A cryptocurrency, crypto-currency, crypto, or coin is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Individual coin ownership records are stored in a digital ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
Created in 2009 by someone under the pseudonym Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.
Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy a Bitcoin for about $500. As of April 1, 2022, a single Bitcoin’s price was over $46,300. That’s growth of more than 9,000%.
The Ethereum blockchain is an open-source public blockchain, and it has enabled the end-user to run a custom code with its smart contract feature. Ethereum blockchain has its cryptocurrency called Ether. Ether is the fuel of the network that uses it in the form of payment or execution fees of any transaction. The blockchain intentionally uses cryptocurrency to avoid wasteful code and remain chain healthy.
Unlike some of its cryptocurrency rivals, Tether is a type of ‘stable coin’.
Stable coins attempt to peg their market value to an external reference. For Tether, this means it’s backed by established ‘fiat’ currencies such as UK pounds, US dollars or the euro and hypothetically keeps a value equal to one of those denominations.
After years of relatively level prices, at least by cryptocurrency standards, binance coin took off at the beginning of 2021, surging from about $38 on Jan. 1 of that year to an all-time high of $683 in May. As of March 8, it has slipped back to $382.91.Because of its performance, binance coin has proven to be one of the more stable investment options. Binance is the world’s largest cryptocurrency exchange, according to CoinMarketCap, but despite its extensive functionality and the coin’s success in binance sub-projects, binance coin is still a highly volatile investment.
Developed to help power decentralized finance (Defy) uses, decentralized apps (Daps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms that help it process transactions quickly and securely. SOL, Solana’s native token, powers the platform.