Bitcoin is the most widely used cryptocurrency. But, there are thousands of digital currencies. Many types of cryptocurrencies that do not include Bitcoin are considered “also-ran” or an alternative to Bitcoin.
Bitcoin is the most widely used cryptocurrency. However, it was launched in 2009 only. However, there are many types of cryptocurrencies that have been well-respected and are just as popular now as Bitcoin.
These are the top cryptocurrency based on total coins’ value, also known by market capitalization.
Different Types of Cryptocurrencies
1. Bitcoin (BTC)
Bitcoin was the precursor of cryptocurrency. It is the standard reference coin when discussing digital currency. Satoshi Nakamoto was the currency’s mysterious inventor. It was introduced in 2009 and has been on a roller-coaster ride since. However, cryptocurrency became popularized only in 2017.
Also read: The Top 5 Richest Crypto Investors on The Ethereum Network
2. Ethereum (ETH)
The second most popular name in crypto is Ethereum. The currency ether can be used to perform many functions. Ethereum’s smart contract feature makes the currency very popular.
3. Binance Coin (BNB)
Binance Coin is the cryptocurrency Binance has released. It is one of the most well-known crypto exchanges in the world. Binance Coin was initially created to facilitate discounted trades. It can be used to pay for goods and services, as well as to make payments.
4. Tether (USDT)
Tether’s value is set at $1 per coin. This is also known as a stable coin. Stablecoins may be tied to an asset. The tether would be tied to the U.S. Dollar. Tether is used often by traders to transport between different cryptocurrencies. Tether is often used by traders to transfer from one cryptocurrency to the next. People worry that Tether does not use dollars in reserve to secure it, but instead uses a short-term form of unsecured debt.
5. Solana (SOL)
Solana was created in March 2020. It is a young cryptocurrency that boasts its ability to quickly complete transactions and the stability of its “webscale” platform. SOL stands for the maximum amount that can be issued.
6. Cardano (ADA)
The co-founder of Ethereum created Cardano, the cryptocurrency platform that powers Ada (the currency’s namesake). The co-founder of Ethereum created Cardano. It uses smart contracts to allow identity management.
7. USD Coin (USDC)
USD Coin is, like Tether and Tether, a stable coin tied to the dollar. Its value will not fluctuate. The currency’s creators claim that it is fully backed by reserve assets or assets of an “equivalent worth”. These assets are kept in accounts at U.S. banks.
8. XRP (XRP)
XRP (formerly Ripple) was founded in 2012. You can pay in real-world currencies with it. Ripple, a trustless payment system, facilitates cross-border transactions.
9. Polkadot (DOT)
Polkadot is a digital currency that connects blockchain technology with various cryptocurrencies. It was launched in May 2020. One of Polkadot’s founders is also a co-founder at Ethereum. Industry watchers believe that Polkadot is trying to take down Ethereum.
Also read: Get The Best Forex Rates With Crypto
10. Terra (LUNA)
Terra uses its Luna currency to backstop stable coins that are based on real currencies such as the dollar or euro. Terra uses a variety of technical methods to stabilize the price stable coins. It supports smart contracts.
11. Dogecoin (DOGE).
Dogecoin was initially created in a joke after the Bitcoin price crash. The internet meme featuring a Shiba Inu dog inspired the name of Dogecoin. Dogecoin can issue unlimited coins, unlike other digital currencies which limit the number of coins that are available. It can be used for sending money or paying for payments.
12. Avalanche (AVAX)
Avalanche is a low-cost, fast, smart contract-based, blockchain platform. It focuses on decentralized apps as well as the facilitation to create custom blockchains. To process transactions, users can use the native AVAX token.
Bottom line
The cryptocurrency market can be chaotic. Those who invest in digital assets need to be cautious. Crypto assets can fluctuate dramatically in a single day, which is why volatility is a problem. It can be difficult for novice traders to trade against highly skilled investors.
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