Exploring the Most Popular Cryptocurrencies Offered by IG
Cryptoassets are high-risk investments and may not be suitable for all investors. Their prices can be highly volatile, and you could lose some or all of the money you invest. Cryptoassets are not regulated in the same way as traditional investments and are not covered by the Financial Services Compensation Scheme (FSCS). Protection from the Financial Ombudsman Service (FOS) is limited. During periods of extreme market volatility, liquidity may be reduced, which can affect your ability to buy or sell crypto at your desired price. You should take time to understand how crypto works and the risks involved before investing. For more information, visit IG’s Crypto Risks page. |
Cryptocurrencies have established themselves as significant tradable assets in the financial markets, with distinct properties and use cases that appeal to different types of investors.
Cryptocurrency investing is now available with IG for eligible UK-based clients. The service offers access to 55+ cryptocurrencies, including the USDC stablecoin.
Bitcoin (BTC)
Bitcoin functions as digital gold - a store of value with a hard cap of 21 million coins.
- Uses Proof of Work consensus to validate transactions
- Limited supply creates scarcity unlike traditional currencies
- Remains the largest cryptocurrency by market capitalisation
Ethereum (ETH)
Ethereum provides a platform for decentralised applications (dApps) and smart contracts that automatically execute agreement terms.
- Transitioned from Proof of Work to Proof of Stake
- Significantly reduced energy consumption with "The Merge"
- Enables applications beyond simple value transfer
Ripple (XRP)
XRP facilitates fast, low-cost international transfers between different currencies for financial institutions.
- Uses unique Ripple Protocol Consensus Algorithm (RPCA)
- Settles transactions in 3-5 seconds
- Handles 1,500 transactions per second
- Doesn't require energy-intensive mining
Litecoin (LTC)
Litecoin offers faster transaction confirmations and lower fees than Bitcoin, making it suitable for smaller, day-to-day payments.
- Created in 2011 as one of the first Bitcoin alternatives
- Often described as "silver to Bitcoin's gold"
- Designed for smaller transactions
Stablecoins (USDC)
Stablecoins maintain stable value by pegging to fiat currencies like the US dollar.
- Provide protection against market volatility
- Serve as base currency for trading pairs
- Work as bridge between traditional finance and cryptocurrencies
- Allow trading without exposure to typical price fluctuations
Note: IG now supports USDC, allowing you to hold a USD-pegged stablecoin within your portfolio. |
Solana (SOL)
Solana offers high transaction throughput and low fees as a direct competitor to Ethereum.
- Popular platform for launching and trading meme coins
- Has experienced reliability issues and network outages
- Designed for hosting decentralized applications
Popular Altcoins
Beyond the major cryptocurrencies, numerous alternative coins ("altcoins") offer different technological approaches and use cases.
Altcoins like Cardano (ADA), Polkadot (DOT), and Dogecoin (DOGE) offer alternative approaches to blockchain implementation.
- Cardano emphasizes academic research
- Polkadot focuses on interoperability between blockchains
- Dogecoin began as a lighthearted project that gained mainstream attention
Why They Matter: Altcoins introduce technological innovations and alternative approaches to blockchain implementation.
What to Consider: Altcoins typically show higher volatility than established cryptocurrencies
What are the different crypto asset categories and their risks?
Asset Type | Description | Key Risks | Examples |
Stablecoins | Pegged to fiat currencies | - Counterparty risk | USDC |
Meme coins | Derive value from community interest and online trends | - Extreme volatility | DOGE |
DeFi tokens | Linked to financial applications on decentralized blockchains | - Smart contract risk - Data/oracle risk | UNI |
Staked crypto assets | Support transaction validation and consensus processes | - Liquidity risk (locked assets) | ETH |
What should you consider before investing in cryptocurrencies?
- Each cryptocurrency serves a specific function in the digital economy
- All cryptocurrencies carry unique risks including regulatory uncertainty, technical vulnerabilities, and market volatility
- Always conduct thorough research before investing
- Implement risk management strategies for these digital assets
