When you mention the word cryptocurrency, most people immediately think of bitcoin, but there are many others that are no less important. Here are a few of them that we are going to look at.
A lot of people who are earning money want to know where they can invest their money in 2023 to get a profit, and you may be surprised to find out that you can invest your money in one of the most popular cryptocurrencies, or maybe even in a couple of them at the same time. And also you can get one of these coins with the help of mining. You can mine cryptocurrencies even with your computer in your spare time. Check out the list of best GPU for mining at hiveon.com and if you have one of them, then you can definitely make good money.
In case you are wondering what is the most popular cryptocurrency then you have to the right place. We offer for your attention a list of the largest cryptocurrency by market capitalization in 2023.
A little bit later we going to look through these largest cryptocurrencies by market capitalization more profoundly, but right now here is a brief description of 10 most popular cryptocurrencies:
- Bitcoin (BTC) – the number one cryptocurrency, made out of the transactions recorded in a blockchain. Famously supported by Elon Musk who invested a huge amount of money in it and make Bitcoin rise sky-high.
- Ethereum (ETH) – is less popular than Bitcoin. Very powerful cryptocurrency with features similar to Bitcoin but can provide services such as creating and developing contracts and applications of various sorts.
- Tether (USDT) – uses a similar mechanism as Ethereum, but the difference is that Tether is closely connected to the US dollar.
- Binance Coin (BNB) – is a great token to use for paying your transaction fees while on Binance smart chain.
- XRP (XRP) – is a stable cryptocurrency that can reach its peak in 2023, due to the huge amount of investors. With XRP you may exchange your currency for any other with a lower fee and transfer money across the border without any problem whatsoever. Sort of an alternative to SWIFT payment, one may say.
- USD Coin (USDC) – great substitution for cash, is closely connected to the US dollar which is why the USD coin will never use its value.
- Terra (LUNA) is one more token that is connected to the US dollar. Can be used to develop new blockchains and create apps. During the transactions, LUNA uses 1 US dollar to create another LUNA from the percentage that is left.
- Cardano (ADA) is a cryptocurrency that operates on a stable blockchain, which can be considered a good way to earn a long-term profit, that one may gain from the percentage of the transactions that are made.
- Avalanche (AVAX) – goes hand in hand with Ethereum and AVAX is well known for fast transactions for a sec.
- Solana (SOL) – is considered a brand new cryptocurrency, operates through staking, and uses the Proof of history to work method.
As of right now, when you have a gesture of the most popular cryptocurrency let`s look through it more profoundly:
Bitcoin (BTC) is probably the most well-known and popular cryptocurrency out there. In simple words Bitcoin is an online version of our real money, it can be used to buy any kind of a product or service that you may prefer. When Elon Musk admitted that he thinks that bitcoin is a great thing, then its price rose significantly, almost 10 times as much as it was. Bitcoin is the file on your computer that is put in a digital wallet on your PC or mobile phone.
You can easily transfer Bitcoin to someone’s digital wallet and it can be done to you as well. All of the transactions that were made so far are recorded in the blockchain and can be listed. One can buy this popular cryptocurrency with money, or ask people to sell real estate, etc. for bitcoins. People like bitcoins because it is not controlled by banks or the government. Regardless of the fact that every transaction that is made on your digital wallet is recorded, there is absolutely no chance to find out from what account this transaction was made. You can make any kind of a transaction anonymously and that`s the beauty of it.
Ethereum (ETH) is a cryptocurrency on the platform with the same name. It is known to be second to Bitcoin. It is very similar to Bitcoin but with a more general scripting language the application. With Ethereum, you can exchange and store your valuables, but with the use of the same blockchain technology process.
Comparing Ethereum and Bitcoin you can see that both of them can be used as a virtual currency but Ethereum, on the other hand, can help you to create some apps and smart agreements, etc. Bitcoin can not provide you with such a service. It has been said by experts that ETH will rise by more than 400% in the year 2023. Co-creator of ETH Russian-Canadain coder Vitalik Butherin stated that he is very happy with how ETH is met worldwide.
Tether (USDT) is a cryptocurrency with a very similar mechanism to the previous one because it uses the same way of blockchain-based technology. Those tokens of Tether are based on the rate of the U.S. dollar and that is why its price is equivalent to 1 dollar.
This kind of currency can not be considered a very good investment, especially a long-term one, due to the fact that is so closely connected to the U.S. dollar and you can store your currency at the highest value of the U.S. dollar.
4. Binance Coin
Binance Coin (BNB) is a certain kind of token that is well known in the Binance exchange of cryptocurrency. You can easily utilize this kind of currency to pay your transaction fees while on Binance smart chain. While investing in Binance Coin (BNB) you may gain a real long-term profit, so one might consider investing their money in it.
XRP (XRP) – this kind of cryptocurrency is considered to be a good one and is stable to products that were created by Ripple Labs. The main reason why XRP (XRP) is considered a good investment is that it is on the lower side right now and is going to continue to be. If you decide to invest right now chances are that this currency will grow sky-high in a couple of months or years.
6. USD Coin
USD Coin (USDC) – is closely linked with the price of the US dollar being 1:1 and it is a stable coin indeed. One can purchase, sell or make any transaction but still stay within the cryptocurrency ecosystem. This can be a perfect substitution for cash money.
Terra (LUNA) is an amazing governance token that can be rising very quickly comparatively. This blockchain was created on Cosmo SDK and it gives its users an opportunity to create various blockchains and develop their own applications. The value of Terra is usually connected to various kinds of assets, commodities or fiat currency, etc. It is the system of electronic cash that has found a new way to keep their currency stable.
Instead of being connected to the U.S. dollar like USDC, they found a way of maintaining the value of the currency by destroying Terra tokens in order of creating more Terra tokens. While transferring 1 U.S. dollar to Luna then a percentage of LUNA disappears and is circulated to make one more LUNA that is further being invested in application etc.
Cardano (ADA) is a cryptocurrency that works on a proof of stake blockchain protocol known as Ouroboros. With this system, ADA can be easily sent and purchased being secure at the same time. It can help you to store and collect data from various sources but only those who have coins can aid in the validation of transactions and afterward, they will get a certain reward for doing so. Cardano (ADA) is considered one of the best ways to earn a stable passive income.
Avalanche (AVAX) is a very popular cryptocurrency due to the fact that it is a good competitor to Ethereum, its priority is scalability and a very high speed of every transaction that is made. With Avalanche (AVAX) it is possible to process over 4500 transactions in 1 second, which is pretty impressive.
Solana (SOL) – is a cryptocurrency that ensures the transfer of the value and also blockchain security through staking. Contrary to Bitcoin Solana utilizes the method – Proof of history to work. With this particular method, it is possible to you to register that a certain event had happened at the moment of time. There is no proof right now that Solana is considered a good investment due to the fact that it was created in 2020, very recently, and you should only invest money in Solana if you have a stable income or other securities in your life.
Right now you defiantly have an answer to the question “why is cryptocurrency so popular especially in the year 2023”, because it is obvious that you can make a good amount of money with the investment and having passive income. We should note that after Elon Musk made a statement that Tesla still has over 40k bitcoin and ETH cryptocurrencies even more people started buying it right away.
Regardless of the fact that Bitcoin is still at top of that chain, you may consider investing your money in less popular and new cryptocurrencies that you fancy, due to the reason that was listed above. Remember that you should make a smart move with your money if you want it to work for you in the future.