Mark Tencaten | Top eight most popular cryptocurrencies

 Cryptocurrencies are digital money that are protected by encryption. But how many different sorts of cryptocurrencies exist? It’s not just Bitcoin and Dogecoin that are creating waves–there are many more cryptocurrencies that exist. Let's take a look at Mark Tencaten top eight cryptocurrencies and some additional crypto assets investors should be aware of.

While several cryptocurrencies use the same blockchain-based technology, many have significant distinctions. According to Mark Tencaten, cryptocurrency can be divided into coins and tokens.

Coins and altcoins

Any cryptocurrency with its own independent blockchain is referred to as a coin. Bitcoin, for example, is a "coin" because it runs on its own system. The Ethereum blockchain powers ether.

Any coin other than Bitcoin is referred to as an "altcoin." Many cryptocurrencies work in the same way as Bitcoin. Others, such as Dogecoin, are a bit different. In contrast to Bitcoin, which has a limit of 21 million coins, Doge has an endless supply of coins.

Tokens

Tokens, like coins, are digital assets that can be purchased and sold. On the other hand, Tokens are a non-native asset, meaning they rely on the technology of another blockchain. Tether, which runs on the Ethereum blockchain, is one of them; others are, Chainlink, Polygon, Uniswap, and TerraUSD.

According to Mark Tencaten, the top eight cryptocurrencies by market capitalization are listed below:

1.    Bitcoin

In 2009, a person (or maybe a group) using the pseudonym Satoshi Nakamoto created Bitcoin, the first cryptocurrency called Bitcoin. As of September 2021, more than 18.8 million Bitcoin tokens were in circulation, compared to a maximum limit of 21 million.

Bitcoin was created to be self-contained and unaffected by any government or central bank. Instead, it uses blockchain technology, a decentralized public database that keeps track of every Bitcoin transaction. Bitcoin pioneered the core system of cryptography and agreement (i.e., peer-to-peer) verification system that most kinds of crypto today rely on.

Bitcoin miners utilize powerful computers to verify transaction blocks and generate new bitcoins, a complicated and time-consuming process known as proof-of-work (PoW). The transactions are permanently recorded on the blockchain, which aids in the validation and security of each bitcoin and the entire network. The massive amount of energy required to manufacture Bitcoin has recently prompted environmental concerns.

2.    Ether (ETH)

The Ethereum blockchain is host to the cryptocurrency Ether. Like Bitcoin, Ether has its own blockchain, but it is uncapped, which means that an infinite number of coins can be potentially generated. Smart contracts are programs that run on the Ethereum blockchain and are executed automatically when specific criteria are satisfied. Ethereum also supports them.

3.    Binance Coin (BNB)

Binance Coin is the native cryptocurrency of Binance, the largest cryptocurrency exchange in the world as of 2021. Users that prefer to pay in BNB get lower transaction costs on this exchange. This has helped Binance Coin's adoption, making it one of the most popular crypto coins on the market. Binance eliminates, or "burns," a certain amount of the currencies in circulation to keep their value steady.

4.    Tether (USDT)

Tether is a stablecoin linked to an external asset to provide a less erratic price. In this scenario, each currency is backed by an equal number of US dollars, preventing it from experiencing the same market volatility as other cryptocurrencies. However, there is significant controversy about whether the dollar genuinely backs it.

5.    Solana (SOL)

SOL is the native currency of the Solana system, which, like Ethereum and Bitcoin, is based on blockchain technology. Solana's network can handle 50,000 transactions per second, making it particularly appealing to investors who want to trade swiftly.

6.    XRP (XRP)

XRP, which runs on the Ripple system, has been labeled as a "cryptocurrency for banks" since it's tailored to satisfy the demands of the financial services sector. XRP was created to help with international payments by acting as a bridge between two distinct currencies, allowing for cheaper and faster global transfers.

7.    Cardano (ADA)

The Cardano blockchain's native coin is ADA. Cardano is termed a "third-generation" cryptocurrency. It separates its blockchain into two layers to speed up transactions and introduces native tokens to give ADA holders a better experience.

8.    USD Coin (USDC)

USD Coin, like Tether, is a non-mineable stablecoin that is linked to the US dollar. However, unlike Tether, USD Coin has a more transparent fundraising mechanism and stronger auditing procedures. The goal is to reduce some of the risks associated with cryptocurrencies by allowing customers to withdraw their coins and get the same amount in cash.

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