All you need to know about the TOP 3 cryptocurrencies
Cryptocurrencies have been around for more than a decade. However, they have only recently come into acceptance by more seasoned and institutional investors over the past couple of years. Bitcoin (BTC) is a decentralized digital currency that usually comes to mind first when thinking about cryptocurrency. However, while Bitcoin is the most common coin to own, it shares the spotlight with altcoins like Ether (ETH) or Tether (USDT).
Bitcoin was invented in 2008 by an unknown person or group of people named Satoshi Nakamoto. It was not the first time that someone implemented the idea of a decentralized, nonphysical form of money.
Bitcoin was the first use case of blockchain technology and has the highest market cap. It is a decentralized digital currency that allows people to buy, sell and exchange directly, without letting the banks or other agencies maintain them. Moreover, every transaction is publicly broadcast to the network. Also, Bitcoin charges a smaller amount of fees compared to any other traditional payment method.
Ethereum is the second in the market and the biggest of bitcoin alternatives, launched in 2015. The main reason was to upgrade to the perceived limits of Bitcoin. One of the best things about Ethereum is that it is the most reliable decentralized software ever.
Also, it is the largest company that creates Distributed Applications (DApps) and smart contracts. They are deployed on the Ethereum network and use the platform`s blockchain for data storage to prevent third-party interference.
Bitcoin and Ethereum are the two largest cryptocurrencies by market cap, but they’re very different when you look past the popularity they share. While either of them can be a good choice for crypto beginners, deciding which is best for you needs a closer look.
The main difference is that Bitcoin is more stable. Ethereum takes blockchain a step further by adding a computer to the value layer, replacing traditional financial functions like lending and trading with code. Ethereum is such a flexible platform that some people are starting to hold their Bitcoin on the Ethereum chain. It is known as a “wrapped bitcoin.”
And last but not least is a stablecoin Tether. Stablecoin is a fixed-price cryptocurrency whose value is attached to another stable asset. In 2014 Tether Limited Inc. launched the cryptocurrency Tether.
Tether is pegged to the U.S. dollar. It is the strongest stablecoin in the cryptocurrency world and currently ranks third in the market. The main advantage of choosing it is if you want to keep your money in crypto and, at the same time, avoid volatility. One bitcoin worth today will not be the same tomorrow. By choosing stable coins, you will be able to evade this instability.