When Bitcoin launched in 2009, the cryptocurrency trendsetter had little to no competition. Fast forward to over a decade later, and digital currency has captured the entire world, with more types of cryptocurrencies inspiring even more followers.
While Bitcoin continues to lead the pack in terms of popularity, it’s essential to look at other virtual currencies that are doing well to make the best decision for your investment.
What are cryptocurrencies?
Before we discuss the most popular cryptocurrencies, let’s clarify what we mean by cryptocurrency.
A cryptocurrency is a digital currency, which is an alternative form of payment created by encryption algorithms. They don’t physically exist and don’t need a monetary authority to operate, like a government or bank.
Individual units of cryptocurrencies can be referred to as coins or tokens, depending on how they are used. For example, some may be used in exchange for products or services, and others are stores of value.
As of July 2022, there are over 20,000 cryptocurrencies in existence, with many enjoying immense popularity. So, now let’s review the most common cryptocurrencies traded.
1. Bitcoin (BTC)
Bitcoin is thought to be the first decentralised cryptocurrency to use blockchain technology to facilitate instant payments.
2. Ethereum (ETH)
Ethereum’s mission is to make a decentralised suite of financial products accessible to everybody. This makes it popular for people in countries without a state infrastructure, enabling access to bank accounts, loans, or other financial products.
3. Tether (USDT)
Tether is a stablecoin, a type of currency pursuing a steady valuation. Stablecoins are tied to a fiat currency, like the U.S dollar.
4. Binance Coin (BNB)
Binance can be used to trade and pay fees on The Binance Exchange – the world’s largest cryptocurrency exchange.
5. Ripple (XRP)
Ripple’s primary process is similar to the SWIFT system for international money transfers, used by banks and businesses dealing across currencies.
6. Cardano (ADA)
Cardano is designed to be a sustainable, scalable blockchain platform, more capable than many other cryptocurrencies. It allows for the development of decentralised finance apps, new tokens, games and more.
7. Solana (SOL)
Launched in 2020, Solana is a newer cryptocurrency, touting fast transactions and the robustness of its platform.
8. Polkadot (DOT)
Polkadot enables cross-blockchain transfers of any asset, allowing value and data to be sent across previously incompatible networks – like Bitcoin and Ethereum.
9. Dogecoin (DODGE)
Dogecoin payments are easily recorded, but has no cap on how many coins can be created, unlike the limitations of Bitcoin.
10. Monero (XMR)
Launched in 2014, Monero offers a high level of anonymity for users and their transactions.
The cryptocurrency market is largely unpredictable and can be volatile. So those considering investing in crypto should avoid putting in more money than they can afford to lose.
If you’re looking to find out how to manage your digital assets and discuss your unique requirements, get in touch with a member of Turner Little’s team today.