In September 2021, the world’s four most popular cryptocurrencies based on volume traded were Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). There are also other widely used cryptocurrencies such as USD Coin (USDC), and Stellar (XLM). Let us understand the difference between all of them.
Bitcoin is the first cryptocurrency, as well as the first application of blockchain technology. Bitcoin’s objective is to replace traditional banking by eliminating intermediaries and the trust placed on centralized financial institutions.
Tether is currently the world’s most traded cryptocurrency. It is a stable coin issued by Tether Limited, which is always worth $1.00. It helps holders convert cash into stable digital currency.
Ethereum offers programmable contracts that are executed when a transaction is sent to it. It replaces the intermediaries with coded contracts (aka “smart contracts”). Ethereum is also an open source blockchain and is the second largest cryptocurrency after Bitcoin.
TLitecoin is a Bitcoin spinoff initiated in 2011, which is considered to be identical to Bitcoin. It is a peer-to-peer open source cryptocurrency issued under an MIT/X11 license.
USD Coin is a stablecoin whose aim is to maintain a value of $1.00 and to build a bridge between fiat currencies and cryptocurrencies. USD Coin seeks to offer minimal transaction costs, stability, and transparency for its users.
Stellar is an open-source network for currencies and payments that seeks to enable the trading of any kind of money in a transparent and efficient way.
While Bitcoin remains the most important cryptocurrency in the world today, there are at least 6,500 others. Yet, in this highly competitive marketplace, these six cryptocurrencies have successfully managed to both gain and retain invertors’ interest. They remain among the most popular cryptocurrencies in the world today.
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