What are the most traded cryptocurrencies?
The cryptocurrency landscape is hugely diverse. With few barriers to overcome, almost anyone who wants to and understands blockchain technology can create their own cryptocurrency. There are more than 1,600 cryptocurrencies offered on the main, medium and specialized exchange platforms.
Regarding these cryptocurrencies and digital tokens, it is fair to say that the number that has real significance can be reduced to a list of two digits. This smaller group can further be narrowed down to cryptocurrencies that are traded enough to have significant liquidity, or are regularly used to pay for blockchain platform uses such as utility tokens . In this category, we could very likely include between 20 to 30 digital currencies.
Since the beginning of the cryptocurrency phenomenon, the two most popular cryptos have been Bitcoin and Ethereum (Ether). In recent years, Ripple XRP has strengthened its position within the top 3. Ripple even briefly surpassed Ethereum’s market capitalization in September 2018 to become the second most popular cryptocurrency.
Beyond Bitcoin, Ethereum, and Ripple XRP, there are other popular cryptocurrencies, however, their value and public interest tends to go up and down. The exclusive Crypto 10 Index , which is made up of the most popular cryptocurrencies of the moment, can also be traded.
What are the most popular cryptocurrencies for traders?
One way to determine which are the most traded cryptocurrencies is to look at which ones are offered as CFDs on major trading platforms like Plus500. Below you can see the cryptocurrencies that most interest Plus500 users.
A quick internet search suggests that the most popular cryptocurrencies on the market today are:
- Ripple XRP
They are all different, so let’s take a quick look at their main features.
Bitcoin is considered to be the original crypto, its launch in 2009 is considered to be what started the entire cryptocurrency movement. Bitcoin – and the blockchain technology on which it operates – was developed by a person or working group under the pseudonym Satoshi Nakamoto. Bitcoin was presented as an alternative to the traditional monetary system, and which in the crypto world is known as fiat currencies. Satoshi Nakamoto’s true identity has never been revealed.
In the white paper of Bitcoin, or white paper in English, Nakamoto stated that a fiat monetary system controlled by central banks and a small number of financial institutions led to a centralization of wealth and power with which financial and social mobility is made it difficult The savings of ordinary people were hit by inflation, caused mainly by monetary expansion and money printing by central banks.
Bitcoin fixes that problem by fixing the maximum number of units that can be created, thus avoiding the inflation caused by printing money. Blockchain peer-to-peer technology means that no financial institution is needed to facilitate transactions and verify ownership.
Bitcoin remains the most popular cryptocurrency and its price movement has a strong impact on the rest of the crypto market.
Ethereum is historically the second most popular cryptocurrency, however, it is very different from Bitcoin. Ethereum is actually the name of the blockchain platform and Ether is the name of the cryptocurrency. Ethereum is a blockchain platform for ‘smart contracts.’
The platform can also be considered as a standard with specific rules in which different applications, or Dapps – decentralized applications – can be created. Ethereum Dapps range from games to Initial Coin Offerings, or ICOs, which are the equivalent of crowdfundings or Public Offerings in the world of cryptocurrencies.
Although other smart contract platforms have launched subsequent to Ethereum, each claiming to be a more sophisticated blockchain technology, the original platform still maintains its dominant position as the most widely used.
While Bitcoin is intended as an alternative to fiat currencies, the purpose of Ether (besides being traded as an asset) is to be used as a means of payment for the use of the Ethereum platform. This cryptocurrency is known as the ‘utility’ cryptocurrency.
Ripple XRP is another utility coin. Its blockchain platform is set up to facilitate international fiat currency transfers and increase their efficiency. Closely tied to and backed by multiple banks since its launch, Ripple XRP is regarded as the establishment cryptocurrency.
The number of transfers made through the Ripple platform has gradually grown over the years and there is a real possibility that it will become part of the traditional financial system.
Litecoin is another potential alternative to fiat currencies and a prominent rival to Bitcoin. Its creators hope that Litecoin will eventually be used to pay for everyday goods and services. This cryptocurrency has positioned itself as a more practical and technologically superior alternative to Bitcoin. Litecoin transactions can be confirmed on the P2P network faster than Bitcoin transactions.
In theory, this may make Litecoin more attractive for trading, but in ‘real life’ cryptocurrency transactions are still very limited. Furthermore, the established ‘brand’ of Bitcoin remains in the lead as the alternative to fiat within all cryptocurrency options.
Like Ethereum, NEO is a platform for smart contracts and Dapps. Launched in 2014, NEO’s goal was to improve Ethereum by offering roughly the same utility through more sophisticated blockchain technology.
There are many people who claim that NEO is a superior platform to Ethereum, but as with Litecoin and Bitcoin, Ethereum’s age and better positioning has helped it maintain a larger market share.
IOTA is a unique cryptocurrency, based on the Directed Acrylic Graph (DAG) structure. It was created to work with devices compatible with the internet of things, or IoT by its initials in English. The IoT facilitates cost-free micro-transactions involving connected devices, and also helps maintain the integrity of information. IOTA recently jumped to the top of the most traded cryptocurrency list and looks to have a great future with IoT technology becoming the standard.
Trade cryptocurrency CFDs online with Plus500
Anyone interested in the dynamic cryptocurrency market by trading CFDs on the top cryptocurrencies on the market can do so through the Plus500 CFD trading platform. All major cryptocurrency-to-dollar pairs are available, as well as crosses between cryptocurrencies and the popular Crypto 10 index.