Bitcoin and Ethereum have been around for a while. So, their market caps are undoubtedly the highest in the market. Thus, we will look at relatively new cryptos but still have a high market cap.
Tether is a stablecoin with a market cap of $35 billion and is ranked #4 on CoinMarketCap. Tether was issued in 2014 by Tether Limited and was called Realcoin before being renamed. Tether is backed by US dollars, which means that every Tether in circulation will always be redeemable for $1. That makes it easy to use as a store of value during periods of high price volatility. The cryptocurrency can also be used to stabilize the prices of top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Cardano is a cryptocurrency developed by Charles Hoskinson, the co-founder of Ethereum. ADA, the token that powers Cardano, has hovered around the top 10 cryptocurrencies by market cap for years. Since its launch in 2017, Cardano has built up a loyal following and has been heralded as one of the most innovative projects in crypto.
To store ADA, you need an Ada-compatible wallet. A vital feature of these wallets is that they allow you to restore your funds using a seed phrase if you lose or break your device. Always write down this 12 or 24-word seed phrase if something goes wrong with your device.
Polkadot (DOT) is a multi-chain network with a market cap of over $10 billion. It is one of the fastest-growing cryptos and continues to grow in value and market cap.
The first step to becoming a participant in this network is acquiring DOT, which you can use to create parachains and nominate validators. Built by Web3 Foundation, Polkadot launched its mainnet in May 2020.
Given its popularity, you are likely to have questions like what is DOT, how to buy DOT, etc. You can learn about DOT and how to buy Polkadot by checking out any exchange that lets you trade it.
XRP is a cryptocurrency created by Ripple Labs and is the third-largest cryptocurrency by market cap. XRP is different from other cryptocurrencies in that it’s a digital asset, whereas Bitcoin and other top cryptos are decentralized payment systems with their currencies. Ripple Labs also created a system called RippleNet, which allows for the transfer of money between two parties through blockchain technology. In addition to being used as a cryptocurrency, XRP can also be used to pay for transactions made using RippleNet.
There are several benefits to using XRP over other cryptocurrencies. One of these benefits is that it doesn’t require mining like other cryptocurrencies do, which means there’s less competition when trading it on an exchange site.
Litecoin is an open-source cryptocurrency created in 2011 by Charlie Lee. Since its inception, the cryptocurrency has been designed to be the silver to Bitcoin’s gold — with a few key differences. Unlike Bitcoin, which is produced through Proof of Work, Litecoin is produced through Scrypt technology.
While Bitcoins are mined at a predictable rate, Litecoin mining algorithms are designed to produce blocks of currency every two and a half minutes as opposed to every 10 minutes for Bitcoin blocks. But both currencies have limited supplies of coins that can be mined — only 21 million Bitcoins can ever be mined, and 84 million Litecoins can exist in total.
Unlike the newer cryptocurrencies on this list, Litecoin has been around since 2011 and subsequently has a solid reputation behind it. The currency’s network boasts more than $1 billion worth of transactions each day, making it one of the world’s most popular cryptocurrencies in use outside of Bitcoin itself.
#6 Bitcoin Cash
Bitcoin Cash is a fork of Bitcoin that was created in August 2017. It is a cryptocurrency designed to offer an alternative to the original Bitcoin and provide faster transaction times.
Bitcoin Cash is a peer-to-peer electronic cash system designed to be fully decentralized, with no central authority. It’s an open network that allows anyone to participate without permission from third parties or middlemen.
The company aims to provide users with cost-effective, instant value transfers across the globe. Bitcoin Cash aims to be a global currency for all people, providing them with financial freedom and autonomy over their wealth and economic affairs.
Given their volatility, you need to judge cryptos based on their market caps. So, the next time you plan on investing in crypto, refer to this list to make the right choice.