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26 Jun 2022

Things to Know About Cryptocurrencies – Types, Usage, Blockchain, TRON API, Etc.

Cryptocurrencies are currently used by more than 300 million people and experts claim that their popularity will continue rising in the future. To make things even better, governments around the world are now aware of the benefits that come with using these digital assets and are now becoming lenient towards them.

A lot of nations have already legalized them and the number of countries that still consider them illegal is small. Russia, China, Morocco, Bolivia, Colombia and Egypt are among the rare regions that do not want anything to do with these assets.

Considering the fact that a majority of the world's population wants to know what cryptocurrencies represent, we decided to assist in that region and explain several essential things that you should know about them. Without any further ado, let's start diving into the details.

Types of Cryptocurrencies

First off, cryptocurrencies are digital currencies, meaning that they have no physical shape/form. They can only be used electronically and there are two main types of cryptocurrencies:

         - Highly volatile

         - Stablecoins

Highly volatile cryptocurrencies are used by people that want to profit from them. Thanks to their high volatility, the price of these assets goes up and down and has the potential to rise a lot at a given time. Some of the most popular highly volatile cryptocurrencies are Bitcoin, Ethereum, Cardano, Litecoin, Bitcoin Cash and Dogecoin.

Stablecoins are the polar opposites of highly volatile cryptocurrencies. They are usually tied to a certain asset, such as the US dollar. Thanks to that fact, their value does not fluctuate; it remains the same. These assets are used for various types of payments and the most popular stable coins are Tether, USD Coin, Binance USD and Dai.

Most Popular Digital Assets

Currently, there are over 2,500 cryptocurrencies on the market. Considering the fact that this section has become a massive trend, everyone is looking to come up with a new digital asset. However, only a handful are widely regarded as the most popular cryptocurrencies.

The number 1 spot is taken by no other than Bitcoin. Bitcoin is actually the first cryptocurrency to ever be invented. It hit the market in 2009 and one of the biggest mysteries surrounding this token is related to its creator.

To this day, nobody knows the true identity of Bitcoin’s creator. All we have is a pseudonym – Satoshi Nakamoto. We don’t even know if Satoshi is an individual or group, male or female, nor what is this person/group’s nationality.

Interestingly enough, Bitcoin has been labelled as the most profitable and most valuable cryptocurrency. During its peak, this asset was worth more than $60,000.

The second spot is taken by Ethereum, which is also a highly volatile cryptocurrency. Here’s the most important thing that you should know about Ethereum, though – this is not just a crypto asset, it is a whole network.

Tether is ranked as the third most popular cryptocurrency as it is widely used for purchasing products and services. Many employers are also known to hire and pay workers with this asset. Tether is locked to the US dollar and its value is stable at $1.

USD Coin and Binance Coin take the fourth and fifth spots. The top 10 list features:

         - Cardano

         - Ripple

         - Binance USD

         - Solana

         - Dogecoin

Advantages of Using Cryptocurrencies

One of the main reasons why people are so fond of using cryptocurrencies is that they have tons of advantages. The first and biggest advantage is the fact that it can provide people with the chance to make a profit.

Statistics show that there may be 100,000 crypto millionaires in the world in 2022. People invest in highly volatile cryptocurrencies and once their value jumps, they re-sell them and make money. Alternatively, they can mine them and sell them for a profit.

What’s even better is the fact that cryptocurrencies are superior to regular payment methods. First off, they are powered by a method called cryptography. Thanks to this method, users gain a certain level of online anonymity, which increases their overall security.

This is a massive benefit because millions of people fall victim to online scams each year. Next up, regular payment methods have a middleman in each transaction. Banks process the funds and after they approve them, transactions are completed. In many cases, it can take up to 7 business days for certain funds to be cleared and sent to the receiver.

That is not the case with cryptocurrencies. Through mining, crypto transactions are processed within minutes and hence, are far more efficient. They are completely decentralized and take banks out of the equation.

Decentralization brings us to another advantage – saving money. When processing transactions, banks are known to charge certain fees. That is not the case with cryptocurrencies. Fees are completely taken out of the equation and in a way, you can actually save money.

As you can see, cryptocurrencies are a huge step ahead of other payment methods. Their advantages are the reason why many experts believe that they are the future of the financial industry. As the world is closer to becoming a “global village” with each passing day, it needs a universal currency that can be used at every corner. That is exactly what cryptocurrencies are offering.

The Blockchain System

Cryptocurrencies are part of the revolutionary blockchain system. In layman’s terms, blockchains are ledgers that contain information on all transactions made in history. With mining, crypto users record and verify crypto transactions and each transaction that is recorded becomes a block and is part of the blockchain.

Blockchains have several layers. Layer 1 refers to the main architecture of the blockchain whereas Layer 2 is an underlying blockchain that provides scaling solutions. Thanks to Layer 2 solutions, some transactions are offloaded from Layer 1 and the “transactional burden” is eased.

There are several things that power a blockchain system – nodes, API, cryptography, etc. APIs are one of the most important parts of blockchains as they allow you to connect to blockchain projects. For example, if you have a certain project connected to Tron, you will be able to process it via a Tron API.

Of course, if you want to have the best Tron API experience, you need to make sure you use a reputable and powerful platform. One of the world’s most reputable API platforms is Chaingateway.io.

As the site itself suggests, Chaingateway.io acts as a bridge between blockchain and the real world. It offers users several advantages, including greater security, on-time updates, it is universal and has responsive customer support. More importantly, Chaingateway.io is cheaper than the competition as it only charges for successful Tron API requests and no token listing fees. Its Blockchain API supports all coins and tokens that follow the following standards:

         - ERC20

         - TRC20

         - TRC10

         - ERC721

         - BEP-20

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