The world of cryptocurrencies is a highly diverse world, free of barriers to overcome, where anyone who understands blockchain technology can launch their own cryptocurrency, if they wish. There are currently more than 1,600 cryptocurrencies listed on major, medium- and specialized exchanges.
Of the large number of cryptocurrencies and symbols, we can say that the number of that is of real importance, when it decreases in value. We can reduce this small set of cryptocurrencies, which are traded enough to get real liquidity, or are regularly used to pay for the use of the blockchain platform through service codes. In this category, we can include between 20 and 30 different digital currencies.
Since the beginning of the cryptocurrency phenomenon, Bitcoin and Ethereum have remained the most common currency. The XRP has improved in the past few years and has become one of the three most popular currencies. The Value of The Ripple (XRP) briefly exceeded the market value of Ethereum in September 2018, making ripple the second most popular cryptocurrency.
Apart from Bitcoin, Ethereum, and Ripple (XRP), there are many of the most popular cryptocurrencies but their value and popularity tend to dwindle and flow. You can also trade with the uniquely created 10 most popular cryptocurrencies index, which includes the most common cryptocurrencies at any given time.
What are the most common cryptocurrencies among traders?
While benchmarking is necessary, one way to make sure the most traded cryptocurrencies is to look at those offered as CFDs on major trading platforms.
A quick search of the Internet may suggest that the most common cryptocurrencies on the market today are:
They’re all totally different, so let’s take a quick look at their main features.
Bitcoin is the core of cryptocurrencies, first launched in 2009, at the time of the beginning of the movement of cryptocurrencies in general. Bitcoin – and the blockchain technology it works on – was invented by an individual or group of individuals working under the pseudonym Satoshi Nakamoto. Bitcoins have been introduced as an alternative to the paper money system. The true identity of Satoshi Nakamoto has not yet been revealed.
In a report on Bitcoin, Nakamoto said that the monetary system controlled by central banks and a small number of financial institutions has centralized wealth and power and made social and financial mobility difficult. The savings of ordinary people have been eroded by inflation, which has resulted in central banks printing banknotes.
Bitcoin solved this problem by limiting the number of units to be issued, thereby preventing inflation caused by printing money. The peer-to-peer bitcoin networks with blockchain technology mean that financial institutions are not needed to facilitate transactions and verify ownership.
Bitcoin remains the most popular currency ever, and its price movement has a strong impact on the rest of the cryptocurrency market.
Ethereum is historically the second most popular cryptocurrency, but it is quite different from Bitcoin. Ethereum is actually the name of ether, the name of the cryptocurrency. Ethereum is a blockchain platform for “smart contracts”.
It can also be considered as a specific rules through which you can create many different applications, or Dapps – i.e. decentralized applications- . Ethereum’s decentralized applications range from games to ICOs – initial currency offerings – which are equivalent to the world of cryptocurrencies, crowdfunding or initial public offerings.
While other smart contract platforms have been launched since the launch of Ethereum, each claiming to offer more sophisticated blockchain technology, the original blockchain has maintained its position as the most widely used.
While Bitcoin aims to be an alternative to traditional banknotes, ether (besides trading as an asset) is intended to pay for the use of the Ethereum platform. It is known as the “Services” currency.
Ripple (XRP) is another currency “services” Its blockchain platform is set up to facilitate cross-border paper currency transfers more efficiently. The XRP has been closely linked to the support of a number of banks since its inception, and is often seen as the “established” cryptocurrency.
Over the years, the number of conversion services using the Ripple platform has gradually increased, and there is a real possibility that Ripple will become an integral part of the traditional financial system.
Litecoin is another potential alternative to banknotes, and a leading competitor to Bitcoin. Litecoin’s innovators hope that it will eventually be used to pay for everyday goods and services. Litecoin has taken the lead as it has become the most practical and technological alternative to Bitcoin. Litecoin transactions can be confirmed through the peer-to-peer network much faster than bitcoin transactions.
In theory, this may make litecoin the most attractive currency for traders, but cryptocurrency transactions in “real life” are still very limited, and because Bitcoin is the most established currency, it keeps it in the forefront as an alternative cryptocurrency. And the most preferred.
Like Ethereum, Neo is a platform for smart contracts and decentralized applications. Launched in 2014, it aims to compete with Ethereum by offering roughly the same but more technologically advanced blockchain technology.
Many claim that neo is the distinct technical platform for ethereum, but as with Litecoin and Bitcoin, the position of these currencies is the most established, helping them maintain a larger market share.
Iota is an encrypted digital currency based on a Directed Acyclic Graph structure created to work with IoT or IoT devices. IoT facilitates microtransactions involving connected devices, and also helps maintain the integrity of their data. More recently, Iota has jumped to the top of the list of most traded cryptocurrencies and seems to be waiting for a big future, as IoT technology has become the norm.