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What are the most valuable cryptocurrencies in your opinion?
Cryptocurrencies have been drawing attention for some time, becoming one of the most talked about topics within the financial market.
Price volatility is the subject of discussion among many investors, as well as generating curiosity and interest in those who have not yet invested.
Here we will understand a little more about valuable cryptocurrencies and which are the main digital currencies on the market.
What can be considered as cryptocurrency?
In a short way, cryptocurrencies are decentralized digital assets, generated from a technology called blockchain.
This technology is responsible for recording transactions and tracking these assets. For an asset to be considered a cryptocurrency, it needs to have some fundamental characteristics:
- Digital: Cryptocurrencies are digital currencies, that is, they do not exist in the physical environment.
- Decentralized: Cryptocurrencies are not issued by governments or institutions.
- Collective: New units are produced collectively by records of transactions carried out by miners.
- Security: It is up to miners to ensure the integrity and balance of the records.
Cryptocurrencies have a high degree of security, making it almost impossible for them to be cloned or forged.
Despite the volatility presented in prices, some cryptocurrencies are not inflationary, that is, they do not undergo the same devaluation as traditional money, this is the case with Bitcoin.
What are the most valuable cryptocurrencies on the market?
There are currently numerous cryptocurrencies on the market, and new projects and more cryptocurrencies are emerging every day.
We will highlight here the top 10 digital currencies that are in circulation:
- Binance Coin
- USD Coin
- Polka Dot
Among these coins, the two main cryptocurrencies in the current market, Bitcoin and Ethereum, stand out.
Bitcoin was the first cryptocurrency to be developed, appearing in 2008, in the midst of the financial crisis that the world was suffering.
Cryptocurrency was developed as a response mechanism to the crisis, with the proposal to present a digital asset capable of being an alternative to the free banking system.
BTC is currently the largest cryptocurrency on the market, taking into account its circulation and value.
Ethereum was created with the aim of presenting an execution platform for smart contracts and other decentralized applications. Unlike bitcoin, which was developed to circulate on the market, ETH was only intended to remunerate developers who use the platform.