How Do Cryptocurrencies       Work? 

A cryptocurrency is a digital asset that may be traded freely, independent of a bank or centralized authority. There are currently more over 20,000 cryptocurrency projects active, which together make up the $1.07 trillion global cryptocurrency market.

  1: Bitcoin  (BTC) 

Capitalization: $441 billion 

The initial cryptocurrency is Bitcoin (BTC), which Satoshi Nakamoto created in 2009. BTC operates on a blockchain, which is a ledger that records transactions and is shared across a network of thousands of computers, like the majority other cryptocurrencies. Bitcoin is maintained secure and protected from fraudsters because updates to the distributed ledgers have to be validated by cracking a cryptographic puzzle, a procedure known as proof of work. 

As Bitcoin has gained popularity, its price has risen. The price of a single Bitcoin in May 2016 was roughly $500. On August 1, 2022, the cost of one Bitcoin was around $23,046. Over 4,500% growth is represented by that.

  2: Ethereum  (ETH) 

Capitalization: $201 billion 

Because of its potential applications, including so-called "smart contracts" that automatically execute when certain conditions are met and non-fungible tokens, Ethereum—which is both a cryptocurrency and a blockchain platform—is a darling among programmers (NFTs). 

Ethereum has also grown incredibly fast. Its price increased by around 14,800% from about $11 to about $1,640 between April 2016 and the start of August 2022.

  3: Tether (USDT) 

Market cap: $66 billion 

Tether (USDT), in contrast to certain other types of cryptocurrency, is a stablecoin, which means it is backed by fiat currencies like U.S. dollars and euros and essentially maintains a value equal to one of those denominations. Tether is appreciated by investors who are cautious of the severe volatility of other cryptocurrencies since, in theory, its value is intended to be more stable than that of other cryptocurrencies. 

4: A US dollar coin (USDC) 

$54 billion in market value 

USD Coin (USDC), a stablecoin like Tether, aiming for a 1 USD to 1 USDC ratio and is backed by U.S. dollars. You may use USD Coin to perform international transactions because it is powered by Ethereum.

  5: Binance Coin  (BNB) 

Capitalization: $45 billion 

One of the biggest cryptocurrency exchanges in the world, Binance, accepts payments in the form of Binance Coin (BNB), a type of cryptocurrency. Binance Coin has grown since it was introduced in 2017, and it now does more than just enable transactions on Binance's exchange platform. Now, it can be utilized for trading, processing payments, or even making trip plans. Additionally, it can be traded or converted into other cryptocurrencies like Ethereum or Bitcoin. 

In 2017, BNB cost only $0.10. Early in August 2022, it had increased to about $284, a gain of about 283,900%.

   6. XRP (XRP) 

Capitalization: $18 billion 

XRP is a cryptocurrency that can be used on that network to facilitate exchanges of various currency types, including fiat currencies and other significant cryptocurrencies. It was developed by some of the same founders as Ripple, a digital technology and payment processing company. 

XRP was worth $0.006 at the start of the year 2017. Its price increased by 6,066% to $0.37 as of August 1, 2022. 

   7: Binance USD  (BUSD) 

Capitalization: $17 billion 

In order to develop a cryptocurrency backed by the dollar, Paxos and Binance founded the stablecoin known as Binance USD (BUSD). Paxos retains an amount of US dollars equivalent to the entire supply of BUSD in order to preserve this value.

   8: Cardano (ADA) 

Capitalization: $17 billion 

Cardano (ADA), which entered the crypto world a little later, is renowned for using proof-of-stake validation early on. By eliminating the competitive, problem-solving element of transaction verification in systems like Bitcoin, this technique reduces energy consumption, speeds up transaction times, and has a smaller negative impact on the environment. Cardano functions similarly to Ethereum in enabling smart contracts and decentralized applications that are powered by ADA, the native token of the platform. 

 In comparison to other significant crypto coins, the growth of the Cardano ADA token has been somewhat muted. The cost of ADA was $0.02 in 2017. On August 1st, 2022, it cost $0.50. This is a 2,400% increase. 

     9: Solana  (SOL) 

Capitalization: $14 billion 

Solana was created to support the use of decentralized financing (DeFi), decentralized apps (DApps), and smart contracts.

    10:  Dogecoin  (DOGE) 

Capitalization: $9 billion 

Famously created in 2013 as a joke, Dogecoin quickly gained popularity as a cryptocurrency thanks to a passionate community and clever memes. Dogecoins can be manufactured in an unlimited amount, unlike many other cryptocurrencies, making the currency vulnerable to devaluation as supply rises. 

In 2017, Dogecoin cost $0.0002. On August 1, 2022, it was worth $0.067, an increase of 33,400%. 

Market capitalizations and pricing were obtained from coinmarketcap.com as of August 1, 2022.

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