCharts, 2018
2 Coin Market Cap, 2018; Medium, 2018; Cryptocurrency News, 2018
3 Coin Market Cap, 2018; Stellar, 2018; Lumenauts, 2018
4 Coin Market Cap, 2022; CoinDesk, 2022; Gemini, 2022
5 Coin Market Cap, 2022; CoinDesk, 2022; Lexology, 2022
6 Coin Market Cap, 2022; CoinDesk, 2022; AI Multiple, 2021
7 Coin Market Cap, 2022; CoinDesk, 2022; Uniswap, 2022
8 Coin Market Cap, 2022; AAX Academy, 2021; Nasdaq.com, 2022