There are over 8000 cryptocurrencies that exist today. The number continues to grow as crypto is growing constant in its expansion.
Cryptocurrency is digital money that comes in the form of tokens. These tokens exist in the digital world and are intangible. The different types of cryptocurrency use cryptography as security.
With cryptocurrency, you can make transactions anytime and anywhere. There are no limits on purchases or withdrawals when you use this currency. The benefits of using cryptocurrency include low-cost transactions.
Did you know that they didn’t create all cryptocurrencies equal these days? Here are the many different types of cryptocurrency that people trade today.
Bitcoin is an original cryptocurrency. It started in 2009 as open-source software by Satoshi Nakamoto. It’s now the most popular among the types of cryptocurrency.
It works by using blockchain technology that allows users to make transparent transactions. All users see the transactions made using Bitcoin. The record of transactions is in a digital ledger secured by blockchain technology.
The distributed ledger technology used in Bitcoin is tamper-proof and are transparent.
Unlike in banks, Bitcoin has no central authority. Users are anonymous in sending and receiving money. The transactions have a decentralized system and are peer-to-peer.
Learn more about Bitcoin and start trading today.
Ethereum is a blockchain network like Bitcoin. Their goal is to create a decentralized cryptocurrency market that users can access. Users can use Ethereum to pay for transactions that involve application developments.
It’s currently the second-largest digital currency in the digital market. Investors looking to make purchases of other digital currencies use Ethereum or Ether.
Digital versions of art called NFTs uses Ether for payment. These NFTs or non-fungible tokens represent ownership of unique items in the digital world. Some NFTs can sell for 500,000 dollars.
Litecoin was among the first cryptocurrencies after Bitcoin. It launched as an alternative currency to Bitcoin in 2011.
This cryptocurrency is a decentralized open-source network with no central authorities. Litecoin uses a consensus algorithm that requires participants to submit a node. This step qualifies them to add new transactions to the blockchain.
Some believe that Litecoin features faster transaction times. The coin limit for this cryptocurrency is 84 million. This limit is higher than other types of cryptocurrencies.
Dogecoin is the first joke cryptocurrency to launch. It launched in 2013 to poke fun at Bitcoin. This cryptocurrency caught people’s attention and, a lot of them invested in it.
This cryptocurrency features a meme of a Shiba Inu dog as a mascot.
Cryptocurrencies like Dogecoin makes recording payments easy and fast by using blockchain technology. It maintains a decentralized digital ledger like Bitcoin.
More than 130 billion Dogecoins are in circulation today. Dogecoins has no limit on production, unlike Bitcoin.
Different Types of Cryptocurrency
These are some of the types of cryptocurrency that exist today. Use this guide to decide what cryptocurrency to use in trading.
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