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Dash Cryptocurrency: Everything A Beginner Needs To Know
CoinSutra » Dash » Dash Cryptocurrency: Everything A Beginner Needs To Know
FOMO – The fear of missing out…
Ever since the end of December 2020, when Bitcoin crossed the $1000 mark, cryptocurrency investment has gone crazy.
At the end of 2020, the cumulative cryptocurrency market stood at $17 billion. Now at the time of writing, it’s at a whopping $110 billion. This a tremendous growth of +500% in just six months.
Is it a bubble waiting to burst? Or is this “Internet of Money” thing real?
I believe it’s real.
Just like how the internet made content and information decentralized, the same is happening with money.
Bitcoin’s blockchain technology is making money decentralized.
However, as Bitcoin is just the first application of digital currency, it is obviously going to have some fundamental flaws.
One such flaw which Bitcoin doesn’t solve is that of private and anonymous transactions.
This drawback of Bitcoin has given birth to a new breed of cryptocurrencies called Anonymous Cryptocurrencies.
And Dash is one of the contenders in this new breed.
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Dash – Digital Cash is one of the most promising alternative coins to Bitcoin.
This article is your one-stop shop for all you need to know about Dash.
What is Dash?
Dash is unlike other cryptocurrency projects like Ethereum or Stratis which are more of a development platform.
Dash advocates itself as peer-to-peer decentralized electronic cash. It intends to be as liquid as real cash which we use in our respective countries like USD/GBP/EUR/INR or CNY.
Dash is built upon Bitcoin’s core code with the addition of new features (such as privacy and quick transactions).
Like BTC, Dash is open-source and has its own blockchain, wallet infrastructure, and community. But unlike BTC, its transaction fee is negligible.
Moreover, it looks like from the attitude of the development community that Dash will only remain as digital money for the internet, which is a good thing.
When And Why Was Dash Created?
Dash was created three years ago on 18 January 2020 by its developer Evan Duffield.
Dash was originally released as XCoin (XCO). In February 2020, the name was changed to “Darkcoin”. And on 25 March 2020, Darkcoin was rebranded as “Dash”.
Evan Duffield came across Bitcoin in 2020 and was impressed by its technology. But he soon realized that Bitcoin was not private and fast enough.
He had many ideas on how to make Bitcoin anonymous, but he knew that Bitcoin’s core developers wouldn’t allow him to do so, as the core’s code would need to be changed for this.
So to change this primary drawback of Bitcoin, Evan decided to use Bitcoin’s core code and build his own cryptocurrency- this is what we know of today as Dash.
Team Behind Dash
Dash Coin Supply
Dash is designed to have a total supply of 18 million coins.
At present, the circulating supply of Dash is 7.4 million, and it will reach 18 million in the year 2300 (when none of us will be alive).
Dash has a variable block reward which decreases at a 7.1 % rate each year. The average block mining time is 2.5 minutes on the Dash blockchain, which makes it four times faster than Bitcoin.
Dash Market Cap
At the point of writing this article, the total available circulating supply of Dash (DASH) is approximately 7.4 million, and the price of each unit of DASH is worth $204.
Hence, the market capitalization of Dash is $1.5 billion. As of June 2020, Dash is the seventh (6th) most valuable cryptocurrency by market capitalization.
How To Buy Dash?
Buy Dash from Changelly
One of the easiest ways to get ahold of your first Dash (DASH) is to get it exchanged from Changelly.
Changelly is an instant exchange where you can exchange various cryptocurrencies. Changelly currently supports 55 cryptocurrencies (including Dash).
You will require the following things:
- Your Dash address where you would like to receive your Dash.
- Some BTC/LTC or any other supported crypto to exchange for Dash.
Head toward CoinSutra’s Cryptocurrency Exchange – Changelly and follow the steps given in this guide.
Note: Though this guide shows you how to buy Ripple in exchange for BTC, the process is exactly the same for buying Dash.
Buy Dash from Exchanges
- Binance: Supported pairs are DASH/BTC, DASH/ETH
- Bittrex: Supported pairs are DASH/BTC, DASH/ETH
- Gate.io: Supported pairs are DASH/BTC, DASH/USDT
- Bitfinex: Supported pairs are DASH/BTC, DASH/USD
- KuCoin: Supported pairs are DASH/BTC, DASH/USDT, DASH/ETH
Now that you have bought Dash, let’s put those coins in a wallet.
Word of advice: Don’t store your coins on exchanges for a long time. A couple of days is fine, but in general, this is a very bad and risky practice.
Dash Mobile Wallets
Dash Desktop Wallets
Dash Core Win/Linux 32/64
Exodus Win 64 /Linux/Mac
Official Dash Core fully featured wallet and P2P Client, including InstantSend, PrivateSend, Governance, and Masternode management features
Exodus is the first desktop multi-asset wallet with Shapeshift built in.
Dash Hardware Wallets (Recommended)
Ledger Nano S
Dash Paper Wallet
You can also make a paper wallet. Paper wallets contain both the private key and as well as the public key of Dash. It is the cheapest form of cold storage. Refer to this guide on how to make a Dash paper wallet.
The Technology Of Dash
Dash has a few features that make it really unique:
- Private Send – Dash allows you to send your funds privately by mixing it in between several other transactions, thus making it hard to identify any specific transaction. It uses a coin mixing service based on CoinJoin. This is an optional privacy feature which the user may want to use. But there is a limited cap of 1000 Dash for which you can send using this feature.
- Instant Send – This service allows you to send your Dash transactions instantly (within 1.5 seconds). But Masternodes (see below) charges higher fees for processing such transactions. InstantSend also solves the double-spending problem. Note:InstantX was rebranded to InstantSend in 2020.
- Masternodes – Unlike Bitcoin, where each note is equal, Dash has special privilege nodes called Masternodes. Anyone can form Masternodes by holding 1000 Dash as collateral. These special nodes perform PrivateSend and InstantSend functions, and earn a 45% block reward.
Dash Cryptocurrency – Private, Secure, Fast
Excellent quote by #Dash Core Group CEO Ryan Taylor @RTaylor05 via @bloktcrypto. #Venezuela has over 1000+ @Dashpay merchants & a surge in new users escaping hyperinflation embracing #cryptocurrency as a solution free from state manipulation.
Source: https://t.co/rockHoGEtk pic.twitter.com/5Q2a6fzcOM
The Dash price in February 2020 was $ 0.02 and after that, it has grown at +10,00,000% rate. And since last December of 2020, it has increased more than +1500% from its per unit price of $11.
And in 2020 it skyrocketed to $1200 to $750 in a matter of few days which is a 60% increase.
Dash isn’t going anywhere soon. Though it has competitors, like Monero and PIVX, Dash is more flexible and ready to use, and it has a really solid infrastructure. All this sets Dash apart from the crowd and makes it a promising currency worthy of investment.
These resources will help you stay updated about Dash’s latest news:
In the coming future, the cryptocurrency environment is going to evolve, so stay tuned to CoinSutra and keep learning about the cryptocurrency revolution!
Let me know in the comments which cryptocurrency you want me to cover in my next articles.
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After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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What is Dash? A step-by-step guide
Dash has seen remarkable growth. Here’s how this altcoin works.
Last updated: 23 March 2020
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Dash has seen remarkable growth. Here’s how this altcoin works.
You’ve probably heard of bitcoin, the cryptocurrency that’s taken the world by storm. Ever since bitcoin passed the $1,000 price mark in January 2020 — a three-year high — general interest in cryptocurrency has skyrocketed.
One of the beneficiaries of that interest is Dash, a cryptocurrency that’s been around in some form since 2020. Worth around $10 at the beginning of 2020, it broke the $300 price mark in less than a year.
If you’re wondering what’s behind the incredible growth of this cryptocurrency and how it compares to bitcoin, you’ve come to the right place.
What’s in this guide?
What is Dash?
|Icon||Symbol||Initial release date||Algorithm type||Max. supply|
|DASH||18 January, 2020||X11||18 million DASH|
Like bitcoin, Dash is a cryptocurrency — or a digital currency exchanged through encrypted software. You might hear it described as an altcoin, which refers to any cryptocurrency other than bitcoin.
Dash first existed as Xcoin. It was relaunched as Darkcoin in January 2020. A year later in March 2020, developers rebranded Darkcoin as Dash — short for “digital cash.”
How to buy Dash
Ready to buy Dash tokens? Here’s how to get some of the cryptocurrency for yourself.
1. Get a cryptocurrency wallet.
A cryptocurrency wallet is where you’ll receive and store your Dash. You have several options for Dash wallets:
- Desktop. Dash offers an official desktop wallet that includes PrivateSend and InstantSend functionality. Dash developers also recommend Jaxx and Exodus.
- Mobile. You can also store Dash on your phone. Look for wallets like Jaxx (iOS and Android), Coinomi (Android) and Dash Core (iOS).
- Hardware. Store your Dash on specialized cryptocurrency wallets, such as KeepKey, Ledger Nano S and TREZOR.
- Paper. With a paper wallet, you simply write down your public and private keys — blocks of encryption that allow you to send and receive cryptocurrency.
2. Buy Dash.
You have two main ways to buy Dash: trade it with bitcoin or buy it directly with fiat currency.
What is fiat currency?
Fiat currency is government-issued money like dollars, euros and yen. It’s centralized because it’s printed by the government — as opposed to many digital currencies that are decentralized and distributed by no one.
It’s easiest to buy Dash if you already own bitcoin. Then it’s just a matter of moving your bitcoin to a cryptocurrency exchange and trading it for Dash. Bitfinex, Kraken, ShapeShift and Bittrex are a few popular exchanges that allow Dash trading. Read our guide on how to buy bitcoins.
Buying Dash with fiat currency is a little trickier because there aren’t many platforms that allow it. Two services that offer fiat-to-Dash transactions are BitPanda and Kraken.
Dash developers are forming new partnerships with cryptocurrency services for more accessible fiat-to-Dash transactions. For example, you can sign up for Coinapult and Crypto Capital to buy Dash.
3. Transfer Dash to your wallet.
Whichever exchange you use to buy Dash, you’ll have the option to transfer the coins to your wallet. Avoid leaving the coins on the exchange, where they can be stolen through hacking.
Dash developers attempted to create a payment platform that’s:
- Decentralized. Users can send cryptocurrency to one another without relying on a middleman, such as a bank or government.
- Private. Over the years bitcoin has existed, it’s proven anonymous — but not fully private. In response, Dash developers sought to create fully private cryptocurrency.
- Fast. Many users feel that bitcoin’s slow confirmation times make it unviable as a consumer option. Dash was built to enable quick transfers.
What is a confirmation?
A confirmation is a verification of a transaction on a cryptocurrency network. This happens when a new block is added to the blockchain through mining.
To become final, a cryptocurrency transfer requires multiple confirmations. This is to prevent double spends, during which a coin is spent in more than one transaction. The more confirmations there are, the less likely there will be a double spend.
As we’ll discuss later in this guide, Dash’s privacy is up for debate. However, cryptocurrency observers widely agree that Dash has achieved its other two goals.
A few things you should know about Dash
Let’s run through a few quick stats that illustrate what Dash is all about.
There’s a cap on Dash coins
You may know that only 21 million bitcoin can ever be mined. Similarly, only 18 million Dash can ever be mined.
A cap on the number of cryptocurrency that can be mined is what’s known as a controlled supply.
Around 7.5 million Dash coins exist right now, with the last coin expected to be mined around the year 2300.
What is mining?
Mining is a process by which a cryptocurrency is released into the world. A miner completes a computational puzzle and is rewarded with a block of currency along the public blockchain.
Dash has become one of the biggest cryptocurrencies
Of the hundreds of cryptocurrencies out there, Dash is one of the most popular. In the fall of 2020, it was the eighth-largest cryptocurrency by market capitalization. At that time, the 7.5 million Dash in existence were worth $1.5 billion.
That said, the cryptocurrency still has a way to go. In September 2020, Bitcoin, Ethereum and Bitcoin Cash — the three largest cryptocurrencies — had market caps of $69 billion, $29 billion and $11 billion, respectively.
What is market capitalization?
Market capitalization is what the entire market for a cryptocurrency is worth. It’s calculated by multiplying a cryptocurrency’s price by the number of coins owned by the general public.
For example, if a cryptocurrency is worth $10 and there are 1,000 of the cryptocurrency’s coins in circulation, the market cap is $10,000:
Market cap = $10 x 1,000 = $10,000
Dash grew rapidly in 2020
From 2020 to the end of 2020, the price of Dash generally stayed below $10. That changed at the turn of 2020.
On January 1, 2020, Dash’s price sat at $11.
By mid-March, it had broken the $100 mark.
Dash passed $200 by mid-June …
… and in late August, it reached the $300 mark. As of August 27, 2020, one Dash was worth $368.
Some observers say Dash’s growth came from speculative trading on cryptocurrency exchanges. Dash supporters say it’s because the world finally learned about the cryptocurrency’s structural advantages — such as low fees.
What makes Dash special?
Dash was created in part to address two of bitcoin’s biggest problems: lack of privacy and speed of transactions. It boasts other advantages that reportedly improve on bitcoin.
It’s a common misconception that bitcoin transactions are anonymous. In reality it’s easy to identify a wallet address, and you can trace transactions through the blockchain.
Confused about the blockchain? Read our guide on how it works.
According to Dash developers, you can send anonymous transactions with the cryptocurrency through its PrivateSend feature. With PrivateSend, your transaction is bundled with other anonymous payments. This makes it difficult for someone to see where transactions originate and where they’re going.
Optional instant payments
Through InstantSend, you can send payments for confirmation in under a second. At this speed, you’ll pay higher processing fees to masternodes — or the computers that verify transactions.
According to the developers, Dash’s transfer speed allows more consumer uses of the cryptocurrency. Because transactions can be confirmed almost instantly, Dash could be better suited for “point of sale” transactions — for instance, buying a drink at a juice bar or paying for clothes at a store.
In contrast, bitcoin transactions usually take 10 minutes to an hour for confirmation.
In late 2020, the average Dash transaction fee was around $0.10 when the average bitcoin transaction fee was $2 to $4.
Because those averages skew toward larger transactions, you’ll want to look at the median transaction fees to learn what the typical user pays.
That brings good news for Dash enthusiasts. The typical Dash user pays around one to two cents per transaction. Meanwhile, the typical bitcoin user pays between $0.50 and $2.50 per transaction.
What’s interesting is that Dash’s transaction fees have held relatively steady, even with the cryptocurrency’s unprecedented rise. Down the line, we’ll see if they remain low.
Incentivized governance model
According to the developers, Dash’s governance model is superior to that of bitcoin. Whereas bitcoin’s development relies on community contributions, the Dash network is funded by the transaction fees it generates. In the next section, we dive deeper into Dash’s structure.
How Dash works
Dash’s unique structure runs on a two-tier network called the masternode network. According to Dash developers, the network is an “incentivized full-node operation.” There’s a lot to unpack there, so let’s talk about what it means.
The Dash network’s first tier is composed of nodes — computers that communicate with one another within the network. Miners use these nodes to verify Dash transactions and create new coins.
The second tier is composed of masternodes. These are full nodes — computers that contain the full blockchain of a cryptocurrency and enforce rules of the network. Masternodes facilitate specialized transactions for PrivateSend and InstantSend. Furthermore, they control the development of the Dash network.
To understand why masternodes are “incentivized,” you should know how someone runs this type of node and what they get out of it.
How does someone run a masternode?
To run a masternode, you need to have 1,000 Dash available as collateral. An operator needs to continuously hold this collateral to continue running a masternode and receiving transaction fees.
In theory, requiring masternode operators to post collateral helps protect the network. If someone wanted to attack the Dash network, they would first need to buy a substantial amount of Dash to become a masternode operator. At that point, it wouldn’t make sense to attack the Dash network, as doing so would destroy their holdings.
Because they have a lot invested in the network, masternode operators have an incentive to protect the Dash ecosystem. To that end, they carefully consider and approve community-submitted budgets and initiatives.
Dash transaction fee
According to Dash developers, one of the key weaknesses of other cryptocurrencies is a lack of financial incentives to run a full node. Dash built in incentives for users to run masternodes.
Here’s the fee distribution from Dash’s block rewards:
- The miner receives 45%.
- The masternode operator receives 45%.
- The Dash maintenance fund receives 10%.
What are block rewards?
Miners in a cryptocurrency network are incentivized to confirm transactions through block rewards — coins distributed when a block is solved.
Compare that to the fee distribution of bitcoin’s block rewards:
- The miner receives 100%.
- The full node operator receives 0%.
- 0% goes to bitcoin development.
According to Dash developers, the 10% fee allocation is a big advantage. Instead of relying on community donations, Dash can fuel its growth directly from its blockchain.
Did you know?
At the time of writing, 4,756 masternodes are on the Dash network. In comparison, there are around 9,000 nodes on the bitcoin network.
What to watch out for
No cryptocurrency is without its downfalls. Here are a few of Dash’s potential weaknesses to consider.
It may not be as private as it claims to be.
Though Dash supporters tout its privacy features, other observers question how anonymous the cryptocurrency really is. For example:
- There’s a “rich list” for Dash. This is a public record of the top 100 wealthiest addresses in the network. (A cryptocurrency address is a string of alphanumeric characters from which transactions are sent and received.) Meanwhile, no such list exists for a cryptocurrency like Monero, which is often said to be fundamentally private.
- PrivateSend transactions are routed through masternode networks. According to critics, someone could theoretically see a transaction’s details if they controlled all of the masternode networks the transaction passed through.
- Critics say Dash’s privacy features are essentially just cryptocurrency mixing. Cryptocurrency mixing services — also known as “tumblers” — exchange coins for different ones that can’t be traced back to the original owners. Some observers say Dash doesn’t do anything different.
According to some observers, Dash’s “instamine controversy” is a big red flag.
Within the first 48 hours after developers released Dash — called Xcoin at the time — 2 million coins had been mined. If you recall, only 18 million Dash can ever be mined. That means around 11% of the currency was released within the first two days.
Critics say this casts doubt over Dash’s legitimacy. Some speculate that it’s evidence that Dash is a “pump and dump” scheme, in which individuals inflate a cryptocurrency’s market price and quickly sell their holdings. This claim should be investigated further by potential buyers of Dash assets.
What is an instamine or premine?
In an instamine or premine, a cryptocurrency developer releases a large number of coins before distributing the cryptocurrency’s source code to the public. These coins go to a few people, who stand to benefit greatly if the cryptocurrency becomes successful.
Developers often claim premines are useful to incentivize the people who created the source code — and to reward investors. Many observers, however, say premines are unethical and the work of greedy developers.
Today’s Dash price
What’s next for Dash?
The rise in Dash’s prices in 2020 was extraordinary. The question is whether it’ll keep going up.
Dash developers aim to make cryptocurrency extremely easy to use for consumers. To that end, they’re working on Dash Evolution, a new cryptocurrency, that’s expected to include:
- Integrations with web stores or apps.
- Easy payments along the lines of PayPal and Google Wallet.
- Usernames to make it simple to send transactions.
- Recurring payments.
- The option to clear your transaction history.
Dash Evolution is slated for release in late 2020 or early 2020.
The 10 Most Important Cryptocurrencies Other Than Bitcoin
Bitcoin has not just been a trendsetter, ushering in a wave of cryptocurrencies built on a decentralized peer-to-peer network, it’s become the de facto standard for cryptocurrencies, inspiring an ever-growing legion of followers and spinoffs.
- A cryptocurrency, broadly defined, is virtual or digital money which takes the form of tokens or “coins.”
- Beyond that, the field of cryptocurrencies has expanded dramatically since bitcoin was launched over a decade ago, and the next great digital token may be released tomorrow, for all anyone in the crypto community knows.
- Bitcoin continues to lead the pack of cryptocurrencies, in terms of market capitalization, user base, and popularity.
- Virtual currencies such as Ethereum and XRP, which are being used more for enterprise solutions, have also become popular.
- Some altcoins are being endorsed for superior or advanced features vis-à-vis bitcoins.
What Are Cryptocurrencies?
Before we take a closer look at some of these alternatives to Bitcoin, let’s step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money which takes the form of tokens or “coins.” While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.
The “crypto” in cryptocurrencies refers to complicated cryptography which allows for the creation and processing of digital currencies and their transactions across decentralized systems. Alongside this important “crypto” feature of these currencies is a common commitment to decentralization; cryptocurrencies are typically developed as code by teams who build in mechanisms for issuance (often, although not always, through a process called “mining”) and other controls.
Cryptocurrencies are almost always designed to be free from government manipulation and control, although as they have grown more popular this foundational aspect of the industry has come under fire. The currencies modeled after bitcoin are collectively called altcoins and have often tried to present themselves as modified or improved versions of bitcoin. While some of these currencies are easier to mine than bitcoin, there are tradeoffs, including greater risk brought on by lower levels of liquidity, acceptance and value retention.
Below, we’ll examine some of the most important digital currencies other than bitcoin. First, though, a caveat: it is impossible for a list like this to be entirely comprehensive. One reason for this is the fact that there are more than 2,000 cryptocurrencies in existence as of January 2020, and many of those tokens and coins enjoy immense popularity among a dedicated (if small, in some cases) community of backers and investors.
Beyond that, the field of cryptocurrencies is always expanding, and the next great digital token may be released tomorrow, for all anyone in the crypto community knows. While bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts adopt many approaches for evaluating tokens other than BTC. It’s common, for instance, for analysts to attribute a great deal of importance to the ranking of coins relative to one another in terms of market cap. We’ve factored this into our consideration, but there are other reasons why a digital token may be included in the list as well.
1. Ethereum (ETH)
The first bitcoin alternative on our list, Ethereum is a decentralized software platform that enables Smart Contracts and Decentralized Applications (DApps) to be built and run without any downtime, fraud, control, or interference from a third party. The applications on Ethereum are run on its platform-specific cryptographic token, ether. Ether is like a vehicle for moving around on the Ethereum platform and is sought by mostly developers looking to develop and run applications inside Ethereum, or now by investors looking to make purchases of other digital currencies using ether. Ether, launched in 2020, is currently the second-largest digital currency by market cap after bitcoin, although it lags behind the dominant cryptocurrency by a significant margin. As of January 2020, ether’s market cap is roughly 1/10 the size of bitcoin’s.
During 2020, Ethereum launched a pre-sale for ether which received an overwhelming response; this helped to usher in the age of the initial coin offering (ICO). According to Ethereum, it can be used to “codify, decentralize, secure and trade just about anything.” Following the attack on the DAO in 2020, Ethereum was split into Ethereum (ETH) and Ethereum Classic (ETC). As of Jan. 8, 2020, Ethereum (ETH) had a market cap of $15.6 billion and a per-token value of $142.54.
2. Ripple (XRP)
Ripple is a real-time global settlement network that offers instant, certain and low-cost international payments. Launched in 2020, Ripple “enables banks to settle cross-border payments in real-time, with end-to-end transparency, and at lower costs.” Ripple’s consensus ledger (its method of conformation) is unique in that it doesn’t require mining. Indeed, all of Ripple’s XRP tokens were “pre-mined” before launch, meaning that there is no “creation” of XRP over time, only the introduction and removal of XRP from the market supply according to the network’s guidelines. In this way, Ripple sets itself apart from bitcoin and many other altcoins. Since Ripple’s structure doesn’t require mining, it reduces the usage of computing power and minimizes network latency.
So far, Ripple has seen success with its current business model; it remains one of the most enticing digital currencies among traditional financial institutions looking for ways to revolutionize cross-border payments. It is also currently the third-largest cryptocurrency in the world by overall market cap. As of Jan. 8, 2020, Ripple had a market cap of $9.2 billion and a per-token value of $0.21.
3. Litecoin (LTC)
Litecoin, launched in 2020, was among the first cryptocurrencies to follow in the footsteps of bitcoin and has often been referred to as “silver to bitcoin’s gold.” It was created by Charlie Lee, an MIT graduate and former Google engineer. Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses “scrypt” as a proof of work, which can be decoded with the help of CPUs of consumer-grade. Although Litecoin is like bitcoin in many ways, it has a faster block generation rate and hence offers a faster transaction confirmation time. Other than developers, there are a growing number of merchants who accept Litecoin. As of Jan. 8, 2020, Litecoin had a market cap of $3.0 billion and a per-token value of $46.92, making it the sixth-largest cryptocurrency in the world.
4. Tether (USDT)
Tether was one of the first and most popular of a group of so-called stablecoins, cryptocurrencies which aim to peg their market value to a currency or other external reference point so as to reduce volatility. Because most digital currencies, even major ones like bitcoin, have experienced frequent periods of dramatic volatility, Tether and other stablecoins attempt to smooth out price fluctuations in order to attract users who may otherwise be cautious.
Launched in 2020, Tether describes itself as “a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.” Effectively, this cryptocurrency allows individuals to utilize a blockchain network and related technologies to transact in traditional currencies while minimizing the volatility and complexity often associated with digital currencies. On Jan. 8, 2020, Tether was the fourth-largest cryptocurrency by market cap, with a total market cap of $4.6 billion and a per-token value of $1.00.
5. Bitcoin Cash (BCH)
Bitcoin Cash (BCH) holds an important place in the history of altcoins because it is one of the earliest and most successful hard forks of the original bitcoin. In the cryptocurrency world, a fork takes place as the result of debates and arguments between developers and miners. Due to the decentralized nature of digital currencies, wholesale changes to the code underlying the token or coin at hand must be made due to general consensus; the mechanism for this process varies according to the particular cryptocurrency.
When different factions can’t come to an agreement, sometimes the digital currency is split, with the original remaining true to its original code and the other copy beginning life as a new version of the prior coin, complete with changes to its code. BCH began its life in August of 2020 as a result of one of these splits. The debate which led to the creation of BCH had to do with the issue of scalability; the Bitcoin network has a strict limit on the size of blocks: one megabyte (MB). BCH increases the block size from one MB to eight MB, with the idea being that larger blocks will allow for faster transaction times. It also makes other changes, too, including the removal of the Segregated Witness protocol which impacts block space. As of Jan. 8, 2020, BCH had a market cap of $4.4 billion and a value per token of $240.80.
6. Libra (LIBRA)
One of the most-hyped cryptocurrencies is one that, as of January 2020, has yet to even launch. By mid-2020, rumors circulated that social media giant Facebook, Inc. (FB) was developing its own cryptocurrency. Given Facebook’s incredible global reach and the potential for massive volumes of exchange across its platform, the cryptocurrency world had long speculated that the social media titan might launch its own digital token.
Rumors were formally confirmed on June 18, 2020, when Facebook released the white paper for Libra. The tentative launch date for the token is later in 2020, as Facebook has committed to sorting through regulatory barriers before launch. Libra will be overseen in part by a new Facebook subsidiary, the financial services outfit Calibra. When Libra does launch, it is sure to garner massive amounts of attention from those within (and outside of) the cryptocurrency sphere.
7. Monero (XMR)
Monero is a secure, private and untraceable currency. This open-source cryptocurrency was launched in April 2020 and soon spiked great interest among the cryptography community and enthusiasts. The development of this cryptocurrency is completely donation-based and community-driven. Monero has been launched with a strong focus on decentralization and scalability, and it enables complete privacy by using a special technique called “ring signatures.”
With this technique, there appears a group of cryptographic signatures including at least one real participant, but since they all appear valid, the real one cannot be isolated. Because of exceptional security mechanisms like this, Monero has developed something of an unsavory reputation: it has been linked to criminal operations around the world. Nonetheless, whether it is used for good or ill, there’s no denying that Monero has introduced important technological advances to the cryptocurrency space. As of Jan. 8, 2020, Monero had a market cap of $994.0 million and a per-token value of $57.16.
8. EOS (EOS)
Aside from Libra, one of the newest digital currencies to make our list is EOS. Launched in June of 2020, EOS was created by cryptocurrency pioneer Dan Larimer. Before his work on EOS, Larimer founded the digital currency exchange Bitshares as well as the blockchain-based social media platform Steemit. Like other cryptocurrencies on this list, EOS is designed after ethereum, so it offers a platform on which developers can build decentralized applications. EOS is notable for many other reasons, though.
First, its initial coin offering was one of the longest and most profitable in history, raking in a record $4 billion or so in investor funds through crowdsourcing efforts lasting a year. EOS offers a delegated proof-of-stake mechanism which it hopes to be able to offer scalability beyond its competitors. EOS consists of EOS.IO, similar to the operating system of a computer and acting as the blockchain network for the digital currency, as well as EOS coins. EOS is also revolutionary because of its lack of a mining mechanism to produce coins. Instead, block producers generate blocks and are rewarded in EOS tokens based on their production rates. EOS includes a complex system of rules to govern this process, with the idea being that the network will ultimately be more democratic and decentralized than those of other cryptocurrencies. As of Jan. 8, 2020, EOS had a market cap of $2.7 billion and a per-token value of $2.85.
9. Bitcoin SV (BSV)
Bitcoin SV (BSV), with “SV” in this case standing for “Satoshi Vision,” is a hard fork of Bitcoin Cash. In this sense, BSV is a fork of a fork of the original Bitcoin network. A planned network upgrade for November of 2020 resulted in a protracted debate between mining and developing factions in the BCH community, leading to a hard fork and the creation of BSV. Developers of Bitcoin SV suggest that this cryptocurrency restores Bitcoin developer Satoshi Nakamoto’s original protocol, while also allowing for new developments to increase stability and to allow for scalability. Bitcoin SV developers also prioritize security and fast transaction processing times.
As of Jan. 8, 2020, BSV had a market cap of $2.1 billion and a per-token value of $114.43.
10. Binance Coin (BNB)
Binance Coin (BNB) is the official token of the Binance cryptocurrency exchange platform. Founded in 2020, Binance has quickly risen to become the largest exchange of its kind globally in terms of overall trading volume. The Binance Coin token allows Binance users to trade in dozens of different cryptocurrencies efficiently on the Binance platform. BNB is used to facilitate transaction fees on the exchange and can also be used to pay for certain goods and services, including travel fees and more.
As of Jan. 8, 2020, BNB had a market cap of $2.3 billion and a per-token value of $14.71.
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