The Complete Cryptocurrencies List for 2021
Bitcoin, the world’s most traded cryptocurrency, hit a $1 trillion market capitalization on 19th February this year.
Cryptocurrency is a decentralized form of digital currency that premises on cryptography and encryption. Unlike paper currency, cryptocurrency is independent of financial systems that act as the central authority. This means you can buy goods and services with cryptocurrency without the intervention of any financial institution.
Currently, there are more than 5,000 cryptocurrencies in circulation around the world. A complete cryptocurrencies list would take up more than a few sheets of paper. Fortunately, you only need to know a handful that you can invest in.
In today’s piece, we’ll be highlighting some of the most popular cryptocurrencies that are worth your money.
Let’s kick things off with the most popular cryptocurrency, Bitcoin. Although Bitcoin’s popularity surged in 2017, it was created far back in 2008.
Something peculiar about Bitcoin is that no one actually knows who created it. All we know is that the creator goes by the pseudonym, Satoshi Nakamoto. Satoshi Nakomoto could be a man, woman, or an entire group; no one really knows.
Bitcoin is based on a novel technology called blockchain. Blockchain is a type of database that stores data in “blocks.” Once one block is full, it links or “chains” to the previous block and so on.
Blockchain is decentralized, meaning no single user controls the database; instead, all users collectively retain control.
Pros of Bitcoin
Bitcoin is the world’s most popular cryptocurrency, and for all the right reasons. Here are a few advantages of Bitcoin.
- Bitcoin is easy to acquire and trade
- The mainstream economy is slowly adopting Bitcoin
- It enjoys backing from many developers and investors
- Immune to inflation
Cons of Bitcoin
Although Bitcoin’s future seems very promising, it’s not without its downsides. Some cons of Bitcoins include:
- Threat of hacking
- Loss of wallets
- Accepted by few merchants
- High volatility
As of March 2021, Bitcoin has seen a steady rise, making it an excellent investment option.
With a market capitalization value of over $1 trillion, it’s not a currency to ignore. Asset managers project that the value will continue to rise in the future although any investment should be done with caution. Bitcoin remains a very volatile currency due to limited trade ability.
You can use VirgoCX if you’d like to buy or sell Bitcoin and any other cryptocurrency.
Vitalik Buterin, a Russian-Canadain programmer, invented Etherium back in 2015. It’s the second-most valuable cryptocurrency after Bitcoin. However, unlike Bitcoin, Etherium is more than just a digital currency.
Etherium also uses blockchain, but it’s also a ledger technology that companies use to develop decentralized application software. Companies use these applications mainly for smart contracts. Smart contracts are agreements coded on the blockchain, which execute when each party meets the conditions stipulated on the contract.
Organizations love Etherium because they don’t have to develop their own blockchain but can build on Etherium’s blockchain.
Pros of Etherium
Etherium is hot on Bitcoin’s tracks and is likely to catch up. Here are a few reasons why Etherium gives Bitcoin a run for its money.
- Etherium has a better transaction speed compared to Bitcoin
- It’s great for creating smart contracts
- It’s the go-to platform for offering ICOs for blockchain projects
Etherium is seeing a steady surge in popularity and may soon topple Bitcoin for the top spot. However, only time will tell if this will come to pass.
Cons of Etherium
If you’re planning to invest in Etherium, here are a few drawbacks you should be aware of:
- Etherium uses only one coding language known as Solidity
- Etherium experiences network congestion
- Etherium is having trouble keeping up with the competition
It’s worth noting that Etherium is looking at solutions to improve its transaction verification technology. It’s also looking at alternatives to mining Etherium without consuming so much electricity.
EOS is a digital token created by Daniel Larimer and Brendan Blumer in June 2017. Just like Etherium, EOS allows the development of decentralized apps on its platform.
The EOS ecosystem consists of two elements, and they are:
EOS.IO: This is like an operating system that oversees blockchain technology. Unlike Bitcoin and Etherium, EOS.IO enables seamless scaling of decentralized applications.
EOS token: EOS token is the EOS network’s digital currency. You can use EOS tokens to transact and can also send and receive tokens from other EOS users. An EOS coin holder can use EOS coins to buy goods or access EOS network resources.
What makes EOS different from other platforms is that EOS enables scalability and flexibility in developing decentralized apps. EOS prides itself as the most powerful infrastructure for decentralized apps.
Pros of EOS
Although EOS is a relatively new cryptocurrency, it has incredible potential and tons of advantages. Here are a few pros of EOS.
- Supports multiple languages, including C+
- The EOS team consists of highly skilled personnel with an incredible track record
- scalable and flexible, which is something not many cryptocurrencies can claim
EOS has a significant edge over other cryptocurrencies. However, because it’s a very new cryptocurrency, most people are unwilling to take the risk.
Cons of EOS
EOS has centralization issues because it allows only 21 block producers at any given time. This is a really small number of block producers for such a prominent cryptocurrency.
EOS faces a lot of competition from other competitors like Etherium and NEO. It has a long way to go before it becomes the undisputed king of the mountain.
EOS is a new cryptocurrency, but it shows immense promise. It’s a great platform for developing decentralized apps, even for small businesses and organizations.
Unlike other cryptocurrencies that allow the buying and selling of goods, Ripple only focuses on international payment transfers. Cross-border payment can be a real headache; Ripple aims to facilitate faster and cheaper international cross-payment.
Only 100 billion XRPs exist, and of the 100 billion, the company behind Ripple holds half of them.
Currently, XRP is the fourth largest virtual cryptocurrency by market cap. ranking behind BTC, Etherium, and tether.
Although many people refer to XRP as Ripple, technically Ripple is the company behind XRP cryptocurrency.
Unlike bitcoin that uses a mining strategy, XRP uses a method called consensus mechanism. This method has faster confirmations and is more reliable compared to its competitors.
Ultimately, XRP mining uses negligible energy as compared to BTC, which is known as being power-hungry.
Pros of Ripple
Ripple has made international payment processing a breeze. Here are some advantages of Ripple.
- Ripple can facilitate international money transfers within seconds
- Ripple significantly lowers the cost of international money transfers
- Ripple has actual real-world applications
- has fostered concrete relationships with multiple financial institutions
Cons of Ripple
Ripple has a few drawbacks. One is thought to be a centralized system even though the point of having cryptocurrencies is decentralization. This is because the company behind Ripple holds half of the cryptocurrency.
Financial institutions and banks have developed their unique cryptocurrencies for international payments. This beats the point of using Ripple.
Charlie Lee created Litecoine in 2012 after the end of his stint at Google. The cryptocurrency was built on Bitcoin’s blockchain to improve it. Although not as popular as Bitcoin, Litecoin has garnered a considerable following and has stood the test of time.
Litecoin is only a cryptocurrency and doesn’t provide a platform for decentralized app development or contracts. However, this doesn’t seem to be an issue for most people.
Pros of Litecoin
Although Litecoin seems like Bitcoin’s smaller brother, it has a lot of advantages over its older sibling. Here are a few benefits of Litecoin.
- Litecoin has a transaction time of about three minutes (way less than Bitcoin’s ten minutes)
- Lesser transaction fees than Bitcoin
Cons of Litecoin
Litecoin seems like a good alternative to Bitcoin, but it has its downsides like:
- Doesn’t offer smart contracts and decentralized app development
- Mining Litecoin requires super powerful hardware and a lot of electricity
Choose Your Favorite From This Cryptocurrencies List
2021 is the ideal year to invest in cryptocurrency and, hopefully, make a killing. With the above cryptocurrencies list, you should be poised to invest in the right one. However, it might be a good idea to talk to cryptocurrency experts before pouring your money into a cryptocurrency.
Did you learn something new about cryptocurrencies today? For more informative content, read our other articles on the site.