What are the top 3 cryptocurrencies?
Recently there has been a lot of interest in the world of cryptocurrency, with a lot of new faces popping up both as new investors and investments. The newcomers always seek a bit of stability to get a feel of the new lands. What could be a better place to start than a simple list featuring the big leagues of the crypto world?
So, the top three of the digital currency sphere are as such:
Tether
While researching for the article we too were stumped not placing the everlasting Bitcoin on top. But it makes a lot of sense seeing USDT on the top of this list. It is the tether (pun intended) that connects the digital currency sphere. A lot of people use Tether as the medium of exchange for buying and selling.
So, how exactly does Tether, or USDT, work? USDT is pegged to the value of the actual USD. Tethering with USD effectively means that when USD moves, Tether moves alongside it. So, if an investor buys 1000$ worth of Bitcoin, they can directly buy it with the USD, but more often than not, the transaction is done with the aid of USDT. You buy USDT with the dollar, then buy the BTC with Tether. Similarly, if you feel like selling it, the most commonly used store of value is Tether itself.
There are others like BUSD or Binance USD, but they aren’t as popular as USDT.
Bitcoin
The OG! Bitcoin is the staple of any cryptocurrency discussion, and for good reasons. Bitcoin was the first publically traded cryptocurrency and dates back to 2008. Bitcoin is also what is leading the charge of the ‘legalisation’ of cryptocurrency. With the declaration of Bitcoin as a legal tender of the nation of El Salvador, the days of crypto being controversial are limited.
So, what makes Bitcoin so special? It is often said that the innovator of technology doesn’t get the benefits of their ingenuity. This age-old adage cannot be further from the truth when it comes to cryptocurrencies. While Bitcoin might not hold a candle to the latest in terms of technological marvel, it is hard to argue the impact it has created, and this is why it is still the undisputed king.
Ethereum
The poster child of innovation in the crypto world. To the layman, Ethereum might look like just another cryptocurrency, but the way it has revolutionised the economics of crypto, its ming boggling. The ETH blockchain features so many tokens and yet, the innovations there seem untapped still. From the evolution of better transactions per unit time to the development of virtual banks, it wouldn’t have been possible if ETH wasn’t around.
Better yet, there are now many coins dubbed the ‘Ethereum killer’. While this monicker might seem degrading to the ecosystem of Ethereum, it cannot be further from the truth. Ethereum killer is a term that exudes the existence of a tech that has limitless development potential. A win-win for programmers and investors alike. And what happens when programmers and investors win? Amazing opportunities for the commoner.
Verdict:
Not all cryptocurrencies are made equal. Some like Dogecoin are made purely because they are ironically funny. Some, like BTC and ETH, promote the sphere itself and spark creativity. Some, like Solana, are the forebearers of said creativity and ingenuity.
What every cryptocurrency has plenty of, is the passion for creating something new and adding to the ever dynamic world of cryptocurrency. It might not be the best product, but for the average investor, if it brings money, it is a wonderful thing.
Of course, investing comes with another list of risks. A list, much more extensive than the one we just saw. There is always the risk of a currency becoming defunct in under a day, and you losing all your investments. Never fall for market hype alone. Hype can get you a 5–10% return, but it can bring monumental fall as well. But amidst all this, there is the wonderful world of profit-making which can be seen to elusive to be slept on. One just needs to be careful where their money is going. Set goals and boundaries. Never fall for the oldest trick in the book: the gambler’s fallacy.
Embrace it while it lasts.
