The Most Talked About Cryptocurrencies
Cryptocurrency is a decentralized digital cash system that was created to mirror a peer-to-peer network for file sharing, only for money. Satoshi Nakamoto, the creator of bitcoin, set out to create this system with the goal of absolute consensus on accounts, balances, and transactions. Cryptocurrency was a major part of Nakamoto’s solution.
Cryptocurrencies are made up of a network of peers that each carries a database of the history of all transactions relevant to the peers account balances. When a transaction is made, everyone connected to the network can view it. According to blockgeeks.com, data mining works by using the following steps:
- Someone requests a transaction
- The requested transaction is broadcast to P2P network consisting of computers, known as nodes
- The network of the nodes validates the transaction and the user’s status using known algorithms
- A verified transaction can involve cryptocurrency, contracts, records, or other information; cryptocurrency is a medium of exchange, created and stored electronically in the blockchain, using encryption techniques to control the creation of monetary nits and to verify the transfer of funds. Bitcoin is the best-known examples.
- Once verified, the transaction is combined with other transactions to create a new block of data for the ledger
- The new block is then added to the existing blockchain, in a way that is permanent and unalterable
- The transaction is complete
Cryptocurrency has no intrinsic value, no physical form, and is not controlled by a central bank. Despite the hesitancy of some people to get involved with cryptos, others are cashing in on the wave by investing in cryptocurrency hedge funds. This is a long list of over 1,500 cryptocurrencies that you can find on Coin Market Cap. Here are the top 10 cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Bitcoin Cash (BCH)
- EOS (EOS)
- Litecoin (LTC)
- Cardano (ADA)
- Stellar (XLM)
- IOTA (MIOTA)
- TRON (TRX)
Bitcoin: this cryptocurrency was first made in 2008. The mining of coins was first made available in 2009 and in 2010 bitcoin was valued for the first time. The only way that a monetary value could be assigned to them as if they were traded. A bitcoin owner swapped 10,000 bitcoins for 2 pizzas. They would have been worth over $100 million now. From then to now, bitcoin faced competition, scams, and even theft, but has made it to a valuation of almost $20,000 at one point this year.
Ripple: this cryptocurrency currently has the second highest market capitalization behind bitcoin. Ripple’s network isn’t only for the cryptocurrency, but also for traditional currency and other commodities that can be traded or exchanged. The market cap for Ripple is currently over $2 billion.
Litecoin: this crypto is a P2P Internet currency that allows people around the world send money to others with little cost. It’s open source, and fully decentralized. The network is secured via mathematics and gives the holder the authority over his or her own accounts. Litecoin can actually handle higher transaction volume than bitcoin due to it’s faster adapting and more frequent block generation.
Stellar: stellar is actually the payment network in which the cryptocurrency Lumens operates on. The network is open-sourced, distributed, and community-owned to facilitate cross-asset transfers. The fees are extremely low and transaction speed is highly competitive with other cryptocurrencies. Originally based on the model that Ripple operates on, Stellar is more open than ripple but still shares many traits.
TRON: this cryptocurrency is one of the largest blockchain-based operating systems across the globe. The market capitalization is currently $7.081 billion with a price of $0.071.
By investing in cryptocurrency hedge funds you can dabble in each of the top cryptocurrencies rather than choosing just one. Hedge fund managers will account for risk and adjust your portfolio accordingly in order to maximize long-term return. For inquiries on investing in a cryptocurrency hedge fun, contact StoneGate Digital at (404) 736-9255 or fill out a contact page to speak with investor relations here.