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Cryptocurrency first emerged in 2009 and the mechanism of this alternative currency was published in a white paper by Satoshi Nakamoto in 2008. It is based on the technology of blockchain that stores data in each and every block. After bitcoins profitmaximizer were introduced, people started taking note of the blockchain technology. This led to many other coins being introduced into the system. However, while it was a good sign of adoption it posed another issue for new investors.
Currently, there are over 10,000 cryptocurrencies each signifying a different purpose. one can understand how this might be difficult for new investors. Therefore, to help such people this article shall focus on the top 7 cryptocurrencies that you must know about before you start your investing journey.
Bitcoins (BTC)
The first ever cryptocurrency was created that introduced the world to blockchain technology. Currently, it is one of the most valued cryptocurrencies across all kinds of cryptocurrency platforms. Initially, the value of bitcoins was also not this exponentially high however, it blew in popularity in the recent 5 years. This came from various endorsements from several influencing people such as Elon Musk. Even today bitcoin is one of the most popular cryptocurrencies, to the point where cryptocurrency has become synonymous with bitcoin. Therefore, It is always better to start your investment with bitcoin and you can add other cryptos to your portfolio to diversify your profile.
Tether (USDT)
Another very important coin to know about in the cryptocurrency sphere is the Tether coin. Unlike normal cryptocurrencies, this type of coin is referred to as a stablecoin. A stablecoin means that its value is not extremely volatile like BTC. These coins have a value that is backed by an asset. In this scenario, the tether is backed by the value of our dollars. This essentially means that the tether has a value that shall prevail should the market crash. Therefore, the tether is a good coin to know about if you are looking for some kind of stability in the cryptocurrency market. Some might even suggest betting on such stablecoins may be great for new investors to get a hold of the market and also enter the market to diversify their portfolio.
Solana (SOL)
The main aim of bitcoins was to promote decentralization in the financial world. By decentralization, it means that the creators wanted a system where there was no intervention by the government or any other third party. Cryptocurrencies were formed to facilitate more peer-to-peer transactions. Therefore, we can understand why it is very important to know about such financial mechanisms. Solana is one such coin. The main aim of this coin is to promote more decentralized financial transactions on decentralized apps. It was launched in 2020 and was valued under one dollar. However, over the years now it is valued at over 100 dollars. Hence, you can imagine how much profit you can make from this type of cryptocurrency.
XRP or Ripple
Ripple is a platform for digital payments across various currencies and cryptocurrencies. the founders of this platform released a cryptocurrency called XRP to facilitate more transactions on the platform. This platform is mainly used for many cross-border transactions. Therefore, you can understand why it is also an important part of the cryptocurrency market.
Ethereum (ETH)
Another very popular coin after bitcoin is Ethereum. There are many people who endorsed this system of decentralized financial technology. There are many reports that suggest Ethereum may take over bitcoin soon. While the valuation of Ethereum is nowhere close to BTC and it is the second largest cryptocurrency in the world.
USD Coin
Another very popular stablecoin is USDT. Like tether, it is also backed by the value of US Dollars. Another reason why this coin has been investors’ favorite is that it is powered by Ethereum and can be used to make many transactions across platforms.
Polkadot
Another very unusual cryptocurrency that has been gaining a lot of investor traction is Polkadot. It was launched in 2020 with the aim of connecting several different blockchains and making them work seamlessly. On its launch, it was a little over 2 dollars but now has a valuation above 25 dollars.
Therefore, these are some of the common cryptocurrencies that you should know about. You should choose platforms such as https://trading-education.com/top-7-cryptocurrencies-to-invest-in for safe and secure trading.
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