As of September 2020, there are over 5,000 cryptocurrencies available in the market. There is no exact number as it's an open-source — anyone can create their own virtual money using a code. Below we have listed 10 of the top currencies in the market today. Find out the main differences between them.
Bitcoin was the first cryptocurrency in the world. As virtual money, you can use it for buying anything so long as the shop accepts Bitcoin cash. It can also be exchanged for other cryptocurrencies. Each bitcoin is a computer file stored in a virtual wallet either on your computer or a smartphone. All transactions are on a public ledger called the blockchain. Bitcoin was invented in 2008 and started the year after and was released in an open-source software. By far, it's still the largest cryptocurrency in the world.
On July 30, 2015, Vitalik Buterin launched Ethereum — a software platform that enables Decentralized Applications and Smart Contracts to run without control or interference by other parties. Its crypto token is Ether and it's the second-largest cryptocurrency after Bitcoin. Ethereum started when Buterin suggested that Bitcoin needed a scripting language. A pre-sale for crypto coin ether was then launched and it can be used to decentralize, secure and trade just about anything. Today, Ethereum was split into Ethereum Classic and Ethereum.
Also referred to as Ripple protocol or Ripple Transaction Protocol, cryptocurrency Ripple is a gross settlement system in real-time. It started in 2004 when Ryan Fugger thought of a monetary system that can effectively allow people to make their own money. RipplePay.com was then launched the following year to provide a more secured payment via a global network. In 2011, Jed McCaleb developed that verified transactions by consensus among the members instead of relying on blockchain ledgers. With this, a new version of the cryptocurrency was launched which effectively performs transactions and uses less electricity compared to Bitcoin.
Tether is the 4th largest cryptocurrency by market cap. It was launched in 2014 designed to use fiat money digitally. To allow users to take advantage of trading, it facilitates trading between other cryptocurrencies with a fixed rate to the US dollar. It utilizes the blockchain network and similar technologies in transacting traditional cryptocurrencies sans its complexity associated with trading.
Launched in 2011 by former Google engineer Charlie Lee, Litecoin was one of the first cryptocurrencies to follow Bitcoin. It's dubbed as the silver and Bitcoin's gold. This digital currency uses a scrypt for proof of transactions and it isn't controlled by any central authority. While Litecoin and Bitcoin are quite similar, the former provides a faster transaction and block generate rate. Today, Litecoin is the 6th largest cryptocurrency in the world by market cap.
6. Bitcoin Cash
In May 2017, Bitcoin payments take about 4 days — a little longer for small transactions. They want something more practical just for day to day transactions so they implemented a change or code and then Bitcoin Cash was born on August 1, 2017. It's one of the most successful and the earliest hard forks in the cryptocurrency world.
You can't trace Monero as it's extremely private and secure. It launched in 2014 and developed primarily on donation-based. Its main objective is to focus more on scalability and decentralization. They have achieved complete privacy with their technique called ring signatures. With the ring technique, a group of encrypted signatures appears and all but one is valid. While it's very secure, individuals who use Monero may be devising some criminal operations. All things considered, it's still one of the top cryptocurrencies in the world.
Libra blockchain was proposed by Facebook and it's designed to improve financial services. It aims to include a new payment system that will meet the financial needs of billions of people around the world. It will be accessible to anyone and transactions will be easy and quick regardless of location or who is sending/receiving the money. Libra was created by David Marcus, Morgan Beller and Kevin Weil.
Like Ethereum, EOS enables developers to build decentralized applications. Launched in 2018 and created by Dan Larimer, EOS aims to offer more scalability than its competitor cryptocurrency. Mining is not needed to produce coins with EOS. It consists of EOS.IO which acts as its blockchain network both for the digital currency and the EOS coins.
10. Binance Coin or BNB
If you own a Binance coin, you can trade in several cryptocurrencies using the Binance cryptocurrency exchange platform. BNB was launched in 2017 and is one of the largest trade volume wise. You can use the BNB virtual money for paying goods and services, and for facilitating transaction fees.
FAQs on Cryptocurrencies:
Why should you use cryptocurrency?
Unlike conventional currencies, bitcoin and other digital currencies are highly secured and offer extreme anonymity. In addition, the fees are lower and because it's decentralized — it's available to anyone. Transactions made in the system cannot be altered nor reversed. It's completely safe and secure.
What is a cryptocurrency wallet?
A cryptocurrency wallet is where you store your cryptocurrency or private keys. The latter serves as an address to which a user can send cryptocurrency. You can't transact anything without the private key. There are several cryptocurrency wallets available in the market today: Internet-connected wallet is the hot wallet which is easier to spend although vulnerable to attacks. You are more protected from cybercrime with cold storage or wallet.
Do online casinos accept cryptocurrencies?
Yes, in fact, there are a growing number of gambling sites and online casinos accepting virtual money. The popularity of digital currencies has enabled other industries to grow such as gambling and online casinos. Check out our top recommended casinos that accept cryptocurrencies.
Cryptocurrencies are the new generation of money. You can acquire it by purchasing coins, by mining or by accepting payment for certain goods and services. The industry is still growing — you can invest in it, make private transactions, participate in online gambling, make a loan, etc. If you're not sure which cryptocurrency to acquire, make sure you check our list above and visit our complete guide to cryptocurrencies.
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