Any type of cryptocurrency does not have official status as a means of payment (a number of countries have already recognized Bitcoin as such but this issue is still open). But typical cryptocurrency properties like decentralization attract users more than many fiat currencies. The owner of any existing cryptocurrency is not tied to a geographical point, state or political system. Despite linking the exchange rate to fiat money like USD, cryptocurrency is valuable in itself and definitely has the ability to become the most popular payment gateway in the near future. That’s why we present you with the list of
Top 8 cryptocurrencies for payments:
- Bitcoin / BTC
- Ethereum / ETH
- Paxos / PAX
- Ripple / XRP
- Bitcoin Cash / BCH
- Tron / TRX
- Binance Coin / BNB
As a digital currency, Bitcoin is sometimes served as a simple problem solution for web sites that are in need to accept crypto payments. However, when you have already implemented the ability to accept payments in the most popular fiat currencies on your website, do you really need to think about additional ones, such as BTC? Usually, the currency of the country where the online store is located is definitely the primary goal. Most online merchants are focused on the local market, which means they want to receive payments in the local currency that they know and trust. At the same time, Bitcoin is such a popular currency right now and if a service is interested in attracting new users it would definitely come in handy.
Ethereum, the second most heard of crypto, is an open source software platform based on blockchain technology. This platform allows developers to create and deploy decentralized applications (dApps) on it. It was smart contracts that brought Ethereum fame. These are contracts written by program code and stored on the blockchain. They make transactions “traceable, transparent and irreversible”. Ethereum managed to win public trust, and the Ethereum Foundation, a non-profit organization, was created to manage its development. The development was funded by ICO, launched in July 2014. During the initial offer of coins, Ethereum released its own token, ether (ETH). ETH is the currency that controls everything in the Ethereum ecosystem. No surprise that it became a popular investment tool and payment method.
A wide range of people has learned about the Paxos stable coin project thanks to Binance’s support and listing announcement. But Paxos is not just a cryptocurrency pegged to the US dollar. Primarily, this is a platform for payments. Paxos project was made to solve the three main problems. First of all, it wanted to satisfy the need in instant conversion of fiat assets into digital assets and vice versa. At the same time, the number of counterparties and, accordingly, counterfeiting risks were minimized. Next problem is the elimination of transaction costs during trading. The last one is the minimization of fees when transferring funds. All of the above makes PAX a perfect online payment tool.
Ripple is a cryptocurrency operating on its own protocol and at the same time, a whole payment system used, among other things, by financial organizations. Initially, the Ripple system was conceived for the exchange of assets, and the Ripple currency appeared as a means of such exchange. In 2005, the first version of the system was released, and after six years it was decided to create a decentralized network with high speed and no mining process. 100 billion coins were issued in advance, of which only 39 billion were sold to users, the rest remained inside the company. 55 billion tokens were frozen through smart contracts. One of the contracts expires every month and 1 billion coins are released. With each transaction in the Ripple network, some XRP is removed from it. Therefore, over time, the cost of each XRP increases. As Ripple was created solely to be a payment system we think it is one of the best options for carrying out online transactions.
EOS is a blockchain-based system that allows, similar to Ethereum, you to develop decentralized, commercial-scale decentralized applications on the EOS.IO platform. Like Ripple, EOS.IO is capable of performing millions of transactions per second, which is so much more than 20 operations per second in Ethereum network and 3-4 in Bitcoins. EOS is more technological than Ethereum and Bitcoin (as it was developed much later), thanks to which its growth rates are highest compared to other cryptocurrencies.
Bitcoin Cash in 2017 as a Bitcoin fork. The two currencies have a common past, but from the moment of the fork, the miners of each platform build their own blockchain. The developers of Bitcoin Cash tried to fix the main drawback of Bitcoin, namely, slow transaction processing. For this, they increased the size of the cryptocurrency block. One of the main problems of Bitcoin was the time delay in the implementation of transactions, sometimes it took up to two days to conduct a transaction, which did not satisfy the users at all. These problems arose because of the small size of the Bitcoin block. The Bitcoin Cash block contains four times as much information as the Bitcoin’s block, which makes it more prepared and adapted to the current popularity of cryptocurrency.
TRON (TRX) is a decentralized open-source cryptocurrency. Tron coin was founded by the Chinese company TRON Foundation, registered in Singapore. TRON works as a unit of account in an application on the blockchain, in which content creators can receive a reward for its distribution. TRON technology is a distributed repository that allows its users to access entertainment content from anywhere in the world without the help of intermediaries. At the same time, content producers will receive rewards directly from the audience, depending on their popularity. As the entertainment industry is the biggest source of funds at the moment, we think that with the growth of the amount of the users, TRX can become quite a popular payment method.
Binance Coin (BNB), as is widely known, is a native token of the Binance exchange. BNB is used to pay fees on the stock exchange and to trade in pairs with 57 most popular cryptocurrencies. Binance Coin holders have a discount on the trading fees. Just lately, Binance has migrated its currency on the blockchain of its own. The cost of BNB Coin in the first place will be affected by the trading volume that occurs on the Binance stock exchange. At the moment, it is one of the most popular exchange ever so we are pretty sure BNB token won’t lose its appeal as a payment method.