Increasing enthusiasm regarding the future of the blockchain sector has been driving cryptocurrency values in recent times. For potential traders, the crypto market offers different scopes for profit making, given that this market is characterised by high volatility, leverage, 24/7 access and high liquidity.
Countries worldwide are slowly and steadily regulating the crypto trading sector, which has allowed many exchanges to step up and help traders earn profits securely. Here are some of the most popular digital currencies, ranked according to their 24-hour trading volumes in 10 of the biggest crypto exchanges worldwide.
1. Bitcoin (BTC)
Bitcoin, with a 24-hour daily volume of $4 billion, occupies the top spot on the list. The fact that it is also the cryptocurrency with the highest market cap and price makes it one of the most popular digital currencies for trading today. As of September 4, 2018, Bitcoin was trading at $7,261.
The peer-to-peer method of sending and receiving payments has fast become a reliable mainstream mode of exchange. Banks like Citibank, United Bank of Switzerland and Barclays have expressed interest in integrating BTC into their payment systems.
BTC exhibits consistent price volatility, which makes it suitable for position and scalp trading, in both the cash and CFD markets. With greater mainstream adoption, the digital currency is expected to reach the $100,000 mark by the end of 2018.
2. Tether (USDT)
The surprising entry in this list is Tether, a cryptocurrency that’s meant to be backed one-for-one by the US dollar. With a 24-hour trading volume of $2 billion and priced at $1.00, Tether is based on the idea of combining the stability of the US dollar with the operational abilities of digital currency. Traders frequently call Tether the “stable coin.”
Originally called Realcoin, when it was launched in 2015, there are 2,802,140,336 USDT in circulation today. Tether has been beneficial to cryptocurrency exchanges, which face huge resistance from traditional banks. It is mainly used by crypto-to-crypto exchanges, which don’t have to maintain their own US denominated bank accounts and can instead just price crypto assets in USD.
Despite skepticism in the crypto community that Tether Limited doesn’t have sufficient currency reserves to back all its coins in circulation, all major exchanges trade in it.
3. Ethereum (ETH)
With a 24-hour trading volume of approximately $1 billion, Ethereum consists of 12.51% of the entire crypto trading volume. The publicly accessible blockchain-based platform that supports Ether trading and creation of user-built applications continues to stay in the foreground for all tech innovators and entrepreneurs.
Recently Google’s BigQuery, the cloud-based data warehousing solution of the tech giant, has made it possible to access Ethereum blockchain data on its platform. This will enable the exploration of smart contract analytics. CBOE is planning to launch Ethereum futures by the end of 2018.
However, while the Commodity Futures Trading Commission (CFTC) has allowed Bitcoin futures, terming the coin as a commodity class, the classification of ETH remains tricky. Many experts believe that the currency is too centralised to be termed a security asset class. Nevertheless, the growing amount of applications built on the platform will continue to drive up its value.
4. EOS (EOS)
EOS currently boasts a trading volume of $710 million and is priced at $6.39, as of September 4, 2018. Touted as one of the “Ethereum Killers,” EOS has the ability to process 1,000 transactions per second, with the delegated Proof of Stake protocol. This lends it greater scalability than the Ethereum platform, which works on the slower “Proof-of-Work” consensus algorithm.
Recently, EOS has been in the news for supporting the development of the first complete BaaS (Banking as a Service) solution on its platform. The project will be Europe’s first complete crypto banking solution.
5. Bitcoin Cash (BCH)
BCH occupies the 5th position in this list, with a trading volume of $364 million. The coin, which is a hard fork off the Bitcoin protocol, has been at loggerheads with the core Bitcoin community, due to ideological differences.
Compared to its parent coin, it enables bigger block-size limits, allowing transactions to be faster and cheaper. According to a recently done stress test by the community, it can process 2.1 million transactions per second, making it a more viable mode of exchange.
Recently, the Atlanta-based firm, BitPay, announced its plans to add the coin to its payment settlement services. Affordable network fees, at just $0.03 per transaction compared to Bitcoin’s $50 per transaction, has been a major incentive for many businesses to switch from BTC to BCH.
Despite the successful stress test by the community, which resulted in a surge in its value, the transaction fees continue to be low. This makes the coin a probable successor of its parent version in the future.
These are 5 of the most popular digital currencies in the market today. What is important to keep in mind is that the crypto market changes frequently. It is always wise to study the market in detail before making any investment decision.