A Guide to the Top Ten Coins for Beginners

30/1/2018

With over 1400 coins to pick from, how can you tell if one is worth investing in? Lets start by looking at the top ten coins.

As at January 2018, Coin Market Cap listed the top ten crypto currencies (by Market Cap) are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, NEO, Stellar, Litecoin, EOS and NEM.

The Market Cap suggests that these coins are the most popular, so lets attempt to find out why.

To help describe these coins, so that they can be compared as equally as possible, I have used symbols to represent some of the unchangeable aspects of a crypto.

Ticker: The ticker symbol. This is usually 3 Letters. Most cryptos have one symbol, but some (like Bitcoin) have two. It is worth noting that symbols are not unique, and are not issued or governed by a single body, so double-ups are frequent.

Launch: This is the date the crypto was announced as launching or even existing. Most cryptos are not in any usable form at this point.

Release: This is the date the usable or beta form of the crypto was released.

Purpose: This is one word that very generally describes the point of the cryptos existence. Whether a currency, platform for other apps or a payment system, most cryptos can be boiled down to one word.

Origins: Where did the crypto originate? Cryptos are started all over the world. Sometimes they don't originate in a physical place, but in a virtual place (ie a forum or on social media).

Token: Is this crypto a token? ie does it rely on another crypto to work? The most common are the Ethereum tokens, ERC-20.

Open Source: Is this crypto open source? Can anyone view the code? Not all cryptos are open source, but the general consensus is that it is better if the code can be reviewed by independent sources.

Forked: Is the code base the same as another crypto? On occasion the developers of a crypto struggle to agree on particular change to a crypto, so they agree to each take the code they have and develop it in their own way, creating two versions of the software. This is called a fork.

Supply: How many coins (or tokens) will be created in total. This number can give us an idea of how common or scarce the coins might be.

Mineable: Coins that are mine-able allow members of the public to participate in the distribution of the crypto making the coin decentralised. If the coin is mine-able, we note the algorithm type, such as SHA-256 or SCRYPT.

Stake: If the coin can be staked, we note the consensus type. Coins that can be staked allow members of the public to participate in securing the network, making the coin decentralised.

Currency: Does the crypto have a specific name for its currency? This applies especially to platforms, such as Ethereum, that calls its internal currency Ether. Sometimes (but not always) when you purchase the crypto (through an exchange etc) you are purchasing the currency token, as opposed to a share in the business (as you would when purchasing stocks). In the case of Ethereum, you purchase Ether, not Ethereum. In the case of NEO, you are purchasing a voting share, but GAS (the currency token for NEO) is purchased separately.

Now that you know how the shorthand model works, lets look at each crypto individually.
I have given a short description of the reason the crypto was created in the first place, and what problem it is attempting to solve. I also describe how the crypto is currently being used, which is not always in its initial intended way.
Lastly, I look into its intrinsic value to investors. In order for a crypto to have long term value, it requires a financial eco-system. The eco-system requires interaction between the developers and the community who will ultimately use the crypto. This means there needs to be a way for the developers to earn income (so they can continue to develop), a way for the community to earn crypto (so the community has an incentive to be part of the project), a reason to spend the crypto, and an easy way for the crypto to be spent. If the crypto can't provide this eco-system then the crypto may struggle to survive long term.

Bitcoin

Creation
Bitcoin is the first cryptocurrency invented by Satoshi Nakamoto, an anonymous developer who desired a currency that was not controlled by a government or other central body.
Use Case
Bitcoin is currently in general use as a currency, and is famous for being used in illegal transactions and money laundering. Bitcoin is also used as a store of value and as an exchange coin against other cryptos.

Value
Developers earn by collecting fees from each transaction.
The community earns by selling goods and services in exchange for Bitcoin and by mining Bitcoin.
The community spends Bitcoin by purchasing goods and services using Bitcoin and by using the Bitcoin network (in transaction fees).

Website:
Block Explorer:
Whitepaper:
Github Code:
Wikipedia:

https://bitcoin.org/en/
https://blockchain.info/
https://bitcoin.org/bitcoin.pdf
https://github.com/bitcoin/bitcoin
https://en.wikipedia.org/wiki/Bitcoin

Creation
Ethereum is a platform style crypto created by Vitalik Buterin that has the ability to execute Smart Contracts. Smart contracts are additional scripts that are written specifically to run on the ethereum platform (as an operating system), which have real-world applications outside a currency.
Use Case
Ethereum is currently in general use as a currency, as a store of value, as an exchange coin against other cryptos and as an operating system for its dApps (an application run on a decentralised platform). See here for a full list of applcations built on the Ethereum platform.
Ethereums applications use an ERC20 token. This is a currency that the application can use as its internal currency (to buy and sell the services of the application), which piggyback on the Ethereum network, hosted by Ethereum addresses and sent by Ethereum transactions.

Value
Developers earn by collecting fees from each transaction and from d'App transaction fees.
The community earns by selling goods and services in exchange for Ethereum and by mining Ethereum.
The community spends by purchasing goods and services using Ethereum, by using the Ethereum network and by creating a d'App that uses the Ethereum network to process transactions.

Website:
Block Explorer:
Whitepaper:
Github Code:
Wikipedia:

https://ethereum.org/
https://etherscan.io/
https://github.com/ethereum/wiki/wiki/White-Paper
https://github.com/ethereum
https://en.wikipedia.org/wiki/Ethereum

Creation
Ripple is a payment system focusing on the banking system, managed by a network of independent validating servers that could belong to anyone, including banks or market makers.
Use Case
Ripple allows for payments between customers, corporations or banks regardless of location or currency, creating a point-to-point and transparent transfer in which banks do not have to pay corresponding bank fees. Users make payments between each other in either fiat currencies or in Ripple's currency (XRP).

Value
Developers earn by collecting (optional) fees from some transactions and from coins kept in escrow (60% of all coins in circulation)
Banks/Corporations can't earn ripple, but must be a validator of the network to participate in the network.

Website:
Block Explorer:
Whitepaper:
Github Code:
Wikipedia:

https://ripple.com/
https://bithomp.com/explorer/
https://ripple.com/files/ripple_solutions_guide.pdf
https://github.com/ripple/rippled
https://en.wikipedia.org/wiki/Ripple_(payment_protocol)

Creation
Bitcoin Cash is a forked version of bitcoin. This fork was created when developers disagreed on how to increase the processing times of a transaction. One set of developers chose to develop the code in a particular way that they believed would address the issue, and called this version of the code Bitcoin Cash. You can read more details about the debate here.
Use Case
Bitcoin Cash is actively used as a currency.

Value
Developers earn by collecting fees from each transaction.
The community earns by selling goods and services in exchange for BitcoinCash and by mining Bitcoin.
The community spends BitcoinCash by purchasing goods and services using BitcoinCash and by using the BitcoinCash network (in transaction fees).

Website:
Block Explorer:
Whitepaper:
Github Code:

Wikipedia:

www.bitcoincash.org/
https://blockdozer.com/insight/
n/a. The same as Bitcoin.
https://github.com/Bitcoin-ABC/bitcoin-abc
https://github.com/bitcoinclassic/bitcoinclassic
https://github.com/bitcoinxt/bitcoinxt
https://github.com/BitcoinUnlimited/BitcoinUnlimited
https://en.wikipedia.org/wiki/Bitcoin_Cash

Creation
Cardano is a currency and a platform being built to run smart contracts and decentralized applications. Cardano is being developed from a scientific philosophy and is designed by a team of academics and engineers. Cardano chooses to allow itself to be continuously peer reviewed, allowing experts outside the project to voice their opinion and suggest changes on aspects of the project.
Use Case
Still in production, Cardano is creating a Cardano debit card, with an accompanying app to use is everday life. The platform use of the Cardano network is also still in production.

Value
Developers earn by collecting fees from each transaction and from d'App transaction fees.
The community earns by selling goods and services in exchange for Cardano and by staking Cardano.
The community spends by purchasing goods and services using Cardano, by using the Cardano network and by creating a d'App that uses the Cardano network to process transactions.

Website:
Block Explorer:
Whitepaper:
Github Code:
Wikipedia:

https://www.cardanohub.org/en/home/
https://cardanoexplorer.com/
https://www.cardanohub.org/en/academic-papers/
https://github.com/input-output-hk/cardano-sl
https://en.wikipedia.org/wiki/Cardano_(cryptocurrency)

Creation
Neo is a platform and cryptocurrency which enables the development of digital assets, smart contracts and decentralised applications.
Use Case
Neo already has a wide range of applications that use the Neo platform. See here for their full list of advertised apps.

Value
NEO holders get voting rights in the NEO ecosystem as well as rights to dividends in the form of GAS when staked. GAS is used as an internal currency to deploy and run smart contracts. Both NEO and GAS can be purchased on the open market.

Website:
Block Explorer:
Whitepaper:

Github Code:
Wikipedia:

https://neo.org/
https://neotracker.io/
https://github.com/neo-project/docs/blob/master/en-us/sc/white-paper.md
https://github.com/neo-project
https://en.wikipedia.org/wiki/NEO_(cryptocurrency)

Creation
Stellar is a payment system focusing on consumer payment systems and banking, managed by a network of independent validating servers that could belong to anyone, including banks or market makers.
Use Case
Stellar allows parties to send money internationally for a fraction of a cent, regardless of the currency involved. It also provides a platform for mobile payment apps to connect with each other. Because the transaction has such a low cost companies can incorporate micro-payments into their systems.

Value
The value of a lumen is generated through each transaction which requires a fee of 0.00001 lumen. Lumens act as an additional security to the network, preventing wide scale DoS attacks because of the financial overhead to do so.
In addition, the network requires all accounts to hold a minimum balance of 1 lumen, ensuring the integrity of each user on the network

Website:
Block Explorer:
Whitepaper:

Github Code:
Wikipedia:

https://www.stellar.org/
https://stellarchain.io/
https://www.stellar.org/papers/stellar-consensus-protocol.pdf
https://github.com/stellar
https://en.wikipedia.org/wiki/Stellar_(payment_network)

Creation
A forked version of Bitcoin, Litecoin focuses on faster transaction times than bitcoin.
Use Case
Litecoin is used actively for general currency transactions.

Value
Developers earn by collecting fees from each transaction.
The community earns by selling goods and services in exchange for Litecoin and by mining Litecoin.
The community spends Litecoin by purchasing goods and services using Litecoin and by using the Litecoin network (in transaction fees).

Website:
Block Explorer:
Whitepaper:
Github Code:
Wikipedia:

https://litecoin.org/
http://explorer.litecoin.net/chain/Litecoin
n/a. The same as Bitcoin.
https://github.com/litecoin-project/litecoin
https://en.wikipedia.org/wiki/Litecoin

Creation
EOS is planned to be a platform, built on top of the Ethereum platform, that aims to shorten transaction times and reduce the end-user need to power the Ethereum network themselves when interacting with an application. EOS aims to allow applications to determine how much, if anything, their users need to pay to use the application.
Use Case
EOS is in the ICO phase until June 2018, at which time they will launch the platform.
Value
EOS will be required by applications (dApps) which will provide bandwidth and storage on the blockchain in proportion to their total stake. EOS holders will also be able to cast votes and participate in the governance of the blockchain.

Value
It is currently unclear how the EOS developers themselves will make an income. there is a suggestion that after the ICO block.one (the company who has created EOS) will become a d'App developer and make income in that way.
The community can earn by staking EOS and renting EOS stakes to d'App developers. As the use amount of resources available to your dApp is proportional to the number of EOS you hold, then scarcity of EOS will make EOS a suitable condidate for rentals.
The community does not have a way to directly spend EOS as it is an asset to be used in exchange for bandwidth on the network.

Website:
Block Explorer:
Whitepaper:

Github Code:
Wikipedia:

https://eos.io/
https://etherscan.io/token/EOS
https://github.com/EOSIO/Documentation/blob/master/TechnicalWhitePaper.md
https://github.com/EOSIO/
https://en.wikipedia.org/wiki/EOS_(cryptocurrency)

Creation
NEM is a general use currency built using the Proof of Importance algorithm which
new code base that was written entirely in Java. It uses the POI (proof-of-importance) algorithm, similar to Proof of Stake, where harvesters (stakers) are given an importance score, and as people’s score grows higher, they will have a better chance of earning the rewards.
Use Case
NEM is available for apps or businesses to use the currency in a variety of ways such as creating a currency, mobile payment systems, Escrow services, loyalty point systems, supply chain management, registries, voting and crowd funding.
Value
Earn :The value of a NEM is generated by the Proof of Importance algorithm, where harvesters earn NEM as their reward.
Spend:

Value
NEM developers earn by collecting fees from each transaction.
The community earns by vesting (staking) NEM and earning a vesting reward.
The community spends NEM by using the applications that use the NEM blockchain to operate (in transaction fees).

Website:
Block Explorer:

Whitepaper:
Github Code:

Wikipedia:

https://nem.io/
http://chain.nem.ninja/#/blocks/0
https://nodeexplorer.com/
https://nem.io/wp-content/themes/nem/files/catapultwhitepaper.pdf
https://github.com/NemProject
https://en.wikipedia.org/wiki/NEM_(cryptocurrency

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A Guide to the Top Ten Coins for Beginners

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