A cryptocurrency or crypto is a digital asset used as a means of exchange. Cryptocurrencies are built primarily upon decentralized code; therefore, they are not under the jurisdiction of government direct adjustments. The United States Federal Reserve can alter how many US Dollars are printed into circulation, but cryptocurrencies cannot be controlled by governments in this way. All cryptocurrencies have their own unique code and intend applications. While there are technically thousands of cryptos, only a few are primary tokens and have true applications and validity. Here is a list of eight of the most commonly held and popular cryptocurrencies. NOTE: This is not investment advice and is purely an educational piece.

1) Bitcoin – BTC

The first cryptocurrency created, Bitcoin is the most recognized, credible, and understood cryptocurrency of them all. Bitcoin is a digital asset that allows users to exchange their coins for services or products from sellers. Compared to others, Bitcoin’s protocol may seem simple; however, it laid the framework for all other cryptocurrencies to come.

2) Ethereum – ETH

Ethereum acts as a meta-crypto. What that means is that Ethereum allows other cryptocurrencies to be built upon its network. Ethereum utilizes “smart contracts” which allows payments to be made between parties only when specific conditions are met. Ethereum has been the leader for launching the protocols and transactions of Non-Fungible Tokens (NFTs), a topic that warrants its own article.

3) Dogecoin – DOGE

Dogecoin initially started as a joke in 2014. With limited applications and no distinct features varying from standard Bitcoin, DOGE has exclusively implied value. All the recent growth in asset price is due to speculation and the concept of intangible, intrinsically valueless assets. Essentially, Dogecoin only has value because other people will assign it value.

4) Cardano – ADA

Cardano is a derivative network of Ethereum. This means that Cadano is designed very similar to Ethereum. While the two are both well known, Ethereum has been around for much longer, has more decentralized applications, and garners more media attention. Cardano, however, operates faster and with less gas fees than Ethereum.

5) Stellar Lumen – XLM

Families with relatives in lesser developed foreign countries may send financial assistance in the form of a remittance. Remittances usually require obnoxious docking and transfer fees by banks and institutions when the money is sent. The Stellar network allows fiat currencies to be exchanged into XLM, and then to a foreign currency in seconds with minuscule fees.

6) Polygon – MATIC

Polygon is a second layer network that operates tangent to Ethereum. Polygon exists among ETH and acts as an express route throughout the Ethereum blockchain. For scaling purposes and transactions that have been previously instated and do not require as much processing, the polygon network can take over the transaction to speed up the process on the network.

7) Amp – AMP

AMP solves the issue of instant settlement assurance: it is a collateralization token. When a party makes a transaction with another party using cryptocurrencies, the transaction may take several hours or even days to fully process. To provide collateral during this transaction period to ensure the initial transaction is validated, AMP tokens may be put up as stake.

8) Tether – USDT

Tether will automatically alter its price and circulating supply to match the value of one US Dollar. Tether will always stay at this value to act as a stable coin for crypto investors. It is a safe haven for an investors money, where they can keep their money in the crypto market as a whole. USDT to other crypto transactions are faster than USD to cryptos, as well.

Cryptocurrency is certainly a very complex topic, but when fully understood, it can be financially fascinating and convenient for certain transactions.

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Money.com