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Summary
- Besides Ethereum and Bitcoin, there are over 4000 cryptocurrencies, some of which have performed well in recent times and are worth examining.
- Litecoin, a decentralised peer-to-peer crypto, is currently trading at US$253.78 compared to this time last year, when it sat at US$45.
- Although far from its all-time high of US$3,721, the price of Bitcoin Cash has jumped by over 200% compared to its lowest price in 2020.
- Cardano is the first crypto to be based on solid research achieved through extensive experimentation and peer-reviewed research.
- After a market-wide crypto correction on Sunday saw the price of Binance drop, Binance Coin has rallied more than 20% as of 19 April.
- Tether has fallen to US$1.28 after being at US$1.30 before Sunday’s crypto market correction.
A cryptocurrency is a virtual currency that takes the form of a token or a “coin”. Besides the well-known crypto coins, which have taken off in recent times, namely Bitcoin and Ethereum – the former of which is now accessible on mainstream sites such as PayPal – the crypto space is awash with a plethora of lesser-known currencies that are worth mentioning.
Referred to as ‘altcoins’, these cryptocurrencies present themselves as modified versions of Bitcoins. There are more than 4000 cryptocurrencies in circulation and while many of them are obscure, outlined below are five ‘coins’, which are more relevant than the others as of today.
GOOD READ: Who Are the Crypto Billionaires of 2021?
Different Types of Cryptocurrencies (Source: © Olyazhe99 | Megapixl.com)
In this article, we’ll take you through five cryptocurrencies that are quite popular in the market.
Litecoin
Litecoin (LTC) is often referred to as ‘silver’ to Bitcoin’s ‘gold’ and is one of the more established altcoins. It is currently the sixth-largest digital currency behind Bitcoin.
Developed by MIT graduate Charlie Lee in 2011, Litecoin is a decentralised peer-to-peer cryptocurrency. Although quite similar to Bitcoin, it has a faster block generation rate. The crypto has a 4x processing time compared to Bitcoin and has a much lower transaction fee.
Litecoin (Source: © Mk1one | Megapixl.com)
Furthermore, Litecoin’s algorithm uses Scrypt, which can be decoded with consumer-grade CPUs, making it more appealing to miners than Bitcoin’s SHA-246 algorithm. However, these factors do not affect the coin’s overall value.
Litecoin’s current market cap is ~US$16.94 billion compared to Bitcoin’s US$1.033 trillion. Its current trading value is US$253.78 compared to this time last year, when it sat at US$45.
Bitcoin Cash
Bitcoin Cash (BCH) is one of the most popular forks created by Bitcoin in 2017 to resolve some of the dysfunctionality of Bitcoin as a result of its popularity. It is accepted in over 5000 locations worldwide and can be used for online payments and purchases.
The difference between Bitcoin and Bitcoin Cash is that the latter has larger blocks (32 MB), which allows more transaction to be processed, resulting in lower fees and faster processing times.
Bitcoin Cash (Source: © Panya85| Megapixl.com)
Its most popular proponent, Roger Ver, dubbed as ‘Bitcoin Jesus’, once tweeted that Bitcoin may replace gold and Bitcoin Cash may replace fiat.
Although Bitcoin Cash had an all-time high of US$3,721 over three years ago, the price of Bitcoin Cash has jumped by over 200% compared to its lowest price in 2020 and currently has a market cap of just under US$17 billion.
INTERESTING READ: Will Crypto Craze Subside Anytime Soon?
Cardano
Cardano (ADA) was started in 2015 by Jeremy Wood and Charles Hoskinson, one of the five founding members of Ethereum. Cardano is referred to as the third-generation crypto, in contrast to Bitcoin and Ethereum which are the first- and second-generation cryptocurrencies, respectively.
The standout characteristic of Cardano is that it is the first crypto to be based upon solid research achieved through extensive experimentation and peer-reviewed research. The extensive research forms the backbone of Cardano.
The Cardano Coin (Source: © Shahurin | Megapixl.com)
Moreover, its algorithm, Ouroboros, named after the ancient symbol of a dragon eating its own tail, is less energy consuming and more democratic.
Many experts believe Cardano will continue to go up in 2021.
Binance Coin
Binance Coin (BNB) is one of the few cryptocurrencies to reach its peak after 2017 and has achieved a consistent, albeit slow and upward trend since then. Binance has become one of the most risk-averse cryptocurrencies on the market in 2021.
After a market-wide crypto correction on Sunday saw the price of Binance drop, it has rallied more than 20% (as of 19 April).
Binance (Source: © Shahurin | Megapixl.com)
Binance operates as a payment method for fees associated with trading on the Binance Exchange, and its network uses a proof-of-stake consensus model, a type of consensus mechanism by which a cryptocurrency blockchain network achieves distributed consensus.
Binance Blockchain uses the Byzantine Fault Tolerance (BFT), which means it cannot be mined. The crypto was created by a company, setting it apart from its competitors which were created by tech developers. Although its consistent performance has won over some sceptics, its security issues have kept other investors wary.
DO READ: Cryptocurrency Exchange Binance Sues Forbes Over ‘False’ Article
Tether
Launched in 2014, Tether (USDT) is a stablecoin and the most stable of all cryptocurrencies because it’s tied to the US dollar with one dollar in the Federal Reserve Bank for every unit of Tether. It is a blockchain-enabled platform intended to enable the use of fiat currencies digitally. This allows users to make transactions from other cryptocurrencies back to the US dollar promptly.
Tether Cryptocurrency (Source: © Dt89lex | Megapixl.com)
Whereas other cryptocurrencies such as Bitcoin experience frequent periods of volatility, stablecoins aim to smooth out price fluctuations, thus making it a more attractive investment option for more cautious investors. It achieves this by allowing users to utilise a blockchain network to transact in traditional currencies while minimising the volatility often associated with other forms of digital currencies.
Tether has fallen to US$1.28 after being at US$1.30 before Sunday’s crypto market correction.
