What are the popular cryptocurrencies?
The market is flooded with more than 18,000 Cryptocurrencies Profit Edge, but most people consider the word bitcoin synonymous with the word cryptocurrencies in a sense of popularity. Another reason is that it is the first cryptocurrency that came to the market in 2009, and it is still the most popular and valued cryptocurrency. This article describes the most popular cryptocurrencies that you may consider investing in.
What is cryptocurrency?
A cryptocurrency can be defined as digital money that is only present digitally but not physically. Though cryptocurrencies have been introduced into the physical currency world with credit cards, most of them are intangible. For the creation and transaction of cryptocurrencies, complex cryptography is used.
Market cap: $846 billion
Satoshi Nakamoto, a person or a group launched bitcoin in 2009. Bitcoins use blockchain, an online ledger where every transaction is logged in. Everyone logged on to the network can see the transactions. A bitcoin miner has to solve the complex mathematical puzzle to add a new transaction to the blockchain and earn a bitcoin. This process is called proof of work. In May 2016, the price of bitcoin was $500 and in March 20222, the price of bitcoin was more than $44,000. Bitcoins have witnessed about 7800% growth.
Market cap: $361 billion
Ethereum was developed to overcome the limitations of bitcoins. It is the first bitcoin alternative. It is also a decentralized software platform where decentralized applications and smart contracts can be used. Ethereum uses a cryptographic token, Ether or ETH. From September 2022, Ethereum shifted from the validation mechanism proof of work to proof of stake. The PoS method uses lesser energy and makes blockchains more efficient. Since its launch in 2015, Ether has been the second-largest cryptocurrency. Its price increased from $11 to more than $3000, showing a growth of 27,000%.
Market cap: more than $79 billion.
It is a stable coin that is not as volatile as other cryptocurrencies. It means Tether has the backing of fiat currencies such as the Euro, dollar, etc. Tether’s price is dependent on the price of fiat currencies. Tether was launched in 2014 and uses blockchain technology for transactions. In September 2022, Tether becomes the third-largest cryptocurrency, with each token’s value being $1. Tether is also used as a medium allowing traders to trade other cryptocurrencies.
Binance Coin (BNB):
Market cap: more than $68 billion.
BNB is the utility cryptocurrency. It is used as a payment method that is paid by traders using the Binance Exchange. It is a decentralized platform. Binance Exchange was introduced by Changpeng Zhao. Binance Coin uses the Power of Stake. By September 2022, the value of one BNB was around $273.34.
Market cap: more than $37 billion
XRP was created in 2012. XRP ledger used XRP as its native token. It is a digital technology and facilitates exchanges of various currency types, including cryptocurrencies and fiat currencies. XRP works on XRP Ledger Consensus Protocol and does not need proof-of-stake and proof-of-work. The price of XRP reached $.80 from $0.0006, with a growth of 12 600% by March 2022.
- Litecoin (LTC):
Market cap: more than $9 billion
It was launched in 2011 and worked on open-source blockchain technology. Litecoin was created by Charlie lee. He was a software engineer and the former of the crypto exchange Coinbase. Litecoin’s code was similar to Bitcoin’s code but it was designed to make transactions faster. Litecoin was used as a payment mode across the globe without using any mediator.
- Solana (SOL):
Market cap: more than $33 billion
It was developed to help decentralized apps or DApps, decentralized finance or DeFi, and smart contracts. The currency uses both proof of history and proof of stake validation process and completes a transaction quickly. It reached $101 in March 2022 compared to $0.77, when it was launched in 2020.
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