To enhance your knowledge on trading cryptocurrencies, let us take a closer look at what a cryptocurrency is. From the word’s origin, “crypto” comes from how they are cryptographically recorded, and “currency” is because it can be used as a medium of exchange. There are currently a lot of cryptocurrencies in the world, with Bitcoin being the largest one, followed by Ethereum.
Now that we know what cryptocurrencies are and how they work, take a look at the different cryptocurrencies you can trade at PDAX to kickstart your cryptocurrency journey.
- Created in 2009, BTC is currently the world’s largest cryptocurrency in terms of market capitalization.
- Regarded as the 21st century digital gold given its finite supply of 21 million Bitcoins.
- Ethereum is second to Bitcoin when it comes to market capitalization.
- It is a type of blockchain designed to operate “smart contracts”. Smart contracts can be used to ensure the completion of an agreement between two parties.
- Tether (USDT) is one of many available stablecoins, and is widely used across many cryptocurrency exchanges.
- Its value is pegged to the value of 1 US Dollar, hence its name ”USD Tether”.
- It is widely used for remittances and fund transfers as it utilizes the benefits of a cryptocurrency while bypassing the volatile issue.
- Ripple refers to the company that created the Ripple Consensus Ledger, and XRP is the digital asset that is traded
- Ripple refers to a company that created the Ripple Consensus Ledger.
- XRP is a technology that is known for its digital payment network. Aside from the cryptocurrency XRP, Ripple is the company behind it and is known as a payment settlement, asset exchange, and remittance system.
Bitcoin Cash (BCH)
- Bitcoin Cash is a hard fork of Bitcoin. In 2017, some miners and developers in the Bitcoin community disagreed on a number of fundamental beliefs that concerned the future of Bitcoin and its scalability.
- Bitcoin Cash’s blocks have an increased block size compared to Bitcoin’s, in order to accelerate the verification speed, ensure the chain’s effectiveness.
- Litecoin altered the code of Bitcoin to create a significantly quicker and cheaper cryptocurrency.
- The creation and transfer of litecoins are based on an open cryptographic protocol and is not managed by any central authority—like many other cryptocurrencies.