Although the price of cryptocurrency and different types of virtual currency has been tumbling in the last few days, investors still feel that Bitcoin and other digital currency types like altcoins are here to stay.
In this post, we will try to make a comparative analysis of Bitcoins and Altcoins. But before that, let’s find out what cryptocurrency is.
What Is a Cryptocurrency?
In simple terms, it is one of the types of virtual currency or digital currency that people can buy, sell or trade securely. This is created by cryptographic technique and is not regulated by the government or bank.
Types of Cryptocurrency
Bitcoin is the first cryptocurrency, and everything else is referred to as ‘altcoin’ collectively (a combo word derived from ‘alternative coin’). While it’s tough to tell which cryptos are the best, some of the other most popular altcoins are top-tier choices due to their scalability, privacy and range of usefulness.
The most popular ones are Bitcoin, Ethereum, Binance Coin, XRP, Tether, Dogecoin, etc.
How Many Cryptocurrencies Are There and Why?
Different types of cryptocurrency have emerged in the last few years. Because blockchain technology is open source, any software developer can utilize the source code to construct something new. That is exactly what developers have done. There are more than 4,500 different cryptocurrencies in circulation, and the number is continuing to grow. To put things in perspective, the number of cryptos just reached 1,000 roughly four years ago.
The relative simplicity with which new cryptocurrencies can be minted is one of the reasons for the growth. One’s source code can be utilized to create another. The Ethereum (CRYPTO: ETC) network, for example, can be used to create your digital currency. There are also ‘forks’ in the software code that change the rules for how a cryptocurrency is governed, resulting in the formation of a new cryptocurrency. In 2017, a Bitcoin fork allowed for more transactions to be recorded in a single blockchain block, resulting in the emergence of Bitcoin Cash (CRYPTO:BCH).
Top 10 Cryptocurrencies in 2022
Here are the top cryptocurrencies to watch out for in 2022.
- Bitcoin – $730 billion
- Ethereum – $327 billion
- Tether – $78 billion
- BNB – $63 billion
- U.S. Dollar Coin – $50 billion
- XRP…
