Who Dominates The Crypto Marketplace?
For more than a decade, cryptocurrency has been slowly, consistently building in popularity as an investment category for enthusiastic speculators, hedge funds, institutions, and individuals.
Perhaps the unique factor about this new form of currency is that it has completely changed the way investors and speculators view money. And even though much has changed since the debut of Bitcoin in 2009, the coin still dominates the market. However, imitators and worthy rivals have been rising up and taking their own place in the scheme of global trading.
If you are starting learning to trade Bitcoin or any of the other top cryptos, it’s a good idea to regularly check-in on what’s trending in this exciting, volatile market. Here is a brief summary of the top five players in this highly competitive sector.
It was the first entrant into this new segment of the trading world, but BTC does have some problems. Even with a market capitalization well in excess of the other top five coins combined, this original cryptocurrency can take time for transaction settlements, but several organizations are currently working on ways to make it scalable and lower the transaction fees. For beginners, this major participant among all blockchain monies is the best place to begin.
Designed more for financial entities than individuals, Ethereum has some major clients on its list, all of whom are attracted by the coin’s ability to verify and track negotiations for contract creation and fulfillment. Advantages include transaction speed and the elimination, via smart contracts, of the need for third parties. And during the negotiation phase, ETH allows for multiple people to verify a given contract. Banks like the speed of the coin and the fact that all transactions are transparent and securely stored.
Like at least a few of its competitors in this financial niche, Ripple has opted to focus on large financial clients like banks and brokerage houses. XRP’s two main selling points are its lightning-fast transaction speeds of just a few seconds and its very low fees. For financial organizations that make thousands of deals per day, low fees can mean the difference between profit and loss.
Bitcoin Cash (BCH)
BCH is meant to be a more user-friendly form of spendable money than Bitcoin, from whom it spun off just a few years ago. While Bitcoin acts more as a store of real value, its cash offshoot intends to offer lower fees and much quicker verification. Already, it has become a practical form of currency and eliminated some of the sluggishness of its parent coin. Market capitalization is about one-tenth of its originator, but popularity of BCH is growing fast. It made its way into the top five cryptos just a year after its 2017 launch.
Boasting a fast processing time and very low fees, LTC is another spinoff of Bitcoin but has been around for nearly a decade. Like its predecessor, it uses blockchain technology and an open ledger but has a market capitalization of just $8 billion.