There are Six Major Cryptocurrencies – Bitcoin, Ethereum, Thether, Cardano, Dogecoin and XRP. These are the most popular digital currencies which are traded on the most exchanges around the globe.
Bitcoin
It is the first cryptocurrency that was released as open-source software in the year 2009. Bitcoin uses a new distributed ledger known as blockchain with a protocol allowing users to complete peer-to-peer transactions with the digital currency.
However, the problem of double spending is avoided. There is no central authority or server that validates the transactions. Nonetheless, the legitimacy of the payment or transaction is verified by the decentralized network.
Salient Features of Bitcoin
- Backed up by blockchain technology
- Quick P2P Technology
- No double spending
- Low processing fees
- Decentralized
- Transparent
- Anonymous(Partial)
It is the original cryptocurrency and has become synonymous with the cryptocurrency. And, it is the costliest of all the currencies available in the market.
XRP
XRP constitutes 2.6 percent of the total value of all cryptocurrencies in 2021 and is used for facilitating transactions on the Ripple network.
Also read: Trading in Cryptocurrency Legal in India
It aims to be used as global settlement system for the exchange of currencies and various types of assets. It is reported that many globally reputed banks such as Royal Bank of Canada, Santander, UBS and UniCredit are considering adopting the technology.
Salient Features of XRP
- Global settlement system
- Compatible with any store of value
- Backed by many banking institutions
- Involves no mining
Dogecoin
It is said that every big idea started as a joke and it was no different with Dogecoin when it was introduced back in 2013. However, it has seen a steep rise during the last couple of years. Most prominent backer of the digital currency is Elon Musk. Now it behaves in sync with the statements of Mr Musk.
Salient Features of Dogecoin
- Well-capitalized
- Started as a joke
- Lacks well-funded ecosystem
- Highly dependent on Musk
- Attained high valuation during last two years
It was created in 2013 on the basis of ‘Doge’ meme. The digital currency is imprinted with the Shiba Inu dog. It is home to one of the largest communities in the cryptocurrency market.
Dogecoin is not based on a solid base like bitcoin and is extremely volatile. It has not undergone rigorous technical development as a result it lacks security.
Also read: How does Cryptocurrency Work?
Tether
Tether is one of the popular cryptocurrencies which has its cryptocoins backed by an equivalent value of the fiat currencies such as dollar or Euro which is deposited in a designated bank.
It is claimed that Tether is backed by an equivalent amount of US dollar but it is not so as issuance of USDT has run into billions. The currency is also supported by extending loans to affiliate companies.
Salient Features of Tether
- It is a stable currency
- Trades as a USDT
- Share value in USD
- Backed by a fiat currency
- Acts as replacement for USD
It has become very popular with the investors since the digital currency is pegged to dollar providing them flexibility. It is stable because it is backed by a fiat currency. Tether can also serve as replacement of dollar on many exchanges. This is the reason why it has emerged as a dominant cryptocurrency.
Ethereum
Ethereum is second only to the Bitcoin in value and market share since it was introduced in 2015. It is an open software platform based on blockchain technology which allows developers to make and deploy decentralized applications.
Salient Features of Ethereum
- Platform for developing blockchain applications
- Multiple industry applications
- Backed by smart contracts
- Valuation next only to Bitcoins
Cardano
It is also one of the important blockchain platforms which are different from other blockchain platforms by dint of its adherence to peer-reviewed scientific research for building blocks to its network.
Digital currency of Cardano is called Ada. It is named after Ada Lovelace, a 19th century countess and English mathematician, known as the first computer programmer.
Salient features of Cardano
- Uses smart contracts
- Alternative for Ethereum
- Ouroboros create blocks
- Updated version of Ethereum
