Top 10 digital currencies at a glance

This is what awaits you in this article

As soon as cryptocurrencies are mentioned, most people automatically think of Bitcoin. In addition to Bitcoin, there are several thousand other cryptocurrencies such as Ethereum, Solana or Tether, which have different properties.

While speculators often jump into smaller, unknown currencies because they promise great growth potential, other investors take a different approach. They mainly buy cryptocurrencies that have already been created and have a high market capitalization. Neither this nor the other method is certain: you can win and lose a lot of money in any case. Therefore, you should not invest your entire savings in cryptocurrencies. In this article we will introduce you to the top ten cryptocurrencies.

What does market value mean and how big is it in comparison?

In this article, we rank the top ten cryptocurrencies by market capitalization. It results from doubling the current price and trading volume of the cryptocurrency in question. The market value of the entire crypto sector is close to 2 trillion euros. This is less than the stock market by more than 40 times. Therefore, critics are convinced that the cryptocurrency market is not important in the financial sector. However, due to the small market capitalization compared to the stock market, proponents see huge growth potential and a market that is only developing.

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1. Bitcoin

The first and most famous cryptocurrency is Bitcoin, which was released in 2008 under the pseudonym Satoshi Nakamoto. Bitcoin is a P2P digital payment system that aims to create virtual money that works without financial authorities. With P2P (peer-to-peer), users can interact directly with each other without an intermediary entity. All other cryptocurrencies are based on Bitcoin and are called Altcoins. In two other interesting articles, we looked at how anonymous bitcoin really works and what myths surround the cryptocurrency.

In 2021, El Salvador became the first country to introduce bitcoin as legal tender, so companies in El Salvador are not allowed to refuse bitcoin payments. Even paying taxes is possible with Bitcoin.

Code BTC
Course (04.04.2022) 41854.71 €
Market value (04/04/2022) 795333857219 EUR
All-time high (10.11.2021) 59716.82 €

Source for all courses and market value: https://www.coingecko.com/de

2. Ethereum

The second largest cryptocurrency called Ethereum was released by Vitalik Buterin in 2015 and managed to implement smart contracts (so-called smart contracts). These are digital contracts based on blockchain technology. Other cryptocurrencies such as Polygon are also built on the Ethereum blockchain.

Microsoft and Alibaba have been collaborating on a joint project based on Ethereum since 2021. This project, called Argus, aims to help combat illegal copying of computer software.

Code ETH
Course (04.04.2022) 3176.09 €
Market value (04/04/2022) 381,901,979,486 €
All-time high (10.11.2021) 4228.93 €

3. Together

Tether, released in 2015, is a classic US dollar stablecoin. This means that the Tether is intended to be individually tradable against the US Dollar and therefore enjoys a consistently fixed rate. This allows cryptocurrency investors to protect themselves from the volatility of the crypto market without leaving the crypto sector. This guarantee is achieved by depositing US dollars. However, Tether Limited, which is behind Tether, has been criticized and even accused several times in recent years for not having 100 percent coverage.

Despite the criticism, the Swiss city of Lugano has agreed to partner with Tether to continue to drive citywide blockchain adoption.1

Code USDT
Course (04.04.2022) 0.907576 EUR
Market value (04/04/2022) 74722499481 €
All-time high (01/24/2018) 1.13 €

4. Binance Coin

Binance Coin is the cryptocurrency of the Binance cryptocurrency exchange. It runs on the Binance blockchain. However, initially, the Ethereum blockchain was used. Binance coin is primarily used as a means of paying the fees incurred on Binance. One of the reasons why Binance Coin is among the top 10 cryptocurrencies is that Binance dominates the ranking of the largest cryptocurrency exchanges with a daily trading volume of more than 25 billion USD.

In 2021, the cryptocurrency exchange launched its own NFT marketplace called Binance-NFT. Binance coin can also be used as a method of payment in this market.2

Code BNB
Course (04.04.2022) 404.89 €
Market value (04/04/2022) 68151915659 EUR
All-time high (05/10/2021) €583.17

5. USD coin

Just like the Tether, the US dollar is a stablecoin that is pegged to the US dollar in a 1:1 ratio. This stability is achieved through the deposit of US dollars and short-term US government bonds. The US dollar coin was launched in 2018 and aims to provide a safe haven for investors in the cryptocurrency sector due to its low volatility.

In 2021, Mastercard partnered with US dollar coin issuer Circle to improve card offerings for cryptocurrency exchanges. This is another step towards modernizing the financial sector.3

Code USDC
Course (04.04.2022) 0.908321 EUR
Market value (04/04/2022) 46842977056 EUR
All-time high (05/08/2019) 1.05 EUR

6- Solana

Solana, founded in 2017, aims to support building decentralized applications. These decentralized applications are collectively managed via the blockchain and therefore are not operated by a supervisory authority. In this context, Solana supports a decentralized audio streaming service called Audius, which aims to give artists more control and better impetus for their music. This is achieved with Solana, among other things, using smart contracts. By combining the verification mechanisms of proof of ownership and proof of history, scaling transactions with Solana is better than Ethereum and is therefore a popular alternative.

At the beginning of 2022, the Internet browser Opera announced, among other things, Solana integration. Thus, browser users can access the entire Solana ecosystem. These include in particular the NFT marketplace or music streaming service.4

Code Sol
Course (04.04.2022) 124.09 €
Market value (04/04/2022) 40438964400 EUR
All-time high (06.11.2021) 225.04 €

7. Tera

Terra, which was established in 2018 as a stablecoin infrastructure, aims to combine the advantages of cryptocurrencies with those of traditional currencies. The goal is to make traditional currencies programmable and thus, for example, to be able to set automated processes. This includes automatic invoicing and independent ordering between different machines on the production line (machine-to-machine payments). The stability of the price of the Terra stablecoin is not guaranteed by a US dollar deposit, as is the case with Tether or the US dollar, but by an algorithm used. This algorithm balances the demand for Stabecoin and the resulting price fluctuations using its LUNA token. Thus, the number of LUNA device changes depending on the market situation. The LUNA code is also used to pay transaction fees.

The US dollar stablecoin TerraUSD, which was released by Terra in September 2020, is the fourth largest stablecoin.

Code Luna
Course (04.04.2022) 104.59 EUR
Market value (04/04/2022) 36,520,244,881 €
All-time high (04/03/2022) 106.56 EUR

8.XRP

XRP is the cryptocurrency of Ripple, which developed the RippleNet payment platform. The goal of this payment system is to process global transfers in real time, thus creating a fast and cost-effective alternative to the current SWIFT system.

In recent years, several hundred players in the financial sector, such as Bank of America or Santander, from more than 55 countries have joined Ripple.5 The functionality of the Ripple system was already demonstrated on June 16, 2016 by a payment between ReiseBank AG in Frankfurt and ATB Financial in Canada. This cross-border payment was processed in eight seconds.6

Code XRP
Course (04.04.2022) 0.753961 EUR
Market value (04/04/2022) 36302052,573 €
All-time high (07.01.2018) €2.82

9. Cardano

Cardano appeared in 2015 as an alternative to Ethereum. The special feature is that Cardano relied on a power-saving mechanism called Proof-of-Stake when validating transactions from the start. Ethereum is now also beginning to switch to Proof-of-Stake.

At the beginning of 2022, Samsung started a climate project to plant trees in Madagascar.7 Samsung is working with the Veritree platform, which works with the Cardano blockchain, as part of the administration.VIII

Code ADA
Course (04.04.2022) 1.11 EUR
Market value (04/04/2022) 35393.715436 EUR
The highest level ever (02/02/2021) €2.61

10. Avalanches

In 2020, Avalanche was released as a platform for decentralized applications. Avalanche describes itself as the first decentralized smart contract platform developed for global finance. The new verification mechanism enables fast transaction speeds, low fees and sustainable processing.

In late 2021, Ava Labs, the company behind Avalanche, joined the Start Path at Mastercard. This program supports startups with the knowledge and resources of Mastercard. This should attract more consumers with the benefits of blockchain.9

Code fax
Course (04.04.2022) €87.99
Market value (04/04/2022) 23.546667273 €
All-time high (11/21/2021) 128.43 €

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