Since 2013, cryptocurrency, particularly Bitcoin, has been a trendy issue. 1 Bitcoin was worth roughly $20 in January 2013, and by early 2021, the value of 1 Bitcoin had risen to $50,000.
Bitcoin and other cryptocurrencies, as speculative investments, have created a slew of billionaires and individuals who lost money by selling their coins too soon. There are a couple of things to know about cryptocurrencies, so we’ve compiled the top 10 cryptocurrencies as a medium of exchange. But first, what’s a cryptocurrency?
What is a Cryptocurrency?
A cryptocurrency is a virtual currency safeguarded by cryptography, preventing it from being duplicated or counterfeited. Many cryptocurrencies are decentralized networks based on blockchain technology built on distributed ledgers enforced by a worldwide network of computers.
This means that cryptocurrency transactions remain anonymous and untraceable, allowing both parties involved in the transaction to avoid sharing sensitive data with third parties like banks or other transaction providers.
Top 10 Cryptocurrencies
With over 4000 cryptocurrencies out there, only a few make the headlines. From Bitcoin, Ethereum, Dogecoin to Ripple XRP, several cryptocurrencies are worthwhile for investment. Here are the top 10 you can find in the market.
- Bitcoin (BTC)
Current Price: $46,820.50
Current Market Cap: $878,729,216,535
Total Supply: 18,788,843
It is the first decentralized cryptocurrency to gain traction and become large enough to allow for the emergence of specific use cases. It is used as a means of exchange online. Bitcoin continues to dominate commercial crypto investors’ portfolios and dominates the news, helping to enhance the prominence of competing altcoins.
In retrospect, it was cleverly built and gave rise to an entire parallel financial sector that is still learning how digital currencies may be assets. The true name of Satoshi Nakamoto, the inventor of Bitcoin, remains unknown, allowing Bitcoin to be decentralized.
- Ethereum (ETH)
Current Price: $3,227.48
Current Market Cap: $378,969,083,249
Total Supply: 117,140,812
Ethereum is the trading platform for Ether (ETH). Ether is the transactional token that allows transactions on the Ethereum network to take place. All of the programs and services that are connected to the Ethereum network
In 2014, Ethereum announced an ether presale, which garnered a massive reaction, ushering in the era of the ICO (initial coin offering). Ethereum claims we can use it to “codify, secure, decentralize, and trade anything.” After the 2016 attack on the decentralized autonomous organization (DAO), Ethereum was split into two coins: Ethereum (ETH) and Ethereum Classic (ETC).
This year, Ethereum intends to switch its consensus process from proof-of-work to proof-of-stake. This change will allow the network to run with significantly lower energy and increased transaction speeds. Also, Proof-of-stake allows network users to “stake” their ether on the Ethereum blockchain. This process aids in the security of the network and the processing of transactions.
- Litecoin (LTC)
Current Price: $182.39
Current Market Cap: $12,221,606,584
Total Supply: 66,752,615
Since its launch in 2011, Litecoin is one of the first cryptocurrencies that followed the footsteps of Bitcoin and is often referred to as the “silver to Bitcoin’s gold.” It has a current max supply of 84,000,000. A former Google developer and MIT graduate, Charlie Lee, designed it.
Litecoin is traded on an open-source global payment network that is not centralized and uses “scrypt” as a proof-of-work, decoded using consumer-grade CPUs. However, Litecoin is similar to Bitcoin in many ways, except it has a quicker block creation rate and provides quicker transaction confirmation time. That said, aside from developers, there is an increasing number of shops that take Litecoin.
- Cardano (ADA)
Current Price: $2.10
Current Market Cap: $67,635,465,758
Total Supply: 33,005,080,086
Cardano was developed by engineers, mathematicians, and cryptography professionals via a research-based approach. One of Ethereum’s five original founding members, Charles Hoskinson, co-founded the project. He left Ethereum after some issues with the direction it was headed and eventually helped to build Cardano.
Cardano’s blockchain was established through peer-reviewed research and considerable testing. The Cardano researchers have published over 90 papers on blockchain technology, covering a wide range of issues. Cardano is built on this study.
Cardano strives to be the world’s financial operating system by creating decentralized financial products akin to Ethereum and solutions for chain interoperability, voter fraud, and legal contract tracing, among other things.
- Ripple (XRP)
Current Price: $1.21
Current Market Cap: $55,784,131,297
Total Supply: 99,990,319,777
XRP, also known as OpenCoin, is utilized by some financial institutions, such as Axis Bank and Yes Bank, to transfer payments across borders faster and cheaper than existing methods such as NEFT, RTGS, or the most widely used SWIFT.
The blockchain network is known as Ripple, and the coin is known as XRP. Despite being one of the most known cryptocurrencies, XRP has drawn the attention of the Securities and Exchange Commission (SEC) due to its impact on fiat currencies.
The ongoing litigation will decide whether XRP is an ‘investment contract,’ and so security, under US securities regulations. The decision might establish a precedent for how XRP is viewed in other regions of the world.
- Bitcoin Cash (BCH)
Current Price: $686.15
Current Market Cap: $12,930,749,382
Total Supply: 18,820,138
Bitcoin Cash is significant in altcoin history since it was one of the first and most successful hard forks of the original Bitcoin. A split occurs in the bitcoin realm as a result of disagreements between miners and developers. Since digital currencies are decentralized, wholesale changes to the code underpinning the token or coin at hand must be made by consensus; the mechanism for this process varies depending on the cryptocurrency.
When various groups cannot agree, the digital currency is sometimes divided. The original chain holds true to its original code, and the new chain starting as a new version of the previous coin, along with code changes.
- Dogecoin (DOGE)
Current Price: $0.3321
Current Market Cap: $43,439,238,936
Total Supply: 130,895,788,234
With an adorable Shiba Inu puppy as its symbol and Elon Musk’s love, the sky is the limit for this meme-inspired coin.
Dogecoin was used for online forum tipping and donations on occasion. It is one of the few major altcoins with no restriction on the number of coins that can be mined; hence the supply is infinite over time.
- Polkadot (DOT)
Current Price: $26.16
Current Market Cap: $25,811,795,294
Total Supply: 1,102,581,950
Polkadot is a one-of-a-kind proof-of-stake coin that aims to provide compatibility with other blockchains. Its protocol connects allowed and unallowed blockchains, as well as oracles, allowing systems to collaborate under one roof.
Polkadot’s essential component is its relay chain. It enables network interoperability. And it also allows for the creation of “parachains,” or alternative blockchains with their own native coins for specialized use cases.
Polkadot was built by Gavin Wood, another member of the Ethereum project’s core founders who had divergent views on the project’s future.
- Stellar (XLM)
Current Price: $0.3806
Current Market Cap: $8,991,724,215
Total Supply: 50,001,802,892
Stellar is an open blockchain that connects financial institutions for massive transactions in order to deliver corporate solutions. Massive transactions between investment firms and banks, which used to take several days, involve a number of intermediaries, and cost a lot of money, can now be completed very instantly with no intermediaries and for little to no cost to the parties involved.
Jed McCaleb, a founding member of Ripple Labs and the creator of the Ripple protocol, launched Stellar. He eventually quit his position at Ripple to co-found the Stellar Development Foundation.
- Binance Coin (BNB)
Current Price: $430.26
Current Market Cap: $72,342,989,381
Total Supply: 168,137,036
Binance Coin is a utility coin that serves as a payment option for trading fees on the Binance Exchange. Those that utilize the token as payment for the exchange can trade at a reduced rate. Binance Coin’s blockchain also serves as the foundation for Binance’s decentralized exchange. Changpeng Zhao launched the Binance exchange, which is now one of the world’s most popular exchanges in terms of the trading volume.
Binance Coin began as an ERC-20 token that ran on the Ethereum blockchain. It finally had its own mainnet. The network employs a consensus methodology based on proof-of-stake.