Almost all of our everyday activities—including financial activities – have been touched by technology and the current hot topic is cryptocurrency. People no longer rely on cash and frequently choose digital payment methods instead. This led to the development of several contactless payment methods. Bitcoin is one example of this type of payment in cryptocurrency.
The question of what cryptocurrency actually now emerges:
A form of digital payment known as cryptocurrency does not rely on banks for any kind of transaction. It is a form of money that solely relies on digital transactions recorded in online databases that include all relevant transactional data. With the help of this peer-to-peer system, anyone may send and receive money from anywhere in the globe without having to deal with complicated local currency exchanges.
The user’s digital wallet stores their bitcoin, and all transactions are recorded on a public ledger. The term “cryptocurrency” was chosen since all transactions are verified via encryption to ensure cybersecurity and safety.
Stablecoins are cryptocurrencies that are linked to reliable external assets. Most well-known stablecoins are linked to other well-known currencies like the US dollar, precious metals like gold and silver, debt instruments like bonds, and occasionally other cryptocurrencies.
For instance, if a stablecoin is linked to USD and there are 1,000,000 coins in circulation, the bank will have the same amount of cash.
8 Stable Cryptocurrency
1. Ethereum (ETH):
One of the most well-known and reliable cryptocurrencies is Ethereum, created by blockchain enthusiasts Joe Lubin and Vitalik Buterin (current CEO of Ethereum). It is a decentralised platform that enables the usage of distributed applications (dapps) and smart contracts without interference from outside parties, fraud, or control.
Anyone with access to the internet can use Ethereum, a flexible kind of currency. The ability for citizens to access bank accounts, loans, insurance, and other financial services has been a windfall for certain nations with weak government infrastructure.
Ether is the name of the cryptographic token used to utilise Ethereum, which powers all of its apps. Ethers, introduced in July 2015, are currently the second-largest cryptocurrency by market capitalization, immediately after Bitcoins.
2. Tether (USDT):
One of the earliest stablecoins, Tether, has become famous due to its $1 value. To reduce unpredictability, stablecoins are cryptocurrencies whose market price is linked to a currency or other external reference point.
Cryptocurrencies are well recognised for their wildly unpredictable behaviour, which can result in investors making enormous gains or losses. This causes uncertainty and investment anxiety. Tether and other stable coins aim to lessen these oscillations. With $1 in reserves for every tether released, Tether was always created to be worth $1.
3. Binance Coin (BNB)
The amount used during trading on the Binance exchange is paid for using Binance coins. One of the exchanges for cryptocurrencies with the quickest rate of growth is Binance, where users must use Binance coins as a token to purchase other cryptocurrencies. Binance coins are becoming more well-known and powerful due to the ongoing trades conducted using them.
It was initially an ERC-20 token utilised in the Ethereum network and developed by Changpeng Zhao. It eventually had a main net launch of its own. In 2018, Binance raised $32 million for a project involving stablecoins.
4. Cardano (ADA)
One of the most reasonably priced cryptocurrencies, Cardano, was developed in 2015 as an experiment by a group of engineers, mathematicians, and cryptographers. Due to its “Ouroboros proof-of-stake” methodology, which effectively allowed it to employ two blockchains instead of one, it quickly acquired favour in the market.
The fundamental concept behind having two blockchains is that one would handle regular transactions, and the other will take care of smart contracts. As a result, Cardano will be quick and scalable. Because it uses the proof of stake mechanism and has much more functionality than Ethereum’s blockchain, Cardano is sometimes known as the Ethereum killer.
5. Litecoin (LTC)
One of the earliest cryptocurrencies to follow in the steps of bitcoin was Litecoin, which is frequently described to as the “silver to Bitcoin’s gold.” Litecoin was launched in 2011. Litecoin uses “scrypt” as a proof of work that can be decoded by consumer-grade CPUs and is built on an open-source, decentralised global payment network.
Transactions happen more quickly and easily because of Litecoin’s quicker block generation rate. Since mining Litecoin takes only 2 minutes on average, it is simpler for miners.
6. Bitcoin Cash (BCH)
One of the early hard forks of the original Bitcoin currency is Bitcoin Cash. A hard fork resulting from disputes between developers and miners is a significant adjustment to a network’s functionality that allows previously invalid blocks and transactions to become valid or vice versa. In 2017, as a result of the split in digital currencies, Bitcoin Cash was created. As a result of disagreements between various organisations on a certain change made to the token, digital currencies often split.
Following the split, the original chain still adheres to the original code while the new chain’s code is modified. The debate about sustainability led to the creation of Bitcoin Cash because the size of blocks on the Bitcoin network is limited to 1 MB each block.
7. Polkadot (DOT)
In the year 2017, Gavin Wood invented Polkadot. It is an original proof-of-stake coin that seeks to work with other blockchains. Its relay chain, which enables the communication between several networks, is a crucial part of the system. Additionally, it makes it possible to build “parachains”—alternative blockchains with their native coins—for unique use cases.
Chainlink is a decentralised communication network that links data outside the blockchain to smart contracts, such as those on Ethereum. Blockchains cannot securely connect to outside apps. Smart contracts may interact with external data thanks to Chainlink’s decentralised overseers, enabling the performance of transactions based on information that Ethereum is unable to access.
Although Steve Ellis and Sergey Nazarov started working on it in 2014, it wasn’t launched until 2017. The company’s blog lists numerous use cases for Chainlink’s technology.
Over 2000 cryptocurrencies are now available on the market, and new ones are being created every day. Despite their volatility, cryptocurrencies are one of the most widely used forms of investment and trading.
Before investing our hard-earned money in anything, we must do research and observe trends because cryptocurrencies have numerous benefits and drawbacks.