Homeblockchain and cryptocurrenciesCryptocurrency Market: Top 5...

Cryptocurrency Market: Top 5 Most Famous Crypto Tokens

Crypto Tokens: Nowadays, engaging in economic activity comes in many forms. Usually, you may split them into two primary categories, active and passive participation, resulting in income. What do experts mean by passive income? Briefly, purchasing a share of the company means obtaining certain rights without additional movements. 

A shareholder gets a voting right and several percent of the company’s profits. However, people often wonder how the scheme works with crypto companies. For such cases, crypto tokens exist.

What are Crypto Tokens?

If some Crypto Tokens are new for you, here is a quick explanation. Think of tokens as coins, but with more control over them. First, the price of coins only depends on market changes. On the contrary, the token prices may rise or fall after the emission of other currencies.

Secondly, token emission and verification are under control, opposite to cryptocurrency coins. In other words, these assets work almost like regular shares to crypto companies. Buying them allows you to:

  • Store value.
  • Trade.
  • Invest.

Currently, there are numerous tokens from various companies. Yet, professional rankings help determine the most popular ones up to the present time.

1. Tether USD

Indeed, any interaction with cryptocurrencies hardly excludes volatility. Fortunately for those who want to avoid instability, such things as stablecoins appeared on the crypto market. Tether USD is the earliest and one of the most famous stablecoins globally. For the first time, people heard about it in 2014, and years later, USDT remains a leading token.

The market capitalization of this particular token exceeds seventy billion US dollars, which is a truly groundbreaking success! Why do so many people prefer USDT to other digital assets? Each Tether token allegedly has a backup in the form of one US dollar. Since this fiat currency is one of the most stable globally, USDT seems rather reliable.

Moreover, the connection to reliable fiat currency increases the liquidity of Tether, making it easy to exchange tokens for cash. Also, high demand for this asset provokes an upsurge in interest rates, so USDT investment is profitable too.

On the other hand, there is a dark side to the Tether situation. As much as this stablecoin is famous for its advantages, it still receives harsh criticism. Experts distinguish such downsides as:

  • Lack of transparency.
  • Long-term unpredictability.

The Tether Limited company can hardly prove that it possesses enough dollars to back up all tokens. In the past, the management actively avoided audits, so suspicions emerged. Apart from this fact, crypto scientists believe that Tether might cause a crisis in the future. Yet, USDT remains the current market leader.

2. Binance Coin

In like manner, Binance Coin gets the attention of crypto enthusiasts worldwide. Its capitalization is slightly smaller than USDT, but this token wins in terms of reputation. Besides entering the market later, in 2017, Binance Coin already demonstrates stable financial results.

At the beginning of its history, the Binance token existed solely for transaction and trading fees in its home ecosystem. Later it transferred from the Ethereum blockchain to its own Binance Smart Chain. Another specific characteristic of this token is that part of it regularly disappears. How is that possible? In a nutshell, the company burns a share of Binance coins from time to time. According to the statistics, over thirty million tokens ceased to exist after such manipulations.

The remaining assets can serve numerous purposes, for instance:

  • Investing.
  • Donations.
  • Making virtual presents.
  • Booking hotels, etc.

Sadly, the US government accused the home company of tax evasion and money laundering. Despite this dark spot on reputation, the token shows stable growth. This fact shuts down any conversations about it being a financial bubble.

3. USD Coin

The third popular token in the ranking by capitalization is USD Coin. It functions by the same principle as Tether, yet it boasts particular advantages. As you have read before, Tether has reputational issues, making potential investors look for an alternative. In 2018 Circle collaborated with Coinbase to offer a unique alternative token.

Again, one USDC equals one US dollar, though you may divide it into smaller parts. The token constantly gains users all over the world due to its simplicity. Once somebody decides to purchase USD Coin, they only need to transfer dollars to the company bank account.

After generating smart contracts, the company gives back an equal number of tokens to its client. Tokenization is an easy and fast process, which makes it possible even for people without bank accounts of any residency.

4. Binance USD

Luckily for investors who stress over exchange rates and a company reputation, Binance USD exists. Although this token is less popular than the three previous digital assets, it is a real safety net for people’s investments. Markedly, the Paxos company performs monthly audits for Binance to ensure the transparency of its work. Indeed, you can barely find a token under more governmental regulations than BUSD.

Besides being 100% reliable, token possesses the same benefits as its other legendary counterparts, including:

  • Minimum volatility.
  • Fast tokenization.
  • Multiple possibilities for usage.

What is more, Paxos has all the rights to block Binance accounts in case of any suspicious activity. Thanks to such a policy, BUSD buyers stay safe and sound.

5. SHIBA INU

SHIBA INU token proudly closes up the ranking of the top five most popular tokens. Since its appearance, many have considered SHIB another meme-coin, similar to Dogecoin. Surprisingly, the joke grew into a real deal as the token became the main topic of discussion.

At first, the secret author positioned SHIB as Dogecoin’s enemy. Even though people hardly accepted the token as worthy competition for other crypto assets, it gained over one million Twitter subscribers! Because experienced investors feared missing potential income, they boosted demand for SHIB tokens. As a result, SHIBA INU now has all the chances for future success.

Conclusion

Overall, the crypto market is a space that changes daily. Current token leaders are fighting for staying on top in the volatile environment. Luckily, investors are free to pick a safe place for their financial resources.

Check out: Top 6 Best Cryptocurrency Apps in India in 2021

Most Popular

More Articles

How can Minnesota be a Suitable US state for Bitcoin Trading?

Cryptocurrency and blockchain technology are becoming more mainstream each day. More...

9 Benefits Of Investing in Cryptocurrencies

Cryptocurrency has gained popularity in the recent past. It has surely...

Read Now

HOW to Use a Crypto Calculator?

There are many cryptographic forms of money, most with very little worth and muddled potential. Numerous consultants prescribe that financial backers stick to Bitcoin and Ethereum — if any — and pass on the more modest cryptos.Driving digital money media source, CoinDesk keeps a Coindesk 20 rundown...

Understanding the Difference Between Cryptocurrency and Blockchain

At first glance, the words cryptocurrency and Blockchain may seem interchangeable. You may wonder what the difference is. There is a significant distinction between these two ideas.We typically use the phrases cryptocurrency and Blockchain interchangeably when discussing digital assets. Given the complexity and intricacy of this new technology, understanding...

The Proper Way of Bitcoin Trading [A Definitive Guide]

Bitcoin is one of the most well-known and lucrative digital currencies in market size and valuation, drawing various investors. In the finance sector, this has acquired more traction as an asset. It was also used as a tool of payment by numerous businesses. This article will help you understand basic...