Crypto or digital currency is an internet-based money system that utilizes encryption to verify transactions. Coding helps to secure cryptocurrencies, making them impossible to forge. Many cryptocurrencies are based on blockchain technology. This approach is vital to avoid any form of external manipulation.
CryptoRunner estimates that over 10,000 cryptocurrencies are currently available globally. Keeping track of all these currencies is not easy. Thus, in this article, we explore a few examples from the list of top 100 cryptocurrencies globally, according to CryptoRunner. This list is a breakdown and quick review of the most prominent cryptocurrencies.
Bitcoin is quite popular and is the first and most successful peer-to-peer internet money platform globally. No central bank governs or is involved in the production or transaction of BTC. The main idea behind the production of Bitcoin was to device a medium of exchange that was free from regulation by any central governing authority. Moreover, the intention was to have an anonymous transaction platform with minimal fees and one that is accepted globally.
Bitcoin introduced the world to a new way of storing funds and conducting online transactions, following its establishment by Satoshi Nakamoto in 2009. Today, the cryptocurrency has proven to be the most used and trusted digital currency globally by many investors.
With a market capitalization of US$ 729billion and a US$ 38,000 BTC price (as of May 4, 2022), BTC tops the list of the top 100 cryptocurrencies in the world. Since its establishment, the price of Bitcoin has mostly been stable with a steady increase in value and popularity, making it the most important cryptocurrency in the world.
ETH is an innovative contract platform through which developers build decentralized applications (known as dapps) and tokens. It remains the pioneer of smart contracts formulated on the blockchain network. Smart contracts refer to a computer code devised to run as programmed, devoid of downtimes, fraud, censorship or influence from a central governing body. ETH is Ethereum’s currency and is the medium of exchange used on the platform for Ethereum network miners’ fees. Users can pay for shares, property, content, exchange money, and anything valuable using ETH.
Founded in 2015, Ethereum is the second most popular virtual currency, with a market cap of US$ 353billion. Ethereum has gained great popularity. In future, it will compete favorably with BTC, as an important contender in the list of most valued cryptocurrencies. As of May 4, 2022, ETH’s price was US$ 2,795 and will increase with time.
LTC is similar to Bitcoin but has significant improvements, including quick payments and more transactions. For instance, a substantial difference between the two is that LTC takes about three minutes to generate a block. In contrast, BTC takes about ten minutes. Charlie Lee, an Engineering at Coinbase and a former Google employee, was the brains behind the creation of LTC. He created the LTC cryptocurrency to offer users a diversified coin that took less time to mine.
Litecoin’s market cap stands at $7 billion, making it a vital cryptocurrency in the digital money space. As of May 4, 2022, the share price of LTC stands at $100 and will rise with popularity and increased usage.
The most commonly used stable blockchain coin is the USDT, which heralded the concept in the digital token market. Tether digital tokens are based on several blockchains. They encourage innovation and promote the development of businesses across the blockchain, disrupting the traditional financial system.
Tether was created to reflect the value of the US$ and other major currencies, such as the Euro and Pound. The main idea was to develop a stable digital dollar cryptocurrency equivalent to the dollar, in terms of value. USDT targets users who seek anonymity but want to pay using the dollar’s value. Today, USDT remains the most popular digital dollar substitute on many exchange platforms. The currency has a market cap of $83 billion and a unit price of $1 as of May 4, 2022. It remains most popular due to its approach of exchanging one coin for the dollar rate.
Binance Coin (BNB).
BNB, short for Binance Coin, is a cryptocurrency mainly used for paying fees for trading, listing, and other transactions on the Binance platform. The name Binance is a culmination of two words: binary and finance. Thus, Binance depicts that trading on the platform can only be against cryptocurrencies. As of May 4, 2022, Binance had achieved great success within a relatively short time, trading nearly USD$ 1.5-2billion, making it one of the world’s most influential cryptocurrencies.
It is projected that there will only be a maximum cap of 200 million BNBs eventually to increase the coin’s value. Any currency has to be scarce for it to be valuable, just like gold and fiat money. As of May 4, 2022, the unit price of BNB was $384 and will rise in value with time and popularity.
The Polkadot platform allows blockchains to communicate value in a secure trust-free platform. Polkadot is a highly scalable blockchain technology due to its flexibility in transactions and sending messages between users. Users also get access to pooled security, an important addition away from LTC and BTC.
As of May 4, 2022, Polkadot has a market cap of US$ 16.9billion and a unit price of US$ 19, making it an important cryptocurrency. Since its launch in May 2020, it has risen exponentially in value and is bound to grow further. Today, Polkadot remains an important cryptocurrency that borrows closely from BTC and LTC.
Overall, many cryptocurrencies are available to a wide array of users within the internet money platform. Ideally, most cryptocurrencies are based on peer-to-peer technologies that support various valued transactions, exchange of money, and communication between users. Moreover, the need for anonymous trading without the control of a central governing authority, such as Central banks, propelled the explosion in the use of cryptocurrencies. Even though cryptocurrencies remain highly volatile compared to fiat money, they remain popular among many users who wish to remain anonymous.