What are Cryptocurrencies and how they are similar or different from each other?

You'll cover the following topics in this blog post;

  1. What are Cryptocurrency and Bitcoin?
  2. What are the most popular crypto coins other than bitcoin?
  3. Similarities and differences of the famous cryptocurrencies.
  4. In which cryptocurrency or crypto-coin I should invest?
  5. Basic understandings of crypto and crypto coins.

What exactly is crypto! These days, we hear of a similar deal. Crypto-currencies are electronic payment tools that can be used to send and receive money. It aims to create a distributed, decentralized, and secure digital payment system based on cryptographic concepts.
 
What are Cryptocurrencies and how they are similar or different from each other?

What is Bitcoin?

Bitcoin Price: $46,999.90

Bitcoin, also known as the 1st type of cryptocurrency, is a digital asset whose creation and distribution are governed by an open-source cryptographic protocol and are not centralized. Without the involvement of a third-party financial institution, Bitcoin can be transferred directly from one computer or smartphone to another. Bitcoin transactions are secured by a network of computers called Bitcoin miners. A user may maintain one or more Bitcoin accounts to receive or transfer Bitcoin to another account. Your Bitcoin account can be accessed online or downloaded to your computer via an app or software called a "digital wallet." The Bitcoin address is 33 characters long, while the account number is either one or three digits long.

 

Few More Examples of Cryptocurrencies:

There are hundreds of Cryptocurrencies out there but I am explaining the few of them for your better understandings of cryptocurrency;

Please Note: The price and market cap is according to the “Google Insights” on the date when the blog or this article is written.

Tether (USDT):

Price: $1.00
Market Cap: $76,235,594,867.11

Tether's price is fixed at $1 per coin to ensure stability. This is because it is a stable coin. Stable coins are digital coins whose value is determined by the value of a specific asset, in Tether's case, the US dollar. Tether is frequently used as a middleman when traders are transferring funds from one cryptocurrency to another. Rather than reverting to the dollar, they used the cryptocurrency Tether. However, some individuals are concerned that Tether is not backed by dollars in reserve but rather by a short-term form of unsecured debt, which they believe is not secure.

USDC (United States Dollar Coin):

Price: $1.00 USD
Market Cap: $42,645,076,814

The USDC (United States Dollar Coin) is a coin issued by the United States of America. USD Coin, like Tether, is a stable coin whose value is pegged to the dollar, implying that its value should remain constant. The currency's creators assert that it is backed by fully reserved assets or assets with "equivalent fair value," which are held in accounts at US-regulated financial institutions.

Ethereum (ETH):

Price: $3,878.52
Market Cap: $459,498,963,655.81

Ethereum — the name given to the cryptocurrency platform — is the second most well-known name in the cryptocurrency space, after Bitcoin. It is possible to perform a variety of functions with ether (the currency), but the smart contract aspect of Ethereum is what helps it become such a popular cryptocurrency.

Binance Coin (BNB):

Price: $527.89
Market Cap: $1,503,951,443

It is the cryptocurrency issued by Binance, which is one of the world's largest cryptocurrency exchanges. Although it was initially designed to be used as a payment method for discounted trades, Binance Coin is now capable of being used for a variety of other transactions, including payments and the purchase of various goods or services.

Solana (SOL):

Price: $176.90
Market Cap: $74 Billion

With its launch in March 2020, Solana is a more recent cryptocurrency that prides itself on its transaction processing speed as well as the overall robustness of its "web-scale" platform. The total number of coins that can be issued in the currency, known as SOL, is limited to 480 million.

Cardano (ADA):

Price: $1.25
Market Cap: $1,225,005,631.55

Cardano is the cryptocurrency platform that underpins the ADA cryptocurrency, which is the name of the currency. Cardano, which was developed by the co-founder of Ethereum, also makes use of smart contracts to facilitate identity management.

XRP (XRP):

Price: $0.8141
Market Cap: $38,463,698,608.90

XRP, formerly known as Ripple, was established in 2012 and allows users to make payments in a variety of real-world currencies. Ripple can be useful in cross-border transactions since it offers a trust-less technique to make payments more convenient for both parties.
 

Polkadot (DOT):

Price: $25.41
Market Cap: $1,398,518,284

Polkadot, which will be launched in May 2020, is a digital currency that integrates the blockchain technology used by numerous different cryptocurrencies to form a single network. One of Polkadot's creators is a co-founder of Ethereum, and some industry analysts believe Polkadot is attempting to dethrone Ethereum as the dominant cryptocurrency.
 

DogeCoin (DOGE):

Price: $5.77
Market Cap: $1,013,090,485

Dogecoin was originally developed as a joke following the rise in the value of Bitcoin, and it gets its name from an internet meme depicting a Shiba Inu dog. Dogecoin, in contrast to many other digital currencies, does not have a restriction on the number of coins that can be issued at any given time. It can be used to make payments or transmit money to other people.
 

Avalanche (AVAX):

Price: $102.90
Market Cap: $25,025,172,303.79

In addition to enabling the development of decentralized applications and the production of custom blockchain, Avalanche is a fast and low-cost smart contracts-based blockchain platform. AVAX users will be able to complete transactions using the native AVAX cryptocurrency.

 

Result:

It is important for those who are speculating in cryptocurrencies to remember that the market is a Wild West, and they should never put more money at risk than they can afford to lose. It is possible to experience high levels of volatility, with crypto assets moving considerably even within a single day. Individual investors may also be competing against extremely sophisticated players, making it a risky experience for those who are new to the market.
Citation:

Jake, F. (October 30, 2021). Crypto-Currencies. Retrieved from
https://www.investopedia.com/

Post a Comment

0 Comments