Is it Bitcoin, Ethereum, or Dogecoin? Your guide to major crypto names

Bitcoin and its many peers have surged to new levels of popularity over the past year, but they’re still a mystery to many investors. With new “coins” cropping up all the time, it’s hard to keep track of what’s worth paying attention to and what might not be here to stay. Meanwhile, major companies are jumping on the bandwagon: Tesla announced earlier this year that customers may buy vehicles with bitcoin. Digital payment platform Square (SQ) and PayPal (PYPL), which also owns transfer app Venmo now also allow customers to use cryptos.

According to CoinMarketCap, Bitcoin, Ethereum, Binance Coin, XRP, and Tether are the largest cryptocurrencies in the world with their market capitalization of US dollars.

Its market caps vary from over one trillion dollars to about 50 billion dollars. But that does not tell us how they function and how precious the individual coins can be in a wider sense.

This is your guide to today’s largest digital currencies.

Bitcoin (BTC)

With a price limit of more than $1 trillion, Bitcoin is the largest and most known fish in crypto-sea.

Digital currency was created anonymously in 2009 using blockchain technology, which has become another term in the last decade. The blockchain is essentially a decentralized leader framework in which transaction records are recorded. This is a major difference between Bitcoin, which is regulated by central banks, and conventional fiat currencies like the US dollar or the euro.
This month Bitcoin achieved the most valuable crystallization record of $63,000 per unit.

Bitcoin (BTC)

A label that was traditionally used for safe haven investment such as gold and that the digital currency is a good investment to protect itself against inflation, many bitcoin bulls call it a store of value.

It’s also vulnerable to wild value fluctuations, so that risk-free investors cannot choose best. Only a few days after this month’s peak, it suffered a flash crash and fell by about 14% in less than an hour.

The finite number — 21 million — of coins to be made determines part of the Bitcoin value. Not all coins are in circulation, and bitcoin ‘miners’ use computers to solve complex puzzles in order to construct the new chain ‘block.’ This phase is rewarded with Bitcoin, although the reward halves are mined for every 210,000 blocks. In the past, these “halving” events have caused bitcoin price instability.

The mining method consumes a lot of electricity and processing energy, resulting in questions about the environmental effects of Bitcoin.

Ethereum (ETH)

Ethereum is a blockchain-based open-source platform that has its own Ether cryptocurrency. With a market limit of almost $300 billion, it is the second-largest digital currency.
The program was designed to extend the usage of blockchain beyond bitcoins and to use it more than a cryptocurrency in broader applications.
Ether supply is not restricted, and a similar mining procedure creates new tokens continuously. According to data from CoinDesk, it has reached an all-time high of more than $2,500.

In 2015, Ethereum was started.

Binance Coin (BNB)

Binance Coin is a little different, the third-largest crypto with a market capital of almost $90 billion.

The Bank Exchange has developed Binances Coin, or BNB tokens to pay the fees on its website, and is the major cryptocurrency platform via the amount traded.

It has a top limit of 200 million tokens, but daily tokens are lost — or burnt — for a reduction in the overall supply and stabilization over time.
Another difference of Binance Coin is that it can only be traded with other cryptocurrencies.

Recently, in the late years of Trump’s administration, Binance hired Brian Brooks, acting Head of the Office of the Currency Comptroller, to head its American operation.

Ripple (XRP)

The Ripple payment network is the digital currency of XRP. Ripple does not need to be traded for another currency – either digital or otherwise. This means that users can pay someone in bitcoin without Bitcoin, simply by using XRP as the crossover between their currency and the currency in which they choose to pay. It is therefore a very fast payment method.
Banks have also taken part: Ripple is a partner of banks (BAC), Bank of America (BCDRF) and PNC Financial Services (PNC).

XRP does not also operate on a blockchain but on a HashTree data structure that differs from other digital currencies. The total number of coins cannot be mined and is 100 billion.
The unit cost per XRP token is, despite the limited availability, still very low and the all-time high is $3.40. Its market value exceeds just 60 billion dollars.

In December 2020, Ripple, its Chief Executive Officer and its Chairman were sued by the United States Securities and Exchange Commission on suspected fraudulent sales of securities valued at $1,3 billion. The idea of the lawsuit was dismissed by Ripple CEO Bradley Garlinghouse and called in December “an attack on the crypt at large.”

Their response reminds us that in cryptos there is still a great deal of regulatory ambiguity, which may be volatile in the years to come as policymakers and institutions find out what to do.

Tether (USDT)

Together, with a market value of almost $50 billion, completes the top five digital currencies.

This is an example of a ‘stablecoin,’ since it is linked to the US dollar. This makes Tether relative stable in comparison to other, very volatile, cryptocurrencies. The value of each token was set at $1 when it was first established in 2014.

According to data from CoinDesk, Tether’s all-time high was $1.32.

Dogecoin (DOGE)

Dogecoin began as a joke with a viral dog meme in 2013. Its market cap rose briefly to over $40 billion and competed with Tether in the list of the biggest cryptographs for position number 5. These are days. These are times.

The popularity and value of the digital currency increased over the last year as bitcoin’s value rose and Tesla CEO Elon Musk tweeted over and over again. According to data from CoinDesk, this year alone its value has increased by over 7,800 percent. In April, it also gained a brief overtake of XRP as the fourth-largest cryptocurrency.

It is also popular with Reddit users, whose notorious position was played by retail investors as gaming dealer GameStop’s shares increased and decreased (GME).

In mid-April Dogecoin reached an all-time high of $0.43. Okay, the currency is still really cheap.

129 billion coins are currently in circulation, and new coins are available to me annually. This holds each coin’s value relatively low – in particular when compared to bitcoin, a scarce resource compared to that.

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