The popularity of cryptocurrencies has grown enormously in the last couple of years. There are about 23,000 of these digital assets currently, and the number keeps increasing monthly. This is a vast crowd, considering the first of these virtual currencies only entered the scene in 2009. Undoubtedly, the last two and a half decades have been a whirlwind of evolution in the world of such currencies.
Of all the industries, the gambling sector was among the first to adopt cryptocurrencies as viable payment methods, particularly since players appreciated the anonymity they came with. You can find some exceptional websites, such as Verde Casino with its reward-packed verde casino bonus offers, that don’t accept cryptos, however. Nonetheless, there are many more top-tier sites where players can wager with digital currencies. Besides iGaming platforms, tons of other websites and retail stores currently let customers make purchases with digital coins.
Whether you plan to become a blockchain developer or just wish to keep up with the latest tech trends, today’s post will offer insights into the crypto universe. We’ll also take a look into the lesser-known coins. Let’s get straight into it!
What Is Cryptocurrency?
This term refers to a digital payment platform that relieves you from carrying physical, government-regulated money. However, unlike fiat or government-regulated money, your funds only exist in a digital form. While cryptocurrency is convenient for web-based transactions, you can also use it for physical transactions. Another notable difference between cryptocurrency and traditional money is that the government prints the latter while several companies trade the former.
Fungibility is the greatest attribute of virtual currencies. This means their value remains constant during buying, selling, or trading. The attribute contrasts non-fungible tokens (NFTs), which exhibit variable values. A cryptocurrency unit always retains its value, but an NFT’s worth is contingent upon the associated digital asset.You can access cryptocurrency as coins or tokens. The primary distinction is that tokens exist on a blockchain, whereas coins could be digital, virtual, or physical. Coins closely resemble traditional money but have their dedicated blockchain. Conversely, tokens are generated on an existing blockchain and can serve as currency or be used to represent ownership of assets.
Even though government regulations generally don’t apply to virtual currencies, taxation laws apply in many jurisdictions. Therefore, holders must file any gains or losses with the respective revenue authorities of where they reside.
How Cryptocurrency Works
Cryptocurrencies operate on a blockchain, a decentralized public ledger. This is a comprehensive record of regularly updated and maintained transactions by currency holders. Digital currencies differ from standard money because they lack a central authority stabilizing their value. Instead, these responsibilities are distributed among users on the internet.
The creation of cryptocurrency units involves mining. Alternatively, you can purchase virtual currencies from brokers and manage them using cryptographic wallets. However, when you possess virtual currency, you don’t own a physical asset. Instead, this acts as a key that enables the transfer of a record or unit of measurement without involving a trusted third party. You can use virtual currencies for everyday transactions, but many view them as investments like stocks or precious metals.
Cryptocurrencies and blockchain technology applications continue to evolve, and the industry anticipates additional uses in the future. The potential extends to transactions involving stocks, bonds, and other financial assets.
Types of Cryptocurrency
Cryptocurrencies run on the open source blockchain technology. So, any developer can leverage the source code to design something entirely new. Developers from around the globe have used this approach to create the vast array of cryptocurrencies currently in circulation. That said, the most common types of cryptocurrencies as of December 2023 include:
• Bitcoin: Most people consider Bitcoin the harbinger of cryptocurrency. This is the coin we generally refer to when discussing digital currency. This currency entered the scene in 2009, and a unit is worth about $37,391, with a $731 billion market cap;
• Ethereum: Ethereum is the second most familiar name in digital currencies. The cryptocurrency platform enables users to utilize ether, its native currency, for various functions. However, its smart contract capabilities have significantly influenced the currency’s popularity. A unit of the currency is worth about $2,034 with a market cap of over $241 billion;
• Tether: Tether maintains a fixed price of $1 per coin and falls under the stablecoin category. In this case, currencies in this category are pegged to a particular asset’s value— the US dollar. Tether frequently aids the transition between different cryptocurrencies as an alternative to converting back to dollars. Its market cap stands at $89 billion;
• BNB: Binance, an enormous global cryptocurrency exchange, issues this digital currency. It was initially designed as a token for discounted trade payments. However, it has evolved significantly to serve broader purposes like facilitating payments and enabling the purchase of diverse goods and services. The digital currency is worth about $229.77 per unit with a $35 billion market cap;
• XRP: This digital currency was established in 2012 and was originally named Ripple. It provides a means of conducting transactions in various real-world currencies. It proves advantageous in cross-border transactions and employs a trustless mechanism to streamline payment processes. Each XRP unit is worth $0.6087, and the currency boasts a $33 billion market cap;
• Solana: Solana was introduced in March 2020, making it one of the most recent additions to the cryptocurrency landscape. The currency emphasizes its rapid transaction completion and boasts a resilient ‘web-scale’ platform. The cryptocurrency associated with Solana is named SOL, with a maximum cap of 480 million coins. Each SOL unit is worth $56.32, and the market cap is $24 billion.
Crypto Currencies: More to Come?
The cryptocurrency scene is growing daily, with new entrants gracing the scene now and then. These digital assets offer decentralized transactions, enhanced security, and financial inclusivity, and their holders enjoy more control over their funds. While thousands of these currencies exist, the above options are the most common.