The world of cryptocurrency is largely diverse.
There are some barriers to overcome.
Anyone with an understanding of blockchain technology will be able to create their own crypto if they wish to do so.
Currently, over 1600 cryptocurrencies are listed on main and specialist crypto exchanges.
The most famous way of making money is through crypto trading.
But it is highly risky because it involves too much volatility.
However, there is huge potential growth in the crypto market. So there are many effective methods of making profits using cryptocurrency.
From the beginning of the phenomenon of cryptocurrency, Bitcoin and Ether have been the two most famous cryptocurrencies.
Ripple XRP has become a part of the top 3 cryptocurrencies.
It even exceeded the market capitalization of Ethereum in 2018 becoming one of the most popular cryptocurrencies.
Apart from this and Bitcoin or Ethereum, there are many popular cryptos.
But they are gaining popularity slowly. Read along to become aware of the cryptocurrencies that are traded mostly worldwide.
Bitcoin
- With the launch of Bitcoin in 2009, the movement of cryptocurrency began.
- It was placed forward as the alternative to the fiat currency system.
- It was argued by the inventor of Bitcoin that central banks and some financial institutions controlled the fiat currency system. It caused the centralization of power and wealth. Thus financial and social mobility became challenging.
- Normal people’s savings got eroded via inflation mainly because of the money printing of central banks.
- This problem was solved by Bitcoin. It fixed the total units that got issued thus stopping inflation due to money printing.
- The blockchain technology of Bitcoin meant it never required financial institutions for facilitating transactions or verifying ownership.
- It is still the most well-known crypto.
- The price movement of Bitcoin comes with a strong effect on the remaining market of cryptocurrency.
Ethereum:
- It is quite different compared to Bitcoin and is a very popular crypto.
- The smart contract is the platform for blockchain.
- From Ethereum various apps such as decentralized apps can be formed.
- This original blockchain is seen to retain its spot as the highly utilized one even when more contract platforms are launched.
- As Bitcoin is considered to be a conventional fiat currencies’ alternative, Ether’s purpose other than being traded like an asset is paying for the Ethereum platform’s usage. This is called utility cryptocurrency.
Ripple XRP:
- It is a popular utility coin.
- The blockchain platform of Ripple XRP is created for facilitating fiat currency’s cross-border transfer efficiently.
- From the start, it is connected closely and backed by many banks.
- It is known to be the establishment of crypto.
- The transfer services making use of the platform of Ripple have grown gradually in the last few years.
- It is genuinely possible that Ripple XRP will be becoming the conventional financial system’s part.
Dogecoin:
- This crypto has grabbed a lot of attention because of the hype created by some billionaires and celebrities.
- It began in 2013 but now it is a leading option of crypto.
- No limitation is there on the total number of this cryptocurrency that may be created, unlike other cryptocurrencies.
- So as supply will increase, it remains devaluation susceptible.
- In 2017 its price was $0.0002 and it was $0.20 by 30th September 2021. It saw an increase of 101,800 %.
Litecoin:
- It is another perspective alternative to traditional fiat currency.
- It is a major Bitcoin rival.
- The creators of this cryptocurrency believe that it will eventually get used for making payments for daily services or goods.
- It is a highly practical and also technologically superior Bitcoin alternative.
- You can perform all transactions of Litecoin by the network of P2P much faster compared to Bitcoin transactions.
- It makes this digital currency more alluring for merchants.
- However, real-life transactions are still limited hugely.
- The highly established brand of Bitcoin keeps Litecoin first as the best alternative to fiat currency.
Conclusion
The market of cryptocurrency is growing each day.
People who are thinking of investing in digital currencies should always put that much money that they can afford to lose.
Volatility is intense and cryptocurrency assets are significantly fluctuating daily.
Individual investors will be able to trade against sophisticated ones and make it an anxious experience for beginners.
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