Cryptocurrencies are still the subject of the moment, but do you know what they are exactly? It seems that what was once spoken as a passing fad is here to stay. Cryptocurrencies have been going strong, although they still generate a strong debate about their security and whether they are a profitable investment path. But if they really were not, will more types of cryptocurrencies continue to appear every day? In the following article, we will talk about what are cryptocurrencies and which are the most famous in 2020.
What are cryptocurrencies?
Cryptocurrencies are a digital medium of exchange, that is, a digital currency, without physical support, which uses cryptography to safely control and manage transactions between users.
Its main features, as we have said, are that it is not a physical currency although. They can be stored on devices such as hard drives or external memories; and that its creation is based on unique cryptography and currently do not depend on any agency or government that is responsible for generating this type of currency.
How many cryptocurrencies or cryptocurrencies exist?
Today there are more than 2,500 virtual currencies worldwide and rising. In addition, a new one appears every so often, which is created through a process called ICO.
What differentiates all these currencies is the technology, encryption and philosophy they use. Most cryptocurrencies use Blockchain technology, but it is not the only one. As for philosophy, it can be said that there are as many as coins.
With the creation of new cryptocurrencies, new platforms have appeared to send, receive and buy different types of cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum and Litecoin. We talk about Coinbase, a platform and digital wallet that allows you to operate with cryptocurrencies easily and securely.
The latest news of the rise of the BlockChain increasingly predicts the consolidation of virtual currencies, despite falls such as the one suffered at the beginning of 2018. This does not mean that they are not safe or profitable. Just that we should consider at the moment that They find to harness their potential.
The 10 cryptocurrencies in 2020:
1 # Bitcoin
Surely Bitcoin is the cryptocurrency you have heard most about. The reason for the fame of this digital currency is that it is the pioneer. In 2008 it was created by several people under the name of Satoshi Nakamoto. Of course, at launch it did not have the value it has now and most could not even think that it would reach this data.
No doubt this currency has positioned itself as a leader in the digital market and can be a great investment for this year. However, it has suffered great ups and downs and it is difficult to know when it will rise or fall. That is why we propose other cryptocurrencies that are worth paying attention to.
2 # Ripple
The Ripple (XRP) for many experts is the successor of Bitcoin since this digital currency was created by former Bitcoin developers with the aim of improving performance.
Like Bitcoin, Ripple is a completely secure and encrypted system whose transaction information is public but the payment information is not, that is. It is a confidential system where the issuer and receiver are the only ones with the information and the code that decrypts it. A good investment option.
After the great growth that lived in 2017, this 2018 experienced an important fall, despite still being positive.
3 # Litecoin cryptocurrencies
Created by former Google employee Charlie Lee in 2011, Litecoin was launched as an alternative to Bitcoin.
“My vision is that people would use Litecoin every day to buy things. It would simply be the payment method of choice ”
It has an upper limit to Bitcoin (84 million, compared to 21 million) and there are currently about 55 million Litecoin in circulation. For this reason, many experts are betting on this cryptocurrency in the future.
4 # Ethereum cryptocurrencies
Ethereum and Ether were in 2017 one of the most profitable cryptocurrencies and is an alternative based on technologies such as Aragon or Stox. It is the second digital currency in terms of capitalization so it is considered a great alternative to Bitcoin.
In 2018 the upward trend of this cryptocurrency remained until it reached its historical maximum at $ 1,423 at the beginning of the year.
What stands out the most is its consolidated development of applications and the use of smart contracts, which is why it is a more ambitious Blockchain project than Bitcoins.
5 # NEO
The NEO or the “Ethereum of China” was created in 2014 by Da Hohgfei. Who wanted to reassure the fears of cryptocurrencies in his country. At that time, the Chinese Government announced greater control over the digital monetary sector and has prohibited ICOs from freely managing. Of course, NEO is a digital currency that we cannot lose sight of.
Features that can make you opt for this currency is that NEO allows you to build decentralized applications as well as smart contracts, and NEO is indivisible, not like ETH.
6 # Monero
The differentiating element of the Monero cryptocurrency is its anonymity. In its philosophy, Monero allows each transaction to be completely anonymous, including the sender, the recipient, and the volume of the transaction. For many, this is a problem because it is believed to benefit cybercriminals.
There are currently almost 20 million in circulation and unlike Bitcoin and Litecoin it does not have a fixed supply of coins. An investment option that we should not waste either. According to experts, Monero has a prospect of living its greatest growth and could reach $ 50.
7 # Dash
The Dash is another peer-to-peer cryptocurrency. Such as Bitcoin, but that integrates more advanced functionalities, such as: instant transactions and private transactions. The good thing about the cryptocurrency dash is that it is a digital currency. That lives volatile moments and can be purchased at a great price.
8 # IOTA / MIOTA
IOTA rose a lot after the announcement of its partnership with Microsoft and even prompted it to become one of the most valuable cryptocurrencies. Its big difference from the others is that it has no commercial fees, no miners, or blocks. So the so-called miners are no longer needed. Where a large amount of computing power and a large number of coins are required. Here in each transaction power is given to validate two other transactions, making the owners of the IOTA the miners of the chain.
9 # NEM
The NEM, created in 2015 as many cryptocurrencies use Blockchain technology for its management. Its most innovative element is that it allows you to send messages, register names, or create accounts with several holders.
When it comes to investing, it is considered a “low cost” cryptocurrency for the low price with which it has closed the last year. But still, experts predict that 2020 can be a great year for the NEM, we will be expectant.
10 # Cardano
The Cardano block system is relatively young hence its popular ignorance but promises certainly promises. The project was born in 2015 by leading academics and engineers and has not been a reality until the end of 2017. Its currency, Ada, already has almost 26 million up to 45,000 that it can hold.
What draws attention to this currency is its division into two layers. One the payment layer where transactions are executed and another where applications and contracts are carried out, called the computer layer.
Featured news about cryptocurrencies
Last year we talked about developments in cryptocurrencies that have not yet taken off yet, but which are worth taking into account:
Not long ago, a report came out that commented on the possibility that the European Central Bank could issue cryptocurrencies at some point. A report that named the advantages of creating this cryptocurrency. Given that currently most of the money used in Europe is digitized in the form of a credit card, and with a society accustomed to the use of digital money. The emergence of this cryptocurrency by the European Central Bank could reduce the risks of insolvency in the entities and lower the costs of use for consumers.
This cryptocurrency created in the United States claims to be the substitute for the dollar. According to its creators, the Fedcoin is the softener of all bankers because it would be a 100% international and digital currency. In addition, the biggest risks to the economy that are bank runs and hyperinflation could be eliminated at once.
In early 2018 it was rumored that Facebook would market its own cryptocurrency for payments within the social network. Today it is known that the project is moving forward and that the platform would also like to add WhatsApp.
This digital currency would be backed with dollars from a US fund. In addition, it would initially be launched with a clear objective: to send money to family members by workers outside their country.
What do you think of these news? We believe that they will not be the only ones that will arrive this year, and we have to be aware of whether they really consolidate.
Tell us, what do you think of the Cryptocurrencies? Do you think it is other cryptocurrencies that will sweep the market this year? Tell us we want to know your opinion.