Cryptocurrencies have become a hot topic in recent years, especially with the rise of Bitcoin and its impressive success. However, there are many other cryptocurrencies that have emerged and gained popularity, making it an exciting and dynamic market for investors and traders.
In this article, we will explore 10 popular cryptocurrencies besides Bitcoin, their features, and what sets them apart from each other. But before diving into individual altcoins, let’s first understand the impact of cryptocurrencies on the economy and how they are defined.
Impact of Cryptocurrency on the Economy
Cryptocurrency, also known as digital or virtual currency, has made a significant impact on the global economy. It has revolutionized the way we think about money and investments, providing a decentralized and secure alternative to traditional currencies.
Digital currency, commonly referred to as cryptocurrency or virtual currency, has profoundly influenced the global economy
Here are some ways in which cryptocurrency has influenced the economy:
A Viable Form of Investment
With over 2,000 cryptocurrencies in existence and millions of Americans owning it, cryptocurrency has become a viable form of investment. In 2017, hundreds of billions of dollars flowed into the crypto market, solidifying its position as a noteworthy investment channel.
Experts see cryptocurrency as digital gold due to its potential to retain value. Unlike fiat currencies, which are vulnerable to inflation and government manipulation, cryptocurrencies are limited in supply, making them highly attractive to investors.
Discussion Among Economists and Investors
The economic and social impact of cryptocurrency is a topic of ongoing discussion among economists and investors. While some see it as a revolutionary step towards a more decentralized and efficient financial system, others raise concerns about its lack of regulation and potential for illegal activities.
Despite these debates, one thing is certain – cryptocurrency has disrupted the traditional financial world and continues to shape the economy in new ways.
Defining Cryptocurrencies and Tokens
To fully understand the world of cryptocurrencies, we must first define what they are and how they differ from other digital assets.
To gain a comprehensive understanding of cryptocurrencies, it’s essential to define their nature and distinguish them from other forms of digital assets
Cryptocurrency as Digital or Virtual Currency
Cryptocurrency is broadly defined as digital or virtual currency that exists as tokens or coins. It runs on a decentralized network, meaning it operates without the involvement of banks or governments.
The most famous example of cryptocurrency is Bitcoin, but there are many others such as Ethereum, Litecoin, Ripple, etc. These currencies can be bought and sold on exchanges, used for transactions, and even mined (a process by which new coins are created).
Altcoins – The Alternative to Bitcoin
Cryptocurrencies modeled after Bitcoin are often called altcoins, short for alternative coins. They serve as an alternative to Bitcoin and offer different features, such as faster transaction speeds, lower fees, or specific use cases.
Altcoins have gained significant popularity, with some even surpassing Bitcoin in market capitalization. They cater to different needs and preferences, providing investors with more options to diversify their portfolios.
The Role of Encryption
The “crypto” in Cryptocurrencies refers to encryption, a process that facilitates the creation and processing of digital currencies. Encryption ensures the security and privacy of transactions, making them virtually impossible to duplicate or manipulate.
This feature is crucial in building trust in cryptocurrencies, as it eliminates the need for intermediaries like banks and reduces the risk of fraud or theft.
Decentralization and Control
Cryptocurrencies are generally decentralized, developed by groups that establish issuance mechanisms and controls. This means that no single entity has control over the currency, and its value is determined by market demand and supply.
Their aim is to be free from government manipulation and control, though this aspect is increasingly debated. Some argue that decentralization makes it harder to regulate and opens the door for illicit activities, while others view it as a necessary step towards financial democratization.
Cryptocurrencies vs. Tokens
There are key distinctions between cryptocurrencies and blockchain-based tokens. While both can be bought, sold, and exchanged, their purpose and functions differ significantly.
Cryptocurrencies like Bitcoin are designed for transactions and value transfer. They serve as a medium of exchange, enabling users to send and receive payments without the involvement of intermediaries. Their primary goal is to function as a currency, although some have evolved into investment vehicles.
On the other hand, tokens like those issued in Initial Coin Offerings (ICOs) serve other purposes. They represent equity or participation in decentralized finance (DeFi) projects, allowing token holders to contribute to the development of the project and earn rewards.
Top 10 Popular Altcoins
Now that we have established the basics of cryptocurrencies let’s explore the top 10 popular altcoins and what makes them unique.
Discover the top 10 popular altcoins and explore their distinctive features
Ethereum (ETH)
Ethereum is the world’s second-largest cryptocurrency by market capitalization, making it a close competitor to Bitcoin. It was created in 2013 by Vitalik Buterin, who saw an opportunity to build a more advanced blockchain platform.
One of Ethereum’s main features is its ability to support smart contracts – self-executing computer codes that enable the automation of tasks without intermediaries. This has opened the door for decentralized applications (DApps), offering endless possibilities for developers and businesses.
Moreover, Ethereum’s native token, Ether, serves as a medium of exchange on the platform, used for paying transaction fees and rewarding miners. Its price has soared in recent years, making it a lucrative investment vehicle.
Litecoin (LTC)
Litecoin is often referred to as the “silver” to Bitcoin’s “gold” due to its similarities to the leading cryptocurrency. It was created in 2011 by former Google employee Charlie Lee with the aim of improving upon Bitcoin’s limitations.
One of Litecoin’s main advantages is its faster transaction speed, with an average block time of 2.5 minutes compared to Bitcoin’s 10 minutes. It also has a much higher supply limit (84 million coins) and lower transaction fees, making it more accessible for everyday use.
Ripple (XRP)
Ripple is another top cryptocurrency that has gained a lot of attention in recent years. Unlike other cryptocurrencies, which run on a decentralized network, Ripple operates on a centralized blockchain managed by the company behind it – Ripple Labs.
Ripple’s main goal is to facilitate cross-border payments, focusing on banks and financial institutions. Its native token, XRP, serves as a bridge currency, enabling faster and cheaper transactions between different currencies.
The controversy surrounding Ripple lies in its close ties to traditional finance, with some arguing that it goes against the very principles of decentralization that cryptocurrency stands for.
Binance Coin (BNB)
Binance Coin is the native token of one of the largest cryptocurrency exchanges – Binance. It was created in 2017 as a utility token to be used for discounted trading fees on the platform.
However, Binance Coin has evolved into much more than just a discount token. It now powers several services on the Binance ecosystem, including staking, lending, and even a decentralized exchange (DEX).
Binance Coin’s popularity can be attributed to its strong use case, as well as its consistent growth in value, making it a sought-after investment opportunity.
Polkadot (DOT)
Polkadot is a relatively new but rapidly growing cryptocurrency launched in 2020. It was created by Gavin Wood, the co-founder of Ethereum, with the aim of improving interoperability between blockchains.
Polkadot enables different blockchains to communicate and exchange data, allowing for the creation of decentralized apps (DApps) that can interact with each other. This feature has made it a popular choice for developers, and its price has risen steadily since its launch.
Cardano (ADA)
Cardano is another promising cryptocurrency that aims to solve scalability and interoperability issues in blockchain technology. It was created in 2017 by Ethereum co-founder Charles Hoskinson and has gained significant popularity in recent years.
Cardano’s unique selling point is its focus on research-backed development and peer-reviewed academic papers. Its goal is to provide a more secure and sustainable platform for building decentralized applications, which has attracted the attention of investors and developers alike.
Chainlink (LINK)
Chainlink is an oracle network that aims to bridge the gap between smart contracts and real-world data. Oracles act as intermediaries between blockchains and external data sources, enabling smart contracts to access off-chain information.
This technology has many potential use cases, such as providing real-time weather data for insurance companies or stock market information for investors. As a result, Chainlink has become a highly sought-after token, with its price surging in recent years.
Bitcoin Cash (BCH)
Bitcoin Cash is a fork of Bitcoin that emerged in 2017. It was created due to disagreements among the Bitcoin community about how to improve the scalability of the network.
Bitcoin Cash boasts faster transaction speeds and lower fees than its predecessor, making it a viable option for everyday transactions. However, its controversial creation and close ties to Bitcoin have made it a subject of debate within the crypto community.
Stellar (XLM)
Stellar aims to facilitate cross-border payments and financial inclusion for people without access to traditional banking services. It was launched in 2014 by Jed McCaleb, the co-founder of Ripple, and has gained popularity in recent years.
Stellar’s main feature is its ability to conduct fast and low-cost transactions across borders. It also offers several products to businesses and institutions, such as its decentralized exchange and stablecoin, making it a strong competitor in the crypto market.
Dogecoin (DOGE)
Last but not least, we have Dogecoin – a cryptocurrency that started as a joke but has now become a cultural phenomenon. It was created in 2013 by software engineers Billy Markus and Jackson Palmer as a fun alternative to Bitcoin.
Dogecoin gained mainstream attention in 2021 when Elon Musk began tweeting about it, causing its value to skyrocket. While it may not have a strong use case, its community and memes have made it one of the most popular and well-known altcoins.
Conclusion
Cryptocurrencies have come a long way since the inception of Bitcoin in 2009. Today, they offer a wide range of features and use cases, catering to different needs and preferences.
The top 10 popular altcoins besides Bitcoin introduced in this article are just a fraction of the vast crypto market. As technology continues to evolve, we can expect more innovative cryptocurrencies to emerge, shaping the economy and our financial system in new ways.
