Bundil EDU: Crypto you should know about!
Welcome to Bundil EDU, where we cover the basics of crypto and crypto investing. There are an overwhelming number of cryptocurrencies in the market. Let’s talk about the nine most popular ones that we think you should know about!
Our first contender, Bitcoin (BTC), is the OG cryptocurrency. It was created in 2009 by Satoshi Nakamoto, who wanted to form a decentralized system that would free people from the control of financial institutions. Fun fact, Satoshi Nakamoto is a pseudonym created by the person/persons that created Bitcoin; no one knows who the actual founders are. Bitcoin revolutionized investing, finance, and how we think about money. In short, Bitcoin transactions happen on the blockchain and are recorded in blocks, similar to a database ledger. These blocks are transparent, which means that transaction data is available for everyone to see. Because of its transparency, it is challenging to manipulate or break the Bitcoin Blockchain. Think of Bitcoin as the equivalent of gold in crypto; its market cap is 21 million, making it more valuable than most cryptocurrencies.
A summary of Bitcoin:
- Bitcoin is looked at as digital gold
- It can take up to 10 minutes for each transaction to complete
- The supply cap is 21 million
- Primarily used as an investment tool
Ethereum is the most popular alternative to Bitcoin; It was launched in 2015 by Vitalik Buterin and Joe Lubin to utilize more of the blockchain. Ethereum is not only a cryptocurrency; it is also a network built off of the blockchain. This network can support decentralized technologies such as apps (dApps), smart contracts, and finance (DeFi). This cryptocurrency is also known as ETH, Ether, or Ethereum. Ethereum transactions take only seconds to complete. There is no supply cap on ETH, making it less valuable than Bitcoin. Because of this, this crypto is used like cash or as an investment tool.
A summary of Ethereum:
- Ethereum transactions take seconds to complete
- There is no supply cap and constantly burns / creates ETH through mining and transaction processes
- Ethereum is also a network that can support decentralized technologies, so apps build their blockchain tech on Ethereum
- Used as an investment tool or like cash for purchasing
Tether is the first Stablecoin created (think of it as OG Stablecoin). Stablecoins differ from most cryptocurrencies because they are backed by the amount of USD in circulation. Tether has extremely low volatility (little to no change) and has historically stayed around one dollar. Because of its low volatility, Tether is often used to store earnings from other cryptocurrencies such as Bitcoin.
A summary of Tether:
- Tether has historically stayed at $1 USD and it is pegged to stay at the value of $1
- Tether is the first Stablecoin
- Tether has extremely low volatility
- Often used to store earnings from other cryptos
Binance Coin originates from Binance, one of the largest cryptocurrency exchange platforms. Binance released the coin in June of 2017. The Binance Coin was initially built on the Ethereum network but has now moved to its blockchain, the Binance Blockchain. The Binance Coin has a market cap of 200 million. The most popular use for this coin is to pay Binance exchange fees and purchase from decentralized websites.
A summary of BNB
- Created by Binance Exchange
- Has a market cap of 200 million
- Has its own centralized Blockchain
- Used for paying Binance fees or purchasing from decentralized websites
USD Coin is a Stablecoin backed by the amount of U.S. Dollars in circulation. The value of the USD Coin is kept at 1:1 with the U.S. Dollar, which makes it have extremely low volatility. Although this coin is backed and named after the U.S. Dollar, it has no connection with the U.S. government. Anyone can contribute to this coin’s code. Because of its stability, the coin is often used as a hedge against inflation.
A summary of USD coin:
- USD is a Stablecoin
- Has low volatility
- No connection to the U.S. Government, but it is backed by U.S. dollars
Solana is one of the fastest-growing cryptocurrencies! In 2021, SOL grew roughly 12,000%, and it is now the fifth most popular cryptocurrency. Solana was created and released by Anatoly Yakoveno, Greg Fitzgerald, and Stephen Akridge. It has lower transaction fees and can process transactions must faster than Ethereum. The market cap for Solana is $66 billion.
A summary of SOL
- SOL has lower fees and can process transactions faster than Ethereum
- SOL has a market cap of $66 billion
- It’s currently the fifth-largest cryptocurrency
Ripple is a cryptocurrency payment platform that is commonly used for faster and cheaper international transactions. Ripple also goes by the acronym XRP. We like to think of Ripple as an informal money transfer that is founded on Blockchain technology. Ripple can also be used as a long-term investment tool or for trading. Transactions for this coin take 3–5 seconds to complete.
A summary of Ripple/XRP
- XRP is mostly used as an informal money transfer
- It makes international transactions faster and cheaper
- XRP can be used as an investment tool
- Transactions settle within 3–5 seconds
Cardano is a decentralized proof-of-stake (PoS) blockchain that emphasizes efficiency. It was created by Charles Hoskinson in 2015 and launched in 2017. Instead of running on the Blockchain, Cardano runs on a PoS protocol known as the Ouroboros Consensus Protocol, which is secured and informed by scholarly academic research. The token for Cardano is known as ADA, named after Ada Lovelace, an English mathematician. The creators think of Cardano and ADA as updated versions of Ethereum.
A summary of Cardano:
- Token name: ADA
- Proof-of-stake blockchain
- Think of it as an updated version of Ethereum
Proof-of-stake — helps verify that the data saved on the blockchain is valid.
Avalanche is both a cryptocurrency and blockchain platform that rivals Ethereum. Its token, AVAX, is based on the Avalanche blockchain that uses smart contracts to support its projects. The avalanche blockchain can process 4,500 transactions per second. This blockchain and cryptocurrency were launched in 2020, making it relatively new. It is most commonly used to pay transaction fees on the Avalanche network and a crypto account.
A summary of Avalanche:
- Token name: AVAX
- Uses smart contracts (like Ethereum)
- Can process 4,500 transactions per second
- Can be used to pay fees or as a crypto account.
This concludes our summary of the top nine cryptocurrencies in the market. There are a whopping 18,000+ cryptocurrencies to choose from when investing in crypto.
We hope this article helped! Please reach out to firstname.lastname@example.org if you have anything you would like us to cover. (there are no stupid questions!)
-The Bundil Team