When Bitcoin was created, it promised to be a method for individuals to exchange money without needing intermediaries such as governments and banks. People could process any payments nearly instantaneously instead of the traditional need to wait for several days. It also promised greater security and to be cheaper than the previous available method. So far, there have been several cryptocurrencies that have followed since the launch of Bitcoin, and many are now being used for payments, such as the following: 

Litecoin (LTC)

Litecoin (LTC) was created in 2011 by Charlie Lee, who was a former Google engineer. It is a peer-to-peer digital cash system born as a fork from the Bitcoin blockchain. In recent years, Litecoin (LTC) has seen an increased rise in its usage for payments. 

Recently, the Bitcoin Foundation, an organization that oversees and supports Litecoin development, drew attention to this utility increase on Twitter. In its recent sudden increase in utility, Litecoin (LTC) experienced a 50% increase in usage on Bitpay payment processes from spring to summer. On the platform, the token is second only to Bitcoin among the top preferred payment cryptocurrencies. 

Additionally, the token amassed 34.05% of Bitpay’s payment count in July 2023 while Bitcoin had 36.47%. During this time, LTC to USD hit a new record as it surpassed 175 million transactions. This increase in utility shows a growth trend. When compared with last year which was only 39 million. 

Additionally, in early August 2023, PayPal and Ledger partnered to ensure purchasing Cryptocurrency became easier. With this, individuals can now buy cryptocurrency directly from the Ledger app using their PayPal account. With Ledger Live software integrating with Paypal, U.S. citizens owning verified Paypal accounts can now purchase four cryptocurrencies which include Litecoin (LTC) straight from their Ledger Live with no added verification. 

Tether (USDT)

Tether (USDT) which was previously called RealCoin was launched in July 2014, is another top cryptocurrency that is used globally for payments. It ranks among what are called stablecoins; cryptocurrencies aiming to keep market valuation stable by being pegged to another financial instrument, currency, or commodity. 

The token is also among those grouped as fiat currency since a single tether token is tied to the United States dollar in terms of value. What this means is that when Tether is converted, it maintains a ratio of 1:1. This is due to the token reserves, which consist of US Treasury bills, secured loans, cash, and several investments. 

Tether (USDT) was specifically made as a bridge between cryptocurrencies and fiat currencies to offer transparency, stability, and reduced transaction costs for users. This has made  Tether (USDT) a unique cryptocurrency. By market cap, Tether (USDT) is the largest and number one stable coin and is also a preferred cryptocurrency for payment for many individuals. 

Ethereum (ETH)

In 2013, Vitalik Buterin conceived the idea of the Ethereum token. By July 2015 alongside Gavin Wood, Ethereum was launched. It is a decentralized software platform based on blockchain technology that allows smart contracts. Individuals can build and program any type of decentralized application (dApp) such as games, non-fungible tokens (NFTs), decentralized finance (DeFi), decentralized organizations, and more. 

This is why it has its native token Ethereum (ETH), which serves as a way of storage and interaction with Ethereum applications or for receiving payments for services and goods. For many years, Ethereum has always been the second largest crypto capitalization on market capitalization just after Bitcoin while Tether usually places third. This and other reasons are why Ethereum remains among the top cryptocurrencies used for crypto payments. 

Bitcoin (BTC)

This list will not be complete without mentioning Bitcoin – the first cryptocurrency created through a pseudonym called Satoshi Nakamoto in early 2009. It is a peer-to-peer digital cash system based on blockchain technology that is fungible, divisible, scarce (only 21 million bitcoins exist), and fully digital. 

At its inception, Bitcoin promised revolution and also with its leadership based on market capitalization, the token is now the most extensively used cryptocurrency for payments and other transactions for more than a decade. With these factors, Bitcoin remains the top cryptocurrency booth in terms of transaction number and volume. 

Dogecoin (DOGE)

Just like Litecoin is a fork emerging from the Bitcoin blockchain, Dogecoin (DOGE) is a fork that was made from Litecoin (LTC) blockchain. It was launched as the first meme coin by software engineers Jackson Palmer and Billy Markus in December 2013. The payment system was created as a joke, it was meant to make fun of Bitcoin and the 2013 cryptocurrency wild speculations. 

Despite these, Dogeocin has gained a lot of popularity in the cryptocurrency world and as a payment system. This is largely due to its supporters like Elon Musk, Mark Cuban, Snoop Dogg, and Jake Paul. Additionally, companies such as SpaceX, Dallas Mavericks, Newegg, and AMC Theaters take it as a method of payment. From a joke, the taken has become a serious project and now ranks among the cryptocurrencies used for payments. 

Binance Coin (BNB)

As a utility cryptocurrency, Binance Coin (BNB) is the payment method for fees related to the Binance exchange. Here, people can buy, trade, and store cryptocurrencies of their choice. Individuals using this token as a payment method usually conduct transactions at a discount. 

Created by Changpeng Zhao, the Binance exchange is among the most extensively used exchanges in the world, and the Binance coin which is used in the platform was initially an ERC-20 token operated on Ethereum blockchain. With such global usage on the exchange, it is no wonder that Binance coin is among the top cryptocurrencies used as a payment method. 

Endnote

In recent years, cryptocurrencies have become more established as a payment method globally for individuals and businesses. In 2021, El Salvador was the first country to use Bitcoin as a legal tender, while the Central African Republic also joined as the first African country to use Bitcoin. Additionally, both large and small companies are now heading in the same direction. All these point to the rise of cryptocurrencies as a payment system and it is largely due to individuals, businesses, and countries.

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