Cryptocurrency is digital money that isn’t managed by a central system like a government. Instead, it’s based on blockchain technology. While each of the popular cryptocurrencies is unique in its own way, they all tie into an underlying principle called decentralized finance (DeFi). You can use cryptocurrency to make purchases, but most people treat it as a long-term investment. There are thousands of cryptocurrencies, most with very little value and unclear potential. Many advisors recommend investors stick to popular cryptocurrencies and pass on the lesser known cryptos.
Here are the top 10 most popular cryptocurrencies in the world.
Bitcoin is the first, most well-known, and valuable cryptocurrency throughout the world. It is the first influential use of blockchain technology, which is a permanent and time-code ledger of transactions that is spread across all members of a network and is now being used in a variety of applications. The blockchain that underpins Bitcoin enables users to send and receive money without the need for a third-party intermediary like a bank or payment processor.
2. Ethereum (ETH)
Ethereum is the cryptocurrency of the Ethereum network, an open-source blockchain upon which developers can build apps and other cryptocurrencies. It operates on a programmable blockchain, which means it can operate programs or applications on a decentralized basis, i.e. on millions of computers in one go. This opens up a plethora of potential applications, ranging from technology and finance to gaming and collectibles, making Ethereum an appealing investment.
3. Dogecoin (DOGE)
Dogecoin is a cryptocurrency, a kind of digital money that allows peer-to-peer transactions through a decentralized network, just like bitcoin. There are several ways you can obtain Dogecoin, like many other cryptocurrencies. You may dig it yourself, or approve it as a means of payment. Even so, the simplest approach is to buy it from a cryptocurrency exchange. You will usually need to purchase Bitcoin or another common coin first, and then exchange it for DOGE.
4. Tether (USDT)
Tether is a fiat currency tied to the U.S. dollar. This keeps its value more stable, allowing Tether to present itself as a stable cryptocurrency alternative to cash deposits and withdrawals. For each unit of Tether, there is one dollar in the Federal Reserve Bank. Amid high volatility with other cryptocurrencies, Tether’s value hovers around $1 on account of its tie to the U.S. dollar. Tether is therefore ideal for investors who want to use their cryptocurrency to make transactions.
5. Cardano (ADA)
Cardano uses a technology called Ouroboros, a peer-reviewed blockchain protocol. It describes itself as a more secure and scalable way to maintain decentralization. Cardano network takes less energy to complete transactions, making it cheaper and more efficient. It aims to be more flexible and stable, thanks to frequent updates that make it less vulnerable to hacking. And with a stronger network, though, it is still unable to compete with the big cryptocurrencies.
6. Polkadot (DOT)
Polkadot is a distinctive proof-of-stake cryptocurrency aimed at bringing blockchain adequacy to the masses. Its interface connects permissioned and permissionless blockchains, along with oracles, enabling systems to interact in a single environment. Polkadot allows an internet where independent blockchains can exchange data and transactions in a transparent and secure manner through the Polkadot relay chain. Polkadot’s goal is to make it better to access and link decentralized applications, services, and organizations.
7. Ripple (XRP)
Ripple is the company that unveiled the XRP token and is enticing to investors because it sets itself apart from other cryptocurrencies by offering international transactions. Ripple is regarded as one of the quickest and most efficient decentralized payment innovations. With a bank, international money transfers can take up to 10 business days. With Ripple, the same transactions take mere seconds. Plus, Ripple has contracts with big banks around the world. The more contracts it has, the more accessible the Ripple cryptocurrency is to adopters.
8. Bitcoin Cash (BCH)
Bitcoin Cash is a cryptocurrency that is a fork of Bitcoin. Its a peer-to-peer electronic cash system, which was the original intention of Bitcoin. The currency allows you to send money anywhere for very low fees. Bitcoin Cash was created using improved Bitcoin code that enabled greater block sizes, resulting in faster transaction times and increased scalability. Bitcoin Cash is a viable alternative to Bitcoin with an enthusiastic market following, despite not being as commonly accepted or recognized as Bitcoin.
Chainlink uses real-world data and off-chain computation while maintaining security and reliability. Its unique as a cryptocurrency because it has an appealing price. While the shares are affordable to buy, they’re also priced high enough to not be considered penny stocks. This is appealing to investors because it has proven it can increase in value, and there is still a lot of room for growth.
10. Stellar (XLM)
Stellar’s native cryptocurrency is the Lumen (XLM). Stellar is designed as an open network for storing and moving money that allows people to create, send, and trade digital money. It’s essentially the PayPal of cryptocurrency networks, serving as a bridge between banks and blockchain networks.
It’s designed to sell and trade all digital monies, not just Stellar’s own associated cryptocurrency, the Lumen – although you’ll need to own some Lumen to make transactions. As a decentralized network, Stellar can convert any currency and trade it across channels. It makes these transactions cheaper and faster than they would be with a traditional bank.