10 cryptocurrencies that have been purchased the most in August.
Cryptocurrencies have taken a solid place in the trading market. A lot more people are interested in buying cryptocurrency and Analytics Insight has selected the 10 most purchased cryptocurrencies in August 2021.
Bitcoin is considered the original crypto, and its launch in 2009 is what started the whole cryptocurrency movement. Bitcoin – and the blockchain technology on which it operates – was invented by an individual or group of individuals operating under the pseudonym Satoshi Nakamoto. Bitcoin was put forward as an alternative to the fiat monetary system. The true identity of Satoshi Nakamoto has never been revealed. In the Bitcoin whitepaper, Nakamoto argued that a fiat monetary system controlled by central banks and a small number of financial institutions led to a centralized wealth and power and made social and financial mobility difficult. Ordinary people’s savings were eroded through inflation, largely as a result of central banks’ money printing. Bitcoin solved that problem by fixing the number of units ever issued, thereby preventing inflation caused by money printing. Bitcoin’s peer-to-peer blockchain technology meant it didn’t need financial institutions to facilitate transactions and verify ownership. Bitcoin is still by far the most popular cryptocurrency and its price movement has a strong impact on the rest of the crypto market.
Ethereum is historically the second most popular cryptocurrency however it is very different from Bitcoin. Ethereum is the name of the blockchain platform and Ether is the name of the cryptocurrency. Ethereum is the blockchain platform for smart contracts. They can also be considered as defined ‘rules’ from which many different applications, or Dapps – decentralized applications – can be created from. Ethereum Dapp’s range from games to Initial Coin Offerings (ICOs), which are the cryptocurrency world’s equivalent to crowdfunding or IPOs. While other smart contract platforms have been launched since Ethereum, each claiming to offer more sophisticated blockchain technology, the original blockchain has retained its position as the most utilized. While Bitcoin is intended as an alternative to traditional fiat currencies, the purpose of Ether (besides being traded as an asset) is to pay for use of the Ethereum platform. It’s known as a ‘utility’ cryptocurrency.
Ripple XRP is another ‘utility’ coin. Its blockchain platform is set up to facilitate cross-border transfers of fiat currency more efficiently. Closely connected to and supported by several banks from its beginning, Ripple XRP is often regarded as the ‘establishment’ cryptocurrency. The number of transfer services using Ripple’s platform has gradually grown over the years and there is a genuine possibility that it will become part of the traditional financial system.
Litecoin is another potential fiat alternative and a prominent rival for Bitcoin. Its creators hope Litecoin will eventually be used to pay for everyday goods and services. Litecoin has positioned itself as a more practical and technologically superior alternative to Bitcoin. Litecoin transactions can be confirmed by the P2P network significantly quicker than Bitcoin transactions. In theory, this could make Litecoin more attractive for merchants, but with ‘real-life’ cryptocurrency transactions still hugely limited, Bitcoin’s more established ‘brand’ keeps it well out in front as the fiat alternative cryptocurrency of choice.
Like Ethereum, NEO is a smart contract and Dapps platform. Released in 2014, NEO’s ambition was to improve upon Ethereum by offering approximately the same utility through a technologically more sophisticated example of blockchain technology. Many argue NEO is the technically superior platform to Ethereum but, as is the case with Litecoin and Bitcoin, the latter’s more established position has helped it maintain a larger market share.
IOTA is a unique cryptocurrency that is based on the Directed Acyclic Graph (DAG) structure, created to work with Internet of Things (IoT) devices. IoT facilitates feeless microtransactions involving connected devices, and it also helps maintain their data integrity. More recently, IOTA jumped to the top of the list of most traded cryptocurrencies and appears to have a big future, with IoT technology becoming the standard.
Tether is a cryptocurrency with tokens issued by Tether Limited, which in turn is controlled by the owners of Bitfinex. Tether is called a stable coin because it was originally designed to always be worth $1.00, maintaining $1.00 in reserves for each tether issued.
Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, Ada. Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson.
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system as a joke, making fun of the wild speculation in cryptocurrencies at the time. Despite its satirical nature, some consider it a legitimate investment prospect.
Binance coin is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. Binance coin initially ran on the Ethereum blockchain with ERC 20 standard but has since become the native coin of the Binance chain. Binance coin has a strict maximum of 200 million BNB tokens.
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