Top Cryptocurrencies in New Zealand 2024

Top Cryptocurrencies to Know
Top Cryptocurrencies to Know

Cryptocurrency is digital money secured by cryptography, operating without a central authority.

It uses decentralized technology, like blockchain, to track transactions and create new units. Examples include Bitcoin, Ethereum, and Litecoin.

Considering that the first cryptocurrency existed only about a decade ago, it is amazing how many different types of digital coins are now in the market.

It seems like each new day brings another swath of companies and initiatives, each boasting a new coin that they hope will revolutionize the playing field.

As a cryptocurrency investor, keeping track of it all can be difficult.

Explaining cryptocurrency in easy words –

Cryptocurrency is a type of digital money. Unlike the coins or bills you use in real life, cryptocurrency exists only online.

It uses a special technology called “blockchain” to track who owns what and ensure that people can’t cheat or steal money.

Think of it like a video game where players can earn and trade items, but instead of swords or coins in a game, cryptocurrency is real money that people can buy, sell, and use to buy things in the real world.

Generations of Cryptocurrencies

The Two Generations of Cryptocurrencies
The Two Generations of Cryptocurrencies

Cryptocurrencies have advanced over time, with each new generation improving upon the strengths and weaknesses of the earlier ones.

As of now, cryptocurrencies have 4 generations, including

  • Blockchain 1.0: Foundational security.
  • Blockchain 2.0: Decentralized applications.
  • Blockchain 3.0: Interoperability and scalability.
  • Blockchain 4.0: Advancements and innovations.

But what are these 4 cryptocurrency generations all about?

First Generation:

  • Purpose: Digital Cash (peer-to-peer payments)
  • Example: Bitcoin (BTC), Litecoin (LTC)
  • Focus: Store of Value, Medium of Exchange
  • Feature: Simple and secure transfer of value, limited functionalities

Second Generation:

  • Purpose: Smart Contracts and Decentralized Applications (dApps)
  • Example: Ethereum (ETH), Ripple (XRP)
  • Focus: Programmable money, Expanding use cases beyond basic transactions
  • Feature: Introduction of smart contracts for automation and dApp development

Third Generation:

  • Purpose: Scalability, Speed, and Efficiency
  • Example: Cardano (ADA), Solana (SOL)
  • Focus: Addressing limitations of first and second generations (scalability, transaction speed, energy consumption)
  • Feature: Improved scalability and faster transaction processing

Fourth Generation (Emerging):

  • Purpose: Privacy, Interoperability, and Security Enhancements
  • Example: Zcash (ZEC), Monero (XMR) (Privacy focus)
  • Focus: Addressing privacy concerns, interoperability between blockchains, and enhanced security measures
  • Feature: Privacy-focused transactions, interoperable blockchains for wider adoption, advanced cryptographic protocols
CryptocurrencyEstablishedFounder(s)
Bitcoin2009Satoshi Nakamoto
Litecoin2011Charlie Lee
Ethereum2015Vitalik Buterin
Tether2015Jan Ludovicus van der Velde
Binance Coin2017Changpeng Zhao
Solana2020Anatoly Yakovenko
XRP2012Chris Larsen and Jed McCaleb
USD Coin2018CENTRE
Cardano2017Charles Hoskinson
Dogecoin2013Jackson Palmer & Billy Markus
Avax2019Emin Gün Sirer
TRON2017Justin Sun
Polkadot2020Gavin Wood
Bitcoin Cash2017N/A
Chainlink2019Sergey Nazarov and Steve Ellis
Ripple2013Chris Larsen & Jed McCaleb

First-Generation Coins

First-Generation Coins
First-Generation Coins

When cryptocurrency was introduced, its focus was very limited. It was intended to be a monetary system for the people, bypassing the banks, credit card companies, and other financial entities that usually dominate the system. Everything started with Bitcoin.

1. Bitcoin What is Bitcoin and How to Bet Online with Bitcoin

Bitcoin
Bitcoin

Bitcoin, often symbolised as BTC, was first introduced by Nakamoto in January 2009. The current value of 1 BTC is approximately 7100+ USD.

It’s the world’s first digital currency built on blockchain technology that does not require any central bank or government.

Its main purpose was to allow people to conduct monetary transactions with each other without needing to employ a financial institution as a middleman.

The blockchain technology at the heart of so many cryptocurrencies allowed Bitcoin to exist.

How Does Bitcoin Work?

Bitcoin is like digital money that lives on computers worldwide. When you want to send it to someone, you make a digital transaction, and other computers check to ensure it’s real.

These transactions are grouped into blocks and added to a big digital book called a ledger.

Miners, powerful computers, compete to add these blocks to the ledger and are rewarded with new Bitcoin. It’s a decentralized system, meaning no one person or organization controls it.

Every time a transaction is made with Bitcoin, the network’s computers compete to solve a mathematical problem that will verify that transaction.

The winning “miner” is rewarded with a stash of Bitcoin, which is how the supply of the coins increases.

The blockchain permits the people involved in the transaction to trust that everything is done on the up and up. But instead of involving some bank or other institution, it is done by a network of computers.

Value of Bitcoin

The price of Bitcoin often fluctuates, but it’s typically traded at significant volumes, reaching billions of dollars daily.

Its value can vary within a 24-hour period, sometimes increasing or decreasing by a certain percentage.

Bitcoin’s price might also deviate from its recent highs or lows by a certain percentage. It has a circulating supply of around 19.71 million BTC, nearing its maximum supply of 21 million BTC.

2. Bitcoin Cash

Bitcoin Cash
Bitcoin Cash

As you might be able to tell from the name, Bitcoin Cash is a coin spun off the original Bitcoin.

In the Bitcoin community, there was controversy about how the mining process should be conducted and the size of the blocks of information that would be added with each new mining effort.

The Bitcoin Cash group wanted a change and hence took the open-source Bitcoin specs and created their coin.

How does Bitcoin Cash Work?

Like Bitcoin, Bitcoin Cash is a type of digital money that can be used to send and receive payments over the Internet.

You create a digital transaction when you want to send Bitcoin Cash to someone. This is like sending an email but with money instead of words.

The main difference is that Bitcoin Cash is designed to handle more transactions quickly and with lower fees.

It’s like having an express lane at the supermarket where you can check out faster and pay less.

Transactions are grouped into blocks and added to a big digital book called a blockchain. Miners, powerful computers, work to solve puzzles and add these blocks to the blockchain, just like with Bitcoin.

Bitcoin Cash started as part of Bitcoin but split off to improve transaction speed and cost.

This split is called a “fork,” and it allowed Bitcoin Cash to make changes that make it faster and cheaper.

So, Bitcoin Cash is digital money like Bitcoin, but it’s faster and cheaper to use for transactions.

Bitcoin Cash benefits somewhat from having a diverse connection to the original brand. Many swear by its ability to validate transactions faster than Bitcoin proper.

Currently, the value of 1 Bitcoin Cash is 500+ USD.

3. Litecoin

Litecoin
Litecoin

Litecoin was launched in 2011 by Charlie Lee and is often referred to as the “lite” version of Bitcoin.

While it adopts most of Bitcoin’s source code, Litecoin differs in several key areas, including its hashing algorithm, hard cap, block transaction time, and other factors.

It is considered the oldest cryptocurrency after Bitcoin.

Key Features of Litecoin:

  • Block Time: Litecoin’s block time is just 2.5 minutes, which is significantly faster than Bitcoin’s 10 minutes. This speeds up transactions.
  • Low Transaction Fees: Litecoin offers negligibly low transaction fees, making it ideal for real-time payments and daily use.
  • Real-Time Payments: Its fast block time and low fees make Litecoin suitable for everyday transactions.

As of June 2024, the current rate of 1 Litecoin is over $80 USD. When you mine Litecoin, you earn a share of the rewards for any blocks that are found. These rewards are then paid out to your Litecoin wallet.

Litecoin’s design and features make it a practical option for those seeking a reliable and efficient cryptocurrency for regular use.

4. Dash

Dash
Dash

Dash has much lower fees than Bitcoin. It can sometimes cost a few dollars to pay for something, which could be more than the item itself. A Dash transaction will cost the buyer just a couple of cents.

The proponents of Dash also like the way that the currency is being integrated into society more smoothly than other altcoins. For example, many gambling sites are receptive to Dash payments.

5. Tether

Launched in 2014, Tether is a digital platform that makes it easy to use traditional currencies like the U.S. dollar on the blockchain.

It allows people to transact with familiar, stable currencies without the usual ups and downs of cryptocurrencies.

Key Features of Tether (USDT):

  • Stable Value: Each Tether token (USDT) is always worth one U.S. dollar because Tether keeps the same amount of USD in its reserves.
  • Cross-Border Transactions: Tether enables quick and cheap transactions across different regions and countries without needing a bank or financial service provider.
  • Blockchain Integration: Tether tokens are built on various blockchains, including Ethereum, Tron, and Bitcoin Cash, among others.
  • Transparency: Tether claims that every USDT token is 100% backed by its reserves and regularly publishes records of these assets.

In terms of usage, the coins act much the same as Bitcoin in how they allow payments from peer to peer.

The difference is that the value of the coins is manipulated so that each is “tethered” to the much more stable United States dollar.

That is why Tether is the leader in a sub-category of cryptocurrency known as “stablecoins.”

Second-Generation Coins

These coins look to be more than just payment systems or investment vehicles, although they can be those things.

Hopefully, as more people become aware of cryptocurrency, the demand for new ways to use cryptocurrency will spur the market and lead many of these plans to come to fruition

1. Ethereum

Ethereum
Ethereum

Ethereum is a digital platform that lets people create and use applications without needing a middleman, like a bank. It has its own currency called Ether (ETH).

Created by Vitalik Buterin, Ethereum launched in 2015 after raising funds in 2014. It has since had many updates to improve it.

One key feature is “smart contracts,” which are like digital agreements that automatically execute without needing anyone to check them.

Ethereum also allows the creation of other digital coins, called tokens, like USDT and LINK.

Ether can be bought and traded on many websites, such as Binance, Coinbase, and Kraken. It’s popular and almost as big as Bitcoin.

Ethereum is like a global computer that anyone can use to create smart programs and digital money securely.

Those involved can make the terms as distinctive or as simple as they want, knowing that the blockchain will be the officiator without imposing the pricey fees that a lawyer would.

See also Ethereum Gambling – Playing Online Casinos with Ethereum.

2. Money Transfer Coins

Money Transfer Coins
Money Transfer Coins

Perhaps the most competitive niche in the world of cryptocurrency is the one that tries to serve those who want to do business in multiple countries.

This process is burdensome and costly for those trying to make this happen traditionally. A couple of cryptocurrencies that are on the rise are attempting to be the method by which international money transfer gets much easier.

3. EOS

EOS
EOS

EOS is attempting to be a smarter and faster version of Ethereum. The concern is that many different entities, all trying to use the blockchain at once, could be problematic, causing logjams and slower service.

That is especially true when you consider elements as relatively complex as smart contracts, which are handled by the Ethereum blockchain.

Regarding Apps, EOS is also trying to become a smoother version for developers. This cryptocurrency deals with the same issues plaguing those trying to up-end Bitcoin. However, Ethereum is already ingrained as the most popular name in the sector.

4. Ripple

Ripple
Ripple

Powered by its XRP coins, it is a company tackling the issue of transferring money between countries.

Right now, that usually requires the transferring bank to have an account with some foreign currency in the country to which the money will go.

That requires fees to be paid by the businesses or individuals doing the transfer, and the whole process takes a while.

Thanks to some promising patents and test results from using those patents, Ripple seems to be on the right track to making these transfers relatively hassle-free.

Still, Ripple causes some controversy in the world of cryptocurrency. This is because they are in charge of most of their XRP coins, calling into question whether theirs is a decentralized network.

5. Stellar

Stellar
Stellar

With its proprietary coin Lumen, this cryptocurrency offering is also honed in on solving the problems of transferring money across country lines with relative ease.

They claim their technology. Perhaps the biggest difference between Stellar and Ripple, besides the nature of the coins’ ownership, is their clientele.

Ripple seems focused on grabbing established companies and cultivating relationships with them. By contrast, Stellar, for the most part, has been trying to corner less-developed markets.

Synopsis

In New Zealand, more and more people are using cryptocurrencies for investment and payments.

The most popular is Bitcoin, often called “digital gold” because it’s valuable and widely accepted.

Ethereum is also popular because it allows developers to create applications and smart contracts on its platform.

Other important cryptocurrencies include Binance Coin (BNB), which is linked to the Binance exchange, and Cardano (ADA), known for its security and scalability.

The trend in New Zealand is similar to the rest of the world, with cryptocurrencies gaining popularity due to their potential for high returns and the growing acceptance of blockchain technology.

As of right now, the cryptocurrency offerings mentioned here seem to be a cut above the rest in terms of stability and potential.

One thing about the cryptocurrency industry you should know, however, is that the landscape can change quickly.

FAQs

Is crypto legal in New Zealand?

Absolutely! Cryptocurrencies are totally legal here, but they’re not like regular money. The Financial Markets Authority (FMA) regulates them because they’re seen as financial services.

What is the best cryptocurrency to get right now?

Yes, in New Zealand, cryptocurrency is treated as property and subject to income tax. However, unlike some other countries, New Zealand does not have a capital gains tax.

Do I need to pay tax on crypto NZ?

The best cryptocurrency to invest in can vary depending on factors such as market trends and individual preferences. Some popular choices include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA).

How can you buy crypto on the best Bitcoin exchange in NZ?

There are several cryptocurrency exchanges available in New Zealand. Here are some popular options along with their features:

Bybit: Offers a wide range of cryptocurrencies with a 0.1% trading fee.
Swyftx: Supports over 310 cryptocurrencies with a 2% NZD deposit fee and 0.6% trading fee.
OKX: Provides access to 300+ cryptocurrencies with a 0.1% trading fee and 0.1% spread.
Uphold: Allows trading of 250+ cryptocurrencies with a 1% trading fee and 1% spread.

About the author

Mamta Sharma

Mamta Sharma

Mamta Sharma is an influential figure in the realm of online gaming in New Zealand. With over eight years of expertise, she holds a prominent position as a content strategist at PokiesMobile NZ.

Mamta's journey, starting from the bustling streets of Mumbai to the serene landscapes of New Zealand, has given her a unique perspective on the world of online casinos.

Outside the virtual casino environment, Mamta is a also yoga practitioner and an advocate for holistic wellness.