Since the inception of bitcoin, many developers around the world have created new cryptocurrencies. The number of cryptocurrencies in circulation around the world now exceeds 20,000. Bitcoin is usually mentioned when discussing cryptocurrencies as a result of its status as the popular cryptocurrency. However, it isn’t the only cryptocurrency out there. There are many other cryptocurrencies that belong to a separate group that’s referred to as altcoins.
Bitcoin is the very first and biggest cryptocurrency to have been released, and it’s also the most widely-used among the many cryptocurrencies on the market today. In this article, we will discuss the largest cryptocurrencies by market capitalization.
- Bitcoin: Bitcoin is a digital asset and a payment system invented by an unknown person or group of people under the name Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of 2017, over 100,000 merchants and vendors accepted bitcoin as payment.
- Ethereum: Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. It’s built on the blockchain technology, which means records are constantly being stored and updated in a public database. Ethereum also has its own mining algorithm, which helps keep the network running smoothly.
- Tether (USDT): Tether is a stable coin. USDT is pegged to the U.S. dollar, and its value is unaffected by the volatility of Bitcoin and other cryptocurrencies that are more prone to dramatic fluctuations.
- BNB: This is the cryptocurrency developed by Binance, one of the biggest crypto exchange platforms in the world. BNB is the crypto token that powers the BNB Chain ecosystem. As one of the world’s most popular utility tokens, not only can you trade BNB like any other cryptocurrency, you can also use BNB in a wide range of applications and use cases.
- USD coin (USDC): Another stable coin that maintains its value to the US dollar. This crypto asset does not experience sudden fluctuations like other cryptocurrencies that are not stable coins. Its market capitalization is $44 billion.
However, new investors should examine carefully the risks of trading cryptocurrency before making a financial investment without an abundance of information. Investors who are just beginning in cryptocurrency typically allocate investments to digital asset management companies as they learn the ropes of the industry. Croft Financial is the market leader in digital asset services, with a well-trained team on hand to assist you. You don’t need skills with digital asset trading to invest in their portfolio; they stringently select good investments for their clients.
Each of these cryptocurrencies has its own unique set of benefits and drawbacks, making them each a valuable investment option. Continued growth and advancements in the technology behind these cryptocurrencies will likely lead to even more innovative and exciting features.