What are blue-chip cryptocurrencies

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As the gloomy crypto winter turns the crypto market tides, investors are taking refuge in assets with solid fundamental backing. In other words, they rush to blue-chip cryptocurrencies.

In a standard business world, blue chip refers to financially sound businesses with built-in systems and support for profitability even under medium economic conditions. The term “blue-chip cryptocurrencies” in the context of crypto refers to blockchain-based coins with a market valuation of at least $2 billion. 

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What is the meaning of Blue-Chip?

In conventional finance, a business which is consistently outperforming its competitors is called a “blue chip.” The concept came from the days when there were three poker chips in colour—blue, red, and white—where the blue ones were the most expensive. Likewise, Blue-chip cryptocurrencies have withstood the test of time, survived imperfect markets and downturns, and have earned a reputation for being consistently steady and productive from a financial standpoint. And have gained the trust of investors. As a result, investors new to cryptocurrency can quickly go to blue-chip cryptocurrencies.

Blue-chip cryptocurrencies are less volatile due to their institutional nature, even though volatility is an inevitable component of any long-term investment plan. 

What are Blue-Chip Cryptocurrencies?

The “blue chip” definition in the crypto market also remains unchanged from the conventional finance model. Bitcoin and Ethereum, two “blue chip” coins, have made a name for themselves as institutions in the blockchain/crypto sector.

The first blue-chip cryptocurrency, and undoubtedly the most well-known, is bitcoin. Even though it occasionally experiences volatility, since its creation in 2008, it has continuously managed to see its value rise.

The value and popularity of Ethereum have both increased dramatically. Its reputation as a DeFi pioneer and the leading platform for non-fungible tokens (NFTs) remains the best for the foreseeable future.

Blue-chip cryptocurrencies like Bitcoin and Ethereum haven’t exactly endured the test of time like their stock relatives because of their recent appearance. However, they have survived downturns and bear markets, and the general public views them as financially stablecoins.

What are the best “Blue Chip” cryptocurrencies available in the market?

What are the best _Blue Chip_ cryptocurrencies available in the market

Bitcoin:

Bitcoin is one of the most prominent blue-chip cryptocurrencies available. It is a powerful digital currency initially referred to as a “Peer-to-Peer Electronic Cash System.” By using a unique Proof-of-Work (PoW) mining and consensus technique, Bitcoin introduced the world to a genuinely decentralised financial system.

There is only a finite number of 21 million bitcoin available. However, with a market valuation currently equal to around 1/10 of the total gold market, bitcoin is incredibly significant from any financial perspective. 

Even though some will refer to bitcoin’s short-term volatility as evidence of its legitimacy, over a sufficiently long time scale, it only has one direction: up and to the right. So when something is known as a blue-chip cryptocurrency, it has a proven track record of success. 

Everyone will be watching to see if bitcoin can continue its fantastic growth trajectory in light of recent innovations like the lighting network (a layer two protocol for the cryptocurrency) and taproot (its most recent software version).

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Ethereum:

Performance over time makes cryptocurrencies and DeFi so challenging to quantify right now. As a result, epic pump-and-dump schemes and coins without a value proposition or even a practical application have emerged. 

Of course, that does not apply to the entire DeFi market. But, as more people choose peer-to-peer, open protocols over the closed, traditional financial system, DeFi keeps demonstrating its legitimacy.

Ethereum is now the most stable and active DeFi blockchain. So, it is one of the blue-chip cryptocurrencies. Since Ethereum has just been operational for six years, its remarkable performance since 2015 has resulted in speculation about what comes after. The NFT market and its primary token’s meteoric growth add power to Ethereum.

Binance Coin:

The Binance Coin is the primary token of Binance. Binance is the cryptocurrency exchange with the highest daily trading volume, and its coin is also one of the blue-chip cryptocurrencies. There has only been a market for Binance coin since 2017, making it even more recent than bitcoin or ethereum. Binance intends to advance cryptocurrency trading and investment as all ambitious exchange project coins or tokens.

Binance is harnessing the incredible power of Web3 Composability for our users. It has Robust blockchains, trusted wallets, and even the Binance Academy for those who want to learn more about cryptocurrencies. While verifying the robustness of the cryptocurrency blockchain’s core tokens can be challenging, the Binance coin’s success is central to its many Binance initiatives in this space. It creates a positive feedback loop for users. That has made the Binance coin one of the blue-chip cryptocurrencies. 

Solana:

The Solana whitepaper, written by Anatoly Yakovenko in November 2017, describes the growth of a “Proof of History (POH)” blockchain. Starting as a regular blockchain network to become the “fastest blockchain in the world”, Solana has shown some success. They essentially employ a novel technique for network validators to make their network stronger. Processing transactions has become a rapid technique for enabling transactions when combined with Proof of Stake (POS). 

The developers of Solana hope to make their blockchain the one with the maximum throughput at the lowest cost. That is easy to say than have it done because most blockchains tend to charge more extensive fees if the network handles more transactions. Transaction time and fees increase in lockstep with usage on other significant blockchains, such as Ethereum, which is still growing.

Solana’s creators argue that the higher transaction fees will limit the possibilities and impacts the scalability of any exchange. However, they say they have created a solution for this and believe it will become “the fastest growing ecosystem in cryptocurrencies.” And it has become the blue-chip-cryptocurrencies available.

XRP:

The term “XRP” refers to the cryptocurrency stored on RippleNet, the company’s payment system. The decentralised XRP Ledger, on which the cryptocurrency runs, enables its activities.

The Ledger cannot host any other decentralised applications because it acts as an open source. Therefore, it is not a blockchain like Ethereum, only a decentralised public ledger.

The RippleNet money transfer network is renowned for providing quick money transactions to any location in the world. With a market worth of $ 24 billion, XRP is behind Ethereum. There are presently about 45.3 billion XRP available.

Cordano:

Compared to the other blue-chip cryptocurrencies mentioned earlier, it is the youngest and ranks fourth on the list in terms of market value. The valuation of the total number of existing ADA coins is 45 billion. 

They also use a proof-of-stake protocol that rewards users for creating new blocks. And this is thought to be much more energy efficient than the proof-of-work method that bitcoin uses. Additionally, it is more cost-effective than the other two cryptocurrencies (ETH & BTC), with a token price of approximately $2.15 instead of $3860 for Ethereum and over $62,000 for bitcoin, respectively.

A recent upgrade makes it possible to introduce smart contracts on the blockchain. Moreover, due to its excellent energy consumption, it is also the best eco-friendly cryptocurrency currently available.

Blue Chip Crypto vs Blue Chip Stock:

The United States often include traditional blue chip stocks in their market. Although there is no clear benchmark for market capitalisation, a blue chip stock is known to have a market cap of $5 billion.

Blue chip stocks often represent the market, industry, and sector leaders. Blue-chip corporations include Amazon, Google, Walmart, Disney, Coca-Cola, General Electric, and IBM. These are incredibly liquid, well-liked, trustworthy, and most importantly, highly stable stocks. As a result, they are secure investments, particularly during bear markets.

Blue Chip Crypto vs Blue Chip Stock

Blue chip crypto is the established coins and projects that longtime investors look to for stability within the cryptocurrency space. Few companies have achieved a sufficiently high reputation or market capitalisation to deserve a prime position. 

Bitcoin and Ethereum are relatively new and haven’t been around as much as some blue chip stocks, but they are blockchain pioneers and have emerged as the go-to cryptos. You can trust them in almost any market situation.

Mainstream vs DeFi blue chip coins:

It isn’t easy to differentiate between the established cryptocurrency and the new DeFi platforms.

The DeFi platforms build on the decentralised blockchain technology. They aim to transform the world’s banking system into a permissionless system without intermediaries. The popular cryptocurrencies, like Bitcoin, were never intended to offer anything that saves the ability to trade value. Instead, there were simply a blockchain, wallets, and cryptocurrency exchanges.

However, a wide range of additional services, including loans, loaning, investments, and ROI, are included in the financial services sector. Therefore, decentralised blockchain applications that offer all these different financial solutions in addition to the crucial store-of-value function are the reason for the rise of DeFi.

How to buy Blue-Chip Cryptocurrencies:

  • To buy blue-chip cryptocurrencies, you first need access to a platform like Bybit or another cryptocurrency exchange that sells blue-chip cryptocurrencies. Any exchange you choose should be safe and secure like Binance, Coinbase or upcoming exchanges like XBO. XBO employs military-grade security to safeguard user privacy and funds. XBO’s loyalty program signup is open now, where you can avail of exciting rewards just by enrolling with XBO. So, hurry up and register here.
  • After that, you must take a few more steps and change your fiat currency issued by the government into blue chip coins.

How to buy Blue-Chip Cryptocurrencies

  • Cryptocurrency exchanges are equivalent to stock trading websites like ETrade, TD Ameritrade, or Schwab. Therefore, Bybit is an excellent choice for investing in blue chip coins and other coins today since it is one of the best exchanges.
  • You must then fund your account before you start buying blue-chip cryptocurrencies. Connecting your bank account and exchange account is the least expensive option. But it can take a few days. You can purchase blue chips with a credit or debit card to save time. Although the costs are slightly higher, you also get the advantage of immediate deposits.
  • Choose a cryptocurrency, enter the amount you wish to spend (or acquire), and then wait for the exchange to complete the transaction. You can execute various buy orders depending on your trading experience and objectives.

Conclusion:

If you’ve been a long-time supporter of crypto and DeFi, it’s terrific to hear phrases like “blue-chip cryptocurrencies” being used to describe them. Of course, we frequently hear about safe equities that provide predictable returns, but we are just now beginning to observe this mindset toward the cryptocurrency space.

Although investors now have a safe place to store their money, thanks to the rise of reputable cryptos like Bitcoin and Ethereum, they have the uncommon ability to offer both protection and the possibility for profit. So, they are mostly choosing blue-chip cryptocurrencies to reduce losses.