Different Coins for Different Uses - Here’s What the Top Cryptocurrencies Do
There are 1,000’s of digital assets that you could buy, but what are all for? Learn about the different use cases of the top 25 cryptocurrencies.
Bitcoin is the world’s first and most established cryptocurrency. Launched in 2009 by its pseudonymous creator Satoshi Nakamoto, Bitcoin provides an open monetary network that allows anyone to securely store, send, and receive money over the Internet without the need for a financial intermediary.
In addition to functioning as an Internet-native payment system, bitcoin has also established itself as a gold-like store of value.
The Ethereum network is known for being the first blockchain with smart contract functionalities and decentralized applications.
Ethereum’s ether (ETH) is used for paying gas fees (blockchain transaction fees) to process transactions and interact with smart contracts. Additionally, ETH is also used as a means of conducting payments in the Ethereum ecosystem.
Binance Coin (BNB)
Binance Coin (BNB) is the native token of the Binance ecosystem, composed of the Binance Exchange, Binance Chain, and Binance Smart Chain (BSC).
BNB is used to pay for trading fees on Binance Exchange, pay transaction fees on Binance Chain and Binance Smart Chain, and as a popular digital asset in the DeFi market on BSC.
Tether USDT (USDT)
Tether USD (USDT) is a price-stable digital currency that has its value pegged to the US dollar. USDT is primarily used as trading capital and as a settlement layer in the global crypto markets.
Additionally, USDT serves as an online payment rail for digital US dollar payments and cross-border transactions.
Solana is an open-source blockchain project that allows for the creation of decentralized applications. Solana’s utility comes from the fast and high transaction throughput it offers in processing transactions and smart contracts.
Its combined proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms enable the network to scale while maintaining low network fees. SOL, the native token of the Solana network, is used for paying blockchain network fees.
Cardano is an open-source blockchain that uses a proof-of-stake (PoS) consensus mechanism. The network allows the development of DApps and smart contracts.
Cardano’s ADA token allows holders to vote on any proposed change in the network before it is implemented. Additionally, Cardano is used for tracking agricultural produce and storing educational credentials in a tamper-proof way.
XRP is the native digital currency of Ripple Labs’ product ecosystem. Ripple, the company behind XRP, provides a global payment platform utilized by banks and other financial institutions.
XRP is used in the products of Ripple to enable a speedy, less costly, and scalable way for transacting in both fiat currencies and digital assets.
Polkadot is an open-source blockchain protocol that allows for interoperability across several blockchains. With Polkadot, custom blockchains can be built easily through a Substrate framework and can be connected to the main network.
Polkadot’s native token, DOT, is used to provide governance, network operation via staking, bonding when connecting a parachain to the main network, and to pay for transaction fees.
USD Coin (USDC)
USD Coin (USDC) is a fully collateralized stablecoin whose value is pegged to the US dollar.
USDC is mainly used as trading capital and as a base currency in the global crypto markets. Additionally, the stablecoin can be used for peer-to-peer transactions, online payments, and eCommerce. Unlike some stablecoins in the market, the companies behind USDC, Circle and Coinbase have achieved regulatory compliance, making USDC one of the most trustworthy stablecoins in the market.
Dogecoin (DOGE) is a decentralized digital currency based on the popular internet meme “doge”. The currency was forked off Litecoin and used mainly as a tipping system on Reddit.
Dogecoin gains value from its community support and, more recently, tweets by Dogecoin fan Elon Musk.
Shiba Inu (SHIB)
Shiba Inu (SHIB) is a meme coin inspired by the Shiba Inu dog, operating as an ERC-20 token on the Ethereum network.
The coin which flaunted itself as the “Dogecoin killer” is driven majorly by speculation and its community on social media. However, the team behind the meme coin has been building out its roadmap to include a decentralized exchange called Shiba Swap and an NFT collection.
Avalanche is a layer-one blockchain built for decentralized applications and smart contracts. Avalanche’s major utility comes from achieving high transaction speed without compromising scalability and its interoperability with the Ethereum network.
Several Ethereum-based projects like SushiSwap and Aave now also run on the Avalanche blockchain. AVAX, the native token of the platform, is used for paying transaction fees.
Terra is a decentralized cross-chain blockchain protocol that uses algorithmic decentralized stablecoins to power an ecosystem of DeFi and other Web 3 solutions.
Its native token, LUNA, is used as a protocol token for maintaining the price stability of stablecoins in the network. And for securing its blockchain via a proof-of-stake consensus mechanism.
Litecoin (LTC) is a decentralized digital currency used for making online payments in a fast and secure manner. The cryptocurrency, which was created to be a lite version of Bitcoin, offers low transaction fees and high transaction speeds.
Often referred to as the silver to Bitcoin’s digital gold, LTC is one of the few survivors of the early years of the altcoin market despite offering little more than its pioneering predecessor, Bitcoin.
Wrapped Bitcoin (WBTC)
Wrapped Bitcoin (WBTC) is an ERC-20 token representing the value of bitcoin on the Ethereum blockchain. The token is backed 1:1 with Bitcoin (through a smart contract lock-up system) and gives users access to the numerous decentralized finance services offered on the Ethereum blockchain.
Chainlink is a decentralized oracle network that incentives computers to supply accurate real-life data to smart contracts, enabling DeFi applications to provide a wider range of investment opportunities.
When nodes provide accurate data and follow all the software rules, they are rewarded with LINK tokens.
Uniswap is a DeFi protocol that allows the trading of digital tokens without the need for central intermediaries via the use of Automated Market Makers (AMM).
The protocol’s governance token, UNI, is paid to liquidity providers as a reward for providing liquidity, Additonally, it ensures the continuous growth and improvement of the protocol in a decentralized manner.
Binance USD (BUSD)
Binance USD is a stable coin pegged 1:1 to the US dollar. BUSD was launched by Binance and Paxos and is fully regulated by the New York State Department of Financial Services (NYDFS).
Like most stablecoins, BUSD can be used to lock in gains without switching to fiat currencies, make payments online, provide liquidity on DEXs, and as collateral for crypto lending platforms. BUSD runs on Binance Chain, Binance Smart Chain and Ethereum.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is a digital currency that forked off Bitcoin in 2017 when a subset of the Bitcoin community wanted to solve Bitcoin’s scalability challenge by implementing bigger blocks.
BCH now has a much higher maximum block size than Bitcoin, allowing it to process on-chain transactions faster and at a lower cost. However, BCH’s bigger blocks come with the risk of increased centralization over time as it will become more and more difficult to run BCH nodes as storing a copy of the blockchain will become challenging on home computers due to its size.
Bitcoin Cash is used for payments and cross-border payments.
Polygon is an Ethereum layer-two scaling solution that processes up to 65,000 transactions per second with a block time below two seconds. Its native token, MATIC, is used for payment services, transaction fees, and settlement currency in the Polygon network.
Algorand is a pure proof-of-stake, layer-one blockchain that supports smart contracts and decentralized applications with a focus on the future of finance.
Its native token, ALGO, is used to cover blockchain transaction fees and to interact with smart contracts on the network.
Crypto.com Coin (CRO)
Crypto.com Coin (CRO) is the native cryptocurrency of the Crypto.com blockchain, which provides utility to the users of Crypto.com’s services.
CRO can be used for payments and to cover blockchain transaction fees.
VeChain is a blockchain-based platform that enhances the transparency, traceability, and efficiency of supply chains while reducing costs.
VeChain runs on a two token system where holding VET in your wallet passively rewards you with its secondary token VTHO. VTHO is what is used to pay for transactions on the VeChain network.
Stellar is an open-source blockchain network that helps in storing and moving digital representations of all forms of money, including cryptocurrency and fiat currency.
Its native token, lumens (XLM), acts as a bridge for swapping and trading assets across borders while paying very low transaction fees.
Axie Infinity (AXS)
Axie Infinity is a blockchain-based game on the Ethereum network where gamers battle with in-game characters known as Axies. The play-to-earn game has a governance token known as Axie Infinity Shards (AXS), which allows holders to vote on key implementations in the game and how funds in the Axie Community Treasury will be allocated.