1:Bitcoin(BTC)
2: Ethereum(ETH)
3: Binance Token(BnB)
4:Solana(Sol)
5:Ripple(Xrp)
Bitcoin (BTC)
The oldest and most popular crypto token on the market, Bitcoin was the coin that started the entire crypto craze. From its humble beginnings in 2009, it has soared to unimaginable heights and gained the attention of investors, the media and businesses.
The network is used as an alternative means of payment to cash and is protected through Proof of Work consensus. All transactions are stored on a blockchain, while miners can earn rewards for each block of transactions they confirm.
Most well-known token, which leads to heavy investments in the project.
Relatively stable compared to some newer crypto tokens.
Cons of Bitcoin
BTC operates on proof of work, which consumes a lot of electricity and requires excessive time to confirm transactions.
As BTC acts as an index of the general crypto market, it rarely deviates from general market trends and conditions.
Ethereum (ETH)
After Bitcoin, Ethereum has established itself as one of the most dominant forces in the crypto market. It was the first to introduce smart contract functionality, which enables developers to create and automate several key features we take for granted today. Ethereum is also built to provide a platform for decentralised applications and finance, becoming the leading blockchain to service this need.
Pros of Ethereum
The largest player in the DeFi and dApp space. This gives it market dominance and requires that competitors offer much greater incentives to switch.
Ethereum’s Proof of Stake consensus mechanism has made the blockchain highly efficient. The future upgrades are focussed on increasing TPS and improving the already robust security protocols.
Cons of Ethereum
Ethereum sometimes has high network traffic that can slow transactions down to a crawl. It must rely on scaling solutions to address the traffic on its network.
Ethereum’s transaction costs can also skyrocket. In some cases, the fees can be higher than the value of the transaction.
Binance Coin (BNB)
Launched in 2017, BNB has evolved from a simple token to powering its own ecosystem. At first, BNB was used to provide special benefits to users of the Binance crypto exchange, such as lower fees, exclusive access to initial coin offerings and cashback.
Today, it forms the backbone of the BNB Chain ecosystem, which boasts high speed and low cost to compete with Ethereum’s dominance. It has established itself as a strong option in the market.
Pros of BNB
Low costs and high throughput mean it can service much greater demand than many competitors.
Owning BNB provides you benefits on the Binance exchange platform
Solana (SOL)
Solana is a decentralised blockchain platform created for scalability first and foremost. It is one of the fastest blockchains on the market, with a transaction speed of almost 65,000 per second. It accomplishes this through the unique Proof of History consensus mechanism, which allows nodes to synchronise time across the network.
Solana has been one of the fastest-growing projects in the DeFi space and is widely called an “Ethereum-killer”.
Pros of Solana
Solana is one of the fastest blockchains on the market, making it highly popular among investors.
The platform also has very low transaction fees, with an average of $0.00025.
Cons of Solana
Solana is not easily interoperable with Ethereum, thus restricting its smart contracts to those built for the network.
Solana has experienced several network outages that have made it unreliable for its users.
Ripple (XRP)
Unlike other general-purpose tokens, XRP is focused on creating payment solutions for banks and financial institutions. It solves several problems with competing systems like SWIFT for international settlements. Instead of requiring several hours or days for transfers to be finalised, XRP allows such settlements to be completed in a matter of seconds.
Ripple has made traditional finance much more accessible for users through the efficient application of blockchain technology.
Much faster than its competitors like SWIFT.
Expand access to banking and international settlement by lowering barriers to use.
Cons of Ripple
The network is highly centralised as all transactions are confirmed by a federated group of financial institutions.
Ripple Labs is engaged in a legal battle with the US Securities and Exchange Commission