Methods of payment, that hosting providers used, are gradually changing in a positive direction of cryptocurrency usage. More and more web hosting providers prioritize this type of virtual payment, due to variability of factors such as anonymity, extremely low fees, lack of regulations, and so on.
The crypto is a huge market. So what coins really dominate in the field of web hosting right now? Here in the article, we will talk about the most used cryptocurrencies and generally why there is such a huge demand for these virtual funds.
What is a cryptocurrency?
Prior to discussing the most used types of cryptocurrencies and what are some variabilities between them. Let’s first start from the base and determine what is the major difference between 2 terms “altcoin” and “cryptocurrency”.
If talking really vaguely, then crypto is a virtual type of money that you can usually apply in the form of a coin or a token. As for the term “altcoin”, it is kind of a collective name for all the cryptocurrencies that were presented after Bitcoin. They are generally considered improved or slightly changed variants of Bitcoin.
The thing why cryptocurrency is always such a hard topic to discuss is because it is free from governmental control and any sort of possible management. That’s why there are always lots of arguments and discussions regarding this specific topic.
How does this currency function?
For the full security of cryptocurrency, the procedure of cryptography is applied. This kind of currency relies on ledge technology which is called blockchain. This tech functions by securing the network and recording transactions. If simply, blockchain is like a storage that collects info about all the financial operations.
The security of this method is guaranteed by each block in the chain. So, each block includes a couple of operations and once it is in the chain, it cannot be deleted or changed in any way. Because of this cryptocurrency is considered to be the most secure method of online payment.
For the full security and decentralization of the process, mining is used. This is a kind of process during which miners try to solve really challenging math algorithms. Once this user solves the complex block, then he/she receives a reward in the form of cryptocurrency. The process of the new coins’ creation is fully controlled and secure.
Besides mining, you can also purchase this online currency. There are lots of variants to do that, starting from usual currency exchanges and ending with individual/directed purchases. A couple of popular platforms for exchange are Kraken, Binance, and KuCoin.
Now you have some basic understanding of coins, blockchain, and altcoins, so let’s actually discuss the existing cryptocurrencies and their peculiarities.
Tether is considered to be a stablecoin alternative. This currency was created to lessen the risks of volatility. It works by pegging to the currency value or any other external points. Due to this fact, lots of clients prefer the stability of the currency and smooth pricing range, which is totally another approach if comparing with a Bitcoin. Non-stablecoins have a huge volatility rate and price drops and rises may occur really regularly. So, Tether wins in this battle for stability.
The developers of this currency connect its cost to the US dollar. By using this method of online payment, the transfers are made easily from other currencies and that is due to the tied to the dollar. Moreover, lots of hosting providers choose it as a safe method of payment for the same reason.
This currency allows to convert into traditional money with the most minimal complexity and volatility. Usually, other digital currencies are accepted as those with high fees, and generally, the process may be longer.
As of the recent statistics, Tether is in the list of the top 3 largest cryptos, and its token value is now calculated as $1.00.
Ethereum is usually accepted as an alternative to Bitcoin, so let’s find out why. To begin with, this currency was created as a decentralized product that any user around the globe can easily access without any restrictions and regulations relating to nationality, country, or ethnicity. And the creators have reached this goal. Now, ETH offers access to a secure financial service with no identification of your country or actual location.
A year ago, this currency completed its transit to PoS variant of validation. This means it deletes incentivized mining so that blockchain becomes more efficient.
Also, this cryptocurrency is 2nd the largest after Bitcoin and it is extremely popular in web hosting as a method of fully anonymous payment.
Ripple currency is so popular due to international money transfers and its easiness and affordability. The token of this virtual money is named XRP. Name Ripple stands for the financial network and company that produced XRP.
The currency uses an algorithm that is called RPCA, it helps to validate online transactions in a couple of seconds. This virtual money is more used because of its stability. Also, it utilizes less energy so it costs comparatively less and transactions are quicker.
USD Coin (USDC)
This is one more stablecoin that connects its price to the US dollar. This cryptocurrency has been available for 5 years already and there are regular debates on the topic – whether to make it a regulated coin.
As of the recent information, the price for one coin is on average – $0.9999.
Financial transactions with USDC have reached another level of simplicity so now anyone from any country can easily use this crypto for any purpose including lending, trading, fundraising, borrowing, or just paying to your host provider in a matter of seconds.
Binance Coin (BNB)
This is a utility currency that is mainly applied as a method of payment that is connected with Exchange trading.
Users of this coin get significant discounts when talking about fees on the Binance Exchange. Moreover, this virtual money as any other can be easily traded or changed on other available options such as Litecoin, Bitcoin, or Ethereum.
As for its history, it was created 6 years ago and it was working on Ethereum blockchain. However, rather quickly it became the native currency of Binance.
The history of creating this currency is rather interesting. This research project was co-founded by Charles Hoskinson. He was one of the people who founded Ethereum and then switched to the creation of this cryptocurrency.
Cardano’s peculiarities are mainly connected with the process of its creation when lots of scientific reviewing and experimentations were conducted. The researchers who were connected with the process did an average of 100 papers about blockchain. That already sounds awesome.
This cryptocurrency is the main competitor of Ethereum and it’s so rapidly developing and planning to become the best financial operation system.
TRX was launched in 2017 as a really ambitious project and since then its popularity has gained huge numbers in the market of cryptocurrency. So how does everything function with this specific crypto?
To start from, this is a decentralized currency. That means all the info on the blockchain is free and no one can make any restrictions regarding the process. The creators can win tokens by sharing the content.
Also, you can create tokens that can be used in dApps only. This created token is underpinned by the main one.
Pros of Crypto usage for web hosting
For anyone who has never even considered the usage of cryptocurrency, let’s discuss some of the major bonuses that you are getting except for anonymity.
The first one to mention is decentralization. It is considered to be the fundamental thing for any cryptocurrency. This means that a transaction functions only with the help of users’ networks around the globe. Each of these users within the transaction has a copy of the message and this part can be verified individually. That guarantees security, and privacy more than anything else.
The next point is accessibility. This means you as a user have no restrictions or local regulations that will control or manage something. Once you have an internet connection and any gadget you can create a wallet and purchase or sell any kind of digital money. You can participate in the crypto transaction and your real geography doesn’t matter.
The lowest fees for international transactions. If speaking about usual bank methods, then you will be charged an initial fee and then international fees for any online transaction. With cryptocurrency, it doesn’t work the same way, you are just paying the smallest fee and no additional payment for this and that.
Safety on the internet is crucial nowadays, especially if talking about money transactions online. The number of cybercrimes is increasing rapidly, and no one knows who will be the next victim. With cryptocurrency and their methods of encryption data, it is almost impossible to make any manipulations.
To conclude, there are lots of cryptocurrencies to choose from, but Bitcoin still remains at the top of the chart. If personally you want to try a new alternative then you can try Tron, Ethereum, Cardano, USD Coin, or any other currency.