Cryptocurrency has become part of mainstream headlines since its boom in the covid-19 pandemic. Cryptocurrencies have built an ecosystem of strong advocates who believe in the applications of cryptocurrency as an alternate payment system to traditional currency. The barrier to entry in cryptocurrency is low as there is no regulation or laws governing cryptocurrency and lies at the mercy of the open markets. This has led to the creation of numerous cryptocurrencies which are actively traded in cryptocurrency exchanges.
Here are 5 popular Cryptocurrencies –
1. Bitcoin- It is the most dominant cryptocurrency and primary cryptocurrency which was widely accepted by the world to the extent that all other cryptocurrencies are referred to as Altcoins. Bitcoin is considered a safer investment option in the cryptocurrency markets. Bitcoin at its lifetime high in November 2021 had touched values of $65,000. Certain cryptocurrency platforms allow passive earnings via interest from cryptocurrencies through ‘loaning’ Bitcoin. The coin is currently trading at Rs 19,66,595 as on February 17.
2. Ethereum- Ether stands in the second position in the cryptocurrency market after Bitcoin in terms of market capitalization. Ethereum is programmable which allows building apps, transacting, holding assets and communication. ETH aims to create a decentralized system where anyone from any part of the world can transact anonymously with the help of the internet. Ethereum is trading at Rs 1,37,872 as on February 17.
3. Binance Coin (BNB)- Binance is one of the largest cryptocurrency exchanges in the world and BNB is the utility cryptocurrency of the platform. The BNB coin is the base for transactions in the Binance exchange. The exchange platform provides the option of reduced transaction charges for using the BNB coin. The coin is the largest in terms of market capitalization. Binance has partnered with organizations in the travel, entertainment, service, finance and payment sectors allowing BNB users to transact end-to-end using the coin. The link to the Binance platform is a boon as well as a bane for the coin as its future is directly dependent on Binance as an exchange. Any threat to Binance as an exchange will strongly impact the value of the coin. BNB is trading at Rs 25,647 as on February 17.
4. Cardano (ADA)- This a third-generation cryptocurrency which claims to have peer-reviewed academic research protecting the safety of their networks in a method called “Ouroboros proof-of-stake”. The creators of Cardano give importance to the concept of democracy and are trying to implement it in their system by giving a voice to its stakeholders in choosing a future of the cryptocurrency. The development of Cardona heavily relies on peer-reviewed research in governing it. Cardano is being dubbed an “Ethereum Killer” as it has a Proof-Of-Stake system that is better than Ethereum’s. ADA is trading at Rs 32.66 as on February 17.
5. SOLANA (SOL)- Solana is a blockchain platform similar to Ethereum and Cardano. Solana is built to support decentralized applications which use smart contracts. Solana is making waves in the Non-Fungible Token (NFT) industry. Solana is building relevance in DeFi, a payment system called Solana Pay and attempting to pioneer gaming using cryptocurrency where the user will be able to earn/transact using SOL coins. Solana is actively working towards creating a space for itself in the Web3 universe. The potential in the sectors of NFTs and gaming is growing in the current scenario. SOL is trading at RS 1,867 as on February 17.
Cryptocurrency is attracting users to adopt it by promising anonymity and a reduction in transactional fees, especially for transactions at a global where transfers can take place instantly without requiring any change in currency before settling the accounts. The platforms claim higher security compared to traditional fiat currencies.
But the Indian government has not taken a decisive decision on cryptocurrency and is updating rules and regulations in real-time.
Cryptocurrencies are extremely volatile. A tweet by Elon Musk saw a spike in Inu-based meme coins. Until the market becomes stable, investing in cryptocurrency is rewarding but risky.
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