The field of cryptocurrencies has grown tremendously since the launch of Bitcoin over a decade ago. From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies out there which can make it overwhelming when you are new to the world of cryptocurrencies.
To help you find your way, here are the 10 types of cryptocurrency based on their market capitalization.
Market cap: $1.09 trillion
Bitcoin (BTC) is the original cryptocurrency created by Satoshi Nakamoto in 2009. Bitcoin has not only been a trendsetter, ushering in a wave of cryptocurrencies built on a decentralized network of peers but has become the de facto standard for cryptocurrencies, inspiring an ever-growing legion of followers and spin-offs. Bitcoin is kept secure and safe from fraudsters.
Market cap: $551.75 billion
Ethereum is a decentralized software platform that allows you to create and run smart contracts and decentralized applications (DApps) without any downtime, fraud, control, or third-party interference. Ethereum’s goal is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or religion.
Binance Coin (BNB)
Market cap: $106.05 billion
Binance Coin is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. It is the third-largest cryptocurrency by market capitalization. Since its launch in 2017, Binance Coin has grown in the past simply by facilitating trading on the Binance exchange platform. It can now be used for commerce, payment processing, or even travel booking. It can also be traded or traded for other forms of cryptocurrency, such as Ethereum or Bitcoin.
Market cap: $73.60 billion
Tether is a stablecoin, which means it’s backed by fiat currencies such as the US dollar and the euro. The system makes it easier for users to make transfers from other cryptocurrencies to U. dollars in a faster way than converting them to regular currency. Launched in 2014, Tether describes itself as “a blockchain-enabled platform designed to facilitate the digital use of fiat currencies.
Market cap: $68.50 billion
Launched in 2020, Solana is developed to support the uses of decentralized finance (DeFi), decentralized applications (DApps), and smart contracts. Solana operates on a unique hybrid proof of stake and proof of history mechanism that allows transactions to be processed quickly and in complete safety.
Market cap: $53.567 billion
Cardano is notable for its early embrace of proof-of-stake validation. It was created with a research-based approach by engineers, mathematicians, and cryptography experts. Cardano aims to be the world’s financial operating system by establishing decentralized financial products similar to Ethereum as well as providing solutions for chain interoperability, voter fraud, and legal contract tracing, among other things.
Market cap: $46.47 billion
XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger—an open-source, permissionless, and decentralized blockchain technology that can settle transactions in 3-5 seconds. XRP can be sent directly without needing a central intermediary, making it a convenient instrument in bridging two different currencies quickly and efficiently. XRP was created by some of the same founders of Ripple.
U.S. Dollar Coin (USDC)
Market cap: $38.81 billion
USD Coin (USDC) is a type of cryptocurrency that is referred to as a stablecoin. You can always redeem 1 USD Coin for US$1.00, giving it a stable price.USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.
Market cap: $36.3 billion
Polkadot is a unique proof-of-stake cryptocurrency that aims to ensure interoperability between other blockchains. Polkadot provides transactional scalability by spreading transactions across multiple parallel blockchains. Polkadot was created by Gavin Wood, another member of the main founders of the Ethereum project.
Market cap: $27.333 billion
Famously started as a joke in 2013, Dogecoin rapidly became a prominent cryptocurrency option. The coin, which uses an image of the Shiba Inu as its avatar, is accepted as a form of payment by some major companies including the Dallas Mavericks, Kronos, and, perhaps most notably, SpaceX, an American aerospace manufacturer owned by Elon Musk.
Unlike many other cryptocurrencies, such as Bitcoin, there is no limit to the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as the supply increases.
By Nov. 30, 2021, its price was at $0.22—an almost 110,000% increase, making it the tenth-largest cryptocurrency.
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