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July 19, 2023 Cryptocurrency

Cryptocurrency Coins: What You Need To Know

Each cryptocurrency coin has its own special qualities and can serve different purposes. There are thousands of crypto coins. Most are relatively new and not well-known, but some investors believe that they have a high potential for growth.

Any of them could become “the next Bitcoin,” but this is hard to predict like any investment. However, you can look at past performance to make a judgment for yourself. Currently, most cryptocurrency coins remain highly volatile.

We have compiled a list of popular cryptocurrency coins for you to explore and learn more about.

Different Types of Cryptocurrency Coins

Bitcoin

Bitcoin (BTC) is the oldest and most popular cryptocurrency. By design, a limited supply of 21 million Bitcoin is available. This makes many investors equate it to “digital gold” and long-term investment and hedge against inflation.

One drawback of Bitcoin is it is harder to use as a regular form of payment. It takes around 10 minutes for each transaction to be verified. The more Bitcoin transactions going on at once around the world, the longer it takes.

Bitcoin may be better suited for large transactions and investing, which is why it is worth considering. Some technology companies have been developing ways to speed up this process.

The smallest amount of Bitcoin you can have is 1 Satoshi, which is equal to 0.00000001 Bitcoin. You might consider investing in Bitcoin if you want to invest in the most established coin on the market.

The creator of Bitcoin is still unknown, but the pseudonym Satoshi Nakamoto is widely credited with inventing it. Satoshi Nakamoto’s identity has never been revealed, and it may be a group of individuals rather than a single person.

Ethereum

[ETH] Ethereum is a decentralized blockchain platform that was created in 2015 by a young programmer named Vitalik Buterin. Like Bitcoin, Ethereum is a cryptocurrency and a platform for building decentralized applications (dApps) using smart contracts. Smart contracts are self-executing programs that run on the Ethereum blockchain. It automatically enforces the terms of an agreement between parties. One of the key differences between Ethereum and Bitcoin is that Ethereum allows developers to build decentralized applications on top of its blockchain. Bitcoin is primarily used as a store of value and a means of exchange.

Litecoin

[LTC] Litecoin is a peer-to-peer cryptocurrency that was created in 2011 by Charlie Lee, a former Google engineer. It is an open-source, decentralized digital currency that operates on a global network without the need for a central authority or intermediary. Litecoin is based on the Bitcoin protocol, but with some key differences. The mining algorithm used Scrypt, which is designed to require more memory and hinder ASIC-based mining.

This makes it easier for individuals to mine Litecoin using their personal computers. Litecoin has a distinct advantage over Bitcoin because it confirms transactions more quickly. While Bitcoin generates blocks in 10 minutes, Litecoin generates blocks every 2.5 minutes. This allows for faster confirmation of transactions and makes Litecoin more suitable for use as a currency for everyday transactions.

Avalanche

[AVAX] Avalanche is a cryptocurrency and blockchain platform designed to enable developers to create decentralized applications (dApps) and enterprise-grade blockchain solutions. In September 2020, Emin Gün Sirer and a team of computer scientists founded Ava Labs and launched their product.

The Avalanche platform uses a unique consensus mechanism known as Avalanche consensus. It allows for high transaction throughput and low fees. This design enables developers to create applications that seamlessly communicate with other blockchains, with scalability, efficiency, and interoperability.

Bitcoin Cash

[BCH] Bitcoin Cash is a cryptocurrency that was created in 2017 as a fork of the original Bitcoin blockchain. The fork was created in response to Bitcoin’s scalability and transaction fee concerns.

Bitcoin Cash uses bigger block sizes than Bitcoin, which allows it to handle a greater number of transactions. This, in turn, helps to reduce transaction fees and increase transaction speeds.

Cardano

[ADA] Cardano is a decentralized blockchain platform that was created in 2015 by a group of academics and engineers. The Italian mathematician and philosopher Gerolamo Cardano is the source of the name. Like Ethereum, Cardano is a platform for building decentralized applications (dApps) and executing smart contracts.

Cardano uses a proof-of-stake (PoS) consensus mechanism, which aims to be more scalable and energy-efficient than the proof-of-work (PoW) mechanism used by Bitcoin and other cryptocurrencies. One of the key features of Cardano is its focus on security and sustainability.

The platform uses a layered architecture to separate the settlement layer (which handles transactions and payments) from the computation layer (which handles smart contracts and dApps). This design is intended to make the platform more secure and scalable over the long term.

[LINK] Chainlink is a decentralized oracle network that was created in 2017 by Sergey Nazarov and Steve Ellis. It aims to provide a secure and reliable way to connect smart contracts on blockchain networks to real-world data and events.

Chainlink’s network is composed of nodes called “oracles” that securely transmit data from off-chain sources to on-chain smart contracts. This allows smart contracts to access real-world data, such as market prices, weather conditions, and sports scores, and execute based on that data. Chainlink’s technology aims to prevent tampering or manipulation of data by ensuring that it comes from reliable and trustworthy sources.

Chainlink has gained popularity as a reliable and decentralized oracle solution for connecting smart contracts to real-world data. Many industries including finance, insurance, supply chain management, and gaming have used it.

Cosmos

[ATOM] Cosmos is a decentralized blockchain platform that aims to create an internet of blockchains, enabling different blockchain networks to communicate and interact with each other. The Cosmos platform is designed to be scalable, secure, and interoperable, allowing developers to build applications and services that can seamlessly communicate with other blockchains.

It uses a hub-and-spoke architecture, where the Cosmos Hub is the central hub connecting various independent blockchain networks called zones.

ATOM is the native cryptocurrency of the Cosmos platform and is used to pay for transaction fees, staking, and other services on the network. It can be bought, sold, and traded on various cryptocurrency exchanges.

Dai

Dai (DAI) is a decentralized stablecoin cryptocurrency pegged to the U.S. dollar’s value.

Users can receive Dai tokens by locking up other cryptocurrencies, such as Ethereum, as collateral through a collateralized debt position (CDP) system. These tokens serve as a stablecoin, meaning their value remains relatively stable and is less vulnerable to price fluctuations than other cryptocurrencies.
The MakerDAO platform also uses a governance token called Maker (MKR), which allows holders to participate in the decision-making process for the platform, including voting on changes to the collateralization ratios and stability fees for the system.

DAI can be bought, sold, and traded on various cryptocurrency exchanges and used for payments and transactions. It is particularly useful for individuals and businesses that want to avoid the volatility of other cryptocurrencies while still maintaining the benefits of a decentralized, blockchain-based payment system.

OKB

[OKB] OKB is the native cryptocurrency of OKEx, a leading global cryptocurrency exchange. The OKEx, OKB is an ERC-20 token on the Ethereum blockchain. It is used to pay for transaction fees, trading fees, and other services on the OKEx platform.

OKB has also been adopted by various other cryptocurrency exchanges, wallets, and services, providing OKB holders with additional ways to use and trade their tokens.

OKEx has also launched the OKB which includes OKChain, a blockchain platform designed to support decentralized applications (dApps) and digital asset issuance, and OKLink, a blockchain explorer and data analytics platform.

Polkadot

[DOT] Polkadot is a cryptocurrency and blockchain platform that was created by the Web3 Foundation and launched in 2020. It aims to provide a scalable and interoperable infrastructure for building decentralized applications (dApps) and executing smart contracts.

Polkadot uses a unique sharding mechanism called “parachains” to improve the scalability of the network. Parachains are individual blockchain networks that run in parallel to the Polkadot relay chain, allowing for greater transaction throughput and scalability. One of the key features of Polkadot is its interoperability with other blockchain networks.

This allows developers to build dApps that can interact with multiple blockchains, expanding their functionality and user base. Polkadot also allows for the creation of “bridges” that connect the Polkadot network to other blockchains, such as Bitcoin and Ethereum, enabling cross-chain communication and asset transfers.

Polygon

[MATIC] Polygon (formerly known as Matic Network) is a Layer 2 scaling solution for Ethereum that aims to improve the network’s scalability and usability. It is an open-source platform that provides infrastructure and tools for building decentralized applications (dApps) and executing smart contracts.

Polygon uses a modified version of the Plasma framework to create sidechains that can process transactions more quickly and at a lower cost than the Ethereum mainnet. This allows developers to build dApps that can handle a large number of transactions without congesting the Ethereum network.

One of the key features of Polygon is its interoperability with other blockchain networks. This allows developers to build dApps that can interact with multiple blockchains, expanding their functionality and user base. Polygon has gained popularity as a platform for building decentralized finance (DeFi) applications, with many DeFi projects and protocols building on top of its network. It has also been embraced by some game developers and non-fungible token (NFT) platforms as a more scalable and cost-effective alternative to the Ethereum mainnet.

Shiba Inu

[SHIB] Shiba Inu is a digital currency that emerged in August 2020 as an ERC-20 token on the Ethereum blockchain. The name and image of the Shiba Inu breed, a well-liked Japanese dog resembling the “Doge” meme, inspired the token’s branding.

SHIB is a decentralized cryptocurrency, meaning that any central authority or government does not control it. Its supply is limited to 1 quadrillion tokens, with approximately 50% of the tokens having been burned, or taken out of circulation, in May 2021. Various individuals and entities, including the Shiba Inu community and developers hold the remaining tokens.

Solana

[SOL] Solana is a cryptocurrency and blockchain platform that was created in 2017 by Solana Labs. It aims to provide a high-performance, scalable, and decentralized infrastructure for building decentralized applications (dApps) and executing smart contracts.

Solana employs a proof-of-stake (PoS) consensus mechanism that aims to achieve greater efficiency in terms of energy and scalability compared to the proof-of-work (PoW) mechanism used by Bitcoin and other cryptocurrencies.It also uses a unique consensus algorithm called Proof of History (PoH), which helps improve the network’s scalability and speed. One of the key features of Solana is its high transaction throughput and low transaction fees.

It is designed to handle up to 65,000 transactions per second, making it one of the fastest blockchain platforms currently available.

Stellar

[XLM] Stellar is a decentralized, open-source blockchain network designed to facilitate cross-border payments and asset transfers. The Stellar cryptocurrency, also known as Lumens (XLM), serves as the native digital asset of the Stellar network and is used to pay transaction fees and facilitate transactions on the network.

Stellar’s primary focus is on enabling fast and low-cost cross-border payments. The Stellar network enables users to send and receive various currencies and assets, including fiat currencies, cryptocurrencies, commodities, and more.

One unique feature of Stellar is its ability to facilitate multi-currency transactions in real-time. This means that users can send one type of currency, and the recipient can receive a different type of currency. It is automatically exchanged on the Stellar network at the best available exchange rate.

Tron

[TRX] Tron is a cryptocurrency and blockchain platform founded by Justin Sun in 2017. The platform is designed to provide a decentralized content-sharing platform where content creators can distribute their content without the need for intermediaries.

Tron aims to create a decentralized internet, where users have full control over their data and content. The Tron blockchain uses a delegated proof-of-stake consensus mechanism, which allows users to stake their TRX tokens to participate in block production and earn rewards.

The platform also allows developers to create decentralized applications (dApps) using smart contracts.

Uniswap

[UNI] Uniswap is a decentralized cryptocurrency exchange (DEX) built on the Ethereum blockchain. It was launched in September 2020 and has quickly become one of the most popular and widely used DEXs in the cryptocurrency ecosystem.

The Uniswap protocol uses an automated market maker (AMM) system, allowing users to trade cryptocurrencies without needing a centralized order book. Instead, liquidity is provided by liquidity pools, which are made up of pairs of tokens.

Users can add liquidity to these pools by depositing equal values of two different tokens. In return, they receive liquidity provider (LP) tokens, which they can use to withdraw their share of the pool’s liquidity.

UNUS SED LEO

[LEO] UNUS SED LEO is a cryptocurrency issued by Bitfinex, one of the world’s largest and most popular cryptocurrency exchanges. It was launched to provide a native token for the Bitfinex platform.

LEO is an ERC-20 token on the Ethereum blockchain and is used to pay for trading fees, lending fees, and other services on the Bitfinex platform. Bitfinex has also developed a number of other products and services that utilize the LEO token, including a decentralized exchange (DEX), a peer-to-peer lending platform, and a suite of trading tools and APIs.