The Top 7 Most Popular Cryptocurrencies and What Makes Them So Successful
Cryptocurrencies are booming right now, and it’s easy to see why. Over the past few years, they’ve helped people to make huge gains, while providing greater security and privacy than traditional currencies can offer. However, there are thousands of cryptocurrencies out there how do you know which ones are worth investing in? This list of the most popular cryptocurrencies will help you pick the right ones for your portfolio.
1) Bitcoin (BTC)
Bitcoin is the original cryptocurrency, created in 2009 by Satoshi Nakamoto. It’s the largest cryptocurrency by market cap and is considered the most successful.
Bitcoin is a decentralized currency, meaning it isn’t subject to government or financial institution control. A public distributed ledger called a blockchain tracks transactions verified by a network of nodes. Bitcoin is often used as a store of value or investment, as well as for peer-to-peer payments.
Ethereum is similar to Bitcoin but with a few key differences. Like Bitcoin, Ethereum is a distributed public blockchain network. (Read also The Complete Guide to Financial Advisors and How They Can Help You Achieve Your Financial Goals).
Although there are some significant technical differences between them, both are open-source projects. The primary purpose of Ether, like Bitcoin, is to act as a store of value or to transfer funds from one person to another.
2) Ethereum (ETH)
Smart contracts run on Ethereum, a decentralized platform that does not permit fraud or third-party interference. These apps use a custom-built blockchain, a sophisticated global infrastructure that allows value to be moved around and property ownership to be represented.
This allows developers to build marketplaces, keep lists of IOUs or contracts, exchange funds, and so on. Without middlemen or any form of risk.
The distributed nature of these systems and their immunity to fraud is one of their greatest strengths. One might compare smart contracts in Ethereum with a vending machine.
You put Ether in, and it gives you something else: an executable computer program that runs exactly as programmed without interference from outside parties. Ripple (XRP) and Bitcoin Cash (BCH) are two other popular cryptocurrencies. (Read How to Save Money on Your Car with a G Wagon Tax Write-Off).
These cryptocurrencies have gained popularity due to their low transaction fees and instant payments. Ripple is built on top of blockchain technology much like Ethereum but XRP transactions occur more quickly with lower mining requirements resulting in faster confirmation times for XRP transactions than those from Bitcoin or Ethereum networks.
3) Ripple (XRP)
Ripple is one of the most popular cryptocurrencies and it is also one of the most successful. Ripple is a digital payment network that uses blockchain technology to make international payments.
Ripple has a fast transaction speed and low fees, which makes it attractive to users. Ripple is also popular because it is backed by major banks and financial institutions.
Like many of its peers, Ripple is open source and decentralized. This means that it’s a public network where users control their data. There are more than 100 billion XRP in circulation right now, which makes it one of the most valuable cryptocurrencies on Earth.
Over time, an increasing number of banks have adopted Ripple to transfer money around the world faster. It is estimated that 40+ companies have already started using Ripple technology, including Santander, UniCredit, and UBS.
The biggest difference between XRP and its peers is that Ripple has been around for much longer. In fact, it was launched in 2012. (Read 3 WAYS TO GO BROKE)
As a result, there’s a lot of information about XRP that can be easily accessed on many different platforms. There are over 20 million searches for Ripple every month on Google, which makes it one of the most popular cryptocurrencies. (Read What is the current gold price? How much does gold cost?).
4) Litecoin (LTC)
Bitcoin is often referred to as the gold to Litecoin’s silver. It was one of the first cryptocurrencies to follow in Bitcoin’s footsteps, and it has remained one of the most popular and successful altcoins. Litecoin is similar to Bitcoin in many ways, but it also has some key differences. For one, Litecoin is faster than Bitcoin.
It takes Litecoin two and a half minutes to complete a transaction, but ten minutes for Bitcoin. And there are many more tokens available: 84 million coins versus 21 million for Bitcoin.
The script algorithm in use by Litecoin also makes it easier to mine. To get a Bitcoin, you need to either buy it or mine it by solving a complex computational problem using specialized hardware.
There are only so many Bitcoins available only 21 million coins will ever be mined and mining gets more difficult over time. If you want to know what Bitcoin mining is, and how it works, check out our detailed guide here.
Another key difference between Litecoin and Bitcoin is that there will only ever be 84 million Litecoins in existence. This cap is much more reasonable than Bitcoin’s, which means that it’s much less likely that your Litecoin investment will be diluted.
5) Dash (DASH)
What is Dash?
Dash is a digital currency that aims to be private, secure, and fast. It was created in 2014 by Evan Duffield and has since become one of the most popular cryptocurrencies.
What makes Dash successful?
There are several things that make Dash successful. First, it is private and secures thanks to its use of the X11 algorithm. Second, it is fast thanks to its InstantSend feature. Third, it has low fees. Fourth, it is decentralized.
There are also several ways to earn Dash, including mining. Since Dash is a Proof of Work cryptocurrency, it can be mined using CPU or GPU hardware. Users who don’t want to mine for their coins can simply buy them on an exchange, such as Kraken or Bittrex.
6) Monero (XMR)
Monero is a cryptocurrency that is focused on privacy and security. Transactions on the Monero network are confidential and untraceable.
Monero uses a unique cryptographic technique called ring signatures to hide the sender’s identity. Monero is one of the most popular cryptocurrencies because it is private, secure, and untraceable.
Monero was launched in April 2014. It uses a proof-of-work algorithm, which means that computers on its network must solve difficult math problems to verify transactions.
This algorithm prevents Monero from being hijacked by mining cartels. Monero is one of the most popular cryptocurrencies because it’s private, secure, and untraceable.
However, this popularity has come at a cost: hackers have successfully targeted Monero users with malware for years. As early as 2017, hackers were spreading malware through social media sites like Facebook and Twitter with links to fake cryptocurrency wallets.
In January 2018, Coinhive an online miner for cryptonight coins like Monero – was hacked and used by unknown perpetrators to mine MXR without the consent or knowledge of website visitors.
7) NEM (XEM)
NEM is one of the top seven most popular cryptocurrencies and is successful for a variety of reasons. One reason is that NEM uses the Java programming language which makes it easy for developers to work with. Additionally, NEM has a unique consensus mechanism called Proof of Importance which encourages users to actively participate in the network.
This, in turn, creates a more secure network. Finally, NEM has a fast block time of only 60 seconds which allows for quick transactions. In contrast, Bitcoin’s block time is about 10 minutes.
Moreover, the use of public and private ledgers brings NEM an interesting cryptocurrency because both types can be used simultaneously to create multi-layered systems with different levels of access for different parties.
NEM is not only successful but also unique. The name NEM is an acronym for New Economy Movement, and it was developed in 2015. Unlike Bitcoin, which uses a public ledger to record transactions, NEM has two separate ledgers one that’s private and one that’s public.
However, these two ledgers operate independently of each other so they can operate at different speeds while simultaneously allowing users to choose between complete transparency or complete privacy.