Anyone who is into tech knows about cryptocurrencies and their rise to fame as a digital form of money you can trade. Since Bitcoin was first created in 2009 though, there has been a vast array of other coins launched. This can sometimes make it hard for those new to this sector to make sense of all the coins that are out there!

It really is worth doing this though – especially if you plan to put money into crypto. In addition, you should take your time to find a secure broker to trade with first. AskTraders has a list of top crypto brokers to look through plus a whole heap of expert advice on crypto trading. If you need a reputable and reliable source of information on this market, this site is worth checking out.

Once you have found a place to trade with, you should also pause to find out what separates different coins, why just a few are most well-known, and which coins might be on the rise for investors.

What separates the many cryptocurrencies out there?

 Separating out cryptocurrencies gets a little harder when you think that all coins are based on blockchain technology. This is the code that allows them to operate and also keeps an accurate ledger of all transactions. To really understand coins better, keeping up with the latest blockchain news is wise.

For many, the major differences between all the coins currently available is their use and the specific blockchain code they operate on. Although all coins use blockchain, as above, they often use customized blockchain code.

It is also important to mention that various cryptocurrencies have different uses. Some may be there as a pure digital currency (such as Bitcoin), while others are there to enable smart contracts and create/publicize apps (such as Ethereum). Other coins also have specific uses and this is a way to understand how they sometimes differ.

How have a handful of coins become so well-known?

 From the many crypto coins in circulation, it seems clear that it is a relatively small group that have become best known. You can certainly count Bitcoin among these and also some of the top altcoins such as Ethereum, Ripple, Tether, Solana, Cardano and Monero. But why these coins in particular?

In short, it mainly comes down to history, market size and media attention. This is true for Bitcoin, which is so well-known for being the first digital coin. BTC’s performance also grabs a lot of headlines still and this has attracted more people to invest money into it.

But what of the altcoins we have listed above? It mainly comes down to the same reasons as we looked at for Bitcoin. These tend to be the altcoins that have been around for a while and that people therefore trust. For newer altcoins that make waves, it can be down to excellent performance and lots of media attention pushing them into the public consciousness.

Are there other coins rising rapidly?

 In terms of performance, recent times have been pretty spectacular for Bitcoin. Earlier in October 2021, for example, Bitcoin surged past the $65,000 mark to a new high. Although it has dipped a little since then, it is still enjoying a healthy run.

Although it might have started off as something of a BTC parody in 2013, Dogecoin has enjoyed great success on the whole since then. Support from people such as Elon Musk has certainly helped! If you dig the cute Dogecoin mascot, then a newcomer called Shiba Inu might also catch your eye. This coin is something of a Dogecoin rival and has soared in value by more than 750,000% since January 2021.

The Lumen from Stellar Development Foundation is another coin that might be worth keeping an eye on. The price of this coin has shot up in the last few years and it looks to have real value as a means of facilitating large financial transactions.

Crypto is a crowded market

 There really are a lot of different coins you could put money into as an investor. For those who like their tech, crypto is naturally a very appealing choice when compared to other assets. Hopefully, the above has not only clarified how coins differ, but also showed which ones are rising rapidly and explained why some become so well-known.

Source: Plato Data Intelligence