Ripple: Ripple tends to have a steady price due to its large supply. It has had
staying power over time. Its a popular and speedy alternative to Bitcoin that
often is less volatile than other coins toward the top of the list.
Ethereum: Is probably the third most important coin, if not the second. It doesn’t
have the longevity at the top like Litecoin, but it is built on a system that
other coins are built on. Most ICOs (Initial Coin Offerings) use ethereum. It
has a less intimidating cost that Bitcoin, and has the second highest market
cap. On that note, Ethereum classic is also notable. Ethereum is actually a
spin-off (aka “hard fork”) from what isn’t today called Ethereum classic (like
how our next up coin, Bitcoin cash, is a spin-off of Bitcoin.)
Litecoin: Litecoin is probably the second most important digital coin. It had the
third-highest market cap as of June 2015, but today it sits closer to 7.
Despite the decline, CPU mining is still sort of possible, people know what a
Litecoin is, it uses essentially the same technology of Bitcoin, and it costs about 1/50th – 1/100th of what Bitcoin does (depending on
the day). Really, a Litecoin is a lot like a Bitcoin before the whole ‘Silk
Road’ controversy, or as some people would say “a Litecoin is like a Bitcoin
except with a value closer to what a reasonable person would expect a digital
coin to have in a rational market.”
Bitcoin: Bitcoin is an easy pick. It was the first major usable cryptocurrency, it
has the highest market cap, its coins generally trade at the highest cost of
all cryptocurrencies (about $225 USD as of June 2015… but as high as $5,000
during early September 2017). Despite the big increase in price, Bitcoin is the
best choice for anyone entering the cryptocurrency space. It is the most
familiar and invested-in coin, it’s a lot of things… primarily Bitcoin is the
reason anyone is talking about cryptocurrency in the first place. You might not
want to start a CPU-based Bitcoin mining company in 2017 or start buying coins
for $5,000 a pop (which is fine since you can buy fractions of a coin)… but
it’s still going to take 1st place on our list.
Types of cryptocurrency
Pseudonymity: Owners of cryptocurrency keep their digital
coins in an encrypted digital in-holder’s identification is stored in an
encrypted address that they have control over – it is not attached to a
person’s identity. The connection between you and your coins is pseudonymous
rather than anonymous as ledgers are open to the public (and thus, the ledgers
could be used to glean information about groups of individuals
Open Source: Cryptocurrencies are typically open source. That means that developers
can create APIs without paying a fee and anyone can use or join the network.
Digital: Traditional currency is defined by a physical object (USD representing
gold for example), but cryptocurrency is all digital. Digital coins are stored
in digital wallets and transferred digitally to other peoples’ digital wallets.
No physical object ever exists.
Decentralized: Most currencies in circulation are controlled
by a centralized government, and thus their creation can be regulated by a
third party. Cryptocurrency’s creation and transactions are open source,
controlled by code, and rely on “peer-to-peer” networks. There is no single
entity that can affect the currency.
.Cryptographic: Cryptocurrency uses a system of cryptography (AKA encryption) to control
the creation of coins and to verify transactions.
Adaptive Scaling: Adaptive scaling essentially means that
cryptocurrencies are built with a number of measures to ensure that they will
work well in both large or small scales
HOW it is traded?
In other words, although the future is uncertain, cryptocurrency seems to
be more than just a fad. Here in early 2018 cryptocurrency is shaping up to be
a growing market that (despite its pros and cons) is likely here for the long
As of September 2017, there were over 1,100 cryptocurrencies and the total
market capitalization of all cryptocurrencies reached an all-time high
surpassing $60 billion! Then, by December 2017, the total market cap reached
$600 billion (a multiple of 10 in only two months).
As of January 2015, there were over 500 different types of cryptocurrencies
– or altcoins – for trade in online markets. However, only 10 of them had
market capitalizations over $10 million.
Bitcoin became the first decentralized digital coin when it was created in
2008. It then went public in 2009.
The first decentralized digital cryptocurrency can be traced back to “Bit
Gold,” which was worked on by Nick Szabo between 1998 and 2005. Bit gold is
considered the first precursor to bitcoin (although another notable mention in
the history of digital currency was e-gold; e-gold notable stared in 1996
before Bit Gold or Bitcoin).
The History of Cryptocurrency
In the process, this computational time and effort creates new
cryptocurrency as a reward to the community members who helped make the
The network then spends computational power on both verifying your
transaction (that you do own the cryptocurrency your spending and that you
haven’t spent it before), and adding it to the ledger.
If you want to make transaction, you simply broadcast to the
cryptocurrency’s network that you’re transferring ownership of some cryptocurrency
of yours to someone else.
Every cryptocurrency has a public ledger that contains the past and present
ownership of each coin.
Cryptocurrency is a lot like the theoretical rock currency described above:
Cryptocurrency may seem like a daunting subject at first, but the core
concepts surrounding cryptocurrency are pretty straightforward. Below, we will
breakdown the cryptocurrency basics to explain cryptocurrency in a simplified
way. See our how cryptocurrency works page for a breakdown of how things like
transactions and mining work.
Cryptocurrency is a decentralized digital currency that uses encryption to
generate money and to verify transactions. In simpler terms, it’s an
alternative to traditional currencies, which are backed by a centralized
government like the US Dollar (USD).