There are thousands of different cryptocurrencies that you can actively trade at all times throughout the day. It’s great having so many options to choose from, but this can make it quite difficult to decide which cryptocurrency you should consider trading. Some people like to trade more than one coin, whereas others like to stick to a cryptocurrency they know well; for example, they might only buy litecoin, while others may prefer Etherium. If you aren’t sure which cryptocurrency you want to trade, then take a look below at some of the most popular cryptocurrencies that are used for trading.
The first cryptocurrency on this list is probably the one that almost everyone has heard of, Bitcoin. Bitcoin was created all the way back in 2009 by Satoshi Nakamoto. Back then, the currency was worth virtually nothing, but nowadays, a single bitcoin will cost almost $20,000. It is clear there is a lot of interest in this cryptocurrency, and it is easily the most well-known and popular coin out there.
Because of Bitcoin’s reputation, you can trust that your investment in the cryptocurrency will be secure and protected against fraud. Bitcoin uses the same blockchain software that encrypts every transaction and makes it impossible for someone to steal your money. Another benefit of trading Bitcoin is the fact that it is extremely popular, there is a lot of activity going on, which increases the volatility of the price, making it somewhat easier to make potential gains on trades. Due to the price constantly moving up and down, recognizing trading patterns and trends can be done more accurately than with some of the lesser-known cryptocurrencies.
Another popular cryptocurrency that people love to trade is Ethereum. It is a slightly newer cryptocurrency than Bitcoin, created back in 2013 by Vitalik Buterin. During the first significant growth of cryptocurrencies, Ethereum exploded in popularity. With the increased interest in the coin, the price also went up dramatically. In 2016 a single Ethereum coin cost around $10; nowadays, the same coin will cost nearly $1300. The hype of Ethereum never really died out since this explosion in price and is still actively traded significantly every day.
Some of the reasons why Ethereum is highly sought after is due to its applicability for things like executing contracts automatically once conditions are met as well as the recent creation of non-fungible tokens. NFTs are crypto graphics that hold value. These NFTs are usually traded using cryptocurrencies, and Ethereum is one of the most popular coins used for this purpose.
Up next on the list of popular cryptocurrencies for trading is Tether. Tether is an interesting cryptocurrency as it is known as a stablecoin. This essentially means that it is supported by currencies such as the US Dollar, the UK pound, and the Euro. This makes it a more consistent cryptocurrency compared to some of the others. Many investors regard Tether as the safe option for those attracted by the cryptocurrency market but are scared of the high volatility.
Nevertheless, with a market cap of over $67 billion, Tether is a popular cryptocurrency for trading, with plenty of active traders that you can decide to join to make some potential gains from this safer coin.
XRP has a market cap of over $44 billion and has shown some impressive growth since its creation. At the start of 2017, XRP was sitting at $0.0045. In October 2022, the price hit $0.44, which is a significant increase in a relatively short period of time. Many people have seen this as a good sign for the future of this cryptocurrency which has led to a lot of interest and volatility in the coin. This makes XRP a great option for those looking to trade a cryptocurrency that has shown a lot of potential with the hopes of it following the footsteps of cryptocurrency giants such as Bitcoin and Ethereum.
Cardano is a cryptocurrency that is somewhat new to the crypto market. Similar to Ethereum, Cardano is being used for speeding up transactions whilst keeping them safe and secure. Although this crypto hasn’t seen extreme increases in prices like some of the other coins on this list, its price has still risen significantly since 2017, going from around $0.02 to $0.42 as of October 2022. You wouldn’t be complaining if you had invested back then. There is still a lot of interest in this cryptocurrency which makes it another great option for those looking for a trustworthy coin to trade.