Cryptocurrency is a new form of currency that uses cryptography to ensure its safety and security. It operates independently from banks or governments, yet still relies on the community for power and stability. The monetary policy depends entirely on what type it falls under – with some being fixed while others allow creation based off predetermined rules
You may think that cryptocurrency is just a new, trendy word for electronic money. But in reality, it’s something much more than that. It signifies an entire change in monetary transactions and how they are conducted today. With this knowledge, let us explore the types of cryptocurrencies currently on the market.
As of April 2021, there were more than 10,000 different cryptocurrency types. A blockchain coin is first and foremost a form of money, so it exists only for storage and trading.
Bitcoin (BTC)
Bitcoin is a well-known cryptocurrency which was established in 2009. In comparison to the rest, Bitcoin is the original cryptocurrency.
Blockchain technology powers Bitcoin. Users can oversee and view transactions, so they can make safe transactions. The blockchain’s algorithm secures the transactions.
Only the Bitcoin owner has access to the private key, which allows them to decrypt the currency. Due to the fact that its users manage sending and receiving money, bitcoins allow anonymous transactions to take place across the globe.
Litecoin (LTC)
In 2011, Litecoin was launched. It was intended to be an alternative to Bitcoin. It is also an open-source, global payment network that is not controlled by any central authority. The transaction time of Litecoin is faster than that of Bitcoin. In addition, Bitcoin has a 21 million coin limit, whereas Litecoin has an 84 million limit.
Ethereum (ETH)
Founded in 2015, Ethereum is a relatively new cryptocurrency. Blockchain technology is also used. In particular, Ethereum is open-source and thus, the payment system for transaction fees and services can be used by the developers with the Ethereum network.
Ripple ( XRP)
In 2012, Ripple entered the market. In addition to being a cryptocurrency, it operates as a network to facilitate financial transactions. With Ripple, you’re able to exchange any currency you like, including gold, USD, Bitcoin and EUR. Ripple is used for moving large amounts of money, unlike other types of cryptocurrency that are mostly used for peer-to-peer transactions.
Stellar Lumen (XLM)
Stellar Lumen facilitates currency exchange and is thus used as an intermediary currency. Stellar Lumens can be used to send any currency owned by one to another in a different currency.
Bitcoin Cash
A number of features of Bitcoin were improved with Bitcoin Cash. The increase in block size allowed many transactions to be processed faster.
There are innumerable types of cryptocurrency, but these are some of the most important. If you are interested in trading cryptocurrencies, you can make a significant amount of money if you opt for one of these.