10 Popular Cryptocurrencies for Web Hosting: Exploring Common Coins

Understanding Cryptocurrencies

Cryptocurrency comes in many shapes and forms. You might’ve heard of popular crypto coins like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and many others.

All variations of cryptocurrency use encryption technologies that allow to make a secure transaction to digital money. As well as all of them have a core function, which is to work as currency in a peer-to-peer electronic cash system.

There are actually a multitude of cryptocurrencies out there, most of which resemble the functional principles of Bitcoin.

Here’s what various types of virtual cash have in common:

• Cryptocurrency is independent of any bank, which makes them decentralized.
• Bitcoin and other currencies utilize distributed ledger technology (DLT) – blockchain.
• All types of e-cash are secured using cryptography.
• To manage cryptocurrency, you need a digital wallet (usually a blockchain wallet).

But is all cryptocurrency the same? It’s not.

Different types of coins and tokens have other purposes. Bitcoin, for example, was created with the deliberate intention of value exchange. But many kinds of crypto aren’t used for financial exchange.

The purpose of blockchain technology alone surpasses the “backbone” function of blockchain for crypto, even though it was popularized through cryptocurrency. In contrast with the conventional financial management system, which poses as a centralized entity, blockchain exists within multiple computers that form a network, making many types of crypto follow a decentralized approach. This aspect allows the implementation of blockchain technology in numerous ways, for instance, securing healthcare records.

Read also: Cryptocurrencies That Dominate the Field of Web Hosting

Distinguishing Altcoins from Cryptocurrencies

Let’s start with the basics.

So, what is altcoin?

The term “altcoin” basically refers to cryptocurrency alternatives to Bitcoin. Since Bitcoin was the first cryptocurrency ever created, all further ones can fit into the definition of altcoins. The first ones appeared in 2011 and have grown significantly in their variety. Altcoins were made to better the aspects of Bitcoin that needed improvement, in the opinion of their developers.

One of the purposes of creating altcoins was to increase the payment speed. With Bitcoin, financial transactions can take up to a couple of hours.

As with most crypto, altcoins can be used for payment. However, some altcoins have “niche” parameters related to distribution or mining technologies. For example, starting from developing blockchain-based cloud storage to substituting likes on social media.

There are many other altcoins, such as stablecoins, mining and staking-based coins, various kinds of tokens, etc.

Coins Mined through Mining

Let’s figure out what mining technology is all about.

Mining implies the procedure of verifying and approving payments processed through the blockchain network. Crypto mining involves “adding blocks” to the existing ones. The end result of mining is receiving cryptocurrency.

Mining was the primary method of making crypto decentralized.

There are different ways to mine cryptocurrency, including cloud mining (renting the mining machine), CPU and GPU mining, ASIC mining, etc.

Different cryptocurrencies are mined through different methods. Thus,

• Bitcoin is mined through ASIC mining.
• Litecoin is mined through the Srypt algorithm.
• Ethereum is mined through CPU\GPU, and ASIC mining.
• Ravencoin is mined through CPU\GPU.
• Monero is mined through the CPU.

Ultimately, cryptocurrency mining is about investment, and getting a return on it in the form of a passive income.

What are Stablecoins?

Stablecoins, as the name suggests, keep their value independent from different factors. There’s usually a source of stability like that. For example, fiat-backed stablecoins are traditionally tied to the US dollar.

Bitcoin and other cryptocurrencies provide the same decentralized financial independence and flexibility in issuing payments, but at the same time, they are also flexible in terms of value. The cost of different cryptocurrencies can fluctuate significantly, which makes it harder to rely on when it comes to making financial decisions.

It’d be easier to understand the nature of stablecoins through an example; for this purpose, let’s take one of the most popular stablecoins – Tether (USDT).

We’ve established that stablecoins are tied to a specific asset; in the case of USDT, it’s the US dollar with a 1:1 equivalent. However, Tether doesn’t rely on the US dollar; it also comes in variations like Tether Gold (tied to the price of gold), Tether Euro (linked to the euro), and so on.

Tether is famous for maintaining stable value and being one of the safest solutions in the crypto industry for keeping assets in crypto. Tether (USDT) is often used for issuing transactions by blockchain developers.

Read more: Crypto Tokens vs. Coins: Understanding the Fundamental Difference

What are Security Tokens?

Security tokens are digital analogs of ownership certificates that give owners the right to cash out their investment interests (shares, dividends, etc.). These rights are recorded in a smart contract, and the tokens are traded on exchanges.

The turnover of security tokens occurs under the legal regulations of financial regulators in various countries.

Unlike utility tokens, security tokens are tied to actual papers, i.e., they are considered a financial investment, and the companies issuing them are subjects to additional regulatory requirements.

One of the main advantages of security tokens over traditional financial contracts is the lack of need for intermediaries like banks and other organizations.

Applications of Cryptocurrencies

Currently, cryptocurrencies offer a variety of applications in different areas of life, such as:

• Financial transactions like investments, trading, loans secured by crypto, etc.
• Bypassing government restrictions, including storing and transferring money without risks of account blocking.
• Personal payments like purchase of goods and services, donations, salaries, payments abroad, etc.
• Managing smart contracts secured by cryptocurrency.
• Secure storage of money, considering that crypto wallets cannot be ceased by a third party or blocked.

Digital money can gradually become a valuable tool for the financial side of life. Cryptocurrency is not to be feared; it is to be explored.

Exploring the Regulatory Landscape of Cryptocurrencies

Because many types of crypto are decentralized or independent of any authority, you might have an idea that digital money is not recognized on a legal level.

This is not entirely true.

Regulations for cryptocurrency exist on many levels, from legally respecting blockchain users to full-blown cryptocurrency bans in some countries.

However, the regulatory landscape is ever-evolving. The popularity of cryptocurrency forces governments all over the globe to come up with specific policies when it comes to crypto use.

For instance, countries like Canada or the UK regulate the agencies that provide crypto operating services; both countries also tax decentralized and non-decentralized cryptocurrencies. Switzerland has provided tokenization for rights and other official documents.

When it comes to the US, cryptocurrency transactions are legal and are governed by the BSA. Cryptocurrency service providers must keep needed records, submit reports, and follow a specific program.

10 Promising Cryptocurrencies to Monitor in 2023

Without unnecessary pre-word, here are 10 promising cryptocurrencies worth looking into in 2023 listed by the performance criteria, prospect for long-term investment, and innovation.

1. Bitcoin BSC – Recently launched an affordable and environmentally conscious version of Bitcoin.
2. Ethereum – The most stable cryptocurrency for smart contracts.
3. WMS (Wall Street Memes) – A new crypto project that raised more than $20 million on a presale.
4. yPredict (YPRED) – A prediction model for passive income that raised more than $3 million.
5. Lauchedpad XYZ – A new crypto platform featuring NFTs that raised $1.5 million since its release in April 2023.
6. Chimpzee (CHIMPZ) – A new eco-friendly cryptocurrency aimed to protect wildlife that raised $1.3 million.
7. Sonik Coin – A new Ethereum-based meme token that raised $1.25 million.
8. Scorpion Casino – An online gambling platform that raised almost $1 million.
9. Solana – A spedier Ethereum alternative.
10. BTC20 – A new Ethereum-based token for just $1.

Monitoring the performance of these coins on the market will help you determine whether they are worth investing your resources in.

Frequently Asked Questions

Distinguishing Between Cryptocurrencies and Altcoins

Plain and simple: altcoins are every crypto besides Bitcoin.

What altcoins and Bitcoin have in common:

• Both can be used for P2P trading.
• Mostly volatile.
• Require a digital wallet to purchase.

Differences:

• Bitcoin is used as a store of value; altcoins may have different functions, characteristics, and purposes.
• Compared to Bitcoin, altcoins vary in their estimate, from a couple of cents to thousands of dollars.
• Bitcoins and altcoins have different mining strategies.

In comparison to Bitcoin, altcoins have a smaller market and, thus, are less widespread. Although some considered-to-be altcoins like Ethereum and Litecoin are quite popular.

Applications and Uses of Cryptocurrencies

Cryptocurrency can be used in many ways, among which most commonly applied are:

1. Purchase of goods and services. Many industries and businesses support cryptocurrency payment, from airlines to jewelry stores. You can easily go shopping and purchase with crypto physically or online.
2. Sending payments abroad. With crypto, there are no borders or restrictions. Send money wherever you want.
3. Tip creators or donate. Many tipping platforms have an extremely low transaction fee for crypto, and some organizations accept crypto donations. This comes in handy, especially if conventional payment methods are not regionally available.
4. Increase payment privacy. Cryptocurrency is well-known and celebrated for its processing anonymity. So, if secure pay is what you’re looking for, crypto is your go-to option.
5. Investing. Cryptocurrency is your investing alternative. If you’re new to investing in crypto, don’t worry; you can find plenty of free resources on the web.

Regulatory Aspects of Cryptocurrencies

Overall, the regulatory landscape of crypto is diverse and depends on the country’s policy towards cryptocurrency.

Contrasting Bitcoin and Ethereum

Here are the key differences between Bitcoin and Ethereum:

• Ethereum is considered to be an altcoin.
• Both are decentralized, but Bitcoin is a cryptocurrency, and Ethereum is a decentralized blockchain-based software.
• Bitcoin utilizes a technology based on stablecoins; Ethereum utilizes standards for token supply.
• Ethereum transactions are centered around applicable code; Bitcoin’s – around currency.
• Different speeds of adding new blocks; Ethereum is faster.

When it comes to the categorization of Ethereum, things get a bit tricky. Some consider it to be an altcoin, some – don’t. First of all, it’s namely the second most popular crypto after Bitcoin. Secondly, it’s quite similar to Bitcoin and has the most decentralized and biggest blockchain platforms, surpassing Bitcoin in this aspect. Thus, it can be considered a match to Bitcoin regarding particular features; still, opinions on whether Ethereum is an altcoin remain polarizing.

Exploring Stablecoins

Besides centralized stablecoins, there are algorithmic TerraUSD (UST), hybrid (Binance USD, Gemini Dollar), DAI, TUSD (TrueUSD), and many others.

The Role of Tether (USDT)

The Tether token was launched through the Bitcoin blockchain in 2014 and is traded under the symbol of “USDT.” At first, Tether was stored only through the Bitcoin base; now, USDT is based on the Ethereum blockchain. Tether is currently the third-largest cryptocurrency in the market.

Tether belongs to stablecoins tied to fiat currencies that stabilize the price range on the crypto market.

The primary feature of Tether is, of course, stability. This characteristic of USDT allows individuals to transfer their money into a stable asset in times of market uncertainty.

Unveiling Litecoin (LTC)

Litecoin (LTC) is an open-source cryptocurrency that operates through blockchain technology. LTC can also create tokens through mining.

Litecoin has proved itself in terms of security, as it has been around since 2011 and has functioned seamlessly since.

One of the many advantages of LTC is the transaction fee lower than Bitcoin’s.

An Insight into Bitcoin Cash (BCH)

Bitcoin Cash is intended to become an alternative to Bitcoin, as many believed there were things to improve.

Compared to Bitcoin, BCH allows adding bigger blocks, which, in turn, help to process more transactions.