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Cryptocurrency

Top 10 Cryptocurrency

Owning Cryptocurrencies Requires Belief That They Will Save a Failing System

These are the top 10 cryptocurrency coins in order of market capitalization. The top 10 cryptocurrency coins change frequently based upon how much money is invested in each project. In fact, several of the top 10 coins are very new to the cryptocurrency space.

We’ll discuss what cryptocurrency is, the purpose of each coin in the top 10 cryptocurrency list, risks associated with cryptocurrency and why it offers hope for the future.

Preview: The Top 10 Cryptocurrencies:

  1. Bitcoin
  2. Ethereum
  3. Tether
  4. XRP
  5. Chainlink
  6. Bitcoin Cash
  7. Polkadot
  8. Binance Coin
  9. Litecoin
  10. Bitcoin SV

What is Cryptocurrency?

History of Cryptocurrency and Bitcoin

Summary of Each Project

The Upside and Downside of Cryptocurrency

Cryptocurrency is a digital asset that is transferable. It is a payment method between individuals over the internet. The currency uses cryptography to secure transactions on a network. Block chain technology makes the crypto network sercure. Miners use powerful computers to solve advanced equations in order to earn Bitcoin. Miners provide security to the distributed ledger network. Secure transactions prevent hackers from cheating the system.

Bitcoin (BTC)

The King of Cryptos: Bitcoin is a Peer-to-Peer Cryptocurrency Payment System founded by Satoshi Nakamoto

Bitcoin is an open-source, block chain-based technology. It is a peer-to-peer payment system. Bitcoin operates as a decentralized electronic payment method. It is conducted semi-anonymously among individuals over the internet. Bitcoin is digital cash. Bitcoin technology also solves the double spend, trust problem. Other payment systems were unable to solve this problem like Bitcoin.

Bitcoin uses block chain technology to maintain its function. In order for users to send and receive bitcoin, the block chain depends on miners. Miners complete complex calculations which build blocks on the block chain. As a reward, the miners are paid Bitcoin upon completion of each block.

Bitcoin was introduced in January 2009. It is unknown who invented bitcoin; however, a developer named Satoshi Nakamoto (probably a pseudonym) released a 9-page white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” The Bitcoin white paper describes Bitcoin’s purpose and how it works.

“Bitcoin: A Peer-to-Peer Electronic Cash System” by Satoshi Nakamoto

Bitcoin was the first cryptocurrency to experience widespread use and adoption. However, its use case has evolved over the years from a peer-to-peer payment method to a store of value model. Many Bitcoin users hold bitcoin much like you would hold silver or gold in an investment portfolio. Bitcoin has always been the top 10 cryptocurrency.

Ethereum (ETH)

Ethereum is a Block Chain Project That Uses Smart Contracts to Power Other Projects

This project is an open-source, decentralized block chain project. Ethereum is the creator of smart contracts. It provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.

Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations in order to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin.

Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system that didn’t require a bank to conduct payments. Although Ethereum is used for payment, its primary purpose is to serve as the core block chain for new projects.

Ethereum is a payment system that integrates ETH. However, it goes one step further by implementing smart contracts. It allows new projects to run on top of the Ethereum block chain. For example, in November 2017 “CryptoKitties” was launched on Ethereum. CryptoKitties was a digital trading app of virtual felines. Ethereum has always been a top 10 cryptocurrency.

You can learn more about Ethereum in our article entitled, The Fastest Growing Cryptocurrency.”

Tether (USDT)

Tether is a top 10 cryptocurrency that is linked to the value of the US Dollar. Its value hovers around one US Dollar, unlike other cryptocurrency that vary in value from a fraction of a Dollar to more than $10,000. Tether is meant to be utilized as a “stable coin.” Traders frequently move in and out of trades, using Tether as a position of safety. Tether is normally averse to volatility, making it a place of refuge in a volatile trading market.

XRP (XRP)

XRP is a currency that operates on a digital payment platform known as RippleNet. First, the company known as Ripple operates XRP. Second, the currency is not technically a cryptocurrency and doesn’t operate on a block chain. Instead, XRP is a centralized, distributed ledger technology. Finally, XRP is a rapid, scaleable payment system. It is a competitor to the SWIFT payment system. SWIFT is used by banks for money transfers.

Chainlink (LINK)

Developed in 2017, Chainlink is a decentralized network that connects smart contracts with real world data. Chainlink is a network run by operators who manage nodes. Operators are paid LINK to maintain the nodes. As a result, the system connects like links in a chain. Chainlink runs on the Ethereum network and plays a critical role in execution of smart contracts. It is one of the new rising stars of the cryptocurrency revolution.

Bitcoin Cash (BCH)

From time to time, forks occur in block chains, creating a new project. Bitcoin created BCH during a fork event in 2017. Founders believed that the original Bitcoin project had lost its way and they had a new vision. In particular, the new Bitcoin Cash project wanted to create a project that focused on using a cryptocurrency as digital cash for person-to-person transactions.

Polkadot (DOT)

Another new rising star in the cryptocurrency space is Polkadot. The Web3 Foundation created Polkadot. Its primary function is to facilitate the operation of block chains together. The DOT coin functions in three ways: staking, bonding and networking. Finally, Polkadot contains special tools like specialization, scale and inoperability which act as catalysts between block chains.

Binance Coin (BNB)

Binance coin is a utility token. It pays for fees on the Binance exchange. It also helps power the Binance decentralized exchange (DEX). The Binance coin is a deflationary coin. Part of the reason that BNB is so popular and successful is due the success of the Binance exchange.

Litecoin (LTC)

For a long time, Litecoin was silver as Bitcoin is to gold. It was the little brother of Bitcoin. And much like Bitcoin, it is a peer-to-peer payment method using block chain technology. Created by legendary crypto investor, Charlie Lee, Litecoin is slower than bitcoin and has been the quiet cryptocurrency for a long time. Litecoin has a strong support network online. In addition, Litecoin is accepted as a payment in many places. There are many crypto wallets that store Litecoin.

Bitcoin SV (BSV)

Another controversial fork of Bitcoin, BSV originated from a Bitcoin Cash fork. Bitcoin SV (aka “Bitcoin Satoshi’s Vision”) was launched after a hash war. It is unclear why we need yet another Bitcoin. But, it’s been around since 2018 and perhaps it will still be around a few more years.

Upside of Owning Cryptocurrency

Owning Cryptocurrencies Requires Belief That They Will Save a Failing System

Let’s be honest: owning Bitcoin and other cryptocurrencies requires some dogmatic belief that they can save our failing system. In addition, cryptocurrency is inherently risky for investors. Furthermore, Bitcoin and other cryptocurrencies are highly volatile. If you believe that the financial system is failing, then crypto might save it. Finally, many believe that cryptocurrency may be a solution to many other new technological problems.

When Bitcoin was born in 2009, it wasn’t necessary. Banks were working fine and a new currency didn’t solve any immediate problems. But there was a small group that had the foresight to know that we deserved something better. The truth was that the banks, along with big governments, had a stranglehold on our financial system.

Along comes Satoshi and Bitcoin. Bitcoin doesn’t require using a bank; the bitcoin holder is the bank. Making borderless payments between friends became easier and more private. In addition, Bitcoin is deflationary, with only 21 million Bitcoins available for use. And if you are starting to have doubts about government money printing and overspending, then Bitcoin is an obvious candidate for safe haven status.

Downside of Owning Cryptocurrency

Cryptocurrency Markets Have Encountered Problems Such as Fraud, Theft and Volatility

There are some downsides to owning cryptocurrency. Cryptocurrency and the block chain space are a very new industry. Bitcoin is only 11 years old and there have been growing pains in the space. First, cryptocurrency has been vulnerable to fraud in the past. For example, $800 Million of Bitcoin was stolen from the infamous Mt. Gox crypto exchange in 2014. Second, scams have been a problem in the industry, especially with new projects. Finally, price volatility has frightened away many new potential Bitcoin users.

On a personal note, I believe Bitcoin will eventually find an important place in the future of money. In 2012, when I first heard of it, one Bitcoin was worth $60. At the time, I thought that $60 was too expensive and didn’t buy any.

Currently, in late 2020, Bitcoin is trading around $10,000/Bitcoin. It peaked in price at approximately $20,000/Bitcoin in late 2017. There are many analysts who believe it could go much higher. But even more importantly, Bitcoin and other cryptocurrency may break the banking chains that imprison us today. And it’s no longer a conspiracy theory to discuss cryptocurrency. Respected investors are taking it seriously like never before.

Bitcoin Exchanges and More Information

There are many exchanges that can be used to purchase cryptocurrency. Binance, Gemini, Kraken, Coinbase and so many more. Please do your research if you decide to invest. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, one place to start might be Investopedia. Good luck!

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Disclaimer

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.

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