Cryptocurrencies: Get to Know How Popular Virtual Currencies Work

When you hear the term “cryptocurrency”, what are you thinking about? Most people will tell something about Bitcoin, some will remember Ethereum, and those who are more interested will, maybe tell something about Ripple or even some more coins.

However, there are many amazing crypto-projects that are gaining popularity and have perspectives to be applied massively in the real world. The latter is the main value of any coin or project. So, let us have a look at those cryptocurrencies and check which one might be growing in price and be profitable whenever you want to convert them on a cryptocurrency exchange online. 

Bitcoin

Bitcoin is frequently referred to as the “father” of cryptocurrency. It runs on a blockchain and is used as money. So, its main functions are those that are typical to money. 

It doesn`t provide any additional functionality such as Smart contracts or whatever. 

Ethereum

Ethereum is something different than the above-mentioned Bitcoin. It runs on its own blockchain and offers companies and developers a lot of options. Among the most popular ones are the VM of Ethereum, the support of smart contracts, DeFi, Dapps. Ethereum was the first project to launch non-fungible crypto-tokens.

Needless to mention that many other crypto-project run on the Ethereum blockchain or offer scaling solutions for the Ethereum blockchain.

Now, the network is moving to the proof-of-stake consensus, and when the process is over, the Ethereum price is expected to boost.

Cardano

While Ethereum is just moving to proof-of-stake, Cardano runs on it. Cardano is a network powered by ADA, its native token. The aim of the project is to provide financial institutions with an environment that allows quick, safe, and cheap transfers of significant sums of money. It also supports interchain operability, smart contracts, and is going to implement many more useful functions. 

The owners of the project have taken a pretty unusual approach to the project development. Every new feature or function is researched properly and then is developed and implemented together with specialists in the selected field. Say, if new financial functionality is needed, it is created in collaboration with a specialist in finance. So, all the options that Cardano offers are researched and created very properly. 

Polkadot

Polkadot is one more project, a network, an infrastructure powered by its own coin. We don`t say that Polkadot runs on a blockchain. It runs rather on a so-called relay chain. This relay chain can connect different types of blockchains and enable information exchange between them. This is the main value of the Polkadot project. 

Bottom Line

Now, you understand that Doge to Safemoon exchange is not the only option that exists in the cryptocurrency world. While these coins pose an interesting opportunity for day trading, they might be not the most reliable coins to invest in. For long-term investment, choose those coins that have some value for the real world.