At present it is estimated that there are around 8,400 cryptocurrencies, and bitcoin remains the leader in the virtual currency market. For years, new currencies have been given way, so it is essential to know which ones are the most used.

It must be taken into account that what differentiates all these currencies is the technology, the encryption, and the philosophy they use. Most cryptocurrencies use Blockchain technology. However, it is not the only one.

Next, the detail of the five cryptocurrencies that are most used today.

Bitcoin

Bitcoin is the most widely used cryptocurrency and was the first cryptocurrency to hit the market. It was created in 2009 by Satoshi Nakamoto (a pseudonym that corresponds to an anonymous entity) with the idea that it was a payment method that was not subject to government supervision. This is the basis that all other cryptocurrencies have followed.

The price of bitcoin, as well as other cryptocurrencies that have been generated, is defined by the number of people who are willing to accept it as a bargaining chip. Bitcoin is the currency that has positioned itself as a leader in the digital market.

The market value of bitcoin can be compared to that of another benchmark asset: gold. In the midst of the crisis due to the Covid-19 pandemic and geopolitical power shifts, more people see that gold and bitcoin are better alternatives against the dollar.

Ethereum

Ethereum is the second largest cryptocurrency by volume and market capitalization. For example, on May 12 it reached a record price of $ 4,380. It was created by Vitalik Buterin and its main characteristic is that its blockchain is considered second generation, since so-called “smart contracts” can be created, and it is one of the main blockchains where other tockens or virtual currencies are housed.

Its mining process is similar to that of bitcoin. However, it differs in issuance: while that of bitcoin cannot exceed 21 million, that of ether is unlimited.

Tether

Tether is a stable coin or stablecoin, that is to say that all cryptocurrencies of this type in circulation are backed by an equivalent amount of traditional currencies

It was designed to match the US dollar in 1: 1 ratio. It exists on many different blockchains and has a larger and more liquid trading volume over the years. This currency is useful when trading cryptocurrencies as it allows traders to avoid the market volatility that is common with crypto assets.

Binance Coin It is the official cryptocurrency of the Binance crypto exchange. This Binance coin originated to support transactions within the platform itself. In its beginnings, it was used as a utility token anchored with the operation of the exchange. Now it is a full-fledged means of payment. In the same way, it offers the advantage of being able to reduce the cost of transaction fees to people with BNB tokens in their account.

Cardano is the representation of the so-called 3rd generation of the Blockchain that tries to solve the scalability problems typical of 2nd generation blockchains such as Etherium.This coin has become one of the fastest growing assets in the cryptocurrency industry, multiplying its value by more than 45 times in the last year. In addition, it is one of the types of cryptocurrency that any user, anywhere in the world, can use as a secure exchange of value without the need for an intermediary.

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