As more and more people and developers realize the potential of cryptocurrencies, there are now many choices if you decide to invest in a cryptocurrency. And simply put, the choices are challenging.
Different types of crypto have different potentials, advantages and disadvantages. With their blockchain, or built upon it, they might introduce benefits that are good for some and bad for others.
Nonetheless, there are some well-known and widely accepted cryptocurrencies that are great for beginners that are looking to participate in crypto investment. But first, let’s understand cryptocurrencies and then the different types of cryptocurrency.
Explaining cryptocurrencies trend
Cryptocurrencies have many advantages depending on their purpose and types of digital currency. But among all types of cryptocurrency, one common trait is its decentralized nature, which makes it a promising alternative to cash.
Compared to traditional money transfers, cryptocurrency transactions are speedy and inexpensive. A standard cryptocurrency transaction can take a few seconds to a few minutes, even globally. However, this speed can vary depending on the cryptocurrency that you use.
Moreover, you can log into your cryptocurrency exchange or wallet and make payments without worrying about any sizable fees on your transactions as long as you have an internet connection and a smartphone or laptop.
Along with decentralization, many people use cryptocurrencies to gain massive profits. They buy crypto at low prices and sell when their value increases, and the cycle continues resulting in profits that are almost too hard to believe.
These two are the main reasons, and many others, that help us understand why cryptocurrencies are so popular. Bitcoin was the first cryptocurrency that Satoshi Nakamoto launched more than ten years ago, and today its market cap sits at around $324 billion.
Bitcoin was worthless when it was first launched, but now a single bitcoin or BTC costs more than $16,000. There are many other cryptocurrencies whose values are also almost impossible to believe but more on this later in the blog so keep reading.
What are crypto assets?
Crypto assets are digital assets, but not all are crypto assets. Any asset that provides value is recognized publicly and uses cryptography is a crypto asset.
While crypto assets are primarily transferable, their functionalities can depend on the kinds of cryptocurrency. Crypto assets are stored electronically, and because of their decentralized nature, they are not regulated by the government.
Crypto assets include many examples such as NFTs, Cryptocurrencies including security tokens, coins, and much more. Most crypto assets can provide some value to their owner either in the long-term or short-term.
Crypto assets or cryptocurrencies, in general, are essential to some people, and they sometimes invest their life savings into it. Most benefits include transparency, privacy, security, and fast transaction speeds.
What Are Some Other Important Cryptocurrencies?
While two significant cryptocurrencies take the top 2 spots, some are forgotten and a thing of the past. Because cryptocurrencies’ value depends on supply and demand, this can sometimes lead to situations where a cryptocurrency’s value can skyrocket in seconds.
Tron TRX, Uniswap UNI, Avalanche AVAX, Chain Link LINK, and Wrapped Bitcoin WBTC (which runs on the Ethereum blockchain) are some new cryptocurrency to invest in or at least consider for an investment.
15 Most popular types of cryptocurrencies
Some people wonder what is the next bitcoin, and a few candidates show their potential. So here are the 15 most popular types of cryptocurrency and their value and market cap.
Considered the genesis cryptocurrency, Bitcoin is the first, most famous, and top cryptocurrency with a currency value of more than $17,000, a market cap of $331 billion, and nineteen million BTC in circulation.
Ethereum, or ETH, is the second most famous cryptocurrency, with a value of around $1,280 and a market cap value of $156 billion. There are currently more than 122 million ETH in circulation.
Tether or USDT is a stablecoin with its value pegged to be equivalent to 1 USD. Its market cap is around 65 billion US dollars, with more than 65 billion USDT in circulation.
Binance coin is the next big cryptocurrency. With its value hovering near two hundred USD and a market cap of 46 billion USD, some consider BNB the best cryptocurrency to invest today.
USD coin or USDC is a stablecoin. Its value is pegged to 1 USD and has a market cap of 46 billion USD. Currently has more than 42 billion USDC in circulation.
Binance USD is another stablecoin pegged to 1 USD with a market cap of around 22 billion USD and 22 billion BUSD in circulation.
XRP is a cryptocurrency valued at 0.386 USD and has a market cap of 19 billion USD. It is a new and upcoming cryptocurrency full of potential, with more than 50 billion XRP in circulation.
Dogecoin or DOGE is a meme coin, although its value has dropped significantly and currently is almost 1 USD. The market cap is more than 12 billion USD, and more than 132 billion DOGE are in circulation.
Cardano, or ADA, is a proof-of-stake blockchain platform. Cardano’s price is around 0.31 USD, with a market cap of more than 10 billion USD and more than 32 billion ADA in circulation.
Polygon MATIC is an Ethereum layer 2 scaling solution. MATIC’s price is around 0.9 USD, and its market cap is around 7 billion USD. Currently, more than 8 billion MATIC are in circulation.
Polkadot, or DOT, is an open-source multi-chain protocol that connects and secures blockchains. Its value is around 5 USD, with a market cap of more than 5 billion USD. Currently, there are more than 1 billion DOT in circulation.
DAI is a stablecoin built on the Ethereum blockchain. Its value is pegged to 1 USD. Dai has a market cap of more than 5 billion USD with 5 billion DAI in circulation.
Litecoin is a cryptocurrency that provides fast and secure transactions with low fees. Litecoin’s value is about 77 USD, with a market cap of more than 5 billion USD and 71 million LTC in circulation.
Solana banks of blockchain technology to provide decentralized finance solutions. Solana’s value is currently at 13 USD, with a market cap of about 5 billion USD. Currently has 92 billion TRX in circulation.
Cosmos ATOM is another cryptocurrency with a value of 9 USD and a market cap of 9 billion USD. Currently, there are 286 million ATOM in circulation.
Which crypto has the most potential?
The crypto market is highly volatile, and making predictions about which cryptocurrency is the best to invest in or has the most potential can change significantly in just a couple of hours.
However, Bitcoin, Ether, and more, that lie in the most popular cryptocurrencies list, are a good start. Take polygon MATIC, for example; it is a unique layer-two scaling solution, which makes it a perfect candidate for long-term investment.
How many types of cryptocurrency are there?
If we categorize, many types of cryptocurrencies include DeFi tokens, NFTs, Utility tokens, Security tokens, and more. The categorization of these cryptocurrencies depends on their applications or use cases. Every cryptocurrency is a type of cryptocurrency with its applications, benefits, and functionality.
The critical thing to remember is most cryptocurrencies are created as an alternative to cash. This is because cryptocurrencies do not require any regulation as they are decentralized and intangible, like cash. Therefore, some countries have banned the use of cryptocurrencies altogether.
Types of cryptocurrency coins
Cryptocurrency is an extensive term. Cryptocurrency coins are primarily used as an alternative to money, whereas crypto tokens are used to represent an asset or utility. Crypto coins can be mined and exist on their blockchains. Here are the two most common types of crypto coins.
Altcoins is a term that many crypto investors widely use. Altcoins are cryptocurrency coins or cryptocurrency tokens that are not bitcoin. Ether, Tether, and Polygon MATIC are solid examples of altcoins.
Stablecoins are cryptocurrency coins whose value is pegged to an external traditional asset class. Stablecoins aims to reduce price volatility by backing its value to a conventional asset. Tether USDT, USD coin USDC, and Binance USD BUSD are examples of stablecoins.
The various types of cryptocurrencies are on the surface. The breakthrough technologies underneath have so much more potential that is being developed and improved daily so that more applications can use them.
Cryptocurrencies have enabled opportunities around the world for many businesses and individuals. With it being future-proof, there is no doubt that cryptocurrencies are leading an exciting future full of potential, excitement, and profits.