There are currently more than 10,000 cryptocurrencies worldwide. In addition to Bitcoin, which has been the focus of all news in recent years due to its large market capitalization, there are others whose technologies can transform the economic and financial sector in the future.
First, however, it is necessary to define what cryptocurrencies are. One could say that they are digital currencies that use cryptography to secure transactions and create new entities. Additionally, your transactions are stored on a decentralized computer network, meaning they are not dependent on any government or central bank.
According to Google Trends datathe term cryptocurrencies has skyrocketed in the early months of 2021. This has to do with the significant surge in bitcoin price over the last year when The value has gone from around $3,500 to over $60,000. sometimes. Therefore, it has become an interesting asset to invest in.
However, investing in cryptocurrencies also has its risks. It is a very volatile asset, so it is necessary not to get carried away by emotions. In addition, the large price fluctuations have attracted the attention of scammers who promise to deposit some fractions of cryptocurrencies in your virtual wallet if you manage to trick people into using them. This is nothing more than a traditional pyramid scheme – or multi-tiered – that can make you big bucks.
The 7 most important cryptocurrencies in the world
Despite this, the cryptocurrency market continues to rise in the first quarter of 2021. For this reason, the IEBS Business School has compiled a list of the current 10 most important cryptocurrencies in the world as part of their Master’s degree in Blockchain and Fintech.
Bitcoin. It is one of the most famous cryptocurrencies as it is the pioneer. She was born in 2008 and started trading in 2009. This currency has positioned itself as a leader in the digital market, although it has suffered major ups and downs and it is difficult to predict the future of its market value. Bitcoin is characterized by decentralization, censorship resistance, security and cross-border nature. It’s hit all-time highs in recent months, thanks in part to a boost from Tesla and Elon Musk.
ether. Ethereum is a decentralized computing platform that could be represented as a large computer that is spread across multiple computers at the same time, working simultaneously. The value of this cryptocurrency reached an all-time high of almost €1,700 in February 2020.
BinanceCoin. Binance Coin is the official cryptocurrency of the Exchange largest in the world, Binance. This currency was born to support transactions within the same platform. In fact, you could buy this coin to pay the commissions derived from buying other cryptocurrencies and get a big discount.
Cardano. It is the representation of the so-called 3rd generation blockchain that tries to solve the scalability problems of 2nd generation like Ethereum. Over the past few months, Cardano has become one of the fastest growing assets in the entire crypto industry, increasing its value by 45x.
tether. It is a stable coin or stablecoin. This means that all cryptocurrencies of this type in circulation are backed by an equivalent amount of traditional fiat currencies such as the dollar or the euro. It is designed to build a bridge between fiat and cryptocurrencies, offering users stability, transparency and minimal transaction fees.
Speckle. We could define it as a blockchain protocol that attempts to connect the various existing blockchains into one universal chain of blocks. It is one of the biggest current problems of the blockchain, the non-interoperability between the different chains (Bitcoin, Etherium,…). The value of the DOT cryptocurrency has multiplied by more than 12x in the last year, reaching a maximum of €33 per coin in March 2021.
ripple. Ripple’s main goal is to connect banks, payment providers and cryptocurrency exchanges to enable faster and more profitable global payments. Like Bitcoin, Ripple is a completely secure and encrypted system whose transaction information is public, but the payment information is not.