Cryptocurrency is digital money that has no physical manifestation. They use blockchain technology to secure and validate transactions. The unit of account for cryptocurrency is a coin or token.We can say that cryptocurrency is a full-fledged alternative to traditional money that operates on a different level and paradigm.
- How does cryptos work?
- Why are there so many crypto coins?
- How to buy cryptos
- How do I invest in cryptocurrency?
- TOP 14 cryptocurrencies
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
- Binance Coin (BNB)
- Ripple (XRP)
- Cardano (ADA)
- Binance USD (BUSD)
- Solana (SOL)
- Polkadot (DOT)
- Dogecoin (DOGE)
- TRON (TRX)
- Toncoin (TON)
- Chainlink (LINK)
- How is cryptocurrency trading different from stock trading?
- Are there cryptocurrency exchange traded funds (ETFs)?
- What are altcoins?
- Why is Bitcoin valuable?
- Why are cryptocurrencies important?
- What are the top cryptocurrencies by market cap?
- Are cryptocurrencies a good investment?
How does cryptos work?It all starts with the blockchain. We mentioned it above.
So if you want to send cryptocurrency to another person, you make a special entry in this ledger. Then a network of computers checks the record to make sure you actually have the money. And if everything checks out, the record is added to the blockchain. To make this all work, the network full of PCs solves complex mathematical problems.But we'll talk about those problems another time, because that's a topic for a full and lengthy article.
A blockchain is a chain of blocks, with each block containing transaction information. You can think of it as a ledger that records how much cryptocurrency each person has. But importantly, no one can just take the entries in this ledger and tamper with them because it's protected by cryptography.
Why are there so many crypto coins?Because there is a demand for them! The fact is that each of the cryptocurrencies solves some specific range of tasks. Well, or offers unique chips that are not available in others.
How to buy cryptosThis can be done on any cryptocurrency exchange. For example, on Binance.
How do I invest in cryptocurrency?The same way as any other asset. The main difference is the instrument itself. In this case, it is cryptocurrency - not bonds and stocks.
TOP 14 cryptocurrenciesLet's face it: there are many cryptocurrencies. In addition, new entrants appear from time to time. Some of them are frankly bad one-dayers, and some of them bring something fundamentally new to the industry and are generally not a bad investment tool.
In order not to get lost in all this diversity, we have compiled this rank crypto for you.Let us say right away that this is not a listing of assets in order from best to worst. Rather, it is just a selection of interesting and promising tokens. Let's not waste a minute more.
Bitcoin (BTC)Bitcoin is the king of the cryptocurrency world. We don't think anyone will argue with that.Yes, it has certain security issues. For example, it's a completely non-anonymous currency, because all the transactions can be seen in the blockchain, and then linked to a wallet, and the owners can be found.
Anyway, bitcoin is still the largest cryptocurrency. It ranks first in market capitalization (but not in trading volume, although we will come back to that later). Bitcoin is expected to become an even more sustainable crypto coin by 2024, thanks to improved overall transaction speeds and lower fees. And yes, just think of the recent and sudden surge that occurred in December 2023!
But you know, that's a problem with a lot of cryptocurrencies in general. It's just that it's most pronounced in the case of BTC (mainly because of its monster capitalization and popularity).
Ethereum (ETH)ETH is the second largest cryptocurrency in the world. But it is far from being a copy of bitcoin. Vitalik Buterin (the creator of the Ethereum network) went much further and bet on the use of the most advanced technologies. For example, smart contracts. We can safely say that thanks to Ethereum such a thing appeared at all.Now Ethereum has an extremely dynamic ecosystem of decentralized applications, including financial services, NFT trading platforms, publishing platforms, cryptocurrency exchanges and much more. It's simply a great place to invest!
Definetly one of the best world crypto.
ETH is a native blockchain asset, giving users an incentive to secure the network. The Ethereum network originally ran on a proof-of-work consensus mechanism, but will switch to proof-of-stake in September 2022.
Tether (USDT)USDT refers to stablecoins. These are cryptocurrencies pegged to a fiat currency. In this case, to the dollar at a 1:1 ratio. Unlike regular cryptocurrencies, the price of USDT is not subject to volatility.Remember how we said that bitcoin is not the first currency in the world in terms of trading volume? That's because it's being overtaken by Tether. In fact, so are all other cryptocurrencies. We can safely say that it is also the most popular. And that means something.
USD Coin (USDC)USDC is similar to USDT as two drops of water. Not without nuances, of course.
In any case, USDC, like USDT, is a stable, fiat currency-based coin that maintains a 1:1 peg to the U.S. dollar.Unlike Tether, USDC shows transparent proof of its cash reserves (for reference, USDT doesn't disclose where its funds are held, and while this is not a big issue for us, it may still confuse some users).
Binance Coin (BNB)In terms of daily trading volume, Binance is the largest cryptocurrency exchange in the world. Its own BNB coin regularly ranks among the top five currencies and tokens. It is an ERC-20 token and can be used for a variety of payment methods, including services directly from the Binance exchange.We can even say that BNB is one of the best options if you are not too interested in the cryptocurrency industry as such, but you just feel comfortable paying tokens for different goods and services. It was this flexibility that led us to include Binance's native coin in today's selection.
Ripple (XRP)Unlike other cryptocurrencies, transfers in Ripple are virtually instantaneous. In fact, it's even faster than SOL, but we'll get to that later.
Ripple Labs. In case you're wondering, they hold about 60% of the total - that's about 60 billion.
A key difference from many other assets is that the number of XRP (the native coin of the ecosystem) was initially limited. There are 100 billion in total. This number is maintained without mining, and most of the tokens belong to the company that actually created this crypto project.
Cardano (ADA)ADA is a native cryptocurrency of the Cardano blockchain. It is used to pay transaction fees. It is worth noting that they are quite high here - from 0.15 to 0.18 US dollars.But this altcoin does not bribe with it at all. It is quite obvious. And the fact is that in December the price rose from 0.5 USD to a 17-month high of almost 0.7 (!!!) USD. And from the looks of it, this trend is going to continue - even despite a brief but not too serious pullback. So this is a cool reason to invest!
Binance USD (BUSD)Another stablecoin on our list. It differs from its two brothers in that it is 100% fiat backed. Strictly speaking, it is cash in the bank. Yes, other stablecoins follow the same idea (in general), but Tether has had some conflicts in the past, and addresses with USDC were blocked after the "Tornado Cash case".
Therefore, BUSD is the most stable and transparent option.Its market capitalization is good as well as the number of daily trades. The former is 1.21 billion USD and the latter is almost 28 million USD.
Solana (SOL)Solana is a high throughput blockchain based on Proof-of-History (PoH) and Proof-of-Stake (PoS). Created by a team of network engineers, Solana presents itself to the world as an organized structure for modern applications.Its native coin is SOL. It performs quite well and will continue to do so in 2024. Perhaps the most important feature of SOL is that its native platform allows it to process an impressive number of transactions per second. We're talking about 50,000 of them! If you can't tolerate delays, SOL is definitely your option.
Polkadot (DOT)Polkadot is a young, powerful cryptocurrency. Many experts agree that DOT is a very, very promising currency in 2024.
There is a main chain as well as several independent parachains with their own tokens, and this is the local killer feature that allowed it to enter our top.
And their opinion, we believe, can be considered justified. Since its launch in 2020, this asset has grown exponentially. The system has multiple blockchains, which makes the network more flexible and scalable.
Dogecoin (DOGE)Dogecoin was originally a memecoin. Even its developers did not believe in its success. DOGE was launched in 2013, and in 2015 one of the co-owners completely sold all his assets. In the same year, the other one left. He said that a "long vacation" was waiting for him.But the cryptocurrency did not give up and grew from a joke to something serious with a good capitalization and trading volume. In many ways, it was helped by the not-so-famous multi-billionaire Ilon Musk - one of the richest people on the planet. In 2021, he started writing fascinating (but still humorous) posts about the future of this cryptocurrency.
And that's when the value of DOGE skyrocketed. Yes, this is the reality we live in.As for the coin itself, many experts believe that it will grow up to $0.17 in 2024 (with an average price of $0.14), so it's not a bad choice for investment, which is why it deserves a place in our ranking crypto.
TRON (TRX)TRON is a crypto project that develops a decentralized ecosystem and tools to work with Web3. The most interesting thing about it is that users can earn by hosting DApps and entertainment content in the ecosystem for free. It is an open source project based on a rather unusual consensus algorithm - DPoS.TRX is the native coin of the project. It is used to conduct transactions in the ecosystem and to pay rewards. For example, developers of DApps can earn coins for placing their applications in the TRON ecosystem and making money with them.
Why did we decide to include this cryptocurrency in our review? Yes, because it shows exceptional stability. It was able to survive the cryptocurrency winter of 2022 and investors' interest in it is not waning, which is a good reason to consider it as a liquid investment instrument.
And TRX is also needed to pay network fees - transferring cryptocurrency between wallets is very cheap. It's only in the neighborhood of $0.000005.
Toncoin (TON)Toncoin is a fully decentralized project developed by Telegram to attract billions of users. It boasts ultra-fast transactions, tiny fees, easy-to-use applications and eco-friendliness.The native coin of the whole network is TON. It is one of the top ten cryptocurrencies by market capitalization and is very tightly integrated with all Telegram services. It is a good choice if you use this messenger often.
Chainlink (LINK)A very, very popular cryptocurrency. It can even be called the leader of 2023 in terms of growth rates - it overtook bitcoin by a significant margin. In just one month, this token has increased in value by 55%. Chainlink is a service for sharing data from a network of "distributed oracles."
LINK is a very promising currency because, as we said, it is supposed to be a link between smart contracts and real data. This is the reason why this token is growing and will continue to grow for the foreseeable future. Our list of coins has come to an end. Which top coins do you agree with and which do you disagree with? Let us know in the comments!
What are these oracles? Strictly speaking, they are lines of code that provide information for smart contracts and act as a link between other crypto projects. This is the most important feature of Chainlink. Oh yes, it also doesn't have its own blockchain and is powered by EVM.
How is cryptocurrency trading different from stock trading?In general, there is almost no difference. The only difference is the subject of trading.
Are there cryptocurrency exchange traded funds (ETFs)?Yes, of course there are! This is one of the most important investment vehicles.
What are altcoins?Altcoin is any cryptocurrency issued after bitcoin.
Why is Bitcoin valuable?
- First, because of its limited issuance.
- Second, because it is scarce.
- Third, because it is the world's first (true) cryptocurrency.
- Fourth, because of its prosaic creation story and the personality behind the pseudonym "Satoshi Nakamoto".
Why are cryptocurrencies important?Because they offer a very convenient and unusual alternative to fiat currencies.
What are the top cryptocurrencies by market cap?That would be BTC, ETH, USDT, BNB, XRP, SOL, USDC, ADA, DOGE and others. In fact, all the ones we have touched on in today's article.
Are cryptocurrencies a good investment?Yes! But they are considered a high-risk investment. For the most part, they are intended for professionals who have a good understanding of how the local market works, actively follow the news in the world and are ready for financial losses if their idea is not successful.