Cryptocurrency is a revolution that has erupted the financial world with the possibility of having a digital currency. Today, the cryptocurrency list we have tends to be on the rise because of the ease and seamless way of transacting business.
Cryptocurrencies have disrupted the expectation of money since its inception. It has continued to change the financial industry since the first mining took place in 2009. Since this feat, we have seen thousands of cryptocurrencies introduced with different features.
Bitcoin remains popular among cryptocurrency enthusiasts because it is the first cryptocurrency in the cryptocurrency list in the world.
What are cryptocurrencies?
Cryptocurrencies are digital currencies, which are similar to digital cash. It allows one in the cryptocurrency market to perform direct, fast, and seamless transactions between parties. One of the reasons behind its popularity is due to the opportunity it gives users to have full control over their balance and payments besides transparency during each transaction.
You may have observed that the cryptocurrency list in the crypto market is numerous if you are a beginner. However, each coin has its reason for being introduced. For instance, some coins allow individuals to pay for meals, buy cars, pay for services, etc. Bitcoin is renowned among this cryptocurrency list because of its widespread acceptance by various vendors.
What is the top 10 cryptocurrency list?
For newbies, besides knowing how to trade cryptocurrency, it is essential to know that we have a lot of cryptocurrencies. Currently, we have over five thousand cryptocurrencies in the world. Nevertheless, most people are unfamiliar with these coins. In this section, we will look at a few of the top 10 cryptocurrency list in the cryptocurrency market.
Bitcoin is widely recognized as the first cryptocurrency to have graced the world and is the most traded cryptocurrency since its initial release in 2009. Compared to other cryptos, it has a massive market capitalization. High market capitalization is a sign of less risk because of the availability of more users. Bitcoin is used in different spheres of life, such as to transfer money without fees, fund companies, and invest cash.
Bitcoin can be created by generating blocks within the network. You can get Bitcoin via exchanges, ETFs, CFDs, P2P, accepting BTC payments on your website, earning BTC through affiliate programs, etc.
Second on our cryptocurrency list is Ethereum, which is quite a newcomer in the crypto world. It was founded in 2015 and is rapidly rising as the second most popular coin in the cryptocurrency market, especially because of its unique Blockchain and multiple applications. Ethereum is built on the ethereum network and is used for building applications and smart contracts. It has the largest and most active blockchain community across the globe.
This cryptocurrency prides itself as the first in providing fast transactions. The core of its identity is its fast transaction due to its processing speed of four seconds. It has high scalability, prominent investors backing it, and considerable potential. Ripple is a money transfer network that comes with its own coin. It is a cheaper and faster means of cross-border payments. Transactions are processed within 4 seconds, making it one of the fastest networks.
Tether was created with the hope of having a stable cryptocurrency that would serve as digital dollars. It is designed to mirror value of the U.S. dollar. It is the most famous stable coin and it used as a replacement for the dollar on several renowned exchanges. Tether converts cash into digital currency, in order to “tether” or anchor the coin’s value to the price of national currencies, such as the US dollar, Japanese Yen, the Euro, etc. The dollar is supposed to back every tether in reserve in 1:1 ratio. The tether is to help in minimizing the volatility in the crypto market.
Bitcoin Cash (BCH)
BCH is fifth in our cryptocurrency list but serves as an improvement to Bitcoin’s scalability that affects its transaction speed. This feature has contributed to the widespread popularity of BCH. Bitcoin was created from a hard fork in the network of Bitcoin. BCH serves as e-cash, it’s cost-effective, helps in making direct payments, and a fast means of online financial transaction between two parties.
On 15 November 2018, the Bitcoin SV otherwise known as Bitcoin Satoshi’s Vision, was created out of Bitcoin Cash’s hard fork. Its purpose is to try and restore the original protocol of Bitcoin. A part of the ecosystem attempted to increase the blocksize further and take care of scalability.
Although Litecoin and Bitcoin have the word "coin" in them, they are quite similar. Litecoin has a public ledger, Blockchain, and miners who validate each transaction. Nevertheless, Litecoin has three key features that distinguish it from other cryptocurrencies, including less complex algorithms, a more abundant supply of currency, and processing speed.
Litecoin generates four (4) times the number of blocks generated by Bitcoin, hence its speed and confirmation are faster than bitcoin’s.
Binance coin (BNB) was created by Binance in 2017 and it runs on the Ethereum blockchain with ERC 20 standard. The token is used for discounted trading fees on the Binance exchange.
In addition, one can use the coin for paying for travel expenses (like flight booking, and hotel), for shopping using a credit card, and for purchasing virtual gifts, and lots more.
Launched in June 2018, EOS was designed after Ethereum. The platform is notable for various reasons, including it being the longest and most profitable initial coin offering in history.
EOS main purpose is to create an open and free platform to help develop more secure, faster, and simpler decentralized applications (dapps). However, the fear about EOS is that it is becoming too centralized.
Tezos is another renowned coin in our cryptocurrency list that was released in September 2018, after one of the most successful ICOs. Tezos (XTZ) is a blockchain network that is associated with a digital token known as tezzie or tez. Holders of Tez tokens are rewarded for participating in proof-of-stake consensus mechanism, instead of mining the token.
Tezoz governs itself via the establishment of a true digital commonwealth. A commonwealth is a group of person linked together as a result of their common interests or goals.
How to trade Cryptocurrency of your choice
Are you interested in knowing how to invest in cryptocurrency? The first way of trading cryptocurrency is to set up a wallet of your choice. You can start by setting up a bitcoin, Ethereum, or any wallet of your choice. Then, you buy the cryptocurrency coin on an exchange before transferring it to your wallet.
Through this, a trader can securely maintain more than one wallet while exchanging the purchased coins. However, hackers and cyber theft tend to target exchange platforms. Notwithstanding, trading with 101Investing comes with several advantages since the platform has an SSL secured online platform, which is a huge advantage in dealing with potential theft and hackers. The platform offers clients an easily accessible way to trade cryptocurrencies through contracts for Difference.
Tips for trading cryptocurrency
Understanding the basic rule in trading "buying low and selling high" is also applicable to the price of cryptocurrencies, which changes price points. Irrespective of your capital size, there will probably be a digital currency within the cryptocurrency list that you could work with. Importantly, following news on various digital currencies is essential if you want to find the most suitable cryptocurrency to trade CFDs on.
When trading cryptocurrency, there are two crucial factors to put into consideration. These are technical and fundamental analysis, which are pivotal in trading. The fundamental analysis considers various factors, such as politics, interest rates, and major news events. However, technical analysis deals with the reading of price.
Factors affecting Cryptocurrency Price
Numerous factors contribute to the movement of price in the market. These include:
- Supply and demand
- Technological changes
- Regulatory changes
Advantages of Cryptocurrency
- Fully secured and details protected
- Quite cheap, fast, and accessible
- Peer-to-peer transaction
- No limitation during a transaction
- Highly decentralized
- No inflation
Disadvantages of Cryptocurrency
- High volatility
- Payment cannot be reversed
- Only a few websites accept digital currencies
- Wallets cannot be recovered once lost
- High level of risk
- Complicated to understand
Basic concepts of Cryptocurrency Trading
Before starting your trading journey, it is essential to understand the key concept in the cryptocurrency market. These are common terms you will come across when trading any digital currency.
- Exchange – is a platform that allows you to buy and sell cryptocurrencies
- Altcoin – is any cryptocurrency that isn't Bitcoin. For instance, Ethereum, Dash, Litecoin, etc.
- Market capitalization – The total value of a particular cryptocurrency coin
- Wallet – A place where your digital currency is stored. It is like your physical cash in your pocket wallet
Start your Trading with 101Investing
Cryptocurrencies have genuinely revolutionized the financial industry, and there are indications that they will be wholly accepted as a general means of payment. Notwithstanding the negativism around cryptocurrency trading, the demand for it is increasing with the price rising.
Due to its high volatility nature, bitcoin investment or other cryptocurrencies is an option to consider if you are thinking of a new trading instrument. To begin, trading with 101Investing comes with significant advantages such as:
- We are a regulated broker
- Transparency is our watchword when dealing with our customers
- Our trained professionals are available to offer you every kind of help you need to trade successfully
- Are you a do-it-yourself trader? We have tutorials and guides you can leverage to trade on your own
- We charge one of the lowest transaction fees in the industry
How to start trading with us
Having provided you with the top 10 cryptocurrency list to invest in, you still need to understand how to start trading on our platform. The procedure is quite straightforward; just follow the steps below:
- Open a free trading account
- Go through digital ID verification process
- Add some money into your trading account
- Our professionals will take care of the rest from there
The top digital currencies on the cryptocurrency list have been tested and proven to be the high performers in the crypto ecosystem. The demand for these coins has led to their enormous capitalization as well as high prices.
Bitcoin investment or investment in altcoin is a very popular option available for every investor and a possible way to diversify a portfolio, especially the portfolio of the ones who are aiming for higher returns. However, always remember that under unfavorable circumstance it can always bring opposite results. 101Investing offers you the opportunity to become a confident trader and at the same time all the necessary tools to turn your trading dream into reality.