When it comes to cryptocurrency, people immediately think of Bitcoin. Stop! Keep the reins in your head as there are various other virtual currencies expanding in the digital age.
The cryptocurrencies became known dramatically after Bitcoin was introduced over a decade ago. Bitcoin continues to lead the way with a market cap of $ 1.08 trillion.
Before going any further, you need to understand what cryptocurrency is and how it works.
According to Investopedia, a cryptocurrency is in the broadest sense virtual or digital money that is in the form of tokens or “coins”. While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the vast majority remain completely immaterial.
The “crypto” in cryptocurrencies refers to a complicated cryptography that enables the creation and processing of digital currencies and their transactions across decentralized systems.
These cryptocurrencies are free from the rules and regulations set by governments.
After Bitcoin, it is the second largest cryptocurrency by market capitalization at $ 376 billion. The official website defined it as “the world’s programmable blockchain”.
Ethereum builds on Bitcoin’s innovation, with some major differences. Both let you use digital money without payment providers or banks. However, Ethereum is programmable, so you can use it on a wide variety of digital assets as well – even Bitcoin!
Ethereum was first proposed in 2013 by programmer Vitalik Buterin. Aether pre-sale began in 2014 and went live on July 30, 2015 with an initial shipment of 72 million coins.
In 2016, the company was also attacked by hackers when unknown hackers stole $ 50 million worth of ether. However, it managed to rebound and now it ranks second only to Bitcoin in terms of market cap.
This digital currency was introduced in 2011 by Charlie Lee, an MIT graduate and former Google engineer. Litecoin (LTC) is decentralized money, free of censorship and open to all as it operates as a global open source payment network based on “encryption”.
In addition to developers like Ether, there are traders who accept Litecoin. As of January 2021, Litecoin’s market capitalization is $ 10.1 billion. The value per token is $ 153.88, making it the sixth largest cryptocurrency in the world.
Cardano is a blockchain platform for proof of use: the first to be based on research results verified by experts and developed using evidence-based methods. It combines pioneering technologies to offer decentralized applications, systems and societies unprecedented security and sustainability, says the official website.
The project was co-founded by Charles Hoskinson, one of the five founding members of Ethereum. He had left Etherum because of differences with the company.
Cardano is also known as the “Ethereum killer” as its blockchain is said to be more advanced.
As of January 2021, Cardano has a market capitalization of $ 9.8 billion and an ADA value of $ 0.31.
Monero is the cryptocurrency that focuses on private and censorship-resistant transactions.
It says: “The majority of existing cryptocurrencies, including Bitcoin and Ethereum, have transparent blockchains. Transactions can be reviewed and / or tracked by anyone in the world. This means that the send and receive addresses of these transactions may be linked to real identities. “
Monero, on the other hand, uses various privacy enhancement technologies to ensure the anonymity of its users.
Launched in 2014, it has a market capitalization of $ 2.8 billion and a value per token of $ 158.37 as of January 2021.