- Date : 24/12/2021
- Read: 4 mins
Did you know there are over 15,000 types of cryptocurrency options for investors?
Cryptocurrencies are all the rage today in the world of investing. So much so that there is virtually a different cryptocurrency being added every other day. How many types of cryptocurrencies are there, you ask? An estimated 15,000+ and counting!
While you need not know all types of cryptocurrency in India, here are seven of the most popular and widely traded ones.
Price: approx. $47,000
Used almost synonymously with cryptocurrencies, Bitcoin is the first and the most popular digital currency. It wasn’t until 2017 that the new-age asset truly became mainstream when it went from $1000 to $20,000 within the year. That is when a large number of retail investors started taking cryptocurrencies seriously.
Bitcoin is built on blockchain technology, a decentralised public ledger that is difficult to manipulate, thereby bringing in security and transparency that all digital currencies seek.
Price: approx. $4000
Ethereum is the second-largest digital currency in terms of market capitalisation. Ethereum works on the blockchain principle just like Bitcoin; however, its supply is not finite. A large network of developers continuously creates and monetises more Ethers, which is the reason for its popularity.
Additionally, Ethereum is highly interoperable with other financial products and is extensively used to launch Non-Fungible Tokens (NFTs) - unique digitised art or collectibles linked to blockchain technology.
3. Binance Coin-BNB
Price: approx. $560
Issued by Binance, one of the largest cryptocurrency exchanges, BNB was initially created as a utility token on the platform to enable users to get discounts. It has now evolved to be a payment tool for various goods and services.
What makes this cryptocurrency unique is that once every quarter Binance buys back some of the tokens and permanently destroys them, thereby driving demand and price.
Among all the different types of cryptocurrency, Tether is the only one that is anchored to real money. Available in USD, EUR, and JPY, it always holds a one-to-one value with the fiat currency and has also been termed as a ‘stablecoin’.
Tether is not used as an investment but as a medium for investors to move from one cryptocurrency to another without having to convert their holdings back into dollars. In addition to stability, Tether has low transaction charges, making it the currency of choice for investors who want to diversify or rebalance their crypto portfolio.
Price: approx. $170
Launched in 2020, Solana is among the newest entrants in the cryptocurrency market. It is capped at 480 million coins and has been extremely volatile so far. It has swung from $3 in September 2020 to $190 a year later.
SOL’s robust ‘web-scale’ platform with decentralised finance (de-fi) smart contract technology and speed of execution has pushed its popularity, especially for issuing NFTs.
Price: approx. $1.26
ADA is a cryptocurrency developed by the blockchain platform Cardano, and is named after the 19th-century mathematician Ada Lovelace. Touted as a third-generation blockchain platform, Cardano aims to simplify the existing complicated Proof-of-Work (PoW) calculations and minimise power usage as a way of efficient and sustainable mining compared to Bitcoin.
Developed by the co-founder of Ethereum, Cardano’s strong research-based framework and peer-approved insights give it a strong academic reputation.
Price: approx. $0.17
Created as a joke after Bitcoins’ meteoric rise, Dogecoin was modelled after a meme featuring the Shiba Inu dog, also known as ‘doge’. Despite the reputation (or the lack of it), this memecoin has been able to hold its own. Every now and then, the cryptocurrency grabs the headlines, including the positive backing given by Elon Musk.
There is no mining limit to Dogecoin, and it is one of the biggest digital currencies in terms of circulation - the primary reason behind its low valuation.