What are the most popular cryptocurrencies

Different functionalities and consensus mechanisms can make up an altcoin. Depending on these variations, altcoins can fall into more than one category. Here’s a crash course on some of the more important categories:

Mining-based altcoins, as the name suggests, are mined into existence and use a Proof-of-Work (PoW), a method in which systems generate new coins by completing “blocks” of verified transactions added to the blockchain. Examples of mine-based altcoins are Litecoin, Monero and Zcash.

Stablecoins closely track the value of fiat money like the U.S. dollar or euro. They allow users to cheaply and rapidly transfer value around the world while maintaining price stability. BUSD is one example of a USD-backed stablecoin.

Security tokens are digital assets issued on a blockchain with similarities to stock market traded securities. Some offer equity in the form of ownership, dividend payout to holders, or even bonds. Security tokens are generally launched through Security Token Offerings (STOs) or Initial Exchange Offerings (IEOs).

Utility tokens make up the majority of tokens issued in the scope of ICOs. They are primarily used by companies to raise interest in their products, and for application and value creation in services provided in blockchain ecosystems. Unlike security tokens and shares, they don’t provide the rights of ownership over a part of a company.

Cryptocurrency is defined as an encrypted, peer-to-peer (P2P) network used to mediate or facilitate digital bartering. Despite growing interest in technology, cryptocurrencies have not replaced traditional money, known as fiat currency. And that type of seismic shift isn’t likely any time soon. However, one fact remains clear: cryptocurrencies have the power to change how internet-connected global markets interact with each other.

Various types of cryptocurrencies are available on the digital market. Without a doubt, Bitcoin is one of the world’s most popular cryptocurrencies — a technological trailblazer that has been disrupting the largely unchanged financial payment system.[1]

The most common cryptocurrencies:

Bitcoin

Bitcoin is well known as the undisputed king of cryptocurrencies. Its popularity has risen impressively over the last 12 years.

When transacting using the Bitcoin platform, users’ names and identities are not disclosed. Instead, only their public key address is made available. A private key address is necessary to utilize Bitcoins that are associated with a public key.

For many people, the concept of a blockchain is rather vague, but it can be understood as a digital ledger of transactions that is duplicated across a network. 

The Bitcoin blockchain is a permanent ledger on which anyone can see how many bitcoins are associated with a public address. 

Bitcoins are mined on a blockchain network, and they are created when miners successfully mine Bitcoin blocks. Cryptocurrency mining is critical to maintaining the ledger of transactions upon which the cryptocurrency is based. 

The bitcoin supply is limited. The system is pre-programmed to allow for only 21 billion bitcoins. This limited supply of Bitcoins is designed to solidify their value.  

Ethereum

Ethereum provides a public blockchain platform with smart-contract functionality, which is a computer protocol designed to digitally facilitate, verify, or enforce the performance of a contract. It offers a kind of decentralized virtual machine[2] for peer-to-peer smart contracts and tends to use its own self-anchored cryptocurrency, known as Ether (ETH).[3] 

Every 12 seconds, on average, a new Ether block is added to the blockchain with the latest transactions that the network has processed. The computer that generated this block is then awarded 5 ETH.

Ripple (XRP)

Ripple (XRP) is the largest bank-targeted blockchain protocol. With its low fees and efficient systems, it was designed with the goal of overtaking Bitcoin and becoming a mainstream cryptocurrency.

Ripple provides a financial settlement arrangement to various banks, allowing them to perform direct transactions across international borders.

Ripple’s protocol has been accepted and championed by various banks and financial institutions such as Euro Exim Bank in London and Banks in Japan or Kuwait. By the year 2019, over 200 banks and payment companies have been associated with Ripple in the U.S.A, Europe, Brazil, and the Middle East. Most of the banks have adopted Ripple’s xCurrent Software to make cross-border payments. This niche acclaim has given Ripple which may be categorized as something of a head-start, and it has already been greenlit by the SEC.

Litecoin

Litecoin first entered the cryptocurrency space in 2011, and it utilizes the L symbol. Since Litecoin is governed by peer-to-peer (P2P) technology, it boasts instantaneous payments around the world. 

Litecoin has historically maintained a high liquidity rate. 

TTN

TTN also goes by the name of Titan Coin. One of this cryptocurrency’s noteworthy features is its instant eligibility for cross-border transactions.

Like its cryptocurrency competitors, TTN also harnesses P2P technology. However, investors tend not to favor TTN—partly because of its low value. 

Dogecoin

Dogecoin is memorably associated with its Shiba Inu mascot. It is a variation of Litecoin that offers a shorter blockchain creation time.

Compared to other cryptocurrencies, Dogecoin has are greater number of coins in circulation. It met its target of mining about 100 billion units in 2015, which is one of the main reasons why investors hope to see future growth for this cryptocurrency. Because Dogecoin does not appear to have a supply limit, it is known as an “inflationary cryptocurrency.”[4]

Dash

Dash is another cryptocurrency derived from Litecoin. In its initial years, it was called “Dark.” This crypto is run with the help of “masternodes” that help increase its transaction speed through the unique “InstantSend” functionality and untraceable ones through “PrivateSend”.

The main attraction for Dash is its high level of privacy and fast transaction speed. These features are behind its market cap of around 2.4 billion.

Ox

Like other cryptocurrencies, Ox offers a novel trading feature called decentralized trading that allows developers to build their own cryptocurrency exchanges.

Ox is based on the Linux operating system, which can be downloaded for free and is open-source. One of the Ox’s unique features is that it uses smart contracts throughout its infrastructure, combining strategies like state channel & AMM (Automated market marker which aids in overcoming of problems such as high cost. These features ensure that Ox maintains to be a secure and high-quality product.

References:

[1] Peter D. DeVries, “An Analysis of Cryptocurrency, Bitcoin, and the Future.” International Journal of Business Management and Commerce, Vol. 1, No. 2 (September 2016).

[2]A virtual machine (VM) is an operating system or application environment installed through software that imitates dedicated hardware for users. See <http://searchservervirtualization.techtarget.com/definition/virtual-machine> [Accessed September 21, 2016].

[3] What is Ethereum? <https://ethereum.org/en/what-is-ethereum/ > [Accessed on November 4, 2020].

[4] Top brokers Staff, “The Basics of Cryptocurrency: Types of Cryptocurrencies.” August 6, 2017.

[5] Will Warren & Amir Bandeali, “Ox: An open protocol for decentralized exchanged on the Ethereum blockchain”, Ox Project, (February 2017).

Cryptocurrencies!! Yes! These are again in the news as in the Budget 2022; the finance minister announced that its tax would be charged at 30%.

Also, it announced the launch of India’s Central Bank Digital Currency (CBDC) and that the digital rupee would give a big boost to the digital economy. 

The finance minister indicated that technologies such as blockchain would be used by the Reserve Bank of India to issue the currency, starting 2022-23.

So, in today’s blog, we will discuss what are 9 most used cryptocurrencies worldwide:

What are Cryptocurrencies?

Before we discuss some of these alternatives to Bitcoin (BTC), let’s step back and discuss what we mean by cryptocurrency.

A cryptocurrency is a virtual or digital money that is in the form of tokens or “coins.” Though some cryptocurrencies are into the physical world in the form of credit cards, the major forms remain entirely intangible.

The “crypto” in cryptocurrencies is the complicated cryptography that allows for creating and processing digital currencies and their transactions through decentralized systems.

Cryptocurrencies are usually developed as code by teams who build issuance mechanisms through mining and other controls.

As of now, there are more than 10,000 cryptocurrencies in existence. Although many of these cryptos have minimal trading volume, some enjoy immense popularity among dedicated communities of traders.

So, now let us discuss 9 most popular cryptocurrencies traded worldwide:

Types of Cryptocurrencies

Bitcoin is considered the first decentralized cryptocurrency that used blockchain technology to facilitate payments and digital transactions. 

Instead of using a central bank to control money’s supply in an economy like the Federal Reserve with the U.S. Department of the Treasure or third parties to verify transactions, Bitcoin’s blockchain acts as a public ledger of all transactions.

This can also make money transfers between parties in two different countries faster and cheaper than traditional currency exchanges involving a third-party institution.

Like a traditional stock exchange, traders can buy and sell bitcoin by placing either a market order or a limit order.

2. Ethereum (ETH)

The second most popular cryptocurrency is Ethereum (ETH) which is a decentralized software platform enabling smart contracts and decentralized applications that run without any downtime, fraud or interference from a third party.

The main goal behind Ethereum is to make a decentralized suite of financial products that anyone in the world can freely access, regardless of faith or nationality.

This aspect makes it more attractive for those in some countries as they can get access to bank accounts, loans, insurance, or a variety of other financial products without state infrastructure.

3. Binance Coin (BNB)

Binance coin is the crypto-coin that is issued by the Binance exchange, which trades with a BNB symbol. 

This coin runs on the Ethereum blockchain limited to a maximum of 200 million BNB tokens.

This coin helps in boosting the operation of the Binance exchange and supports various utilities such as trading fees, exchanges fees and any other fees on the Binance exchange. 

These coins have got support from various partnerships that have helped spread their usage.

4. Cardano (ADA)

Cardano (ADA) is a cryptocurrency that was created with a research-based approach by many engineers, mathematicians, and cryptography experts.

Because of its complicated process, Cardano stands out among its peers as well as other large cryptocurrencies. 

Cardano is sometimes referred to as “Ethereum killer” because its blockchain is more capable than other cryptocurrencies.

Cardano aims to provide solutions for chain interoperability, legal contract tracing, voter fraud, among other things.

5. Dogecoin (DOGE)

Initially made for speculation on cryptocurrencies, the value of Dogecoin has skyrocketed in value, mainly from the likes of Tesla, CEO Elon Musk and investor and Dallas Mavericks owner Mark Cuban.

This coin features a meme of a Shiba Inu dog as a “mascot” and is mainly made to be used in the form of digital payment like Bitcoin. 

However, Dogecoin makes it easier for payments to be recorded, but it also has no limit on how many coins can be created over time, unlike Bitcoin, which was made with a cap on how many coins there can be.

6. Tether (USDT)

Tether is also referred to as a stablecoin, a currency that is tied to a fiat currency i.e. the U.S. dollar. This coin combines the advantages of a cryptocurrency, like no need for financial intermediaries, with the stability of a currency that a sovereign government issues.

7. Ripple (XRP)

Ripple is a kind of cryptocurrency that operates on an open-source and peer-to-peer decentralized platform. This allows for a seamless transfer of money, be it any form such as dollars, yen, euros, or cryptocurrencies, such as litecoin or bitcoin. 

Ripple is a global payments network that counts major banks and financial services as ts customers. XRP is used in its products for facilitating fast conversion between different currencies

8. Polkadot (DOT)

Polkadot (DOT) is a unique PoS cryptocurrency that is aimed at delivering interoperability among other blockchains. It is designed so that it connects permissioned blockchains and oracles for allowing systems to work together under one roof. Polkadot’s core component is its relay chain that allows the interoperability of varying networks.

Read more about Blockchain from ELM School

9. Monero(XMR) 

Monero XMR is another type of secure and untraceable currency. This cryptocurrency was launched in April 2014 and soon garnered great attraction among the cryptography community.

Trading in cryptocurrencies is different from trading in shares of a company. Stock refers to the ownership of a business and having a part in the company’s profits. 

When we buy cryptocurrency coins, it is a speculative bet on the price movement of that specific digital currency that can be highly volatile and based on supply and demand as digital currency by itself is not a dynamic asset. 

One should also note that cryptocurrencies can be traded for other digital currencies, such as the U.S. dollar, using a digital wallet on a trading app.

Now you must be wondering where the trading of these cryptocurrencies happens; well, read next:

Where to trade these Cryptocurrencies?

There are so many cryptocurrencies right now there is no single place where all can be traded.

However, Coinbase is one of the largest trading platforms and supports around 50 cryptocurrencies, including those discussed above. 

Binance is another trading platform where Binance Coin, along with other tokens can be traded. 

You can also buy company stock and cryptocurrency from a single place from apps like Robinhood, Webul etc.

These trading apps don’t have features like a full-service stockbroker, but they have lots of functionality that combine basic crypto and stock trading with digital banking facilities

Do you want to learn more about cryptocurrencies? Read our next section on courses and webinars that will help you in learning how to trade in cryptocurrencies in detail:

Courses

You can take the following courses:

1. CryptoCurrency Investing Masterclass

In this Cryptocurrency Investing course, you will learn what Bitcoin is and How does Bitcoin work? – This video covers everything you need to know about the basics of bitcoin and how it was started. In addition, this video also covers the interesting topic of how bitcoin works.

Why is this the right time to invest in cryptocurrency – As I have already mentioned, timing is important. Investors who take action at the right time tend to gain the maximum benefit from their investment. This part of the course covers why this is the best time to invest in cryptocurrencies.

2. Cryptocurrency Trading and Investing Course

This course is structured so that anyone who knows about using the internet will be able to get started with cryptocurrency.

The knowledge and strategies taught in this class will help you get started with cryptocurrency and help you understand this booming market like a pro, and help you align your money to get the maximum benefit from this crypto revolution.

3. The Fundamentals of Cryptocurrency & Blockchain

This course will enable you to gain an in-depth understanding of financial terms and concepts associated with the Crypto & Blockchain Industry.

It will also enable you to take independent investment and trading decisions.

It will introduce you to the possibility of choosing Crypto & Blockchain as an interesting and lucrative career option.

4. Blockchain & Bitcoin Simplified 2022

You will learn how blockchain and bitcoin work, why bitcoin was needed and how it’s created, different types of blockchains and much more!

You will know about the key terms that are used while discussing blockchain, bitcoin and Ethereum.

This course will help you to understand cryptocurrencies before setting them into the markets.

Webinars

You can watch our following webinars:

1. Cryptocurrency – Security & Risk Management

In this webinar, you will learn about the complexity of the Blockchain and Crypto ecosystem and how to monitor crypto wallets and screen transactions to find illegal activity? And Inner Workings of Virtual Asset Service Providers.

2. Cryptocurrency – The Right Approach to Trade

This webinar on cryptocurrency will help you understand the Regulatory, Compliance, Legal, Security & Risk Management aspects of Cryptocurrency Investments through Blockchain Analytics.

We have discussed the top 9 cryptocurrencies that you can trade, although there are thousands of different digital currencies. We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.

Happy Investing!

You can also visit web.stockedge.com is a unique platform, which is 100% focused on research and analytics.

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