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NEM vs Ripple vs Ethereum: What’s The Difference?

  • George Shnurenko
    Cryptotips

    Let’s figure out how NEM vs Ethereum, NEM vs Ripple, and Ripple vs Ethereum differ


NEM vs Ripple vs Ethereum: What’s The Difference?
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It’s time to figure out their technical peculiarities and understand whether investments are likely to pay out.

With the appearance of altcoins, it’s becoming harder and harder to see the difference between them. Recently introduced Ethereum, NEM and Ripple are retaining high positions in the cryptocurrency chart (Ethereum and Ripple are in the TOP-10), and each of them can serve certain purposes. Let’s figure out how NEM vs Ethereum, NEM vs Ripple, and Ripple vs Ethereum differ, what’s their current value, and what are the spheres of their application.

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NEM coin vs Ethereum

In order to clear things up, let’s trace the difference between Bitcoin vs Ethereum vs NEM. After the introduction of Bitcoin, Blockchain specialists started realizing that its technical basis isn’t perfect, and there are some considerable disadvantages.

What Ethereum Blockchain changed? It introduced smart contracts that allow for the transparent and safe transfer of funds, ER20 compatibility, and faster processing (20 transactions per second against three in Bitcoin).

NEM developers went a step further and introduced the blockchain with the following advantages:

  • Today, NEM network can perform 120 transactions per minute, but the release of Catapult version can increase the capacity to 4,000 TPS once it’s deployed on the network.

  • NEM gives you the possibility to create your Blockchain, you just need to connect it to the Mainnet (this is done with the functionality of NEM and JS library and API it provides). You can perform n-thousand transactions per us Blockchain (there’s no charge for consolidation), and connect to the main network only when some certain information must be consolidated.

  • NEM uses Proof-of-Importance (POI) that prioritizes the relevance of users, which makes it compatible with coins that measure the relevance of users.

  • NEM technology is based on APIs, which also solves the problem of compatibility with other platforms.

  • NEM developers offer a well-structured Javascript library, which is way more convenient than Solidity.

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When comparing NEM XEM vs Ethereum tokens, the difference is clear: Ethereum coin is the world’s second expensive coin with the price ranging around $500-700 in 2018. XEM costs $0.2, but its value is expected to grow in 2019. By 2023, the price of XEM may grow to $100-150. The forecasts for Ethereum differ, and it becomes harder to predict its value.

If you read the comments on NEM vs Ethereum in Reddit, you’ll see that there are supporters of both Blockchains. While NEM is simpler in use, Ethereum provides more opportunities for creating decentralized apps. While Ethereum integrates the smart contracts onto the Blockchain, NEM uses it outside the Blockchain.

NEM is more convenient for building apps from the scratch– it provides various tools, namespaces, mosaics (tokens), messaging, multisig accounts, and data management apps.

Therefore, when deciding between Ethereum vs NEM, keep in mind that Ethereum is suitable for companies that plan to remake their network within 5-10 years, so they’ll need to work with smart contracts. NEM is suitable for companies that need a ready solution that can ensure 100% percent security and be used to handle data issues efficiently.

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Ripple vs NEM

Now we know that NEM is a widely promoted cryptocurrency that goes with a bunch of new functions– it’s used by businesses and individual users to manage the information and data securely.

When working with it, you can be sure that any piece of information on your computer will be safe– no one can tamper it. Many Internet users claim that NEM is rather Ripple’s main competitor than Ethereum’s, and there’s a piece of truth in that.

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Where Ripple can be applied

Ripple (XRP) is actually an older coin that Bitcoin (it was created in 2004) and offers a unique protocol for banks that allows transferring money to any recipient around the world. Even individual investors can use the coin to perform the instant transaction.

The transaction fees will be lower than what traditional banks charge. In fact, the amount of banks and financial institutions using Ripple is growing thanks to lower fees induced by the protocol. That contributes to the growth of this currency.

Therefore, if you observe the implementation of Ripple vs NEM for banks, it becomes clear that the first coin is better. NEM is simply created for different tasks.

As for their price, both currencies have experienced value raising by over 1000% during the last 1-1.5 years. Experts recommend traders investing in both cryptocurrencies– they’ll be able to get dividends from both of them without serious risk, or at least from one of them which will cover expenses anyway.

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Ethereum vs Ripple

Aside from the high level of competition, Ethereum and Ripple don’t have much in common, but both have potential to put Bitcoin’s ultimate reigning to the end. While Ripple plays the role of a cross-currency payment system, Ethereum is a software platform for the creation of smart contracts and decentralizes apps. Ripple wasn’t created to dominate over other currencies, but it’s used for transactions between all digital and fiat currencies. Ethereum Blockchain servers for a broader gamut of tasks than many other currencies and blockchains: it deploys smart contracts and the sphere of its application is limitless, and developers are free to create any apps and programs.

Are there any other differences? While Ethereum is mined, Ripple’s 100,000,000,000 XRP coins had been pre-mined before the launch. Instead, Ripple has a shared ledger that is “managed by a network of independent validating servers that constantly compare their transaction records.” The new transactions are added to the closed ledger, and the network should achieve a consensus about their validity. In case of disagreement between the nodes, the consensus process will be repeated until the network reaches a supermajority. Although the scheme of work is reliable, many complain that the network remains highly centralized. But Ripple shows no sign of falling down, and the company continues upgrading the product improving its speed, efficiency, and flexibility. Further on, Ripple developers plan to:

  • modify the algorithm underlying the platform

  • upgrade the connectivity between nodes

  • enhance overall security.

Ethereum, in its turn, works on the basis of the Ethereum Virtual Machine (EVM), which runs the code execution. Thanks to smart contracts, tokens are automatically transferred to users’ accounts. Ethereum Blockchain has increased security and low risk of downtime due to server outages. Ethereum Blockchain uses proof-of-work mechanism and lends the computing power in exchange for Ether. However, now the creators are transiting it from the proof-of-work system and toward a proof-of-stake system. Such change brings about several benefits, including a better distribution of nodes. Aside from that, Ethereum is being at the development stage called Metropolis. This stage presupposes introduction of:

  • Zk-SNARK (a privacy protocol for smart contracts and transactions)

  • better flexibility and robustness of smart contracts

  • account abstraction that will make Ethereum more convenient for users

  • proof of stake

  • Sharding and Plasma (innovative solutions aimed to boost scalability).

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Comparison Table

Let’s summarize the main differences between the three cryptocurrencies and Blockchain:

Coin/Characteristics

XEM

Ethereum

Ripple

What is it used for?

Applied for fast and simple development of applications and offers inbuilt tools and features.

Used for development of decentralized applications with a wide functionality. Implements smart contracts.

Serves for global transfer of any currency and offers low transaction fees. Implemented in the banking sphere.

Processing power

4,000 transactions per second

15 transactions per second (though Vitalik Buterin claims they’ll make a shift to 1 mln TPS)

50,000 transactions per second

Technologies underlying the blockchain

Proof of Importance

Proof of Work → Proof of Stake

The Ripple Protocol consensus algorithm (RPCA), which means consensus is reached in the ledger for it to be closed

Current Value (June 2018)

$0.2

$ 539,37

$0.53

Prognosis

NEM is expected to reach $1 in 2019, and $100-150 in the nearest five years

1-year forecast is $1019, while long-term predictions range from $5,000 to $45,000

1-year forecast is $1,2, while long-term forecast is $5-450

Therefore, all three cryptocurrencies have different spheres of application, and it’s hard to say which one is better.

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Tips for investors

When it comes to investing, you should make preferences according to the amount of money you’re ready to invest, and the outcomes you’re expecting. Here are some tips:

  • NEM coin isn’t expected to grow considerably, but its development is stable. So if you don’t have a lot of money to spare, but want to make sure you won’t lose, NEM is an optimal choice.

  • Ethereum price fluctuates seriously. While advanced users can still mine it, serious traders prefect buying the coins. There are two drawbacks, though: 1) high cost of the coin, 2) it’s very hard to predict its fluctuation in the long run.

  • Ripple can serve as a good alternative to NEM: if one investment doesn’t work, another coin is likely to grow in price. Therefore, you can include both XEM and XRP in your portfolio.

Bottom line

After comparing NEM coin vs Ripple vs Ethereum, we can conclude that there’s no certain leader – each of the coins has a lot of potential and can outperform Bitcoin. Investment in XEM and XRP can pay out in the long run, while Ethereum traders should permanently keep tabs on the coin because it’s far from being stable.

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Bitstamp Review: Cryptocurrency Exchange For All Types Of Traders

  • Andrew Strogoff
    ⭐ Features

    Bitstamp is a very tough player of the crypto exchange industry, offering many features to its clients


Bitstamp Review: Cryptocurrency Exchange For All Types Of Traders
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trading platform

Hello, mates. I know that many of you are looking for a trading place where you can buy and sell both cryptos and fiat money. This review is related to Bitstamp cryptocurrency exchange. Here I will cover such points as registration procedure (including personal verification), trading features, conditions (including fees) and some other important aspects.


Before I start describing the main features of this trading platform, I would like to familiarize you with the company itself. Bitstamp is one of the oldest cryptocurrency marketplaces in the world. The company began its activity in 2011 in the UK. However, later they have opened other offices in Luxemburg and New York. Crypto exchange Bitstamp received its license in Luxemburg.

This marketplace is widely known within the cryptocurrency community and I would tell that this is true as you hardly can find a trader who heard nothing about it. Moreover, several famous and popular tabloids like Forbes, Coindesk, Reuters have mentioned Bitstamp in their articles. The company has established cooperation with Ripple, CACEIS and Swissquote.

This crypto exchange trading place offers English only. There are no other language options at all. However, it gathers traders from all over the world.

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How to create an account with Bitstamp

Before you start trading with this exchange, you need to create your account. There are no difficulties to do it, as the form is very easy. You need to fill in your name, email address and accept terms of use and Bitstamp Privacy Policy.

 account with Bitstamp

Above you can find the form that I have already filled in. After pressing on “Register” you will proceed to the second step. You will be sent an email with a confirmation link in order to end account creation procedure.

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Once you have created your account, you can proceed with its verification. Here I want to make a reservation. I think it is not a secret that there are trading platforms with no obligatory verification procedure, meaning without confirming your identity, you will be able to trade but with some limitations.

Bitstamp requires verification from all service users without any exception. Moreover, you will not be able to proceed to deposit and withdrawal step before you confirm your identity. This requirement is obligatory because the platform has a license.

Now I am going to stop on details of the verification procedure. After you have created your account, you can login and navigate to “Verify account.”

I can say that this procedure is a bit harder than creating an account as you have not only to provide your personal data, but also to provide exchange with your ID documents scans. What kind of personal information is required?

You need to provide Bitstamp with data, indicated in your ID. Additionally, you need to upload the following documents:

  1. ID photo.

  2. Proof of residence document photo (this can be your bank statement, utility bill or taxes certificate, for example).

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How to deposit and withdraw money

Bitstamp offers the opportunity for all its clients to deposit and withdraw in both fiat currencies and cryptos. You can use, for example, VISA or MasterCard as well as SEPA (European Bank). As for cryptocurrencies, you are allowed to deposit and withdraw with Bitcoin, Litecoin, Ripple, Ethereum and others.

How to place your first order with Bitstamp, order types, trading tools

When you have already created your account and verified it, deposited some amount, you can start trading. Here, I want to make a couple of points for you to pay attention to. Bitstamp offers a high-quality trading platform with several features including professional charts and some other important.

The first thing that I have noticed when I have entered the platform for the first time was the number of currency pairs, which is lower as compared to the most of competitors. The number of pairs is slightly above 10.

order typesNow let’s get down to the trading platform. This is a very important aspect for every trader as charts allow users not only to see the current price but also to analyze it using historical data. Bitstamp offers modern full functional chart with several trading tools.

Take a look at the screenshot. You can see there candlestick chart. In the upper part of the chart, you can choose indicators and different graphic tools. As for indicators, there are many useful algorithms including the most popular Bollinger Bands, ADX, ATR and the others. Graphic tools are represented by different types of lines and other geometric patterns. Here you can find Fibonacci retracement as well.

Before you open any trade you need to choose a trading pair. This option is also available in the upper side of the platform. The next step is to choose the order type. Here I want you to pay attention to the different types of trades that are available with Bitstamp: they are the following:

  1. Instant order. The easiest one that is recommended by the exchange to beginner traders. Here you buy or sell cryptocurrency at the current market price.

  2. Market order. Is it a kind of instant order, but you can buy or sell cryptocurrencies at best prices. This order is suitable for those who have some trading skills already and want to improve their entry points.

  3. Limit order allows traders and investors to choose the price at which they will buy or sell cryptos. This one is suitable for professionals and skilled market players. The main idea of this order is to set a price at a desirable level and wait for the crypto to reach it.

  4. Stop order. This kind of trade allows users to limit their losses in case if the price goes in the opposite direction.

Once you have chosen your pair and order type, you can input the amount you want to sell or to buy and start trading. As far as you can see, there is nothing difficult here.

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Bitstamp fees

Almost all cryptocurrency exchanges take their fees not only for trading but also for deposit and withdrawal procedures. Trading fees at Bitstamp are diversified meaning the more you trade, the less you pay. This is a fair approach, I think as exchange earns more when you have higher month trading volumes.

As for deposit and withdrawal fees, they are taken by the company but they do not come directly to the company’s pocket as this money goes to payment systems.

The highest trading commission rate is 0.25 percent. It is taken from all those who’s monthly trading volume is below $20,000.

Security and support service

I have a good news for you. Bitstamp requires two-factor authentication since June 2018. This is a mandatory procedure, which increases the security level of your own trading account. You can use both Google Autenticator or Duo Mobile services.

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Moreover, you can switch on notifications about all the important events that take place in your trading account. Those messages will be transferred directly to your email address. This allows users to get updates on all the important events and take measures in case of any suspicious acts.

As for the support service, some users say that sometimes it takes time to receive any answer from the team. The speed of reaction is slow, but to tell the truth, I think that this is due to the inflow of investors. Bitstamp is one of many exchanges having such problems and I hope they are going to solve them in the future.

Pros and cons

This is my most preferable part of any crypto exchange review. Here I’m going to underline those pros and cons I think the most important of the company. I’m going to start with advantages. Here they are:

  1. Great working experience. Bitstamp operates since 2011. The team does not hide their members, which is a positive aspect as they are trusted by the crypto community.

  2. Bitstamp has its license and operates according to legislation. Users may be sure that their money is safe and they will not be scammed by the administration.

  3. Liquidity. This exchange has high liquidity as there are serious daily trading volumes. This means that the currency pairs are less volatile and you can use all types of orders.

  4. Several payment methods allowed. Bitstamp offers not only cryptocurrencies but also fiat money. You can deposit USD and EUR as well as withdraw them from your trading account. Credit and debit cards such as MasterCard or VISA are also available.

  5. Friendly user interface. I heard no complaints about Bitstamp’s interface from users and I found no negative testimonials about it.

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And now I’m going to share with you my negative thoughts about the exchange. They are not numerous, but I think it will be interesting for you:

  1. Verification requirements. This is not the big problem, but I think there are those who want to stay anonymous in crypto industry. Bitstamp does not allow to stay in shadow as every user has to do the verification procedure before getting access to trading.

  2. A small number of cryptocurrency pairs. It is true. You will not find any altcoins from above the top 20. However, Bitstamp offers in its turn the possibility to work with hybrid pairs including USD and other fiats. The exchange can be used as your pass into the world of altcoins as you may buy BTC or ETH here and then transfer those cryptos to other exchanges with a wider range of pairs, which do not support fiat money.

  3. Lack of localization. The website is in English only. Other languages are unavailable. I’m far from thinking that the international language is not enough for such a trading platform, but for some traders, it may be a real problem to work with the exchange.

Bitstamp overview

Before making the full stop, I would like to make a brief overview of this crypto exchange. I’m not going to give any recommendations as it is up to you to decide whether to place your investments there or to find some other trading platforms. However, I want you to pay attention to some interesting moments.

Bitstamp operates since 2011 and there were no significant security issues. This is the first thing that I have paid attention to. Bitstamp offers great opportunities for all those traders who want to use technical analysis in their trading routine as there is a large number of indicators and other important tools available.

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