From Thether and Dogecoin to Ethereum and Bitcoin, there are numerous different types of
cryptocurrencies that are worth investing in. If you are just entering the crypto world, these types
might confuse you while investing.
Thus, you must have ample knowledge about each type of cryptocurrency to make sure you are
buying the right one. By continuing to read this article till the end, you will get to know more
about cryptocurrency and its types and what are the specifications for each one. Let's get
started!
Cryptocurrency – A Quick Overview
A digital or virtual asset that utilizes cryptography for secure digital transactions manages and
controls the new units' creations. This unique technique secures electronic information and
secures it by converting it into a code that is hard to decode.
The best thing about cryptocurrency is it is distributed in an anonymous fashion as well as 100%
transparent. Each transaction is recorded in the blockchain. The entire system of the
cryptocurrency is decentralized, meaning no central authority can control or change the rules of
the crypto world.
Popular Types of Cryptocurrency
Analyzing the cryptocurrencies that are on fire these days and those that are expected to be on
the rise in the coming days, we have enlisted the popular cryptocurrencies in the section below:
-
Bitcoin (BTC)
Bitcoin is the most well-known cryptocurrency that was established in 2009 and has the largest
market capitalization of all cryptocurrencies. Moreover, Bitcoin is considered the “digital gold” as
it is a good investment in the crypto world.
Bitcoin is similar to the traditional currencies in many aspects. Many shops use Bitcoinc for sale
and purchase purposes. Therefore, it is considered a cryptocurrency that can be used for both
physical and virtual shopping.
-
Ethereum (ETH)
Created in 2015, Ethereum has quickly become the second-largest cryptocurrency. Primarily,
this cryptocurrency is designed for a different purpose than Bitcoin. It is used for the interesting
decentralized applications (DApps).
Ethereum is a decentralized platform for working through smart contracts. These contracts are
programs that can run without the interference of third parties, thereby decreasing the chances
of fraud or scams.
-
Tether (USDT)
Another cryptocurrency that is pegged to the US dollar is Tether. It is one of the most popular
stablecoins and the third-largest cryptocurrency, and it is used to stabilize other currencies.
Therefore, when the market fluctuates, investors and crypto traders often move their money to
USDT to reduce the amount of money they lose.
-
USD Coin (USDC)
Created by Coinbase and Circle, USD Coin is a stablecoin that is backed by the US dollar. It is
available on Coinbase.
Similar to Tether, this stablecoin is also used to stabilize other cryptocurrencies. Since it is
available on Coinbase, it is one of the most accessible stablecoins. Coinbase is the popular
crypto exchange platform that allows secure crypto transactions.
-
BNB (BNB)
The native token of Binance is BNB. It is one of the most used platforms for selling, buying, and
trading cryptocurrencies. BNB is usually used to pay fees on the Binance. The fees you pay in
BNB are typically less than you have to pay in any other currency. Furthermore, it is also used
to buy other cryptocurrencies through the Binance platform.
Bottom Line
Investing in cryptocurrencies requires understanding its digital landscape and the popular types
available. Bitcoin remains a strong contender as a digital asset and for transactions. However,
Ethereum stands out for its smart contract capabilities and DApps.
With that being said, it is always better to stay informed to ensure you are making the right
decision. If you are aware of the current trends, you can definitely make the correct decisions in
your crypto world journey.
