When it comes to cryptocurrency trading, your success depends on how much you know about the coins that you are going to swap, and where to swap them.
Take Ethereum, for example, the coin and the projects that are rightfully considered to be the leaders in the world of cryptocurrency. Now, there are hardly any blockchains that have brought some value since the times when ETH and BTC were introduced. Well, under “value”, we mean something new indeed, some new approaches or disruptive ideas. Moreover, most of new blockchains are built on top of or by following the example of the mentioned Ethereum and Bitcoin.
Therefore, can it be profitable to swap ETH to any other coin, or would it be more reasonable to hold it in hope that its value will start growing? Let’s have a look at the details.
Nano is created to make transactions in blockchain free from commissions. Every account created in the Nano network runs on its own blockchain. And every blockchain can be updated by its owner only.
When a transaction needs to be confirmed, it is signed by the blockchain owner, and broadcasted to the network. Then, the transaction is seen to other network participants and is updated by every network member and is registered in the network.
In this regard, the Nano ledger is different from all the previously created ledgers because the blockchain doesn’t keep all the transaction records. The network tracks and keeps the account of the balances of accounts and the amounts of transactions associated with them.
In the Nano blockchain, there are no transaction fees. Therefore, there is no competition among users to confirm or validate transactions. And it, therefore, would attract more users to use the system for transfers.
However, before you swap your ETH to NANO, check the real value of both projects. ETH supports smart contracts, dApps, DeFi, and many other projects run on the top of the Ethereum blockchain. In the case of NANO, it is the only system that doesn’t support anything special. Its main point of attraction is the absence of transaction fees and the specific system that enables users to create their own blockchains.
So, from the given example, you might come to the conclusion that the older the coin is, the more valuable it is. This is not always the case though. First of all, you shall check the application cases of a specific coin in the real world. So, Bitcoin, the oldest cryptocurrency, is valuable because it laid the foundation for the creation of all other cryptocurrencies. Its blockchain is kept simple, and this is one of its most valuable features. BTC was created as money and it complies with its initial function perfectly. As long as it does it, the coin will be valued, and there will be demand for it.
Ethereum is something completely different. The network was created to support a lot of other applications, including other cryptocurrencies and tokens. The main value of the ETH blockchain is in its usability for plenty of situations. Therefore, before exchanging Ethereum to Bitcoin, check what might be more viable in the long term. Because the coin that seems to have less value might prove itself as a wonderful long-term investment.
And whenever you choose cryptocurrency to gain additional income, whatever coin and whatever investment option you select, do not forget that crypto assets are extremely volatile. Their value might soar and drop within seconds. Therefore, approach crypto investments carefully and weigh your every step properly to avoid losses.
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