Over the past few years, cryptocurrencies have substantially increased in the number of adoptions. It is becoming more famous in various institutions, and nations. With the help of cryptocurrencies, many institutions’ financial system has been transformed because of the easy tracks of financial transactions and records through blockchain technology.
Considering certain fundamental conditions such as; market trends, market capitalization, use cases, etc we will be discussing the top 10 popular cryptocurrencies and their use cases in the content of this article.
1. Bitcoin ($BTC)
This is often known to be the first cryptocurrency created by Satoshi Nakamoto in 2009. It uses a technology known as “blockchain”. This technology works in a network based on decentralization to safeguard peer-to-peer transactions. It enables transactions between two parties without the need for a third party to execute a particular transaction. Bitcoin is used as a medium of transactions in exchanges of services and also as a store of value.
2. Ethereum ($ETH)
This is the second crypto project with a large market capitalization. New crypto coins and decentralized applications can be created using Ethereum on its network. Ethereum brought about the idea of smart contracts which plays a vital role in the crypto industry. Ether is the native token of the Ethereum network. It is used for making transaction payments on the Ethereum ecosystem.
3. Binance Coin ($BNB)
Binance is one of the biggest centralized exchanges, performing multipurpose tasks such as; serving as a trading platform, serving as a wallet platform, a launchpad platform, etc. Binance coin ($BNB) is the native coin of $BNB. $BNB coin can be used participating in token sales on Binance launchpad, it is used to give lower trading commissions, it can be used in decentralized applications for decentralized finance (DEFI) activities in the smart chain network, also enables transactions on cross-chain.
4. Ripple ($XRP)
Ripple is a digital currency and a payment system that was developed to carry out international transactions quickly and efficiently. On the ripple blockchain, $XRP operates as the role of a bridge currency, allowing smooth transactions between several fiat currencies. It is used for making international payments eliminating a central intermediary like a bank.
5. Litcoin ($LIT)
Most times, Litcoin is called “Bitcoin Gold”. Litcoin is suitable for making transactions because there are fast and efficient. Due to its rapid block generation times and several hashing, it is enticing for regular usage and for carrying out fewer transactions every day. It is widely accepted by many institutes and it is used as a means of payment.
6. Solana ($SOL)
$SOL is the native token of Solana. Solana was created to assist projects that are developed on decentralized applications (DAPPs) and decentralized Finance (DEFI). However, it is a blockchain platform that helps to execute transactions in a fast and less expensive manner. Solana is used for staking, investments, or performing other transactions on the Solana ecosystem.
7. Cardano ($ADA)
The Cardano network has a native token called ($ADA). It enables the creation of smart contracts and decentralized applications due to the possession of blockchain technology and its flexibility. It distinguishes itself by prioritizing durability, and scalability, and enables sustainability which assists in the rapid adoption of blockchain technology in various institutions. It is used for carrying out transactions, and staking, and functions as a governance token.
8. Polkadot ($DOT)
Polkadot is used as a governance and bonding token and it has a native coin called $DOT. This is a multi-chain platform that makes it feasible for numerous blockchains to communicate with one another. It strives to build a network that is decentralized and accessible that can render the transmission of data between several chains. It is used for governance, staking, and bonding.
9. ChainLink ($LINK)
It is a decentralized network that provides information to smart contracts. It has a native token called $LINK. Through the decentralized network of Oracle, the $LINK network provides accurate information to smart contracts and APIs. it can be used as a medium of payment for smart contracts that utilizes the data provided by the link network, and it is also used as a utility token.
10. Stellar Lumens ($XLM)
Just like Ripple, it is a blockchain platform a payment system that is used to carry out international transactions quickly and efficiently. However, this project was created to offer financial services to people operating banking services and those that are not operating banking services around the world. It has a native token called $XLM. It can also be used to prevent network spamming and help in enabling transactions within the ecosystem.
Summary
The crypto industry comprises thousands of cryptocurrencies. Sometimes, it is confusing on the best coin to select when making investments. As a newbie, it is good to know that cryptocurrencies are created for various purposes, ranging from institutional purposes being in business, finance, etc.
The above-listed and discussed cryptocurrencies are selected based on use cases, market trends, etc. Those are the important factors that an individual should use to select a good crypto project.
