Thousands of cryptos are there but all of them are not the same. Here in this post, we have disclosed the top 6 popular cryptos.
Many have heard that cryptos are digital currencies that are secured by cryptography. But how many types of cryptos are there? It is not just Ethereum and bitcoin making waves, there are plenteous cryptos that exist. In this post, we take a look at the top 6 cryptos and give you some knowledge about them.
What are the various kinds of cryptos?
While many cryptos share blockchain-based infrastructure, there are a few striking differences between them. Generally talking, cryptos can be clustered into two different categories that are tokens and coins.
Altcoins and coins
A coin is any crypto that makes use of its independent blockchain. For instance, bitcoin is considered a coin for the reason that it runs on its infrastructure. Likewise, Ether runs through the Ethereum blockchain.
The term Altcoin is used for referring to any coin other than BTC. Numerous altcoins run similarly to BTC. However, other cryptos like Dogecoin are different. Dogecoin for example provides a limitless supply of coins in comparison to BTC’s cap of 21 million coins.
Similar to coins, tokens are digital assets that can be purchased and sold. However, tokens are non-native assets. They use another blockchain infrastructure. These comprise Tether which is hosted on the ETH blockchain and others like Uniswap, Chainlink, and Polygon.
6 popular cryptos and how they work
1- BTC- Bitcoin
It was the first crypto that was launched in the year 2008 and remains the best kind of crypto. It works on its blockchain with verified transactions by a decentralized miner army. In the year 2022, BTC was the crypto with the biggest market cap of Billion US$896.
Also Read: 9 Most Popular Types of Cryptocurrencies
2- ETH- Ethereum
It is the crypto that runs in the Ethereum blockchain. Similar to BTC, it runs on its blockchain but unlike BTC it is unsealed which means that an infinite number of coins can be formed theoretically. ETH also supports smart contracts which are the program that operates on the ETH blockchain and are executed automatically when specific conditions are met.
3- BNB- Binance Coin
Binance coin is inherent to Binance, the world’s biggest crypto exchange as of the year 2021. The cost of transactions for this exchange is lessened for some users who choose to pay in BNB. This has motivated the acceptance of the Binance coin, making it the largest one in the market. To make sure that the value of this coin remains stable, Binance burns a fixed proportion of coins in circulation.
4- USDT- Tether
It is a kind of stablecoin that is crafted to have a very low volatile price by being connected to an outsider asset. In this situation, each coin is backed up by the equivalent figure of US dollars which keeps it from experiencing a similar kind of price volatility that other cryptos face. There is some argument about whether it is backed by the dollar.
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5- SOL- Solana
It is the native coin of the platform Solana that works on a blockchain system similar to BTC and ETH. Solana network can carry out a whopping 50,000 transactions each second, making it appealing to investors who are looking to trade faster.
It runs on the Ripple network which has been described as a bank for cryptos for the reason that it is tailor-made to meet the needs of the financial service world. Considered a medium to facilitate worldwide payments, this crypto acts in the form of a bridge between two various currencies to offer cheap, fast, and worldwide transactions.
There are many more cryptos out there. For you, it is worth putting some thought into understanding which tokens or coins are right to choose. Learning and then choosing the right thing that an investor should do.
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