Technology has impacted almost all of our daily activities, one of them being finance. People do not rely on physical payment anymore and often opt for digital modes of payment. This has given rise to different types of contactless payments. One such way of payment is cryptocurrency.
Now, the question arises, what exactly is cryptocurrency?
Cryptocurrency is a mode of digital payment that does not rely on the banks for any sort of transaction. It is a type of currency that works purely on the basis of digital entries in the form of online databases that contain all the information of the transaction. It is a peer-to-peer system that enables anyone to send and receive payment from any part of the world without any hassle of different local currencies.
The cryptocurrency is stored in a digital wallet of the user and all the transactions are recorded in a public ledger. The name cryptocurrency was given because encryption is used to verify all the transactions, and it is done in order to provide cybersecurity and safety.
(To know more about cryptocurrency, read: What is Cryptocurrency?)
People have started raving about cryptocurrencies since Bitcoin gained popularity and millions of people came swarming in the field as cryptocurrencies started trending. Although Bitcoins are still the leading in terms of market capitalization and user base, there are many other mainstream cryptocurrencies that are growing popular every day.
(Recommended read: How to mine Bitcoin?)
In this article, we are going to discuss stable currencies that are less prone to price fluctuations and provide better security than the others.
Ethereum is one of the most popular and stable cryptocurrencies founded by blockchain enthusiasts Joe Lubin and Vitalik Buterin (current CEO of ethereum). It is a decentralized platform that allows smart contracts and distributed applications (dapps) to be used without any downtime, fraud, control, or intervention from any third party.
Ethereum is a versatile financial value that can be accessed by anybody from any part of the world. For some countries with poor state infrastructure, ethereum has worked as a boon as citizens there could have access to bank accounts, loans, insurances, and other financial procedures.
The cryptographic token used to use ethereum is called ether and all the applications of ethereum are run by it. Launched in July 2015, ethers are the second-largest cryptocurrency in terms of market capitalization, right after Bitcoins.
Many software developers who want to develop applications inside the platform of ethereum need ethers to run them. Ethers are also used by many investors to purchase other digital money.
According to Investopedia, the market value of 1 ETH is equal to $2,236 at the end of May 2021 and according to Statista, the market capitalization of ethereum has grown over $250 billion in April 2021.
Tether is one of the first stable coins that has gained a lot of popularity because of its $1 worth. Stablecoins are cryptocurrencies whose market price is tied to a currency or other external reference point in order to decrease unpredictability.
Cryptocurrencies are often known for their dramatic volatile behavior that leads to huge profits or losses for investors. This leads to instability and fear of investing. Stable coins like tether attempt to reduce all these fluctuations. Tether was invented with the goal of always being worth $1, with $1 in reserves for each tether released.
Tether describes itself as “A blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.” This cryptocurrency, in effect, lets users use a blockchain network and related technologies to deal in traditional currencies while avoiding the volatility and complexity that are sometimes linked with digital currencies.
In the context of market capitalization, Tether is the third-largest cryptocurrency. According to yahoo finance, the current market value of 1Tether is 1.0003 USD and the market capitalization is over 61 Billion USD.
(Must read: Bitcoin vs Dogecoin)
Binance coins work as a payment method for the amount used during trading with the Binance exchange. Binance exchange is one of the fastest-growing cryptocurrency exchanges and traders here are required to use Binance coins as a token, to buy other crypto coins. Due to the continuous trades done through Binance coins, they are getting popular and stronger.
It was created by Changpeng Zhao and was originally an ERC-20 token that was used in the ethereum blockchain. Eventually, it had its own main net launch. Binance had raised $32 million for a stable coin project in 2018.
Binance is the 4th largest cryptocurrency regarding market capitalization. According to the coin market cap, the price of 1 BNB is approximately $330 with a market cap of over $55 billion USD.
Cardano is one of the affordable cryptocurrencies that was created in 2015 as experimentation by some engineers, mathematicians, and cryptographers. It soon gained popularity in the market because of its “Ouroboros proof-of-stake” approach, which essentially allowed it to use two blockchains instead of one.
The basic idea of having two blockchains is that one of them will manage the ordinary transactions and the other will look after the smart contracts. This will allow Cardano to be scalable and fast. Cardano is also called “Ethereum killer” as it implements the proof of stake algorithm and its blockchain is capable of doing a lot more than ethereum.
According to yahoo finance, the current price of 1 Cardano is $1.3 with a market cap of around 41 billion USD, making it the 5th largest cryptocurrency in the market.
Litecoin often referred to as “silver to Bitcoin’s gold” was founded in 2011 and was one of the first cryptocurrencies to follow the footsteps of bitcoin. Litecoin is built on an open-source global payment network that is not centralized and uses “scrypt” as a proof of work that can be decoded using consumer-grade CPUs.
Litecoin uses a faster block generation rate which makes transactions faster and easier. It is easier for miners to mine, as the average time for mining litecoin is 2 minutes.
According to yahoo finance, the price of one litecoin is $145.55 and market capitalization is over $9 billion. It is the 14th largest cryptocurrency on the basis of market cap.
(Also read: Top Companies adopting Bitcoin)
Bitcoin Cash is one of the earliest hard forks of the original Bitcoin currency. A hard fork is a significant modification to a network's capability that provides previously invalid blocks and transactions to become legitimate or vice versa and it takes place as a result of arguments between developers and miners.
Bitcoin cash was founded in 2017 as a result of the digital currency split. Digital currencies are split as different organizations cannot agree over a particular change made to the token.
After the split, the original chain remains true to the original code, and the code of the new chain is changed. The argument that resulted in the establishment of Bitcoin cash was over sustainability; the Bitcoin network has a restriction on the size of blocks, each block being 1 MB. BCH raises the block size from one MB to eight MBs, with the theory being that bigger blocks may store more transactions and therefore enhance process efficiency.
BCH is the 12th on the list of cryptocurrencies with a market cap of over $10 billion USD according to the coin market cap. The current market price of 1 BCH is $543 USD.
Polkadot was created by Gavin Wood in the year 2017. It is a one-of-a-kind proof-of-stake coin that aims to provide compatibility with other blockchains. Its essential component is its relay chain, which lets different networks communicate with one another. It also enables the creation of "parachains," or alternative blockchains with their own native coins for specialized application cases.
Polkadot varies from Ethereum in that instead of merely developing decentralized apps on Polkadot, developers may design their own blockchain while still utilizing the security that Polkadot's chain currently provides.
Polkadot is among the affordable cryptocurrencies. According to the coin market cap, the price of 1 DOT is $19 USD, with a market cap of $19 billion USD. It is the 9th highest cryptocurrency according to the market cap.
Chainlink is a decentralized communication network that connects smart contracts, such as those on Ethereum, to data outside of the blockchain. Blockchains do not have the capacity to link to external apps in a secure manner. Chainlink's decentralized overseers enable smart contracts to interface with external data, allowing contracts to be performed based on data that Ethereum cannot access.
It was developed by Sergey Nazarov along with Steve Ellis in 2014, but it didn’t launch until 2017. A variety of use cases for Chainlink's technology are detailed on the company's blog.
One of the numerous use cases described is monitoring water sources for contamination or unauthorized hiving in certain towns. Sensors may be installed to monitor corporate usage, water tables, and local bodies of water levels.
This data may be tracked by a Chainlink oracle and sent straight into a smart contract. With the incoming data from the oracle, the smart contract might be set up to execute penalties, provide flood warnings to cities, or charge firms that use too much of a city's water.
According to coin gecko, the price for 1 LINK is $23 USD with a market capitalization of approximately $10 billion USD.
There are over 2000 cryptocurrencies that are already in the market and every day new currencies are developed. Cryptocurrencies are one of the most popular ways of trading and investment, regardless of their volatile nature.
(Also read: Digital Currency and Cryptocurrency)
There are many advantages and disadvantages that come along with cryptocurrencies, so it is important for us to study patterns and research before putting our hard-earned money into anything. In this article, we have discussed 8 trending cryptocurrencies that have shown stability.
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