Blog Cryptocurrency Investing Terms

Guide To Top 10 Coins by Market Cap

single-image

The top 10 coins by market cap are not the most popular digital assets in the world, but they also have a value of $151.756 billion in a market currently worth $180 billion at the time of writing. Out of 2,126 cryptocurrencies listed by CoinMarketCap, the top 10 cryptocurrencies account for more than 84 percent of the market.

Top 10 coins by market cap

From Bitcoin to Cardano, the top 10 coins by market cap represent an assortment of different types of cryptocurrency tokens and asset classes. They range from platform and utility tokens to stablecoins. This article gives you a brief summary of the top 10 assets and the purpose of their existence.

Bitcoin

Bitcoin is the grand-daddy of all digital assets. It is the first and most popular cryptocurrency on the planet, somehow, taking on an ambassadorial role of the entire market. Bitcoin was invented by the mysterious Satoshi Nakamoto and introduced to the world via a white paper.

But what is Bitcoin?

Bitcoin is a decentralized form of money not governed by any central authority such as a government of central bank. The digital money can be sent from one entity to another using a peer-to-peer (P2P) network without the need for third parties.

Transactions are recorded on the bitcoin network and secured using cryptography. A process known as mining is used to mint new digital coins. The miners are rewarded with Bitcoins for their work.

Only 21 million Bitcoin will ever be in circulation and they will only be completely mined in 2140. Bitcoin can only support up to 7 transactions per second (TPS).

The digital asset was initially designed to function as a currency but has rather become an investment asset.

Bitcoin began 2017 trading at $963 but by Dec. 17 the same year, the digital asset reached a peak of $19,758.

Unfortunately, the bull run did not last long and the prices were in freefall. Bitcoin has lost more than 70 percent of its peak value, prompting many to believe that that this was a bubble.

Ethereum

Ethereum is an open source operating platform based on blockchain technology used by developers to deploy decentralized applications (Dapps) that include smart contracts. Vitalik Buterin, a Russian-Canadian programmer and researcher proposed Ethereum in 2013. He argued that Bitcoin was limited in functionality and needed a scripting language. It has been described by some as “programmable Bitcoin.”

Bitcoin and Ethereum are almost the same except that the former is only capable of one particular application while the latter has several capabilities.

The Ethereum network is maintained and run by miners who collect their incentives in the form of Ether, the native token of the network. Ether can also be used for the payment of Ethereum Gas which runs the network.

Ethereum supports a limitless number of Dapps. The blockchain protocol has mainly been used as a platform for launching new blockchain projects via initial coin offerings. Entities can use Ethereum to create their own digital tokens.

One of Ethereum’s important uses is the creation of Decentralized Autonomous Organizations (DAOs).

Ripple (XRP)

Ripple represents both a blockchain platform and currency. The blockchain network is used to allow cheap and fast transactions. Ripple’s own cryptocurrency is known as XRP and is used to transfer value across the network.

The history of Ripple precedes that of Bitcoin. Ripple’s idea was conceived in 2004 by Ryan Fugger but it became what it is today in 2013 when Jed McCaleb brought investors to Ripple Labs.

Ripple protocol is described by Wikipedia as a ‘real-time gross settlement’ that can be used to send money globally without third-party intermediaries. The network claims to support secure transactions.

Ripple utilizes in-house technology known as RippleNet to connect banks and financial institutions. The company so far has partnerships with nearly 200 financial institutions including Santander, Union Credit, UBS, and more.

Perhaps one of the most surprising things about Ripple is that it does not have a blockchain, yet it is considered to be one of the most valuable blockchain companies in the world.

Ripple has also been criticized for being centralized. The startup plans to release 100 billion XRP tokens in circulation yet it retains half of it for its own benefit.

Bitcoin Cash

Bitcoin Cash (BCH) is a peer-to-peer cryptocurrency that came into existence in August 2017 after forking from Bitcoin. BCH, like several altcoins, was designed to address what some sections of the Bitcoin network considered to be flaws in the Bitcoin network and the cryptocurrency.

The idea of BCH came as a result of the escalating fees on the Bitcoin network made others to think that increasing the block size was the solution. Others favored introducing new improvements without increasing the block size because they considered Bitcoin to be more of an investment asset rather than a transactional currency.

However, a faction made up of Chinese miners, entrepreneurs, developers, Bitcoin activists, and investors supported a split that would increase the block size to eight megabytes.

Other than the block size, BCH is similar to Bitcoin as it has a block time of 10 minutes and a total supply of 21 million. Bitcoin Cash underwent a chaotic hard fork which resulted in two rival camps – Bitcoin ABC and Bitcoin SV.

EOS

EOS is both a blockchain and cryptocurrency. EOS is a decentralized operating system similar to Ethereum and can be used for building and deploying decentralized applications (Dapps). Others have called it Ethereum On Steroids as it claims to be more scalable than Ethereum.

EOS was created by CEO Brendan Blumer and CTO Dan Larimer, who previously created BitShares and Steem. Larimer is also credited for creating the Delegated Proof of Stake Algorithm (DPOS).

EOS.IO, a subsidiary of Block.one, raised more than $4 billion in a record initial coin offering that lasted nearly a year. Some of the EOS’ important features include scalability, flexibility, usability, governance, self-sufficiency, and parallel processing.

EOS was clouded in controversy in November last year when benchmarking firm Whiteblock published a report claiming the protocol is not a blockchain. EOS rejected the claims on several grounds and even said that Whiteblock is associated with ConsenSys, which in turn has ties to Ethereum – one of EOS’ main rivals.

Litecoin

Litecoin is an early Bitcoin fork created to address Bitcoin flaws. It was created by Charlie Lee, who previously worked for Google and Coinbase.

Unlike Bitcoin that has a block time of 10 minutes, Litecoin has a block time of 2.5 minutes, making it four times faster than Bitcoin. Litecoin has a hard cap of 84 million, four times larger than Bitcoin’s hard cap of 21 million.

Binance Coin

Binance Coin (BNB) is a bespoke cryptocurrency issued by Binance exchange. The digital coin is an ERC-20 token running on the Ethereum network with a total supply of 200 million.

The Binance coin was created to fuel the exchange’s operations and other utilities such as paying for trading, listing, and exchange fees. The Binance Coin has been used recently by investors to participate in crypto projects through the Binance Launchpad.

Tether

Tether (TUSD) is a controversial stablecoin pegged to the USD and other fiat currencies. The cryptocurrency was issued by Tether Limited as a solution to the volatility associated with digital assets such as Bitcoin and Ethereum.

Tether’s history dates as far back as January 2012 when J.R. Willet published a white paper describing the possibility of developing new currencies using Bitcoin’s protocol. This idea led to the development of Mastercoin cryptocurrency. Mastercoin’s technology was later used as the foundation of the Tether cryptocurrency.

Despite being the leader in the stablecoin market, Tether is highly associated with scandals. The stablecoin is allegedly accused of being used by the cryptocurrency exchange Bitfinex to manipulate Bitcoin’s price, especially during the 2017 bull run.

Tether Limited initially claimed that every digital asset in circulation was backed by USD reserves. However, these claims have not been verified as Tether Limited has failed to prove the existence of fiat reserves.

In 2019, Tether updated its website claiming that Tether’s backing extends beyond fiat currencies and includes “traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”).”

Stellar

Stellar is an open-source and decentralized payment protocol that supports cross-border payments between any currency pairs. The platform’s native token is known as Stellar Lumen (XLM).

Stellar was created by Jed McCaleb (Ripple’s co-founder and former CTO) and Joyce Kim. Stellar is Ripple’s competitor and some of its selling points include:

  • Low transaction fees
  • Specializes in remittances in developing economies

Stellar is the first decentralized protocol to receive a Shariah-compliance certificate in the digital payments sector.

Cardano

Cardano is an open source blockchain platform that runs decentralized applications that can be used by individuals and organizations as large as governments. The Cardano platform’s native token is known as ADA.

The Cardano is different from other projects in that a lot of research was put into developing the protocol. Cardano was founded by a global team of academic researchers and engineers including Charles Hoskinson, one of Ethereum’s co-creators.

The blockchain protocol was designed to address issues such as scalability, interoperability, and sustainability.

Beginners Guide To Crypto
Subscribe to get your beginners guide and our weekly digest
We respect your privacy.

You may also like

Blog Press Release

Bitmain to reveal world’s first Big Data Analysis Report of Global Mining Farms during World Digital Mining Summit this October

single-image

SINGAPORE, 11 September 2019 – Bitmain – the world’s top 10 fabless chipmaker – is set to release the world’s first Big Data Analysis Report of Global Mining Farms during the World Digital Mining Summit (WDMS) on 8-10 October in Frankfurt.

The report will provide in-depth analysis and insights on the cryptocurrency mining industry – covering mining farms, to global electricity costs, site selection of mining farms and construction expenses – to help decision-makers have a more complete and comprehensive understanding of the market opportunities, risks and hurdles.

“Bitmain is proud to be leading research and development efforts in the cryptocurrency mining industry and this comprehensive big data analysis report is a successful outcome of it, thanks to our strength and experience accumulated in this industry,” said Matthew Wang, Director of Mining Farm of Bitmain.

The agenda for the two-day summit features industry investment and innovation for the mining sector….

View More Article
Blockchain Blog Interviews Investing

The Biggest Investing Opportunities In Blockchain | Aly Madhavji Partner BlockchainFF

single-image

ChainTalk Podcast 7

Aly Madhavji is Managing Partner at Blockchain Founders Fund. In this chat we discuss his slightly sketchy first experience with crypto, tokens vs equity investing, biggest opportunities right now to invest in, obstacles faced by blockchain companies, working with the United Nations and how blockchain is helping charities and the unbanked, the present and future of blockchain, Asia vs USA in adopting crypto, and the latest news in Asia surrounding crypto including the US China trade wars and recent currency scandal.

Aly Madhavji 穆亚霖 is the Managing Partner at Blockchain Founders Fund which invests in and venture builds top-tier Start-ups and consults companies and governmental organizations on emerging technologies. He is a Senior Investment Advisor to BitBlock Capital and Fiat Capital Fund, and a Co-Founder of a digital currency exchange. He has served on various blockchain advisory roles including Polymath and traditional advisory boards including the University of…

View More Article
Blog Events Press Release

天英彙が東京湾で初めて行われ、良質なグローバル科学技術革新資源をリンク

single-image

8月6日夜、2019広州天英彙国際革新創業大会東京湾地区の開会式が東京表参道Portal Pointイノベーション空間で行われた。これらは天英彙が初めて日本で設定した競技場だ。広州市天河区政府の関係者たちと日本学習院大学の遠藤薫さんらが本開会式に出席した。

広州市天河区人民政府区長の陳加猛が挨拶した。陳加猛は、「今年は天英彙が初めて東京で都市競技場を設立し、東京は経済が繁栄し、科学技術が進歩し、世界で最も重要な国際的な都市の一つであり、その東京湾は広東・香港・マカオ大湾区と同じで世界四大ベイエリアに属し、競技を通じて両大湾区のコミュニケーションの橋渡しをし、日本の優れた企業、プロジェクト、技術と人材を、質の高い発展に推進している広州経済とうまく結びつけていきたいと思う」と述べた。

その後、日本学習院大学教授の遠藤薫は「今こそ日本のイノベーターにとって最高の創業時代だ。工業化後に蓄積された技術革新と知識によって、理性的な日本資本市場は、市場競争力のあるイノベーションを生み出すだろう。より多くの良質な日本のイノベーション事業が天英彙の助けを借りて、中国市場とよりよくリンクすることを期待している。」と挨拶した。

次に、会場からのカウントダウンの声の中、陳加猛、遠藤薫、天英彙海外地区主催側代表者、IBM日本代表者、アリババ クラウド日本代表者と日本人工知能イノベーション企業Autify代表者が共同で天英彙東京湾の横断幕を掲げ、天英彙試合会が日本に正式に始まることを示した。

Brincグローバル投資インキュベーター中国執行総裁の潘利文氏は、天英彙海外競技エリアを代表して起業家たちに大会制度、広州天河地区の優位性と政策環境、大会の賞金賞品及び1週間の中国市場と資本の連結の旅について詳しく説明した。

続いて行われた「広東·香港·マカオ大湾区と東京湾区イノベーション円卓フォーラム」では、 Brincグローバル投資インキュベーター中国市場とチャンネルの責任者の曽君蔚とIBM日本デジタルコンサルティング専門家の吉本久、TMI総合法律事務所の小川周哉と日本人工知能イノベーション企業Autifyの最高経営責任者の近沢良は、イノベーション企業がいかに効率的に新しい市場に参入できるかについて議論を深めた。

イベントの最後の自由コミュニケーションセクションでは、東京湾区の起業家は広東・香港・マカオ大湾区の建設がもたらすチャンスに強い興味を持ち、現場の雰囲気は非常に盛り上がっている。

今年度は、天英彙海外競技エリアはサンフランシスコ湾、ニューヨーク湾、トロント、シドニー、東京湾、シンガポール、テルアビブ、ベルリン、パリという9大国際イノベーション都市にそれぞれ競技場を置き、少なくとも600以上のグローバルイノベーションプロジェクトを募集する予定だ。今日まで、広州天英彙国際イノベーション創業大会海外競技エリアはすでに八大国外イノベーション都市地区で盛大に開会式を行い、 その中で、米国オークランド市長のシュエリビ、世界最大のインスタントメッセージングソフトウェアWhatsAPP共同創立エンジニアのEugene Fooksman、パリ19区副区長のJoyce Malai、シンガポール国立大学企業センターの副主任の陳正見、欧州華創会会長の黄進などの革新生態分野の重要なのゲストは各競技区の開会式に出席し、天英彙の競技参加者たちに祝福の言葉を贈った。それと同時に、天英彙は国際イノベーション生態の発展を積極的に推進していて、アメリカのオークランド市長のシュエリビと広州市天河区政府の関連責任者を証人として、天英彙競技海外地区主催側Brincグローバル投資インキュベーターはオークランド華埠商会、サンフランシスコ湾委員会とそれぞれ契約を締結し、同天英彙国際イノベーション連盟が第一歩を踏み出したことを示し、今後は更に多くのグローバルイノベーション都市との契約提携を推進し、国際イノベーション生態の発展を進める。

View More Article
Blockchain Blog Interviews Investing

Changing Banking With Blockchain – Tomohiro Yamaguchi Executive Director SBI

single-image

ChainTalk Podcast 6

Tomohiro Yamaguchi is Executive Director at SBI Fintech Solutions. In this chat we discuss his background and role at SBI, SBI’s commitment to blockchain technology, their investment into Ripple, cross border transactions within banks and the affect on international business, Libra and bank tokens, blockchain in the Middle East, and opportunities for investors.

Yamaguchi-san is an 18-year experienced pioneer in finance business and payment/international money transfer industry, in charge of new projects, management and development in Japan and overseas Fintech business. In addition, he is representative of global investment, international money transferring, blockchain space. He was in charge of overseas business development (including fund and financing services) for the SBI group. He leads a team of 17 business development directors.

Visit SBI: http://www.sbigroup.co.jp/english/

Check out last weeks episode on Ripple: https://youtu.be/14EyQ6WKevc

If you enjoyed this episode and want to support our podcast please share it with your colleagues and friends….

View More Article
Blockchain Blog Cryptocurrency Exchange Mining News

Gone Missing: India Misses the Point on Crypto Regulation, Justin Sun Skips Lunch with Warren Buffett

single-image

India is taking a step backward in innovation as it proposes to a blanket ban on cryptocurrencies and severe punishment for those caught on the wrong side of the law. Justin Sun’s delayed his charity lunch with bitcoin critic Warren Buffett due to kidney stones. A bank in the Philippines has launched its own cryptocurrency. Cryptocurrency exchanges need to beef up their security strategies as new reports suggest that they lost $1.2 billion in theft and fraud in Q1 alone. 

Indian panel proposes cryptocurrency ban and jail time for offenders

India’s hostile position on cryptocurrency does not seem to be taking a turn for the better. A high-level panel created by three institutions – Ministry of Electronics and Information Technology, the Securities and Exchange Board of India, and the Reserve Bank of India – has recommended the banning of private cryptocurrencies issued in foreign lands…

View More Article