Cryptocurrency is a non-physical medium of exchange created through complex mathematical calculations using cryptographic algorithms and high-tech computing equipment. The first and most popular cryptocurrency globally is Bitcoin, dubbed “digital gold”. BTC is the world-leading crypto based on market capitalization.
Digital assets are divided into:
- Altcoins (stablecoins also belong here)
Altcoins (alternative coins) are the assets issued after Bitcoin. They share characteristics with BTC but are also different in other ways. Altcoins present themselves as modified or improved versions of the first cryptocurrency, developed using algorithms that Bitcoin lacks. Examples of alternative coins include Litecoin, XRP, Dogecoin, and Ripple.
Stablecoins are cryptocurrencies backed by either fiat currencies (like USD) or precious metals (like gold). A stable rate makes such assets way less volatile compared to other cryptocurrencies. Stablecoins are used to preserve funds as well as to hedge risks. Popular stablecoins include Tether, USD Coin, Paxos, and so on.
Tokens are virtual assets that do not have their own blockchains. They can be used for payments; however, their primary use-cases depend on the project’s specificity. In other words, besides value, tokens provide you with access to the platform’s unique services.
Major cryptocurrency exchange platforms allow you to buy, exchange, and sell hundreds of cryptos. It is believed that the larger the platform is, the more cryptocurrencies are listed on it. The most popular cryptocurrencies are offered by almost any exchange. Before you start using an exchange, you should carefully study its conditions, namely:
- support of fiat currencies;
- terms of deposits and withdrawals;
- level of reliability;
- AML and KYC compliance, and so on.
Popular cryptos in 2022 are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- BNB (BNB)
- U.S. Dollar Coin (USDC)
- Cardano (ADA)
- Solana (SOL)
- XRP (XRP)
- Terra (LUNA)
- Polkadot (DOT)
All these crypto assets, as well as many others, are available on the WhiteBIT cryptocurrency exchange.