Things You Should Know About These Top 10 Cryptocurrencies in Trend
Money, as we’ve known, has changed its form since the time one can remember. From printed fiat currency we’ve moved to the world of digital transactions that are completed in a fraction of seconds. And now, we’re gradually pivoting towards the era of cryptocurrencies.
Until the year 2009, cryptocurrencies were almost undiscovered. It was Bitcoin that first shot to fame, after which many others followed. And, today, you’d be living under a rock if you didn’t know what cryptocurrency is!
A cryptocurrency is a form of digital currency built over the high tech system of blockchain. What makes cryptocurrencies stand out is their decentralisation. This means that they do not rely on any central authority and are free from any kind of external regulation.
The demand for cryptos is increasingly growing. Besides, cryptocurrencies have earned a huge market for investments and speculation. But, before you buy your stakes in the world of cryptocurrencies, it’s crucial to understand their mechanism.
So, here is a list of the top 10 cryptocurrencies in trend and everything you need to know about them.
At present, Bitcoin is the most popular cryptocurrency. It is so much in demand that on an average 300,000 transactions occur in a day. Moreover, many companies and financial institutions accept Bitcoin as a mode of payment.
However, you must remember that Bitcoin is currently one of the most expensive cryptocurrencies. Besides, it is also extremely volatile and can pose technological risks. This means that if your system corrupts, you could lose all the Bitcoin that you possess.
Ethereum gives Bitcoin a great deal of competition and is increasingly gaining popularity. One of the reasons for its rise is that transactions on Ethereum are much faster than that of Bitcoin.
Ethereum’s blockchain mechanism acts as a superb platform for building apps. It also serves another function in making smart contracts besides acting as a store of value.
Also, Ethereum’s multi-functionality and high security give it an edge over others. But many upcoming cryptos are now giving it a competitive fight.
Cardano is based on a proof of stake mechanism, which means that it relies on peer review and support. In terms of market capitalisation, it is the fifth-largest. Cardano was built with the aim to solve problems and improve accessibility. It is also greener crypto, which means its environmental footprint is significantly lesser compared to its peers.
To sum up, Cardano relies on strong fundamentals. However, being relatively new, it is yet to find its fame subject to risks.
Like Bitcoin, Litecoin is open-sourced and decentralised. In fact, it was developed as a fork in Bitcoin. Thus, Litecoin is one of the oldest cryptocurrencies.
Litecoin transactions are faster to verify. So, it gives superior performance in comparison to Bitcoin. At the same time, it is also less expensive in terms of the average costs of transactions. An important thing to remember is that over the last few years, the growth of Litecoin hasn’t been as much as its peers. It is also facing dumping and a losing market share. Thus, its future cannot be predicted.
Tether is the third last cryptocurrency in terms of value. What makes it different is that Tether is a stable coin. This means that Tether is linked to real assets, improving its stability.
Its primary function is to convert traditional forms of money into digital forms. Backed by blockchain, Tether proclaims to be reliable and secure. Tether thus has the capability to replace traditional paper currency in the long run!
Polkadot is another platform that allows users to send tokens over the blockchain as well as communicate data. Through a system of high-level technologies, Polkadot connects private networks with public ones.
However, security has been an issue in the past, with hackers taking over millions of tokens. Thus, find out the latest details about improvisations in the system before you make your shot!
The token associated with the Binance exchange is known as Binance Coin. Binance Coin has seen exceptional growth over time and is now available on all big crypto exchanges.
It runs on its native blockchain and is easy to buy. If you hold Binance coins, you can get discounts on trading fees on Binance. At the same time, you receive returns as per the coin’s growth. However, there’s controversy regarding the centralisation of Binance Coin as it lies under the discretion of Binance.
Bitcoin Cash was developed to serve as peer-to-peer electronic cash. It came into existence from a fork of its parent, Bitcoin. Due to improvements, Bitcoin Cash allows more and faster transactions in a single block compared to Bitcoin.
While Bitcoin Cash has relatively low fees and ease of exchange, it is still far from its vision. There are many questions about its governance.
But this crypto aims for endless growth and potential in the future, which we can only know in time.
Ripple was specifically developed keeping in mind the needs of the finance industry. The crypto running on this network is called XRP. Ripple essentially serves as a facilitator to fulfil transactions across the world.
It is considered one of the most reliable and versatile networks. Many large financial institutions across the world have switched to Ripple for its convenience and low transaction fees.
However, there is a conflict with respect to Ripple’s decentralisation. Besides, a large amount of the mined coins are held in escrow which negatively impacts the value of this otherwise exceptional coin!
Dogecoin started off as a joke back in the days. It was never intended for this coin to serve any purpose. However, the prices of this coin have risen to surprisingly significant figures.
Before you consider Dogecoin, remember that there’s very little or almost no value that it holds. The prices are a function of pumping and speculation by big names such as Elon Musk. Thus, if you are up for the Doge, remember it’ll come with high volatility and an even more uncertain future!
How can Cryptos Be Valuable To Your Business?
Cryptocurrencies offer ease of fulfilment of large transactions. Thus, they can eliminate the need for third-party financial institutions while making payments. Additionally, they offer great liquidity and can serve as a great alternative to store assets.
Moreover, the demographic of institutions accepting cryptocurrencies is growing rapidly. This means that cryptocurrencies could replace global banking systems in the future. Thus, it is a good time to integrate your business with the latest technologies and be future-ready for the upcoming era of cryptos.
To launch a cryptocurrency-related business in the UAE, you need to get a crypto license in UAE. For that, you should register a company in the Dubai Multi-Commodity Centre (DMCC). With a Crypto License in the UAE, you will be able to offer crypto-currency based customer services and other business transactions.
Which One Should be Your Pick?
Cryptocurrencies serve more than just a store of value. Each crypto has its unique function that aims to solve real-world problems through blockchain. Since cryptocurrencies are a relatively new concept, they are subject to many kinds of risks.
Owing to high volatility, conservative investors are still very sceptical about the crypto market. So, if you wish to step into it, you must first understand all the fundamentals. It is important to know that cryptocurrencies aren’t yet fully regulated. Thus, make sure to check out local laws before you make a pick.
Weighing pros and cons, you must focus on the functionality of each crypto and its long term prospects. Finally, only invest your time and resources in those which will continue to add value in the future. And remember, time spent in research is always time well spent! If you wish to connect with experts to get personalised advice, reach out to us at Marqueway right now. We’ll make sure to help you out!