The crypto industry can feel like it has a language of its own sometimes, so we're here to clear the air on the business of tickers. Tickers were first introduced to the trading world in the 19th century to make trading stock more efficient, listing merely an abbreviation of the company and not the full name. This concept was later adopted by the crypto industry too. In this article, we provide a guide to avoiding crypto ticker confusion.
What is a crypto ticker?
Crypto tickers are abbreviated forms of a cryptocurrency used to represent the coin on centralized and decentralized exchanges. For example, BTC is used for Bitcoin and ETH for Ethereum.
Can two cryptocurrencies have the same ticker?
As both cryptocurrencies will likely be searched for and traded on the same exchange, each will need its own ticker in order to differentiate from the other. It has however been witnessed that smaller coins have adopted a more prominent cryptocurrency's ticker in order to drive interest. This is often related to scam coins and should be considered a red flag.
To simplify this guide we've broken it down into sections, covering tickers across payment focused cryptocurrencies, stablecoins, meme coins, development-focused platforms and a gaming platform.
Payment-focused cryptocurrencies
Since Bitcoin was launched in 2009, many coins have followed in its footsteps, attempting to recreate a more efficient digital money. While this isn't a bad thing, there have been a number of digital assets adopting the word "Bitcoin" into their name which has caused a considerable amount of confusion.
Here we take a look at the three most prominent payment-focused cryptocurrencies:
BTC - Bitcoin
The first and biggest cryptocurrency in existence, Bitcoin is the most widely adopted coin to this day.
LTC - Litecoin
One of the most successful forks off of the Bitcoin blockchain, Litecoin provides fast and cheap transactions.
XRP - Ripple
XRP offers one of the fastest value transactions, challenging the SWIFT payment method with its blockchain functionalities.
Stablecoins
Stablecoins were created to combat the volatility that crypto markets have become known for. These coins are pegged to fiat currencies, ensuring that their value remains the equivalent to one unit at all times. Stablecoins have gained popularity since the launch of the DeFi movement, and both these coins are in the top 5 biggest cryptocurrencies based on market cap.
USDC - USD Coin
USD Coin is pegged to the US dollar and was launched in 2018 by payment services company Circle and Coinbase.
USDT - Tether
Also pegged to the US dollar, Tether was launched by a Hong Kong-based company Tether in 2014. Tether is the first stablecoin to come into existence.
Meme Coins
Since the rise of Dogecoin, many cryptocurrencies have attempted to leverage the brand and incorporate the star Shiba Inu logo. Most of these coins have a minute market cap, so we'll focus on the two biggest ones, which are both currently positioned in the top 15 biggest cryptocurrencies based on market cap.
DOGE - Dogecoin
The original meme token, Dogecoin was created in 2013 from a hard fork off of the Litecoin blockchain. Dogecoin remains the biggest meme token to date.
SHIB - Shiba Inu
Leveraging the success of Dogecoin, Shiba Inu was launched in 2020 and provides a crypto ecosystem compared to Dogecoin's simple payment functionality.
Development-Focused Cryptocurrencies
Since the rise of Ethereum and the incredible innovation, it has provided a platform for, many other projects have launched a similar concept where developers can also create dapps. While they all share this common denominator, each project brings something unique to the table.
ETH - Ethereum
The original development-focused platform, Ethereum was launched in 2015 and is the most widely used by developers. Often susceptible to high transaction fees, many other projects have attempted to rectify this problem.
ADA - Cardano
Cardano was created by a co-founder of the Ethereum network and through rigorous academic research aims to provide a more streamlined platform on which developers can create blockchain-based applications.
DOT - Polkadot
Polkadot focuses on providing interconnectivity and interoperability between blockchains, allowing inoperable blockchains to exchange data and value.
LINK - Chainlink
Chainlink is an oracle network that allows smart contracts to connect with outside data, providing a "bridge" between blockchains and off-chain environments.
SOL - Solana
Solana is a high-performance blockchain that provides dapp and smart contract creation. Solana provides a faster and more cost-effective alternative to Ethereum.
Gaming Platform
Last but not least, we'll also cover this metaverse-focused coin which functions to assist the inner workings of the virtual reality game of the same name.
MANA - Decentraland
Launched in 2020, MANA operates as the in-house currency for players using the Decentraland platform. The coin can also be traded in the outside world on many popular exchanges.
An informative guide to avoiding crypto ticker confusion
We hope the guide above helps to dispel any crypto ticker confusion, particularly as you embark on your journey in the crypto space.As the regulatory landscape around cryptocurrencies continues to evolve, Tap offers a user-friendly, secure solution for those interested in entering the market, providing a convenient, simple and secure solution to buy, sell and store cryptocurrencies.
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