In 2009, the digital world received a universal message, ‘You’ve got virtual cash’. The message meant an end to government interference in online transactions, the destruction of the last trade frontier, and the elimination of all intermediary organs. A brief history of cryptocurrencies and their current value will identify how much digital trading has evolved, and the impact of blockchain platforms.
The Internet has been the most pronounced medium of change, so, the birth of cryptocurrency was no nine-day wonder. After world markets turned into a highly policed vector with ever-extending government policies and instruments that exerted control, and created frontiers, restrictions, and limitations of the forex merchant accounts – it was time for innovation and trends that benefitted the global economy.
What is a Cryptocurrency?
You may already be using some form of crypto money, even if you never noticed. A cryptocurrency is an online or virtual money used instead of actual cash. Not all digital money exists in the same format. Some may be tokens used in accordance with the value of a company, known as security tokens, or simply a reward system unit for users’ services.
Digital money exists in three formats
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- Tokens: These virtual currencies exist as blockchain-based tokens and execute a different function other than money.
- Utility Crypto: Utiity tokens are used with a given platform to accomplish specific purposes, enabling the interaction of users on the platform.
- Meme coin: These virtual cryptos are coins that have their origin in social concepts. A well-known example is Dogecoin based on the dog theme, created as a satire in response to Bitcoin’s success.
When and How did Cryptocurrency Start?
In 2009 Bitcoin was launched by Satoshi Nakamoto as the first ever decentralized peer-to-peer platform. The platform was built on blockchain technology, making it very secure.
Founder: Satoshi Nakamoto. 2009
Market Reserve and Unit Price: One Bitcoin has a value of $16,682.40, and Bitcoins in circulation are $18.925 billion as of September 2022. Note that Bitcoin maintains a circulation cap of $21 billion.
Cryptocurrency Type and Benefits: Virtual Coin
- Resistant to censorship and seizure
- No permits are needed for trading
- Used to purchase any commodity as long as the vendor accepts Bitcoins
- The cheapest way to send remittance
Who can use Bitcoin? Since Bitcoin users do not require permission, it can be sent by anyone with an Internet connection.
Top Nine Most Popular Altcoin Cryptocurrencies
1) Ethereum (ETH): This platform is powered by blockchain technology that processes and validates transactions and documents the processed data. Although similar to Bitcoin, it lends its services to Web3, a decentralized platform for app development. Another notable difference with this platform is its use of Smart Contracts.
Founder: Vitalik Buterin, 2015
Market Reserve and Unit Price: Trades at $1,383 per ETH, reserve cap September 2022 was $169.5 billion
Cryptocurrency Type and Benefits: Coin
- Large decentralized financial apps marketplace
- Free apps for anyone worldwide
- Developers have a secure platform with zero downtime that is fraud-free
- Smart Contracts are used to convene agreements between developers and platforms.
Who can use Ethereum? This platform can be used by anyone desiring to make a transaction, by developers and coders, and by people seeking the use of a financial application.
2) Tether (USDT): Tether is the first of the stablecoin blockchain platforms. Stablecoin tries to control the volatility of cryptocurrencies by pegging its crypto with a tangible currency, in this case, it is pegged to the USD.
Founder: Tether Limited Inc., 2014
Market Reserve and Unit Price: Trading at $1.00 per USDT, the market reserve as of September 2022 is $67.9 billion.
Cryptocurrency Type and Benefits: Stablecoin
- Users can make transactions on a blockchain platform in local currency
- Faster exchange from cryptocurrency to tangible money
- The stable value of the USDT since it is backed by reserved assets
- Stablecoin has the same value as the USD
Who can use Tether? Anyone who wishes to make transactions, especially on Web3, can use this virtual currency.
3) USD Coin (USDC): This is another popular stablecoin and it is also pegged to the USD. Like Tether, it maintains a flat currency, that is, it maintains a reserve of the same amount of USD coins in circulation. However, since it is based in the US it is subjected to regulation and is one of the few regulated cryptocurrencies.
Founder: The Centre Consortium (Circle and Coinbase), 2018
Market Reserve and Unit Price: USDC trades at $1.00 per coin with a market reserve of $55 billion, as of September 2022.
Cryptocurrency Type and benefits: Stablecoin
- Pegged to the USD 1:1 ratio, giving it added stability
- Easy and non-documented transaction
- Store value in that it is backed by reserves
Who Can Use USD Coins? USD Coins may be useful to any surfer who wishes to process a transaction.
4) Binance Coin (BNB): Binance is a utility token cryptocurrency that is used to pay the fees of trading on the Binance Exchange. This decentralized exchange operates on the Binance blockchain platform. It is one of the most used forexes in the world.
Founder: Changpeng Zhoa,
Market Reserve and Unit Price: The BNB trades at $273.34 each and has a market reserve of $44.1 billion, as of September 2022.
Cryptocurrency Type and benefits: Utility token
- Access to one of the world’s largest exchange platforms
- Favored discount when used outside the Binance platform
- Can be used to pay for goods and services
Who Can Use Binance Coin? Binance Coin is mostly used to pay for services and exchange currencies.
5) Cardano (ADA): This is one of the most researched-based built blockchain platforms with its developers creating more than 120 papers. It is very similar to Ethereum but with plans to go beyond the Defi apps, delving into voter verification and legal contract tracing.
Founder: Charles Hoskinson, 2017
Market Reserve and Unit Price: An ADA is priced at $0.47, and it has a market reserve of $15.9 billion
Cryptocurrency Type and benefits: Utility Token
- Forms partnerships with academies and universities
- Access to hundreds of assets and decentralized apps
- Uses Smart Contracts
- The network thrives on perfection
Who Can Use Cardano? This is a platform that welcomes developers, coders, academics, and universities.
6) Ripple (XRP) is a cross-border remittance service that has been around for centuries. However, since the launch of cryptocurrency, it has entered a new phase of money transfer. You can benefit from the private transaction and remote work payments made without moving money. The system known as Hawala makes all arrangements between two banks and takes literally seconds to complete. There are no records or payment history. Several banks are now joining this system long used by Central Asian companies.
Founder: Chris Larsen
Market Reserve and Unit Price: An XRP is valued at $0.36 and has a market reserve of $19.3 Billion
Cryptocurrency Type and Benefits: Utility Token
- No records or payment history
- There is no movement of money
- It is fast, takes a matter of seconds
- The network thrives on privacy
Who Can Use Ripple? This is a platform that may be used by anyone who desires to send money, as long as your country is listed you may qualify. This is mostly used in Muslim countries.
7) Solana (SOL) is your best option for remote work payment. You can use this platform for establishing smart contracts. Most coders work remotely and sometimes never get to know their employer, however, with blockchain technology, smart contract grants irreversible protection to the webmaster.
Founder: Anatoly Yakovenko
Market Reserve and Unit Price: Solana is currently trading at $14.64 and has a market reserve of $11.9 billion
Cryptocurrency Type and Benefits: Utility Token
- Extremely fast, processing up to 50,000 TPS
- Dirt cheap, only $0.00025 per transaction
- Low bandwidth usage
- No waiting periods between transactions (Mempool)
Who Can Use Solana? This platform may be used by anyone, developers, businesses, and anyone in between. People seeking speed and cost reduction will find it ideal.
8) Dogecoin (DOGE) was started as an attempt to mock the launch of Bitcoin and other blockchain virtual money platforms. Shortly after launching, however, the coin elevated to a good performance, sold, and even became the 9th best-selling cryptocurrency, raising over $85 billion. You may use this platform for scripting, it is rather fast and delivers queries in 60 seconds, as opposed to Bitcoin which takes ten minutes.
Founder: Billy Markus and Jackson Palmer, 2013
Market Reserve and Unit Price: One DOGE trades at $0.7 and has a current market reserve of $7.9 billion
Cryptocurrency Type and Benefits: Memecoin
- Fast transaction processing, one new transaction per minute
- Efficient transaction processing
- Fast-growing community of users and supporters
- No DOGE purchasing cap, investors can buy as many as they like
Who Can Use Dogecoin? Most companies use this platform to process payments, and stores such as the Dallas Mavericks are already processing payments with Dogecoin.
9) Polkadot (DOT): This may be your coolest crypto meme platform, it allows for cross-platform transactions. It makes it possible for multiple platforms to function as a single unit. This way you can work as a coder in Solana and trade on Binance without needing to open accounts on all platforms.
Founder: Gavin Wood, 2020
Market Reserve and Unit Price: One DOT trades at $6.78 and it has a market reserve of $7.5 billion
Cryptocurrency Type and Benefits: Meme Coin, Token
- Easily process transactions on multiple platforms
- Developers can create dApps and blockchain
- Shared security allows developers to protect their app
- The network thrives on privacy
Who Can Use Polkadot? Most developers who strive to create dApps across multiple blockchain platforms, or who desire to create their own blockchain, are the ideal users of Polkadot.
The growth of cryptocurrencies over the last two decades has changed the way businesses, developers, and investors interact and secure their interests. Transactions are faster, safer, and unchangeable.
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FAQS
What is meant by blockchain?
Blockchain is a computed ledger created to eliminate hacking, establish an unchangeable record, and prevent cheating the system.
What are Smart Contracts?
These are development agreements between a blockchain platform and a coder, that are written within the code of the software or application. Smart contracts are irreversible agreements and are part of the software code.
Smart contracts permit easy resolution of disputes, the establishment of agreements without third parties, and trusted transactions.
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References
Conway, L. (2021, June 1). The 10 most important cryptocurrencies other than bitcoin? Investopedia. https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/
Kagan, J. (2019). How Hawala Works. Investopedia. https://www.investopedia.com/terms/h/hawala.asp
Lielacher, A. (2021, January 5). Brave New Coin. Bravenewcoin.com. https://bravenewcoin.com/insights/10-awesome-uses-of-cryptocurrency
O’Driscoll, A. (2018, April 18). How to buy and pay with bitcoin anonymously. Comparitech. https://www.comparitech.com/crypto/buy-pay-with-bitcoin-anonymously/
Wikipedia Contributors. (2019, March 18). Bitcoin. Wikipedia; Wikimedia Foundation. https://en.wikipedia.org/wiki/Bitcoin
This is a very informative post for those who are new to the world of cryptocurrencies. Especially, the part “who can use which cryptocurrency” is very handy and new to me. It will be good to list out the genuine exchanges from where the cryptocurrencies can be bought. Do cryptocurrency investments provide a guaranteed return?