The cryptocurrency craze has caused millions of people around the world to stake their savings to try to hit the ball. The point is that each currency differs from the others and to know how to invest you have to know them.
It is being the month of virtual currencies, with more bad news than good, since as you know they have been plummeting for a few weeks without really knowing why.
Because the cryptocurrency market is not supported by any official body or has a central bank behind it, investing in them is as much a lottery as investing in the stock market. Nothing assures you that you will earn money.
For that very reason, the experts ask to know well each one of the currencies, In order to understand what differentiates them, a key question to invest.
Here we leave a short explanation and update of the main seven cryptocurrencies that currently have the most value in the market, with Bitcoin in the first position, of course.
The list goes from most to least valued:
- Bitcoin (BTC): It is the largest cryptocurrency in the world. Its valuation is rising as more investors stick to this “digital gold.” The most important factor behind its precious value is the maximum limit of its coins: there are only 21 million.
- Ethereum (ETH): it almost always competes with Bitcoin. Its share of the cryptocurrency market recently increased from 18% to 20%. It is a decentralized blockchain platform that dispenses with third parties.
- Cardano (ADA): It is also a decentralized blockchain platform that uses a native cryptocurrency. Allows secure transactions between peers. There are plans to enable smart contracts on it very soon. It is the green coin.
- Uniswap (UNI): This currency already allows the use of smart contracts. Facilitates automated token transactions on the Ethereum blockchain.
- Dogecoin (DOGE): This coin has earned a high mining rate since its inception. It is still in the speculative stage and has not crossed the dollar mark. However, it has a higher circulation and an unlimited ability to mine more.
- Binance Coin (BNB): Like Bitcoin, it has a limit on the number of tokens circulating: 200 million coins. It also follows a quarterly routine of destroying or “burning” much of its currency throughout the year. These are the main reasons for its rising value.
- Polkadot (DOT): This currency provides a bridge for networks, so that many applications built on Polkadot can also work on Ethereum and Bitcoin. However, it is more scalable and faster.
With this quick guide, if you still did not understand well what they were about, it is most likely that it has helped you to have a detailed idea of each of the coins.
Now, it is one thing to understand what the main options on the market are based on, and quite another to get rich with them. In that we cannot help you.