Cryptocurrencies are a type of digital asset that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies have been created. These are often called "altcoins," as a play on "bitcoin" and "alternative coin." Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. The market capitalization of all cryptocurrencies combined is over $200 billion as of January 2021. Bitcoin makes up the lion's share of this, with a market cap of over $100 billion. Ethereum is a distant second, with a market cap of over $20 billion. There are many different types of cryptocurrencies, and new ones are being created all the time. Here are a few of the most promising cryptocurrencies that you should keep an eye on in 2021: Bitcoin: Bitcoin is the original cryptocurrency and it remains the most well-known. It is also the most valuable, with a market cap of over $100 billion. Bitcoin is a decentralized peer-to-peer electronic cash system that does not require a central authority. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Ethereum: Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is the second-largest cryptocurrency by market cap, with a current value of over $20 billion. Litecoin: Litecoin is a fork of the Bitcoin Core client. It was created in 2011 with the aim of being the "silver to Bitcoin's gold." Litecoin is similar to Bitcoin in many ways, but it has a faster block generation rate and a larger maximum supply. Litecoin is currently the fifth-largest cryptocurrency by market cap, with a value of over $10 billion. Bitcoin Cash: Bitcoin Cash is a fork of the Bitcoin blockchain. It was created in 2017 with the aim of being a faster and more scalable version of Bitcoin. Bitcoin Cash has a larger block size limit and uses a different transaction verification process. It is currently the fourth-largest cryptocurrency by market cap, with a value of over $6 billion. Cardano: Cardano is a blockchain platform for the development of decentralized applications and smart contracts. It is similar to Ethereum in many ways, but it is built on a more sophisticated blockchain protocol. Cardano is currently the third-largest cryptocurrency by market cap, with a value of over $15 billion. Polkadot: Polkadot is a blockchain platform that enables the development of scalable decentralized applications. It is similar to Ethereum in many ways, but it is designed to be more scalable and efficient. Polkadot is currently the sixth-largest cryptocurrency by market cap, with a value of over $5 billion. Cryptocurrencies are a new and exciting asset class with a lot of potential. These are just a few of the most promising cryptocurrencies that you should keep an eye on in 2021.
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