The cryptocurrency market is very diverse. Due to the low threshold, almost anyone who understands blockchain technology can develop their own cryptocurrency. Currently, there are more than 1,600 cryptocurrencies listed on major, medium-sized and specialized exchanges.
Among these cryptocurrencies and digital tokens, objectively speaking, the real cryptocurrency does not exceed double digits. And this small part can continue to be reduced to cryptocurrencies with sufficient trading volume and real circulation, or utility tokens that are often used to pay for the use of blockchain platforms. This category probably includes 20-30 different digital currencies.
Since the advent of cryptocurrencies, the two most popular cryptocurrencies have been Bitcoin and Ethereum (Ether). In the past few years, Ripple XRP has been ranked third. In September 2018, the market value of Ripple XRP even surpassed Ethereum briefly, becoming the second most popular cryptocurrency.
In addition to Bitcoin, Ethereum, and Ripple XRP, there are several other popular cryptocurrencies, but their market capitalization and popularity are sometimes strong and sometimes weak. The Crypto 10 Index created exclusively by us is composed of the most popular cryptocurrencies in any given time period, and can also be traded.
Which cryptocurrencies are most popular with traders?
Through a quick online search, the most popular cryptocurrencies currently on the market include:
- Bitcoin
- Ethereum
- Ripple XRP
- Litecoin
- NEO
- IOTA
Bitcoin
Bitcoin is considered the earliest cryptocurrency, launched in 2009, and the cryptocurrency movement began. Bitcoin and its underlying blockchain technology were invented by Satoshi Nakamoto or his group. Bitcoin is seen as an alternative to the legal tender system. The true identity of Satoshi Nakamoto is still unknown.
Satoshi Nakamoto pointed out in the Bitcoin white paper that the legal tender system controlled by the central bank and a small number of financial institutions has led to the concentration of wealth and power and hindered the circulation of society and wealth. Inflation erodes the savings of ordinary people, and this is mostly the result of the central bank's printing of money.
Bitcoin solved this problem by limiting the number of issuing units to avoid inflation caused by money printing. Bitcoin's peer-to-peer blockchain technology means that it does not require financial institutions to process transactions and verify ownership.
So far, Bitcoin is still the most popular cryptocurrency, and its price movements have a significant impact on the crypto market.
Ethereum (Ether)
Ethereum is the second most popular cryptocurrency, and there is a big difference between it and Bitcoin. Ethereum (Ethereum) is actually the name of the blockchain platform, while Ether is the name of the cryptocurrency. Ethereum is a blockchain platform that runs smart contracts.
Smart contracts can be seen as a set of predefined "rules" for creating different applications or Dapps (decentralized applications). The Dapps created by Ethereum range from games to ICOs (ICOs in cryptocurrencies are similar to crowdfunding or IPOs).
Since Ethereum, although other smart contract platforms have been launched one after another, each platform claims to have more advanced blockchain technology, but Ethereum as the earliest blockchain platform still maintains the highest usage rate.
Compared with Bitcoin being used as a substitute for traditional legal tender, Ethereum (except as a transaction asset) is used to pay for the use of the Ethereum platform, so it is also called a "utility" cryptocurrency.
Ripple XRP
Ripple XRP is another "utility" coin, and its blockchain platform aims to more effectively facilitate the cross-border transfer of legal tender. Ripple XRP has been cooperating with and supported by many banks from the beginning, and is often regarded as an "authoritative" cryptocurrency.
In recent years, the number of transfer services using the Ripple platform has gradually increased, making it possible to become part of the traditional financial system.
Litecoin
Litecoin is another cryptocurrency that has the potential to replace fiat currencies and is Bitcoin's main competitor. Its creators hope that Litecoin will eventually be used to pay for daily goods and services. Litecoin positions itself as a more practical and technologically advanced alternative to Bitcoin, and its confirmation of transactions through P2P networks is significantly faster than Bitcoin.
In principle, this advantage may make Litecoin more attractive to merchants, but as cryptocurrency transactions in "real life" are still greatly restricted, Bitcoin's more mature "brand" makes it the preferred legal currency alternatives.
NEO
Like Ethereum, NEO is a smart contract and Dapps platform. NEO was launched in 2014 with the goal of providing a practical, but technologically more advanced blockchain technology based on Ethereum.
Many people believe that the NEO platform is technically superior to Ethereum, but as in the case of Litecoin and Bitcoin, the latter’s stronger market position allows it to maintain a higher market share.
IOTA
IOTA is a unique cryptocurrency based on a Directed Acyclic Graph (DAG) structure, specifically designed for Internet of Things (IoT) devices. The Internet of Things can facilitate microtransactions of connected devices and help maintain data integrity. Recently, with the popularization of Internet of Things technology, IOTA has leapt into the ranks of the cryptocurrency with the largest transaction volume, and its development prospects are broad.
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