Cryptocurrencies are usually built on a peer-to-peer network, which is decentralized. Bitcoin is well known to everyone, which has been the big trendsetter in the crypto world. Now, following the huge hit of Bitcoin, thousands of cryptocurrencies came into the market, but not all of them were here to stay.
Cryptocurrency is actually some form of a digital token that exists in a decentralized ledger based on blockchain. Apart from Bitcoin, the other major virtual currencies like Ethereum are now creating a decentralized financial (DeFi) system, which is even authorized by many countries across the globe.
Before discussing the top cryptocurrencies, let us first listen to Kavan Choksi explaining the concept of cryptocurrencies. Crypto refers to cryptography which is the process behind digital currencies over decentralized systems. Coins other than Bitcoin in the crypto market are known as altcoins, which are yet to match the security and popularity of Bitcoin. There are various types of altcoins as cryptocurrencies and tokens. Let us explore the 5 top altcoins as below.
1. Ethereum (ETH)
Ethereum or ETH is another decentralized software that empowers smart contracts and decentralized applications. Ether (ETH) is the crypto-based on Ethereum, which is a financial vehicle to move around the Ethereum platform. Ether was launched in 2015 and is the second-largest cryptocurrency by market value.
2. Litecoin (LTC)
Litecoin was introduced in 2011 and was one of the first cryptocurrencies following Bitcoin. It was also known as the “silver to Bitcoin’s gold. Litecoin is an opens-sourced payment global network that has no central controlling authority. Comparedto Bitcoin, Litecoin has a faster block generation rate and so ensures quicker transaction confirmation.
3. Cardano (ADA)
Cardano cryptocurrency was created by a group of engineers and mathematicians, which was co-founded by one of the founding members of Ethereum, Charles Hoskinson. Even though Cardano beats Ethereum in terms of its PoS consensus model, the coin still has a lot to achieve in terms of the DeFi applications.
4. Polkadot (DOT)
Polkadot (DOT) is another PoS crypto that delivers interoperability with other blockchains. A relay chain is the core component of DOT, which will enable interoperability with various networks. It will also allow parallel blockchains with native tokens for different use cases.
5. Bitcoin Cash (BCH)
BCH has an important position in altcoins as it is one of the most successful alternatives of original Bitcoin. This hard fork resulted from many arguments and debates between the crypto developers and the miners. As digital currencies as decentralized, the wholesale changes of the code beneath the coins or tokens must be made based on general consensus, for which the mechanism may vary in different cryptos.
Along with these, Kavan Choksi also puts forth many other altcoins which the investors can consider by thoroughly learning each as Stellar (XLM), Dogecoin (DOGE), Shiba Inu (SHIB), Binance Coin (BNB), Tether (USDT), Monero (XMR), etc. In fact, this is just a representative list, and there are many other cryptocurrencies too there, which are jockeying now for the top positions. Many of them are expected to grow exponentially and gain popularity in the coming years, which you should keep a careful watch on.