Since its inception in 2009, Bitcoin has revolutionised how the world of digital currencies is headed. According to a study conducted in 2021 by a reputed institution, nearly 28.8% of all the participants in the survey pool reported owning some cryptocurrency. Interestingly, this figure stood at 16.8% in 2019 and 18.4% in 2020. In this way, the study reflects how rapidly the number of people looking to buy Bitcoin in Australia has been rising by the day.
With multiple new cryptocurrencies being developed almost every other day, investors need help to identify good and perhaps even the best cryptocurrencies. While there is no such thing as a ‘best’ cryptocurrency, a few have gained the interest and trust of many experienced investors. They have become extremely popular in the crypto world, with millions or billions of tokens being transacted daily.
Here is a list of five cryptocurrencies that every beginner must know and keep an eye on.
Regarded as the first cryptocurrency, Bitcoin is decentralised and incorporates blockchain technology to facilitate transactions. Rather than using third-party entities like banks and financial institutions to conduct the payments, the Bitcoin blockchain serves as a public ledger and conducts all the transactions that occur when trading Bitcoin. Thanks to these factors and many more, most investors look to buy Bitcoin in Australia thanks to its practicality and reliability.
Ethereum uses blockchain technology to facilitate transactions on its blockchain and allows the users to come up with smart contracts that enable the creation of various decentralised platforms like decentralised finance (Defi) or decentralised applications (dApp) on the Ethereum Network. In a decentralised application, the application wouldn’t have to be distributed on an app exchange like Apple’s App Store or Alphabet’s Play Store and can save a lot of revenue. Ethereum serves as a sandbox that allows the creation of other platforms and as a cryptocurrency that can be traded and transacted with whose token name is Ether or ETH.
Tether or USDT is a stablecoin. A stablecoin is one whose price doesn’t fluctuate much and has its value pegged to a fiat currency to maintain its stability. Tether is pegged to the U.S. Dollar and combines the benefits of a cryptocurrency and a sovereign government fiat coin, enabling safer and smoother transactions between two end users.
The Binance Coin is a cryptocurrency issue of Binance. While this coin can be used for transactions and paying fees on its exchange, it also enables users to create decentralised apps using the Binance Network and its decentralised exchange (DEX).
Like Tether, USD Coin is another stable coin with a value pegged to the U.S. dollar. The USD Coin or USDC is hosted on the Ethereum Network and envisions a thought to set up an entirely digital dollar that is as stable as a dollar and wouldn’t require the banks to act in any way to conduct the transactions and can be used to make payments from one country to another.
The information relayed through this article is only the tip of the iceberg regarding understanding the world of cryptocurrencies. Various other cryptocurrencies are just as incredible as the ones listed in this article, whose applications have convenient use cases worldwide. Nevertheless, one that stands out from the beginning is Bitcoin, which has occupied the top spot of market capitalisation among all other cryptocurrencies and has had many investors buying Bitcoin in Australia.