How to choose cryptocurrency, features and future potential
As of June 2021, it is estimated that there are thousands of cryptocurrencies in the world. But when it comes time to buy a cryptocurrencies, many people think that they don't know which cryptocurrencies to buy, or what the differences are. That's why we've put together an easy-to-understand, compact, one-page comparison of the most popular cryptocurrencies. We'll also show you which ones we recommend for their high potential.
BTC
The world's first virtual currency, number one in terms of awareness and market capitalisation
Bitcoin Features
Bitcoin, the world's first virtual currency, was launched in 2009 on the basis of a paper published on the Internet by a man who calls himself Satoshi Nakamoto. The virtual currency was created to create an electronic transaction system that would allow individuals to trade with each other without the need for a third party such as a financial institution. The Bitcoin system is based on digital signatures and blockchain technology, which makes it difficult for data to be tampered with over time, and provides a level of transparency and traceability that allows a large number of people to verify that data has not been tampered with. It is also transparent and traceable, allowing a large number of people to verify that the data has not been tampered with. This has made it popular with investors and technicians. It is an open-source, nationality-neutral virtual currency that can be used around the world, and is the prototype for many of the virtual currencies in circulation today.
Bitcoin is the main base currency for trading on foreign exchanges, and is the main virtual currency of today.
On the other hand, there are many currencies that have split off or been derived from bitcoin. Therefore, many virtual currencies now combine the characteristics of bitcoin, and many more have improved upon it.
In the future, either bitcoin will become even more popular as a means of payment than it is now, or the trading volume of popular altcoins (virtual currencies other than bitcoin) will increase significantly, which could affect the price and share of bitcoin.
Since the maximum number of coins issued is limited to 21 million, the price is relatively high, supported by high demand, although the price volatility is high.
Date of issue
January 2009
Maximum issue volume
21 MILLION BTC
Consensus algorithms
Proof of Work
Computer specifications and electricity costs are a major issue.
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
In the Mt. Gox incident, the price of Bitcoin fell significantly as a result of the massive amount of Bitcoin that was leaked due to the hacking of the virtual currency exchange system.
BCH
The successor to Bitcoin
Features of Bitcoin Cash
This virtual currency was created by a hard fork of Bitcoin in August 2017. Although it contains the name Bitcoin, it is a type of altcoin.
The hard fork was carried out by miners who agreed to increase the block size in order to solve the scalability issues that Bitcoin was facing. The increase in block size has greatly improved the network processing power. It is one of the most popular virtual currencies that has continuously ranked in the top market capitalization since its launch. Bitcoin Cash is promoting "on-chain" transaction processing, where all transactions are processed on the blockchain, and by implementing a block size of 32MB, the virtual currency aims to ensure that all transactions are conducted transparently.
Bitcoin Cash's block size was initially extended to 8MB at the beginning of the hard fork, and then to 32MB in 2018.
It is the most widely circulated virtual currency derived from Bitcoin. Close to Bitcoin's policy and supported by the Bitcoin community, it is likely to be used more and more in the future: in September 2018, it was listed on Coinbase, a major US exchange, and adopted by BitPay, a leading Bitcoin payment company.
Date of issue
August 2017
Maximum issue volume
21 million BCH
Same settings as BTC
Consensus algorithms
Proof of Work
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
Gox was hacked, bitcoins, user information and passwords were stolen and trading was suspended for about a week. Gox was hacked, resulting in the theft of bitcoins, user information and passwords.
ETH
THE CURRENCY BEHIND THE ICO MARKET
Features of Ethereum
Conceived by Russian Vitalik Buterin in 2013, the Ethereum project was launched in 2014 through an Initial Coin Offering (ICO). The original aim of the project was "to create an alternative protocol for building decentralised applications", and a number of Ethereum-based coins have now been created.
ITS MAIN FEATURE IS A DECENTRALISED PLATFORM CAPABLE OF EXECUTING "SMART CONTRACTS" THAT AUTOMATE A VARIETY OF CONTRACTS. IT IS ALSO A WELL-KNOWN ICO PLATFORM.
Ethereum and Bitcoin are able to trade and transfer money by using a consensus algorithm called Proof of Work (PoW), but the process of the algorithm involves a huge amount of computational work called mining, which requires the world's computer networks to operate 24 hours a day. It needs to be up and running. Ethereum's software developers have been working for some time to move to a "proof-of-stake" (PoS) system, which would solve the problem of the PoW system's massive carbon emissions. Currently, the full-scale transition to PoS has been delayed due to complex technical setbacks.
Date of issue
July 2015
Maximum issue volume
Undecided
Consensus algorithms
Proof of Work
Plans are underway to move to Proof of Stake.
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
In one case, a vulnerability in the program (smart contract) of the application "The DAO" on Ethereum was attacked and more than a third of the raised fund money was stolen.
ETC
Compete with Ethereum
Features of Ethereum Classic
ETHEREUM CLASSIC IS A BLOCKCHAIN THAT WAS CREATED IN OPPOSITION TO THE MEASURES TAKEN BY THE ETHEREUM FOUNDATION IN RESPONSE TO THE THE DAO INCIDENT (HACKING) IN JUNE 2016. IT IS A VIRTUAL CURRENCY CREATED BY A SPLIT (HARD FORK) OF ETHEREUM. IT IS INTENDED TO MAINTAIN AND OPERATE THE ORIGINAL ETHEREUM BLOCKCHAIN, WHEREAS ETHEREUM IS FOCUSED ON SCALABILITY AND DEMOCRACY. WHILE IT HAS THE SAME SMART CONTRACT FUNCTIONALITY AS ETHEREUM, IT IS CHARACTERIZED BY ITS OPPOSITION TO ETHEREUM, SUCH AS LIMITING ITS SCALABILITY IN ORDER TO INCREASE ITS RESISTANCE TO HACKING.
Date of issue
July 2016
Maximum issue volume
Undecided
Consensus algorithms
Proof of Work
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
In one case, a vulnerability in the program (smart contract) of the application "The DAO" on Ethereum was attacked and more than a third of the collected fund money was stolen. This incident led to the creation of Ethereum Classic.
XRP
Centralised, low fees and fast processing
Features of Ripple
The mechanism was invented in 2004, and it has been in operation since 2013. The main difference between Ripple and other virtual currencies is that it is a centralised currency.
Transactions are processed by a consensus vote of a majority of validators controlled and certified by Ripple. Processing times are fast and transfer fees are low.
XRP is a digital asset used in RippleNet, a new international money transfer platform that frees banks from the cost of maintaining nostro accounts and reduces foreign exchange risk for money transfer companies. With globally distributed validators approving transactions, XRP can handle a throughput of 1,500 transactions per second and can settle a transfer in four seconds. RippleNet is also different from other crypto assets in that it has already been adopted by more than 200 financial institutions, with Ripple and SBI Group leading the marketing efforts. It is the most popular virtual currency among Japanese people.
Date of issue
September 2012
Ripple Consensus Ledger Launch Date
Maximum issue volume
100 BILLION XRP
Consensus algorithms
Proof of Consensus
Impact of the failure of the issuer
In the event of Ripple's failure, it is believed that others will take over the operation of the network, but there is a possibility of loss of value.
Past incidents and program malfunctions.
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LTC
Complementary role for Bitcoin
Features of Litecoin
It is a pioneering virtual currency developed by Charlie Lee, a former Google engineer, in 2011 to complement Bitcoin. It is similar in nature to Bitcoin, but has four times the block generation speed and maximum number of shares, lower fees, and easier mining.
Since the Bitcoin system is the foundation, various new systems are often introduced before Bitcoin and then later on Bitcoin. It is a currency with a strong focus on practicality, with transfer times four times faster than Bitcoin.
The fact that Litecoin's official wallet has been made public and is intended to be used as a personal payment currency has also attracted attention.
As Litecoin is a complementary currency to Bitcoin, it is likely to increase in value proportionally as Bitcoin becomes more widely known.
Furthermore, Litecoin has been forming partnerships with payment and settlement companies, and its value and price could rise as it is adopted as a payment currency more often.
Date of issue
October 2011
Maximum issue volume
84 MILLION LTC
Consensus algorithms
Proof of Work
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
In 2016, 300,000 LTC (worth 100 million yen) were stolen following a hack on the Cryptsy exchange. All Litecoin was allegedly held in a hot wallet.
XEM
Focus on community contribution
Features of Nem
The virtual currency nem is a platform project that was launched in March 2015.
Apart from its developer "utopiafuture" (nickname), the NEM Foundation was launched in Singapore in 2016.
NEM stands for "New Economy Movement" and aims to create a decentralised platform based on the principles of economic freedom and egalitarianism.
NEM is a "Bitcoin 2.0" project that was created with the aim of solving the weaknesses of Bitcoin. It is a blockchain that has added various features, including mosaic generation and multi-sig, while improving transaction speed and fees, which are issues with Bitcoin.
The project is also unique in that it is a virtual currency project, with official NEM and community-driven events.
NEM's consensus algorithm is Proof of Importance (PoI), which means that the more people who contribute to the community, the more likely they are to participate in the block approval process.
NEM is one of the cryptographic assets with a strong community in Japan, and enthusiasts and holders of NEM are often referred to as NEMbers.
INCIDENTALLY, THE CURRENCY USED FOR NEM IS READ AS XEM, BUT THE IMAGE OF NEM AS A VIRTUAL CURRENCY IS ATTACHED TO THE NAME OF THE PLATFORM ORIGINALLY.
Date of issue
March 2015
Maximum issue volume
8,999,999,999 XEM
Consensus algorithms
Proof of Importance
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
IN JANUARY 2018, COINCHECK WAS THE VICTIM OF A HACK THAT RESULTED IN THE LOSS OF 523 MILLION XEM, WHICH CAUSED THE PRICE OF XEM TO PLUMMET.
MONA
Developed in the Japanese online community
Features of Monacoin
Monacoin (MONA) was created in December 2013 as the first cryptocurrency in Japan.
It originated from the noticeboard 2channel (now 5channel). The name is derived from the ASCII art character "Mona". It has a strong connection with internet culture and is widely used for real-time throwing money for video streaming.
The program is an open space, similar to Bitcoin, and there is no governing body.
It has been used by a community of mainly Japanese people as a kind of in-game currency. The main difference between MONA and other cryptocurrencies is that the main users of MONA are Japanese. MONA is used for comic markets rooted in Japanese culture, and for real-time donations in combination with video streaming.
On Twitter, a payment system that allows users to easily transfer MONA coins has been established and is actively used, making it a community-driven currency.
Date of issue
January 2014
Maximum issue volume
151.12 MILLION MONA
Consensus algorithms
Proof of Work
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
- In 2014, a block difficulty adjustment glitch caused delayed synchronization of the blockchain and other effects, and the algorithm was subsequently changed
- In May 2018, a 51% attack (Block Withholding Attack) occurred in which a malicious miner altered information on the blockchain due to its high computing power. This led to an unwinding of the Mona Coin chain, causing damage to virtual currency exchanges and other institutions, and a drop in the price of the currency.
- In September 2018, the Monacoin wallet site was hacked and approximately 15 million yen worth of Monacoin was leaked. This caused the price to fall.
FCT
Decentralised platform
Factum features
Factom is a decentralised platform that manages documents as electronic data on a blockchain. Using the blockchain, assets, contracts and payment records can be stored in a form that can never be revoked. Using Bitcoin's blockchain technology, the platform aims to reduce the cost of data management while maintaining robust security.
Factom was touted as a decentralised platform and there were some very promising projects underway.
However, now one of the project's management companies, Factom, Inc, has already been dissolved and there are no recent major project announcements.
Factom, Inc. will go bankrupt in 2020, but that doesn't mean that Factom has ceased to exist, and the virtual currency FCT will still exist and be tradable in 2021.
Please note that the virtual currency FCT is not technically a factum, but a factoid (Factoid: FCT).
The virtual currency FCT (Factoid) can be used as a fee when you use the platform's factom.
Strictly speaking, the Factoid Entry Credit can be used as a commission, but the virtual currency FCT can be exchanged for this Entry Credit.
Date of issue
September 2015
Maximum issue volume
No
Consensus algorithms
Proof of Work
Impact of the failure of the issuer
No impact due to decentralisation
Factom, Inc is bankrupt, but FCTs can still be traded
Past incidents and program malfunctions.
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LSK
Blockchain for building decentralised applications
Risk characteristics
Lisk is a platform for building decentralised applications, developed by Max Kordek and Oliver Beddows. The virtual currency (LSK) used within the platform is called "Lisk" as well.
Lisk is a blockchain that, like Ethereum, possesses smart contract functionality and is unique in that it uses a sidechain to build tokens.
The side-chain is designed as a private chain, which gives it scalability and development flexibility, and the arrangement of not building DApps (decentralised applications) on the main blockchain allows for high processing speeds.
Lisk is also known for its use of the javascript programming language. Lisk is also famous for its partnership with Microsoft, and besides Microsoft Azure, it has also partnered with Shape Shift.
Lisk uses a consensus algorithm, Delegated Proof of Stake (DPoS), in which risk holders vote to select 101 approvers to approve trades. The 101 approvers are selected by a vote of the risk holders, who are allocated votes based on their risk appetite, and approve trades in the order in which they are allocated. Each of the 101 approvers will receive a commission and a new issue of risk for each trade they approve.
Risk is an unfinished blockchain that was listed in 2016 and is still being developed and updated to this day.
It has the "sidechains" and "smart contracts" mentioned above, but the groundwork for creating them is currently in place, and none of them have yet been implemented.
- Decentralized Applications (abbreviated as DApps) are applications that run without a central administrator, such as companies and banks.
Date of issue
February 2016
Maximum issue volume
Undecided
Consensus algorithms
Delegated Proof of Stake (DPoS)
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
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ZEC
A virtual currency dedicated to anonymity
Features of G-Cash
Zcash is one of the virtual currencies, along with Monero and others, that have the performance of anonymity.
It is a virtual currency that has become the talk of the town after forming a partnership with the major bank JP Morgan.
It has an anonymity feature known as "zero-knowledge proof", which means that transactions can be kept private.
Zcash was developed to overcome the weaknesses of Bitcoin. Bitcoin's weakness is that the sender's and recipient's addresses, transaction details, history, and all other information is open and can be viewed by anyone.
Zcash uses a technology called "zero-knowledge proof" to hide all this information. It is therefore a highly anonymous cryptocurrency.
Apart from anonymity, Zcash is basically similar to Bitcoin in terms of functionality.
The anonymity of virtual currencies has led to their removal from virtual currency exchanges in a number of countries due to concerns that their performance could be misused for criminal purposes.
In Japan, Coincheck used to offer Zcash, but discontinued it in 2018 due to concerns about criminal use.
Date of issue
October 2016
Maximum issue volume
21 million ZEC
Same settings as BTC
Consensus algorithms
Proof of Work
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
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ADA
Towards a global financial infrastructure
Cardano features
Cardano/ADA (Cardano Ada) is a virtual currency used on the Cardano platform. The Cardano project aims to create the strongest virtual currency and platform that compensates for the shortcomings of currently issued virtual currencies such as Bitcoin (BTC) and Ethereum (ETH). Former Ethereum CEO and Ethereum developer Charles Hoskinson, a mathematician genius, and others are developing Cardano, incorporating proven secure technology with a design based on academic papers.
A virtual currency that was listed in October 2017, Ada Coin implements smart contracts. While smart contracts are a well-known feature implemented in Ethereum, Ada Coin's smart contract is a unique one called Plutus. Plutus is expected to be a more secure and functional virtual currency than Ethereum. Smart contracts automate contracts, but Plutus not only does contracts, it also records personal information.
With plans to develop Cardano as a versatile platform, listings on major international exchanges and partnerships with major companies, the value of Ada Coin is set to increase. Cardano's vision is "to be the wallet for the 3 billion people in the developing world who do not have a guarantee of identity", and it aims to become a global financial infrastructure.
Most recently, on the 2nd of March 2021, the currency has become more and more popular with the implementation of a major update, "Mary". Many users are looking forward to the future of this currency as it will be implemented with smart contracts and the addition of DeFi once the next update, Goguen, is complete.
As of May 2021, Ada Coin is not handled by any Japanese virtual currency exchange, so to purchase it you will need to buy bitcoin or other virtual currency in Japan and send it to an overseas exchange. However, it ranks high in surveys on the popularity of virtual currencies conducted by several virtual currency exchanges and companies.
Date of issue
October 2016
Maximum issue volume
45 BILLION ADA
Consensus algorithms
Proof of Stake
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
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USDT
A 'pegged' currency, whose value is linked to that of a legal tender
Features of the tether
Tether Limited is the sole issuer and manager of Tether (USDT), a strongly centralised virtual currency created in June 2014.
Tether (USDT) is a "pegged currency". Tether (USDT) is a "pegged" currency, which means that it is linked to the value of another currency.
Tether (USDT) is linked to the legal tender "US Dollar". The main feature of this currency is that it is fixed so that one US Dollar (USD) is roughly equal to one USDT. The value is maintained by keeping the same amount of Tether (USDT) issued and the USD held by Tether Limited.
Tether uses a consensus algorithm called Proof of Reserves (PoR), in which Tether itself has the authority to issue new Tether (USDT), and users can deposit legal tender into a designated account and the same amount of USDT will be issued. Tether itself has the authority to issue new Tether (USDT), and users can deposit legal tender into a designated account and the same amount of USDT will be issued, or deposit USDT into a designated account and the legal tender can be withdrawn and the deposited USDT will be lost.
As a strongly centralised virtual currency owned by Tether Limited, there is a risk of significant losses in the event of Tether Limited's bankruptcy or fraud, or the failure of the bank where the legal tender is deposited.
If you want to buy Tether, use an international virtual currency exchange such as Poloniex or Bittrex.
Date of issue
February 2015
Maximum issue volume
Undecided
Consensus algorithms
Proof of Reserves (PoR)
Impact of the failure of the issuer
As a strongly centralised virtual currency owned by Tether Limited, there is a risk of significant losses in the event of Tether Limited's bankruptcy or fraud, or the failure of the bank where the legal tender is deposited.
Past incidents and program malfunctions.
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BNB
BINANCE, ONE OF THE WORLD'S LARGEST VIRTUAL CURRENCY EXCHANGES
Binance Coin Features
BINANCE COIN (BNB) IS AN EXCHANGE TOKEN ISSUED BY BINANCE, ONE OF THE WORLD'S LARGEST VIRTUAL CURRENCY EXCHANGES.IT IS AN EXCHANGE TOKEN ISSUED BY BINANCE IN 2017 AND IS BASED ON THE ERC20 ETHEREUM TOKEN. IT IS AN EXCEPTIONALLY POPULAR VIRTUAL CURRENCY FOR A SINGLE EXCHANGE TOKEN.
The most important feature of BINANCE is that it can be used as a base currency. The base currency is a specific virtual currency that can be exchanged for the various issues of the exchange.
Most exchanges use major currencies such as Bitcoin and Ethereum as their base currency, but BINANCE also uses the BNB as its base currency. As a reserve currency, you can trade with many virtual currencies.
In addition, BINANCE Coin (BNB) will be repurchased by BINANCE itself for 20% of its quarterly profits, and the repurchased BINANCE Coin will be destroyed. This is called "burning".
This reduces the amount of BINANCE coins in circulation, making it an increasingly rare token. The total amount in issue is 200 million BNB, but it is designed to be halved to 100 million BNB through regular repurchases and burns.
Date of issue
June 2017
Maximum issue volume
200 MILLION BNB
Consensus algorithms
Delegated Proof of Stake (DPoS)
Impact of the failure of the issuer
We are affected by the reputation of the exchange towards Binance. In the event of Binance's bankruptcy or fraud, there is a risk of significant losses.
Past incidents and program malfunctions.
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DOT
'Multi-chain', stitching together different blockchains
Polka dot features
The DOT is a relatively new virtual currency, having only been listed in August 2020, but it is one of the most popular virtual currencies of the moment, having soared in 2021.
Polkadot is a project and a blockchain for the realization of a world called Web 3.0. Polkadot is a project and a blockchain that aims to create a Web 3.0 world, and the virtual currency (token) that is handled on the Polkadot blockchain is also called Polkadot "DOT".
Web 3.0 refers to the new decentralised (decentralised) world of the web, which is to be made possible by blockchain technology.
The Polka Dot project was launched in 2016 by Gavin Wood, co-founder of Ethereum, and others. Its blockchain token is called "DOT".
Existing blockchains provide decentralised management of virtual currencies, but it was not possible to link data between different blockchains. In order to achieve this, Polkadot has developed a technology called "multi-chain", which links different blockchains together, with the aim of creating an interoperable, decentralised web world (Web 3.0). It is expected to be a mechanism to further develop the blockchain.
Date of issue
October 2017
Maximum issue volume
Undecided
Consensus algorithms
Polkadot's consensus algorithm is GRANDPA, and Nominated Proof-of-Stake (NPoS) is used to select the validators who operate GRANDPA. In Polkadot's NPoS, "validators" or "nominators" participate in consensus-building, staking and voting on DOTs. Fraudsters forfeit the DOTs they stake, so the incentive to maintain security works.
Impact of the failure of the issuer
No impact due to decentralisation
Past incidents and program malfunctions.
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WHICH CURRENCY HAS A BETTER FUTURE THAN BITCOIN (BTC)?
All of the virtual currencies mentioned above are very popular and appear at the top of the rankings of the most popular currencies, not to mention the ones with the highest market capitalization. In our opinion, Cardano is the currency with the most promising future. If you are not sure which currency is best for you, we recommend the Cardano without hesitation. You can find more information on how to buy Cardano here. You can also get rewards for staking with Daedalus Wallet or YOLO Wallet. You can also use your mobile phone for quick and easy staking. You can learn more about staking with each of these tools here.