New traders of cryptocurrency are taking a closer look at Litecoin and Ethereum.

There's no missing it. The first time you log into Coinbase, you see three coins: Bitcoin, Litecoin, and Ethereum.

Many new users haven't even heard of Litecoin or Ethereum, so they go ahead and buy some Bitcoin.

Then, the conversation at the water-cooler the next day follows:

"So, I bought that Bitcoin like you recommended, but what's that Litecoin and Ethereum stuff?"

"Well, Litecoin is a lot like Bitcoin, except it's much faster, cheaper, and easier to transact. There is four times as much Litecoin in circulation as there is Bitcoin. It's as if Bitcoin is gold, and Litecoin is silver."

"And what about Ethereum?"

"Ethereum is another cryptocurrency that focuses on smart contracts that enable all kinds of block-chain applications."

"Huh. Interesting. Those sound like worthwhile investments. I've already made a bit of money on Bitcoin. Maybe I'll buy some Litecoin or Ethereum too."

"Yeah they are both great investments too. Plus, if Bitcoin tanks, you have a few other coins to keep your portfolio more stable."

...Buys Litecoin...

This appears to be what has happened over the last day or so. From the Coinbase springboard, brand-new users have been launched into the world of altcoins, realizing there are so many options, many of them potentially better than Bitcoin in one way or another. It certainly helped that Bitcoin became severely bogged down and slow to transact with the mad rush to buy more cryptocurrency, making Litecoin seem considerably more palatable.

From here, new users will venture out to services like Shapeshift or Changelly, adding more lesser-known altcoins that offer unique solutions to their portfolios. Competition in a free market is awesome!

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