10 common cryptocurrencies and how they function

A rundown of the 10 common cryptocurrencies and how they function

1, Bitcoin (BTC)

Today’s most well-known form of cryptocurrency is Bitcoin, the first of its kind, which started in a white paper published in 2008. An army of decentralized miners validate transactions on its blockchain and create new Bitcoins (up to a set cap) according to its rules. The most significant market capitalization in April 2024 was 1.31 trillion USD, held by Bitcoin.

The cryptocurrency is known as Bitcoin Cash (BCH)

A cryptocurrency known as Bitcoin Cash (BCH) was born out of a 2017 hard fork from Bitcoin. Expanding the block size speeds up the processing additional transactions, which solves Bitcoin’s scalability problems. We aimed to increase transaction speeds and decrease fees to make the money more usable for regular transactions. Although it is based on Bitcoin’s blockchain and has a similar emphasis on transaction efficiency, ten common cryptocurrencies, Bitcoin Cash has its growth path and uses many of Bitcoin’s core ideas.

2. The Coin (ETH)

The Ethereum blockchain is the foundation for the cryptocurrency Ether. While both Bitcoin and Ether run on separate blockchains, the latter has a limit on the number of coins that may be minted, while the former has no such restriction. In addition, the Ethereum blockchain is compatible with smart contracts, which are computer programs that may be programmed to execute automatically in response to specific events.

3. BNB, Binance Coin

Thanks to Binance Coin, Binance will have more cryptocurrency exchange users than any other platform in 2024. Users who opt to pay using BNB will see a reduction in transaction fees for this particular trade. Because of this, Binance Coin has grown in popularity and is now one of the biggest cryptocurrencies available. Binance “burns” a certain percentage of the currencies in circulation to maintain a constant value.

4. USDT, or Tether

Stablecoins like Tether aim to reduce price volatility by tying the coin’s value to an external asset. Because there is a fixed amount of US dollars behind each coin, its value will not fluctuate as much as with other cryptocurrencies. However, the extent to which the dollar backs it is a matter of contention.

5. The cryptocurrency Solana (SOL)

Solana’s native token, SOL, is based on blockchain technology similar to Ethereum and Bitcoin. Investors seeking a fast trading platform may find Solana appealing due to its network’s ability to execute 50,000 transactions per second.

6. Ripple (XRP)

A “cryptocurrency for banks,” according to some, XRP is explicitly built to meet the demands of the banking and finance sector and operates on the Ripple network. The original idea behind XRP was to make international payments more accessible and faster by bridging the gap between two different currencies.

7. The ADA coin

The Cardano blockchain uses its native coin, ADA. Cardano, 10 common cryptocurrencies, and a “third-generation” cryptocurrency, uses native tokens to improve the experience for ADA holders and divides its blockchain into two layers to speed up transactions.

8. Dollar Coin (USDC)

Like Tether, the USD Coin is a non-mineable stable coin tied to the US dollar. However, USD Coin’s funding and auditing procedures are more open and honest than Tether’s. Since users should constantly be able to cash out their coins for the same amount in cash, 10 common cryptocurrencies, the goal is to reduce some of the risks associated with crypto.

9, Aave (AAVE)

Aave is a decentralized cryptocurrency platform that allows users to borrow and lend cryptocurrencies through intelligent contracts. It is built on a proof-of-stake blockchain. As a safety measure, Aave offers what are known as overcollateralized loans, in which borrowers are asked to put up cryptocurrency deposits that are more than the amount they borrow. This helps users avoid problems like loan defaults by allowing them to borrow up to a specific percentage of the value of the pledged collateral. Additionally, AAVE is the name of their native token.

10. (AVAX) Avalanche

The Avalanche platform, which claims to be the “fastest smart contracts platform,” has its cryptocurrency, AVAX. Among other things, the Avalanche platform accepts AVAX as payment for transaction costs. New bespoke blockchains can be created on the Avalanche platform as “subnets.” Ethereum developers may more easily develop subnets on Avalanche since its blockchain is compatible with Solidity. Solidity is the programming language used by the Ethereum blockchain.