Cryptocurrencies are all the rage today, and you might be interested to buy some of them. However, you should understand which are the best types of cryptocurrency presently available in the market first, before you dive in, right?
To select one to invest in with your hard-earned money from so many different types is difficult, to say the least.
Well then, in this article we are going to discuss just that.
We have covered all grounds and after extensive research, we have sorted the best cryptocurrencies from the rest to bring you this list.
After going through this article you will be able to:
- Choose from the best type of cryptocurrency for your needs
- Find out the top features for each of them
- Understand what exactly are cryptocurrencies
- Know about the benefits of buying using cryptocurrencies
- Learn how to choose a cryptocurrency
With that said, let’s get straight to the point!
Top 10 Best Types Of Cryptocurrency
Please read their brief descriptions along with the top features of each one of them. Try to match them with your requirements to find the best type of cryptocurrency for your needs.
Bitcoin was invented by Satoshi Nakamoto in 2009. This is the most widely used type of cryptocurrency in the world.
More than 18,8 million Bitcoin tokens have been in circulation till now, with a ceiling of 21 million.
Bitcoin has been created to be free of any central bank or government.
This runs on blockchain technology, which maintains a decentralized public record of each Bitcoin transaction.
Top Features And Benefits Of Bitcoin Cryptocurrency:
- Bitcoin allows the anonymity of the user. Digital certificates or numeric numbers are used to authenticate individuals.
- Bitcoin exchange enables Bitcoin units to be exchanged for the US dollar and euro at changeable currency rates.
- The Blockchain is the decentralized public directory of all previous bitcoin transactions.
- A bitcoin transaction is only uploaded to the blockchain, thus it’s permanent – as opposed to typical online payments, Bitcoin has no established refunds facilities.
Major Customers Of Bitcoin Cryptocurrency:
The biggest organizations which are bitcoin customers are Tesla, MicroStrategy. inc, Galaxy Digital Holdings, Square, and Manhattan Digital Holdings.
Competitors Of Bitcoin Cryptocurrency:
The closest competitors to Bitcoin are Ethereum and Cardano
Price of Bitcoin Cryptocurrency:
The price of one bitcoin is exponentially larger than any other type of cryptocurrency.
Suggested Read: How to Start A Cryptocurrency Exchange Business
2. Ethereum (ETH)
Ethereum is a framework enabling globalized, open-source cryptocurrencies.
The company was founded in 2015 and soared to the top of the cryptocurrency industry fast.
It is a platform that, just like Bitcoin, can enable peer-to-peer money transmission.
It can also support decentralized apps. Vitalik Buterin founded it in 2016.
Ethereum’s market capitalization is $500 billion and controls almost 12% of the crypto-monetary market. It is at present one of the most popular types of cryptocurrency operating in the crypto market.
Top Features And Benefits Of Ethereum Cryptocurrency:
- Ethereum includes a protocol known as the ERC-20 token.
- The supply of Ethereum has not been fixed, but that will change when burning is introduced.
- Programmers remove a certain portion of coins from the supply forever. It means that these funds are sent to crypto wallets, which no one has control over.
- Ethereum focuses on cryptoverse, which is non-fungible tokens (NFTs).
This means a fungible property can be replaced by another comparable type and valuation will remain the same.
Major Customers Of Ethereum Cryptocurrency:
Mastercard, UBS, and JP Morgan accept Ethereum as a form of payment.
Competitors Of Ethereum Cryptocurrency:
Major competitors of Ethereum are Bitcoin and Cardano
Price Of Ethereum Cryptocurrency:
The price of one Ether is much lower than bitcoin but costlier than all the others cryptocurrencies.
Cardano is a gen – 3 blockchain cryptocurrency technology. It was established in 2017.
This came out after the launch of the biggest 1st and 2nd gen of cryptocurrency technology namely Bitcoin and Ethereum, respectively.
Its cryptocurrency depends on the proof of stake (POS).
This means that it does not need sophisticated POW calculations and the large use of power for mining, such as Bitcoin.
This cryptocurrency is dubbed ADA after Ada Lovelace, a mathematician of the 19th century.
Top Features And Benefits of Cardano Cryptocurrency:
- Identity, access management, and transparency are the key uses of Cardano.
- Data collected from numerous sources may be streamlined. This may be used to check the production process of the project and perhaps avoid corruption and fake products.
- Cardano aims to evolve the network into a decentralized application (dApp) platform with a multi-active leader and formal verifications that are traceable.
Major Customers of Cardano Cryptocurrency:
Major customers of Cardano are Intesa Sanpaolo, UBS Group AG, and Royal Bank of Scotland Group.
Competitors of Cardano Cryptocurrency:
They compete directly with Ethereum and other decentralized application platforms.
Price of Cardano Cryptocurrency:
It is the third most valuable cryptocurrency behind Bitcoin and Ethereum.
4. Tether (USDT)
Tether was the 1st of many stable coins, and it is still very widely used.
It attempts to attach market value to a currency or other external benchmark to decrease volatility.
Tether, which was founded in 2014, describes itself as a blockchain platform for facilitating the digital usage of fiat currencies.
This coin enables the users of a blockchain network with similar technologies to access it as well.
Top Features And Benefits Of Tether Cryptocurrency:
- Most digital currencies, including large currencies like bitcoin, have frequently suffered severe volatility, but Tether currencies try to ease price swings to attract cautious consumers.
- The value of Tether is directly linked to the U.S. dollar price. This method allows individuals to transfer back to US dollars more conveniently from regular money.
- It limits volatility and complexity frequently in combination with digital currencies, to operate in traditional currencies.
Major Customers of Tether Cryptocurrency:
Most reputed organizations which accept Tether are AT&T and Bank of America.
Competitors of Tether Cryptocurrency:
Tether is the sixth-largest cryptocurrency by market capitalization. Hence there is fierce competition with Cardano and Uniswap.
Price of Tether Cryptocurrency:
The price of one unit of Tether cryptocurrency is exactly 1$.
5. Dogecoin (DOGE)
Dogecoin is an open-source community cryptocurrency.
It was established by Billy Markus and Jackson Palmer in 2013. They were software developers.
Dogecoin, like every other cryptocurrency, has seen its extremely turbulent times since its birth.
However, in contrast to others, Dogecoin has become famous because high-profile personalities are frequently referenced.
Self-appointed “Doger” and Tesla Chairman Elon Musk has contributed a staggering 20 000 percent rise of its value since 2020, in particular.
Top Features And Benefits Of Dogecoin Cryptocurrency:
- Dogecoin may easily be converted to cash. The method is also easy. Since this is popular, the exchange to USD and EUR is much easier.
- In all crypto markets, Dogecoin money is available. The quantity at which Dogecoin is traded is huge.
- This form of cryptocurrency may be used to create large-size projects. However, it takes a long time to go live with a project.
Major Customers Of Dogecoin Cryptocurrency:
The top brands which accept dogecoin are BBVA, Westpac Banking Corp, and Rabobank Group.
Competitors Of Dogecoin Cryptocurrency:
The closest rivals of Dogecoin are Tether and Cardano.
Price Of Dogecoin Cryptocurrency:
The price of one dogecoin is about as much as a Cardano.
6. Uniswap (UNI)
Uniswap, introduced in 2011, was one of the first cryptocurrencies to join Bitcoin and was often called “Bitcoin Gold Silver.”
Charlie Lee, a graduate from MIT and former Google engineer, developed the project.
Uniswap is built on a worldwide payments system which again is open-source, and is not regulated.
It employs “cryptography” as confirmation and it can be mined using consumer-grade CPUs.
Top Features And Benefits Of Uniswap Cryptocurrency:
- Uniswap is similar to Bitcoin in many respects but it has a quicker rate and so provides a faster time for confirming transactions.
- Agreements are code-based programs that are recorded on the Uniswap blockchain and perform specific activities automatically when predefined criteria are fulfilled.
- To find new blocks, the Uniswap blockchain relies on miners. These are essentially digital boxes that save the information and other data about transactions.
Major Customers Of Uniswap Cryptocurrency:
Some of the most reputed customers of Uniswap are the Bank of China, DZ Bank, and Walmart.
Competitors Of Uniswap Cryptocurrency:
The top competitors of Uniswap are Tether and Dogecoin.
Price Of Uniswap Cryptocurrency:
The price of one Uniswap currency is a bit cheaper than Cardano.
7. Binance Coin (BNB)
Binance Coin is a simple yet revolutionary cryptocurrency. It can be used to settle exchanges, compensate for trading fees, and more.
You can also use the currency to buy and trade at a reduced rate than all the other currencies. This gives it a solid advantage.
It was first released as an ERC-20 currency on the Ethereum network.
Then ultimately it was given its own structure. A solid evidence consensus model is used by the system.
Top Features And Benefits Of Binance Coin Cryptocurrency:
- You have significant costs for cryptocurrency transfers, which doesn’t make it very beneficial when you move a tiny amount. The cost-effective Binance Coin transactions are the ideal alternative for micro-paid transactions.
- It requires less energy to generate a block than Bitcoin, Uniswap, or Tether.
- They have a large processing capacity and a payment settlement frequency of four seconds.
Major Customers Of Binance Coin Cryptocurrency:
The most prominent names which are clients of Binance Coin are eToro, Bitpanda, and Robinhood
Competitors Of Binance Coin Cryptocurrency:
Major competitors of Binance Coin are Uniswap and Dogecoin.
Price Of Binance Coin Cryptocurrency:
Each unit of Uniswap and Binance Coin has almost the same value.
8. Polkadot (DOT)
Polkadot is another successful cryptocurrency based on the bitcoin principle.
It was created by scientists from MIT, John Hopkins, and other prestigious universities and institutes.
One of Polkadot’s most notable characteristics is its ability to remain anonymous.
Users may send, receive, and exchange Polkadot anonymously, without revealing the sender, receiver, or transaction amount.
Top Features And Benefits Of Polkadot Cryptocurrency:
- You can perform Polkadot transactions at a jet speed when compared to Bitcoin and Cardano.
- Many federal and financial organizations around the world use Polkadot. Also, transactions in many currencies are possible.
- It may be utilized in the field of finance and is the best replacement for actual cash.
Major Customers Of Polkadot Cryptocurrency:
Some of their major customers are BNP Paribas, SMBC Group, and Wells Fargo.
Competitors Of Polkadot Cryptocurrency:
Major competitors of Polkadot are Uniswap and Binance Coin.
Price Of Polkadot Cryptocurrency:
The price of one Polkadot is a bit less than the value of one Binance Coin.
XRP is a digital currency created by scientists, mathematicians, and crypto specialists after much investigation and analysis.
They stand out among its proof-of-stake contemporaries and other major cryptocurrencies due to significant testing and peer-reviewed research.
Following Ethereum’s lead, XRP aspires to be at the top of the cryptocurrency market system by developing decentralized financial products.
Top Features And Benefits Of XRP Cryptocurrencies:
- XRP features decentralized exchange on the XRP Ledger with the ability to generate customizable tokens.
- The Escrow functionality allows a user to create a conditional exchange on the XRP Ledger when the XRP is unavailable until a date or condition is fulfilled.
- By incurring increasing transactional charges for each operation, it protects against distributed denial of service (DDOS) assaults.
Major Customers Of XRP Cryptocurrency:
The top organizations which are clients of XRP are Crédit Agricole, Mizuho Financial Group, and Deutsche Bank.
Competitors Of XRP Cryptocurrency:
XRP faces competition from Binance Coin and Polkadot.
Price Of XRP Cryptocurrency:
Currently, the price of one XRP is around 10-20% of one Carando.
10. Solana (SOL)
Solana is a safe, anonymous, and untraceable cryptocurrency.
This open-source cryptocurrency was first released in April 2019, and it quickly gained popularity among cryptography fans.
This coin’s evolution was fully supported by contributions and guided by the general public.
Solana was built with a strong emphasis on decentralization and scalability, and it provides complete anonymity using a method known as “ring signatures.”
Top Features And Benefits Of Solana Cryptocurrency:
- It is a decentralized blockchain-based platform that focuses on ‘’smart contracts” that allow value exchange.
- The inbuilt coded programs execute without the intervention of a third party.
- Exchange does not only contain fiat currency, it provides cryptocurrencies and fiat trading pairs.
Major Customers Of Solana Cryptocurrency:
Major institutions which accept Solana are ABN AMRO, Shinhan Bank, and The Bank of New York Mellon.
Competitors Of Solana Cryptocurrency:
The only competitor for Solana on the list is XRP.
Price Of Solana Cryptocurrency:
The price of one Solana is about the same as XRP.
Frequently Asked Questions on Cryptocurrencies
What Are Cryptocurrencies Exactly
Cryptocurrency is online cash, established to allow senders and receivers to conduct transactions while maintaining their anonymity.
To send and receive communications securely, cryptography is employed.
Cryptography ensures that information is kept safe from people willing to cause harm, spy on you, or simply hackers.
When data is sent from the sender to the receiver, no one can decipher or steal it.
Like you have seen on the list above, there are many other forms of cryptocurrencies, but bitcoin is the most widely used for trade.
Benefits Of Buying Cryptocurrencies
Buying cryptocurrencies is no different than investing in any other high-risk venture.
And with the high risk, you can achieve higher results.
Here are three of the biggest advantages of buying cryptocurrencies:
It only takes a few seconds to send money with the help of cryptocurrencies.
As we all know that bank transfers of money to some other countries are extremely expensive.
When done through cryptocurrencies, the cost is either very low or none.
Transfer Of Assets in Cryptocurrency Exchange
Asset transfers take less time & expense since you, as the cryptocurrency holder, have full control over your account.
More Transparency With Minimal Risks
Cryptocurrency allows you to make deals without providing the vendor with any personal financial information.
Hackers can’t get their hands on them in any manner. No one can track you.
Benefits Of Using Cryptocurrencies
Confidentiality, security, and anonymity are the three major advantages of cryptocurrencies.
Here we will be explaining some more:
- The major advantages of using cryptocurrencies are that they let the transfer to the transaction of cash between the two parties. These transfers may be made for protection with private and public keys.
- Fund payments are made on a restricted payment basis, which allows customers to circumvent heavy fees for online purchases paid by other banks.
- Accountability is yet another key benefit of the blockchain payment architecture.
You can anticipate a currency to develop that preserves stability, allows commerce, and is moving beyond hard metals and outside the power of central banks and governments.
How To Choose A Cryptocurrency
Since there are so many cryptocurrencies on the market, we understand how difficult it is for you to pick one.
The decision-making problem is exacerbated by new market rivals advertising their currencies as the future Bitcoin.
Here are some guidelines to help you decide which cryptocurrency to trade.
Select Your Risk Level
Of the approximately 2300 cryptocurrencies available, Bitcoin seems to be the most volatile and stable.
Because Bitcoins is the strongest cryptocurrency in the industry and is now priced near its all-time high, it is considered a safe investment.
The other popular and stable cryptocurrencies are BNP, Tether, and XRP, which are called “altcoins.”
Conduct Your Research
Look at the historic charts of BTC/USD versus ETH/USD or any other cryptocurrency before deciding to trade it.
Two essential things to examine are distribution and total value. While cost is important, it is not the most important aspect to consider.
Examine a cryptocurrency’s whole history for reliability.
Keep in mind that a digital currency may still be in its infancy and can misguide due to a lack of a track record.
Look for ICO Offerings
Initial Coin Offerings (ICOs) is the favored approach for online businesses to raise operating cash and launch new currencies.
This involves investing in a company that can deliver the products while also providing a return on your investment, similar to the stock market.
Hence, ICOs are a wonderful choice when it comes to selecting which cryptocurrency to invest in.
Investigate Unknown Cryptocurrency Exchanges
If you were unable to participate in an ICO, you can purchase the cryptocurrencies on cryptocurrency exchanges.
A currency limitation exists on the bulk of the popular and prominent marketplaces.
Hence you might find something on lesser-known platforms.
Keep Your Eyes And Ears Open And Your Guard Up
Choosing which cryptocurrencies and altcoins to purchase may be challenging.
Selecting the finest purchases for you will be easier if you only consider facts and avoid making rash decisions.
Once you’ve decided on a cryptocurrency to invest in, stay attentive and keep a careful eye on the portfolio.
Keep an eye out for any news about your investment and continue to investigate as you did before investing.
Our Picks For The Best Types of Cryptocurrency
Which cryptocurrency you should buy depends on your risk tolerance and financial goals.
However, here are some of our top picks which you can choose.
- Bitcoin & Ethereum Best Cryptocurrency To Invest And Hold
- Ethereum & Cardano – Fastest Growing Cryptocurrency To Invest And Sell
- Bitcoin, Cardano & Uniswap – Best Cryptocurrency To Mine
- Bitcoin & Tether- Safest and Stable Cryptocurrency To Invest On
- Dogecoin & Uniswap – Highest Growth Potential Cryptocurrency
It removes trades limitations and middlemen, reduces transaction costs, and enhances business and the economy. The future of bitcoin is optimistic.
Soon, it can be possible that bitcoin and other cryptocurrencies overcome existing modern payment forms.
But to do this, they need a particular cumulative advantage, such as organized regulation.
We hope we could provide you with enough information so that you can now make an informed decision.
Thanks for sticking with us, hope you have enjoyed the read.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.