Nobody could have foreseen the current state of the market when Bitcoin was originally introduced to the public. Bitcoin is now just one type of cryptocurrency. The crypto market has a value of more than one trillion. Every day, billions are exchanged, and there are countless uses for cryptocurrencies and blockchain technology.
It’s hard to ignore the cryptocurrency industry these days, even if you were able to resist giving in to the hoopla in the past. Now that it’s formally in the mainstream, it merits consideration.
“Businesses that get in there first with the right kinds of fintech firms and banks will be the ones that thrive long term as cryptocurrency and NFTs are only going to grow.” I believe that this year will see more of the appropriate use cases and justifications for using cryptocurrency as a payment mechanism, which many firms are still searching for.
What Separates an Altcoin From a Cryptocurrency?
As you research cryptocurrencies, you’ve probably heard the term “altcoins.” Given that several cryptocurrencies are referred to as “altcoins,” this could be confusing. Some people even argue that Bitcoin is the original. Altcoins are different types of coins.
In the end, they’re all still just digital currency. New coin kinds emerge as blockchain technology is expanded upon. Though they can all be constructed in different methods and serve different purposes, they are all crypto. For example:
currencies based on mining
Similar to Bitcoin, mining-based currencies rely on computer networks in order to be put into circulation. Environmentalists and others question whether the high energy requirements of this technique outweigh the benefits.
Coins with stablecoins
Stablecoins are correlated with other assets in order to mitigate the extreme volatility that characterizes the cryptocurrency market. Typically, the asset is a fiat money, like the US dollar. In this category, Tether and USD Coin are among the largest.
Memecoins
Even if you don’t know anything about Dogecoin and Shiba Inus, everyone has seen them. These are the coins that have memes as their brand, and because of their rather absurd nature, they become strangely popular. They are nonetheless useful despite their foolishness. Elon Musk of Tesla only needs to tweet once to give otherwise ridiculous-looking meme coins some substance.
Tokens for security
Security tokens are fractional interests in other assets that function something like a receipt. Security tokens that verify ownership could be used by businesses. It might also be used to confirm ownership of artwork. This kind of token, which is crypto-like and based on blockchain, has a lot of uses.
13 of the Most Popular Types Of Cryptocurrencies to Keep an Eye on in 2024
We’ve compiled a list of the most common crypto assets, along with their uses and reasons for popularity, taking into account both those that are currently in vogue and those that seem to be gaining popularity.
1. Bitcoin (BTC)
The most well-known cryptocurrency is still Bitcoin, which was the first one. By market capitalization, it is now the biggest cryptocurrency, having been founded in 2009.
Many refer to Bitcoin as “digital gold,” believing it to be a means of storing value. With a lengthy history of consistent growth, it is regarded as a smart investment. It is the cryptocurrency that most people value the most, despite the fact that this is not guaranteed. Consequently, its value keeps rising.
The most widely used cryptocurrency, comparable to fiat money, is bitcoin. Numerous stores take Bitcoin. Bitcoin is usable for a wide range of online transactions. As of right now, it is the preferred cryptocurrency for purchasing both digital and tangible products and services.
2. ETH
Since its creation in 2015, Ethereum has grown to rank as the second-largest cryptocurrency. It was created for a different purpose than Bitcoin, is significantly different from it, and is currently utilized for a wide range of intriguing decentralized applications (DApps).
Ethereum is a decentralized smart contract platform. These are programs that can be developed on top of the blockchain of Ethereum. These contracts are programs that operate precisely as intended, free from the risk of fraud or intervention from other parties.
Numerous possibilities are made possible by smart contracts, including financial and gaming applications. NFTs were first introduced to the blockchain on Ethereum. NFTs might be made, traded, and programmed in a number of intriguing ways using smart contracts, allowing for the creation of unique utilities or royalties for artists. Players can purchase tools and outfits using Ether and use them in the game thanks to these utilities.
3. Tether (USDT)
One stablecoin that is linked to the US dollar is called Tether. It is currently one of the most well-liked stablecoins and the third-largest cryptocurrency.
Tether is primarily used for “tethering,” or stabilizing, other cryptocurrencies. Investors frequently transfer their funds into USDT during periods of high cryptocurrency market volatility in order to minimize their losses. This facilitates buying cryptocurrency at cheap prices and selling it at high prices, helping to stabilize the market.
4. BNB
One of the most popular sites for purchasing, selling, and transferring cryptocurrencies is Binance, and BNB is its native token.
On the Binance platform, fees can be paid with BNB. Usually, these costs are less than what you would spend in another currency. On the Binance platform, it may also be used to purchase other cryptocurrencies.
5. The USD Binance Coin (BUSD)
Yet another stablecoin is Binance USD. It was developed by Binance and has a 1:1 US dollar backing.
It serves the same purpose as other stablecoins: stabilizing cryptocurrencies. It can be used to purchase other cryptocurrencies and pay fees on the Binance platform because it is from Binance.
6. Ripple (XRP)
The native token of the bank and financial institution payments network Ripple is called XRP. Banks and other financial organizations use Ripple, which was developed on its own blockchain technology known as XRP Ledger, to settle transactions fast and affordably.
Some of the biggest banks in the world have accepted XRP due to its beneficial use for financial organizations.
7. The Solana (SOL)
A blockchain system called Solana operates at a fast speed, handling thousands of transactions every second. Anatoly Yakovenko, a former Qualcomm Chief Technical Officer, launched it in 2017.
The speed of Solana is what makes it so appealing. Compared to other protocols like Ethereum, it can process transactions far more quickly. This makes it perfect for applications like gaming and video streaming that need to handle a large number of transactions very rapidly.
8. DOGE, or Dogecoin
In 2013, Dogecoin began as a joke. It is modeled by the Doge meme, which has a Shiba Inu as its focal point.
Though it might have started out as a joke, it has already developed into one of the most well-known cryptocurrencies. This is mostly because of its affordable cost, which enables everyone to use it.
It’s a coin for the people and has been sent to Kenya to fund the construction of water wells, among other charity endeavors.
9. MATIC Polygon
Polygon is an Ethereum “scalability solution.” Being a “layer 2” solution, it enhances Ethereum’s scalability by sitting on top of the platform.
“Sidechains” is one of Polygon’s primary features. Transactions can be processed using these distinct chains. This helps to increase the scalability of the Ethereum blockchain by down the load some of its workload.
Additionally, Polygon is developing “stake-mining,” a feature that would let users get compensated for staking their tokens on the network.
10. Shiba Inu (SHIB)
Another cryptocurrency that was developed in 2021 as a “joke coin” is called Shiba Inu. It is modeled after the Shiba Inu dog meme from Dogecoin.
Shiba Inu, on the other hand, has a $5 billion market capitalization, as opposed to Dogecoin’s $1 billion. This is due to the fact that it was made using the Ethereum blockchain, which permits “token cloning.”
It indicates that anyone can design their own Shiba Inu. As a result, the coin is currently available in more than 100 varient.
11. Tron (TRX)
In 2017, the decentralized entertainment protocol TRON was established. Its goal is to “decentralize the web” and make the internet more accessible.
TRON has developed a scalable blockchain of its own. Additionally, it has very speedy transaction processing.
TRON is developing a variety of initiatives, including the gaming platform TRON Arcade. Additionally, it is working on a project to decentralize the internet known as “Project Atlas.”
12. LTC, or Litecoin
A “fork” in Bitcoin is called Bitcoin Cash. This indicates that it is essentially a modified version of Bitcoin. The primary modification is the block size, which on Bitcoin Cash is eight times bigger. As a result, more transactions may be handled every second.
In addition, Bitcoin Cash uses a different mining algorithm than Bitcoin, making it more usable by miners without access to specialist hardware.
13. BCH, or Bitcoin Cash
A cryptocurrency called Litecoin was developed in 2011 as a “lightweight” variant of Bitcoin. It is distinct due to several advantages like enhanced storage efficiency and quicker transaction times.
A common usage for Litecoin is as a “testnet” for Bitcoin. This implies that before adding new features to Bitcoin, developers can test them on Litecoin. With a larger group of supporters than Bitcoin, it is one of the more established cryptocurrencies.
FAQs
What is the difference between Ethereum and Bitcoin?
The first cryptocurrency, known as Bitcoin, is used for transactions and is regarded as a store of value. Conversely, Ethereum serves as a decentralized platform for smart contract execution, offering a multitude of options such as Non-Fungible Tokens (NFTs) and decentralized applications (DApps).
What are the Stablecoins?
In order to lessen their sensitivity to market swings, stablecoins are cryptocurrencies that are linked to other assets, typically fiat money like the US dollar. Two well-known examples are USD Coin (USDC) and Tether (USDT).
What is Tether's (USDT) objective?
Stablecoin Tether is based on the US dollar and offers stability amongst market volatility. When the market is erratic, investors frequently transfer their funds into USDT to hedge against losses and contribute to market stabilization.
What is LTC, or Litecoin?
A lightweight variant of Bitcoin, Litecoin was developed in 2011 and promises quicker transaction times and more effective storage. It frequently serves as Bitcoin’s testnet, enabling developers to try out new features before bringing them to the main network.
What is BCH, or Bitcoin Cash?
A copy of Bitcoin with various modifications, most notably a bigger block size that permits more transactions to be processed per second, is known as Bitcoin Cash. It is also easier for miners without specialist equipment to access because it uses a different mining algorithm.