Cryptocurrency as broadly defined is a virtual form of currency that remains largely intangible. Even though some cryptocurrencies have gotten into credit cards and other physical projects.
Crypto in cryptocurrency refers to the complex cryptography which allows for the creation of digital currencies and their transaction.
The first of these was Bitcoin, which was first mined in 2009. Since then, however, there have emerged different types of cryptocurrencies, with over 10,000 in existence as of November 2021.
But which of these should you know of?
Ethereum has grown to become the second most popular cryptocurrency after bitcoin. However, while both are digital currencies and are decentralized, there are major differences.
Ethereum, unlike Bitcoin, is not intended to be an alternative monetary system. Rather, facilitate and monetize the operation of the Ethereum smart contract and dApp platform. Thus, if you want an alternative for currencies, Bitcoin is for you but if you want a program for use in different areas like NFTs, then Ethereum is for you.
Polkadot is another newer cryptocurrency. The crypto is based on an open-source code, meaning it is open for modification and redistribution. This open-source nature means that you can transfer data or assets across blockchains, allowing you to connect with different blockchains within the Polka dot network.
Currently, Binance is the cryptocurrency with the largest exchange worldwide in daily volumes of cryptocurrencies, with over 1.4 million transactions per second. However, in terms of market capitalization, meaning the total value of the company’s stock shares, it is behind Bitcoin, Ethereum, and USD Tether.
Currently, the crypto is issued by the Binance exchange and trades, with the BNB symbol. The token, when used as a means of payment, can be traded at a discount.
Tether is one of the first cryptocurrencies that tried to pin their market value to an external reference point or physical currency to reduce volatility. These types of cryptocurrencies are called stable coins.
Tether attempts to smooth out the price fluctuation by directly tying their price to the U.S dollar. This system then, allows owners of Tether to make transfers from other cryptos back to U.S dollars without converting to normal currency.
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