Types of Cryptocurrency You Should Know About | Since 2017, the world has taken a renewed interest in cryptocurrency. That year, Bitcoin hit its historic peak value of $19,783.06. Very shortly after this, the leading cryptocurrency took a 45% dive in value.
Since then, debates about the value of cryptocurrency have resumed. Some investors, such as Elon Musk, think cryptocurrency is the way of the future. Others, such as Warren Buffett, think they are too volatile to be secure investments.
However, if you want to form your own opinion, it’s helpful to know the basic types of cryptocurrency on the market. When you know how these cryptocurrencies work, you can decide for yourself whether to invest in them.
Types of Currency: Bitcoin
Bitcoin is the leading cryptocurrency in the world, with a share price of over $50,000. Bitcoin began in 2009 when the anonymous creator Satoshi Nakamoto released the currency. Its goal is to serve as money for the internet.
The currency is a “cryptocurrency” because it uses cryptography to maintain privacy and anonymity in transactions. Because it was the first cryptocurrency and remains the most valuable, it functions as the Coca-Cola of the crypto world.
It’s the standard system that most other cryptos model themselves after, but it’s not the only one. How many kinds of cryptocurrencies are there, then? You can easily exchange perfect money in Pakistan. Currently, there are over 4,000 in existence. However, only a handful have attained any prominence.
Differences Between Types of Cryptocurrency: Etherium
Bitcoin and other cryptocurrency types place a heavy focus on the digital currency aspect of cryptos. Alternative types of cryptocurrency, however, specialize in decentralized applications and platforms.
Ethereum, the second most valuable cryptocurrency, essentially models itself after an app store. This platform aims to grant app control back to their developers, untouched by third-party sources (like Apple or Samsung).
The currency side of this system comes in the form of tokens called Ether. These tokens become the currency of transactions between app developers and users. Learn more about this financial freedom and license at www.bytefederal.com.
The last two cryptocurrencies we’ll discuss revolve around large money transfers. For this reason, we’re calling these cryptos “corporate” since this transaction usually occurs at a corporate level.
The first of these is the cryptocurrency Ripple. Unlike other cryptocurrencies, Ripple does not rely on Blockchain. Instead, it focuses on larger companies and moving large quantities of money (through tokens on XRP) across the world.
Stellar, however, focuses on making transfers fast and efficiently. These transfers travel between national borders. This platform’s goal is to aid in developing national economies that don’t have traditional banking systems.
Stellar is a non-profit company and does not charge users for using its custom network.
Find Your Best Cryptocurrency
If you came to this article wondering, “What are the different types of cryptocurrency,” then we hope you’ve found your answer. While several other types of cryptocurrency exist, these four hold high prominence for several transfers.
Now that you know the types of cryptocurrency, investigate further to see if you should invest in them today.
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