Bitcoin has not only been a cryptocurrency that has set the trend and has been an active trendsetter. There are other type of cryptocurrencies available, but Bitcoin has also ushered in a wave of cryptocurrencies that are built on decentralized peer-to-peer networks. It has also become the de facto standard for cryptocurrencies, which has inspired an ever-growing multitude of followers.
Bitcoin is not only the only type of cryptocurrency that is available, but it is essential to look at the other type of cryptocurrencies and find out besides Bitcoin which cryptocurrency is doing the best. You will also get a fair idea of which crypto to invest in and other cryptocurrency-related information. So, without delay, let’s look at the top 10 cryptocurrencies you can consider the best cryptocurrency to trade. Let’s dive in!
What are Cryptocurrencies?
Before we give you a list of the best type of cryptocurrencies besides Bitcoin. You must know what cryptocurrency is. For the relatively new folks planning to invest in the Crypto market, you should know what cryptocurrency is.
A broadly defined cryptocurrency is virtual or digital money that takes the form of tokens or “coins.” Though some cryptocurrencies have set out into the world with credits or physical projects, most of them remain entirely intangible.
The word “Crypto” in cryptocurrency refers to complicated cryptography, allowing digital processing and transactions across decentralized systems. Apart from this feature, there is a common commitment to decentralization. Cryptocurrencies are developed as codes by the teams built into the mechanisms and for issuance (often, although not always, through a mining process) and other controls.
These cryptocurrencies are designed mainly to be free from government manipulation and control. Although cryptocurrency has become popular, this industry, which is cryptocurrency’s foundational aspect, has come under fire.
The cryptocurrencies modeled after Bitcoin are collectively known as altcoins and, in some cases, shitcoins. They have tried to present themselves as improved or modified versions of Bitcoins. Though these coins have impressive features and are not there in Bitcoin, that does not become a reason for Bitcoin’s security.
I know folks, you all are growing anxious to know about the type of cryptocurrencies, and without any more delay, let’s look at some of the types of cryptocurrencies. Are you all ready?
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Type of cryptocurrencies:
Tokens:
Before we briefly list the type of cryptocurrencies, you must know about the tokens. These are blockchain-based tokens meant to serve a different purpose than money. One of the examples could be a token issued as a part of an initial coin offering (ICO) representing a stake in a blockchain or decentralized finance (DeFi) project. When the tokens are linked to the company’s or the project’s value, they are also known as security tokens for securities like stocks, not safety).
The other token may have particular functions or use cases, and an example can be utility tokens where people are allowed to share their files across a decentralized network or Namecoin. It provides a decentralized Domain Name System (DNS) service for Internet addresses.
Hope you all have got a fair idea of the tokens and their functions.
Ethereum (ETH):
This is the 1st bitcoin and is one of the types of cryptocurrencies. It is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to be built and run without downtime, control, fraud, or interference from a third party.
The goal of Ethereum is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith. This goal makes the implications for those in some countries more compelling because of the lack of state infrastructure and identifications. They can benefit from accessing bank accounts, insurance, loans, or other financial products.
Ethereum was launched in 2015 and is at present, the second-largest digital currency by market capitalization after Bitcoin, although it lags behind the dominant cryptocurrency by a significant margin.
Tether (USDT):
Tether is the next bitcoin on the list of types of cryptocurrencies. It was one of the most popular and first of a so-called group called stablecoins— cryptocurrencies aiming to peg their market value to a currency or other external reference point to reduce volatility.
It was launched in 2014, and Tether describes itself as “a blockchain-enabled platform…to make it easier to use fiat currency digitally.” This cryptocurrency allows the utilization of a blockchain network and technologies that would enable transactions in traditional currencies while minimizing the volatility and complexity often associated with digital currencies. It was one of the best cryptos to invest in 2021, and it is trading with a market cap of $67.9 billion and a per-token value of $1.00.
USD Coin (USDC):
The next bitcoin comes on the list of types of cryptocurrencies. It is a stablecoin, and a USD coin pegs its price to the U.S. dollar using fiat- collateralized reserves, This means that it holds an amount of the fiat currency equal to the amount of USD coin in circulation.
It was launched in 2018 by the Centre Consortium of Circle and Coinbase. Because the Circle is based in the U.S., it is subject to regulation, making USD Coin a regulated stablecoin.
USD coin ranked fourth in the market cap and trading volume.
Binance Coin (BNB):
It is one of the types of cryptocurrencies that is a utility cryptocurrency that operates as a payment method for the fees that are associated with trading on the Binance Exchange. It is also the third-largest cryptocurrency by market capitalization.
Its blockchain is also the platform where Binance’s decentralized exchange operates. The Binance Exchange was founded by Changpeng Zhao and is one of the widest exchanges in the world based on trading volume.
Binance USD (BUSD):
This is one of the types of cryptocurrencies created by the cryptocurrency exchange Binance as a stablecoin pegged to the U.S. dollar.
This stablecoin was approved by the New York State Department of Financial Services; thus, it has been regulated. So, cryptocurrency investors or people looking to invest keep an out on Binance USD (BUSD). As of September 18, 2022, BUSD had a market cap of $20.5 billion and was trading at $1.00 per coin.
XRP:
This is one of the types of cryptocurrencies, and it is a native token for the XRP Ledger, and it was created as a payment system by Ripple in 2012.
The XRP Ledger uses a consensus mechanism called the XRP Ledger Consensus Protocol, which does not use proof of work or stake to seek consensus and validation. It sends the client’s applications, signs, and transactions to the ledger servers. The servers then compare the transactions and conclude that the transactions are by the candidates for entry into the ledger. After that, the servers send the transaction candidates to the validators, who work to agree that the servers have got the transaction right and record the ledger versions.
As of September 18, 2022, the XRP had a market cap of $19.6 billion and traded at around $0.39.
Cardano (ADA):
It is one of the types of cryptocurrencies created with a research-based approach by engineers, mathematicians, and cryptography experts. This project has been co-founded by Charles Hoskinson, one of the five initial founding members of Ethereum.
The Cardano team created a blockchain through extensive research and peer-reviewed research. The researchers behind this project have written over 120 papers on blockchain technology across various topics.
Cardon aims to develop the world financial operating system by establishing DeFi products similar to Ethereum’s and providing solutions for chain interoperability, voter fraud, and legal contract tracing, among other things. As of September 18, 2022, Cardano has the eighth-largest market capitalization at $15.9 billion, and one ADA traded for around $0.47.
Solana (SOL):
It is one of the types of cryptocurrencies, and Solana is a blockchain platform designed to support decentralized applications (dApps). It is also called an ‘Ethereum killer’ and performs many more transactions per second than Ethereum. Together Ethereum and Solana can utilize smart contacts essential to running cutting-edge applications, including decentralized finance (DeFi) and non-fungible tokens (NFTs).
Dogecoin (DOGE):
It is one of the types of cryptocurrencies, and it is seen as the original “memecoin,” which has caused a stir in the year 2021. This cryptocurrency uses an image of Shiba Inu, which is accepted by many major companies as a mode of payment.
Billy Markus and Jackson Palmer, two software engineers, in 2013 created Dogecoin. As of September 18, 2022, Dogecoin’s market capitalization was $7.9 billion, and one DOGE was valued at around $0.06, making it the 10th-largest cryptocurrency.
Polkadot:
This is one type of cryptocurrency that is a unique PoS cryptocurrency that aims at delivering interoperability among other blockchains. Polkadot’s core component is its relay chain, enabling the interoperability of varying networks.
Gavin Wood created Polkadot, he is another member of the core founders of the Ethereum project, and he also had differing opinions about the project’s future. As of Sep. 18, 2022, Polkadot had a market capitalization of roughly $7.5 billion, and one DOT traded for $6.78.
Conclusion:
This is all about the top 10 types of cryptocurrencies. Hope the article helped you get all the relevant information you needed.
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