Cryptocurrency or digital currency is a well-known term now a day. We are now a part of the digital era. In addition, we have more 3000 cryptocurrencies right now. Moreover, like someone says that we are going to replace paper money with digital money.
Are all cryptocurrencies treating equally?
what is the reason behind the creation of these digital currencies? Everyone want to know the reason. Accordingly, Some of them were created as a joke or “just because”. Few were a part of a scheme. Whereas, the worth or value of any cryptocurrency is because of its user’s demand.
Same like other useful assets like oil, stock, property etc. Accordingly, digital’s currencies’ value also faces the rise and fall in its value. By creating a scary situation in form of risky investment and rise, fall in its values.
Why we need the digital currencies
Here, the question is why we people need these digital currencies. First, government or other exchange charge a heavy amount for routine transactions. where the international transactions become costlier. Moreover, digital currency invention brings the revolutionary change in routine transactions. people do the transaction without any heavy fees. And, the most important thing is, users are allowing to do the transaction without the middle person. They are free to do transactions, where they want in the world. This is the first and foremost reason, why we need digital currency.
Main characteristics of digital currencies
A cryptocurrency should fall on some characteristics are as follows:
Capitalization and trading volume
Market capitalization is the total of all cryptocurrencies. While the high market capitalization indicates the real worth of the cryptocurrency and its availability. The most important thing in the capitalization is its daily trading volume. Which is directly change due to exchange percentage. Whereas, the healthy economy of the transactions is because of trading volume.
The main feature of the cryptocurrencies is verification process. The old method is proof of work. A computer has to enhance its energy and time by solving the trike mathematical problem. Whether downside of this method is that it needs massive energy to operate. In addition, the system with less processing power and handsome out is proof of stake. This proof of stake system is used to solve these problems.
If you don’t carry out the transactions with cryptocurrency means it has no acceptance in retailer market. Meanwhile, it’s important to do transactions with digital currency and make it sure that currency has market acceptance and market values as well.
Above all are some characteristics of the digital currencies. Now, we will discuss the top 10 cryptocurrencies of the world.
Top 10 digital currencies
There are more than 500 digital currencies but we will discuss few of them.
First and foremost, cryptocurrency anonymously created by Satoshi Nakamoto in 2009. Bitcoin has the biggest market capitalization around $10 million, the prominent capitalization as compare to other cryptocurrencies. Read all about bitcoin
A cryptocurrency platform who has the ability to execute peer-to-peer, smart contact. Ethereum was created by Vitalik Buterin in 2015. And, split into two parts Ethereum and Ethereum Classic due to DAO attack. Whereas, with the confidence of next generation platform, Ethereum has around $1.1 market capitalization.
Now, the next is the ripple. Which is gross time settlement process? The cryptocurrency released in 2012. To reduce the cost, this system is integrated into few banks.
Charles Lee introduces the litecoin in 2011. Accordingly, has the roughly market capitalization $180 million, litecoin also used in sale and purchase process.
A digital currency that focuses on the privacy terms and decentralization is Monero, launched in 2014. Whereas, It is totally based on the cryptonote protocol and algorithmic differences directly relating to the blockchain. By using ring signature technology Monero keeps focusing on the privacy of the users. With around $138 market capitalization Monero has increasing users’ percentage.
A technology built or use by anyone is ethereum classic, run on blockchain technology. It is an open source project built by the public. No one has the authority to control ethereum classic. In addition, it is not famous enough but has the market capitalization $575,782,074.
Dash is basically a digital cash, which has the ability to use anywhere. In addition, It is a peer-to-peer cryptocurrency which offers private transaction as well as instant transactions. Accordingly, It is also known as Darkcoin or Xcoin with the market capitalization $664,377,178, in 2014.
The idea behind is to share your computers as a dropbox and google drive. It has around $4.3 market cap.
Augur has the market cap $188,505,585. While the network is working by users to contribute the storage and computing power.
It is not only a cryptocurrency but it is a blockchain product who is handling the native currency token. Market cap of Nem is $1,031,274,000.