If you haven’t heard of cryptocurrencies by now you must have been living under an exceptionally well insulated rock! Whether it’s chatter about blockchain technology or Donald Trump releasing his own $TRUMP cryptocurrency, crypto is a hot topic right now.
However, with all the jargon flying around, it can be difficult to tell your Bitcoin from your Binance Coin. When it comes down to it, what are the actual differences between all the cryptocurrencies out there? Put down the abacus, stop trying to tap your card on that calculator and join us on a foray into the future of payments.
Getting the basics down
Before coins start coming out of our ears, let’s talk crypto basics. Firstly, what even is cryptocurrency? In basic terms, crypto is a virtual form of decentralized currency. This means that it’s not tangible like a dollar or gold bullion, instead it’s all online. It also means that crypto isn’t attached to a central institution like a national bank. The control that this institution would usually have over their currency is instead passed onto the users.
Understanding blockchain technology
Blockchain is another common buzzword associated with the cryptocurrency industry. Blockchain technology is the foundation for payments using crypto. It’s a virtual ledger which records all the transactions made using a type of cryptocurrency.
Transactions can’t be erased or altered once they’ve been recorded in the ledger. That’s one of the reasons that you might hear cryptocurrency referred to as a more transparent payment method. The records made using blockchain are publicly available, so everyone can see the transactions made with the currency. It also helps to reduce instances of human error or market manipulation as all business is done in the open.
Now that you understand some of the terms associated with cryptocurrency, let’s take a look at some of the most popular coins.
1. Bitcoin
It’s only right that we start our journey with Bitcoin as it was the first cryptocurrency and the catalyst behind every other coin. Bitcoin was first mentioned in a white paper by its pseudonymous inventor Satoshi Nakamoto in 2008. Just a few months later in January 2009, the very first crypto transaction using Bitcoin took place between Nakamoto and software developer Hal Finney.
Bitcoin is a deflationary asset with a maximum of 21 million coins available to mine. Currently, there are around 17 million in use. The demand for the limited supply helps to support the coin’s value. As the most common cryptocurrency, Bitcoin is often offered as a payment method. This means you can spend your Bitcoin at merchants such as Home Depot, Airbnb, Domino’s, IKEA and Spotify. Thanks to its global recognition, you can also spend Bitcoin internationally.
The cons of using Bitcoin
Although Bitcoin is the most popular form of crypto at this time, being the first to the party has its downsides. Transactions made using Bitcoin take longer than many other forms of cryptocurrency; where others take seconds, Bitcoin takes minutes. It also requires specialized machines to be mined, such as ASIC Miners.
2. Binance Coin
Binance Coin comes under the category of a utility token, which is a kind of cryptocurrency used to gain access to specific functions on a site. Essentially, they grant users access to another form of cryptocurrency, piggybacking off the value of the original coin. It’s like paying at the door of a club so you can gain access to the drinks and dance floor!
Launched by the crypto exchange platform Binance in 2017, Binance Coin combines elements of a utility coin with currency tokens. So, while it is most commonly used to gain access to functions of sites, it also has value beyond this and can be used to purchase goods and services.
The downsides of Binance Coin
Firstly, Binance Coin is still under the control of Binance, making it highly centralized. For some, this means it loses the appeal of cryptocurrency. The company also owns a large chunk of the Binance Coins in circulation, so it retains control over the future of the cryptocurrency.
3. Dogecoin
We’re diving into yet another form of cryptocurrency and entering the world of memecoins with Dogecoin, the original memecoin. Based on the infamous meme depicting a Shiba Inu, Dogecoin was intended to be satire.
Unlike Bitcoin, there’s no limit on the number of Dogecoin that can be in circulation and what started as a joke is now one of the most popular forms of cryptocurrency. In the US, you can spend this memecoin at a couple of merchants, including Tesla and NordVPN.
What are the negatives of Dogecoin?
Although Dogecoin is quite popular, it’s not widely accepted as a payment method. This is due to concerns over the actual value of Dogecoin. With no limit on the number of coins in circulation or supporting institutions, the price of Dogecoin is prone to sharp fluctuations. In May 2015, Dogecoin plummeted to $0.00008547 a coin; it achieved its highest value of $0.7376 in May 2021.
4. Ether
Another big hitter on the cryptocurrency scene is Ether, which is the native crypto coin on the Ethereum network. Developed in 2015, this uncapped cryptocurrency aims to be the most accessible one available. It uses an open blockchain network, so all users have full transparency with regards to transactions. Although not as widely accepted as some of its competitors, Ether can still be spent at merchants ranging from luxury fashion to real estate.
One of Ethereum’s unique selling points is its smart contract technology. These digital contracts aim to give users full control over agreements. If both parties agree and meet the terms of the contract, it will immediately be signed. This eliminates the need for a third party to oversee the signing process.
What problems can you encounter using Ether?
The main problem when it comes to Ethereum is that the number of coins available is uncapped. As an increasing number are made available, the value of existing coins can be diluted.
5. Ripple XRP
The designated purpose of Ripple XRP is to make trading across borders easier and faster. It does this through reduced fees and removing the need for exchange rates. To speed up payments, it uses the unique Ripple Protocol Consensus Algorithm to validate transactions. This requires a network of trusted individuals to validate the authenticity of transactions.
Removing the need for intermediaries means Ripple has become the go-to for global transactions. It’s also widely accepted at airlines, takeout sites and luxury jewelry providers. Ripple XRP is popular with banks, including Santander and American Express, as an intermediary for sending money overseas with transactions taking a matter of seconds compared to the average 10 minutes for Bitcoin.
What are the negatives of using Ripple XRP?
Ripple XRP has come under legal pressure from the US Securities and Exchange Commission due to its rapid transaction speed. There have been concerns that not all the necessary checks are completed before allowing a transaction.
Why are cryptocurrencies so popular?
It may seem like cryptocurrencies are everywhere right now, and in a way, they are. There’s more users now than ever, with an estimated 28% of Americans or 65 million people owning some form of cryptocurrency. Those numbers have almost doubled from the start of 2022. Here’s a quick breakdown of why cryptocurrency is becoming even more popular in 2025.
Low fees
Regardless of where you’re looking to make a payment, cryptocurrencies usually have lower fees than other payment methods. Often, users only need to pay the minimum blockchain charge. This is certainly the case in the online casino world. By using leading crypto casino comparison site bitedge.com, players can find the best options while avoiding any hidden fees. They’ve been focused on crypto gambling since 2013, so they know exactly what to look for in a standout casino.
Quick transaction speed
As we’ve referenced before, the transaction speed of cryptocurrency trading is much faster than other transaction methods. Payments can even arrive in the user’s account instantly or within a few minutes.
No exchange rates
Sending money overseas can get complicated and expensive with hidden fees and steep exchange rates. In contrast, crypto payments aren’t subject to exchange rates, making overseas payments much easier.
Influencers and famous figures
Donald Trump has launched his own meme coin with $TRUMP. In May, he even hosted a dinner for the top 220 buyers at his Virginia Golf Club. His interest in crypto is no surprise as he promised to make America the ‘crypto capital of the world’. Trump isn’t the only one promoting cryptocurrency as numerous influencers on platforms such as TikTok and Instagram are also pushing cryptocurrencies.
What does the future look like for cryptocurrencies?
Following Donald Trump taking office in January 2025, we’ve seen much more favorable legislation for cryptocurrency. He seems determined to make the country the crypto capital by relaxing regulations and promoting the currency. There have been notable surges in value in line with this; Ether, the second most popular coin, increased a staggering 65% in value between June and July 2025.
Despite the current growth of crypto, it’s important to remember it remains a highly volatile currency regardless of the coin. Experts have highlighted these patterns of growth mirror those before previous crashes, prompting them to warn of an upcoming value drop. So, while cryptocurrencies are riding high at the minute, their unpredictable nature means you can only be certain of a future of fluctuation.
