Table of Contents
- Cryptocurrency- an overview
- How does cryptocurrency work?
- Advantages of cryptocurrency
- The top 10 cryptocurrency, which has the largest value by market cap
- Key takeaways
Cryptocurrency, commonly termed crypto-currency or crypto, is a type of currency that exists digitally or virtually and uses encryption to safeguard transactions. In contrast to fiat currencies, which are issued and regulated by a central authority, cryptocurrencies use a decentralized process to track transactions and create new units. We will discuss the top 10 cryptocurrency in this blog.
Cryptocurrency- an overview
Crypto is a digital currency that does not rely on banks to verify transactions. Peer-to-peer technology makes it possible for anybody, anywhere, to send and receive payments.
Payments made with cryptocurrencies do not exist as actual physical coins that can be carried and exchanged, rather they only exist as digital entries to an online database that details specific transactions.
All bitcoin transactions that involve money transfers are recorded in a public ledger. Digital wallets are where cryptocurrency is kept.
The term ‘cryptocurrency’ refers to the use of encryption to verify transactions. This means that complex code is required for the storage, transport, and recording of bitcoin data to public ledgers. The purpose of encryption is to provide security and protection.
The first cryptocurrency, bitcoin, was developed in 2009 and is now the most popular one. A significant chunk of interest in cryptocurrencies is trading for profit, with speculators periodically driving prices to unimaginable heights.
How does cryptocurrency work?
A distributed public ledger known as the blockchain, updated and maintained by currency holders, is the basis of cryptocurrencies.
Through a process known as mining, units of Bitcoin are created. Mining employs computer power to solve challenging mathematical problems. Users have the option of purchasing the currencies from brokers, then storing and spending them in digital wallets.
When you hold cryptocurrencies, you don’t own anything. You have the key to transferring data or units of measurement between people without the need for a trustworthy intermediary. Even though bitcoin has been around since 2009, blockchain technology and its financial uses are constantly evolving, and more are anticipated in the future. The technology might be used to trade bonds, stocks, and other financial assets in the future.
Advantages of cryptocurrency
- In terms of money, cryptocurrencies represent a brand-new, decentralized model for investment. In this arrangement, instead of centralized intermediaries like banks and financial institutions, trust governs the transactions between two parties. Considering this, a cryptocurrency-based system reduces the possibility that a single point of failure, such as a big bank, will trigger a global chain reaction of catastrophe, such as the one that was sparked in 2008 when American institutions failed.
- With the use of a trusted third party like a bank or credit card provider being eliminated, cryptocurrencies make the direct movement of money between two parties easier. Such decentralized transfers are secured using public keys, private keys, and other incentive programs, like proof of work or proof of stake.
- Since no third parties are involved, cryptocurrency transfers between two transacting parties are quicker than regular money transfers. Flash loans in decentralized finance are a great illustration of such transfers. These loans are utilized in trading since they may be disbursed rapidly and without the need for collateral.
The top 10 cryptocurrency, which has the largest value by market cap
1. Bitcoin (BTC)
- Price: $19407(as of 23-9-22)
- Market cap: $377 billion
Since it was the first cryptocurrency, Bitcoin is still the cryptocurrency that most people think of when discussing virtual money. According to its creator, Satoshi Nakamoto, the currency made its debut in 2009 and has since gone on a roller-coaster journey. The cryptocurrency didn’t enter the public consciousness until 2017.
2. Ethereum (ETH)
- Price: $1,453
- Market cap: $178 billion
In the world of cryptocurrencies, Ethereum, which is also the name of the platform, is the second term you are most likely to hear.
The system’s currency, ether, can be used for a variety of purposes, but Ethereum’s smart contract feature increases its appeal.
3. Tether (USDT)
- Price: $1.00
- Market cap: $68 billion
The price of Tether is fixed at $1 per coin. This is because it is a stablecoin. When it comes to tether, a certain asset’s value is correlated with the value of the stablecoin. Often, when traders switch between cryptocurrencies, Tether acts as a bridge.
They continue using Tether instead of going back to using dollars. Some people are concerned that Tether is not securely guaranteed by dollars held in reserve, but uses a short-term unsecured debt type. Hence, be careful while trading with Tether.
4. USD Coin (USDC)
- Price: $1.00
- Market cap: $50 billion
The value of USD Coin, which is a stablecoin like Tether, is locked to the US dollar and won’t fluctuate. The currency’s founders assert that it is backed by fully reserved assets or those with ‘equivalent fair worth,’ and that these assets are held in accounts with institutions under the supervision of the United States.
5. BNB (BNB)
- Price: $275.27
- Market cap: $44 billion
One of the biggest cryptocurrency exchanges in the world, Binance, has its coin called BNB. Despite being created as a token to pay for transactions with discounts, Binance Coin is now used to send payments and purchase a wide range of goods and services.
6. Binance USD (BUSD)
Market cap: $21 billion
Binance in partnership with Paxos, the top cryptocurrency exchange, developed BUSD, a stablecoin backed by the dollar. The New York Department of Financial Services oversaw the 2019 launch of Binance USD. BUSD functions on top of the Ethereum blockchain.
7. XRP (XRP)
- Price: $0.3322
- Market cap: $17 billion
Since its launch in 2012, XRP, formerly known as Ripple, has offered a way to send payments in numerous fiat currencies. The implementation of a ‘trustless’ methodology by ripple, which facilitates payments, can be advantageous for cross-border transactions.
8. Cardano (ADA)
- Price: $0.4619
- Market cap: $16 billion
This cryptocurrency platform that supports the ADA token. Cardano also uses Smart contracts and Ethereum co-founder created it, to simplify identity management.
9. Solana (SOL)
- Price: $32.45
- Market cap: $11 billion
A more recent cryptocurrency, called Solana, was unveiled in March 2020.
It takes pride in both the speed at which transactions are performed and the overall sturdiness of its ‘web-scale’ network. The SOL currency allows for the issuance of 480 million coins in total.
10. Dogecoin (DOGE)
- Price: $0.05969
- Market cap: $8 billion
The Shiba Inu dog-themed online meme that gave rise to the term Dogecoin was first created as a joke after the rise of Bitcoin. In contrast to many other digital currencies that have a limit on the number of coins that may be issued, Dogecoin has unlimited issuance. You can send money or make payments with it.
- Cryptocurrency is a digital payment system that doesn’t rely on banks to validate transactions. Its Peer-to-peer technology makes it possible for anyone anywhere in the world to send and receive payments.
- When you hold cryptocurrencies, then you don’t own anything. A distributed public ledger known as the blockchain, updated and maintained by currency holders, is the basis of cryptocurrencies.
- There are the top 10 cryptocurrencies based on their market capitalization or the total value of all the coins currently in circulation. From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make the world of crypto quite overwhelming.
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Q1. Which cryptocurrency is best to invest in now?
Ans- Seven of the top cryptos to buy now-
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Avalanche (AVAX)
- Binance Coin (BNB)
- Cosmos (ATOM)
- Filecoin (FIL)
Q2. Which is the fastest-growing cryptocurrency?
Ans- In less than a month, Terra’s LUNA coin has increased by around 500%.
The most important thing to keep in mind regarding it is that it is the cryptocurrency platform with the greatest rate of growth worldwide.
Q3. What are the 4 types of cryptocurrency?
Ans- Utility, payment, security, and stablecoins are the four main types.
DeFi tokens, NFTs, and asset-backed tokens are other token types.
The most widely used cryptocurrencies are payment and utility tokens.