Do you want to start investing and trading in cryptocurrency but don’t know where to start? Do you want to start accepting cryptocurrencies so you can expand your wallet? There can be a lot of complicated and conflicting information out there — so we understand how overwhelming it can be.
Cryptocurrency has been gaining popularity by leaps and bounds over the past ten years. These days, more and more businesses are accepting digital currencies as payment for their goods or services. Whether you are a business owner ready to accept crypto for payment or a consumer who would like to use digital currencies to add to your portfolio or pay for goods and services— it’s easy to get lost in the sea of digital assets.
We hope to share our expertise and help you take your first steps on your journey to understanding and taking advantage of cryptocurrency. Here we’ll go over what cryptocurrency is and the top 9 most popular crypto coins you should take a look at.
What is Crypto?
The world of cryptocurrencies is a fast-moving and complicated place! Let’s answer some basic questions before moving on to the list.
What is crypto exactly? Crypto are digital assets or currencies that are not issued, regulated, or backed by a central authority like a bank or government. They are created using a kind of code called a distributed ledger (which we refer to as blockchain) and are kept safe through encryption. Some kinds of crypto aim to compete with traditional money, while others specialise as forms of payment or transactional platforms within specific industries.
All forms of cryptocurrency are stored in a digital wallet (a blockchain wallet), and can be used as payment on different online platforms, and can be invested and managed either individually or with the help of crypto brokers.
Different Kinds of Crypto
Several different types of currencies are used across the thousands of different crypto brands, and they generally fall into three categories: coins, altcoins, and tokens.
Coins: One of the more common forms of cryptocurrency, a coin is a contained blockchain specifically meant to represent one currency unit. Any form of crypto that deals in coins essentially serves as an alternative or direct competitor for traditional forms of payment such as cash or credit cards.
Altcoins: Technically, these are just a subcategory of coins. Altcoin is short for “alternative to Bitcoin” and represents a group of cryptocurrencies founded on the principle of improving the standard set forth by Bitcoin. Each promises to do at least one specific thing better than Bitcoin, with options ranging from new features to the premise of improved speed or security.
Tokens: The second basic kind of cryptocurrency. Unlike coins, tokens are not meant to represent units of money or currency but rather a bit of blockchain that is meant to represent different kinds of assets. Their programmable nature means that they are very useful for creating and defining terms in digital contracts. For this reason, tokens are generally designed to represent different goods or services and tend to be specialised to be used as payment for the specific industries they are used in.
Tokens usually fall into one of three categories:
- Value Tokens are just an alternate form of bitcoin, representing units of currency.
- Security Tokens function very similarly to stocks and can be traded and sold.
- Utility Tokens are designed for specialised, specific uses.
The section above laying out some of the key terms and information only just barely scratches the surface when it comes to the world of cryptocurrency. Frankly, the idea of entering the market, finding the best forms of crypto, and then learning to buy, sell, and exchange it smartly can certainly be daunting. It can be a complicated environment, and it isn’t made more simple because there are thousands of kinds of crypto to choose from when it comes to investing.
Now, at last, we come to the heart of this article – what are some of the most important kinds of crypto to know about? Let’s take a closer look:
- Bitcoin (BTC)
Bitcoin was the first form of cryptocurrency. As a coin, it’s built specifically to avoid any form of governmental interference and to run without any kind of centralised authority.
Instead of a controlling authority, Bitcoins is managed by a public, decentralised ledger that simply tracks, enables, and records all Bitcoin transactions made.
- Bitcoin Cash (BCH)
One of the earlier and more notable forms of altcoin, Bitcoin Cash, split from the main development line of standard Bitcoin in 2017. Bitcoin Cash’s unique selling point allows a larger maximum file sise for blocks, which allows for the processing of more transactions at a greater speed.
- Ethereum (ETH)
As of September 2021, Ethereum was ranked as the number two major cryptocurrency behind Bitcoin. Built on tokens instead of coins, Ethereum also differs from its competitor in that there is no limit on the amount of Ether that can be produced.
- Litecoin (LTC)
Litecoin is another decentralised, open-source currency built around coins. It’s specifically designed to improve standard Bitcoin by offering faster transaction times, a higher limit on the number of coins that can be produced, and operating on a different algorithm.
- Cardano (ADA)
Cardano is in the process of building up its decentralised network (and, by extension, the situations and things it can be used for) and has been praised for its scientific approach of gathering data while building itself up.
- Tether (USDT)
Tether is billed as a more stable form of crypto more useful for traditional investing and spending than Bitcoin’s speculative, volatile nature. For this reason, its value is tied directly to the US dollar. Valuable for its stability and transparency.
- Stellar (XLM)
Stellar is a kind of intermediary currency that is used to facilitate currency exchange. It allows users to send money internationally instantly and at no extra cost. Originally designed for large-scale transactions, it can still be used between individuals.
- Binance Coin (BNB)
Binance is a system designed to facilitate crypto trade and can be used to pay for certain expenses such as travel and entertainment. A Binance Coin is a unit of currency that other forms of crypto turn into within the exchange.
- Chainlink (LINK)
Chainlink is a cryptocurrency that aims to incentivise data providers (“oracles”) to connect smart contract tokens (like those used in Ethereum) with data outside of blockchains via smart contracts.
Don’t Miss Your Chance to Start Investing in Crypto!
Investing in cryptocurrency is a way to keep your money your own without governmental regulation.
As a digital currency merchant, Aus Merchant specialises in connecting a network of liquidity providers and high volume exchanges with a sophisticated wallet security system. Trade and access investment opportunities directly from your secure wallet.
Contact us today and speak with one of our brokers to customise a portfolio just for you.