|Types of Cryptocurrencies|
Types of Cryptocurrency Everybody Should Be Aware of in 2021
Cryptocurrencies are designed to function as a medium of exchange without being moderated by a central source. A highly potential product of the digital age, cryptocurrencies operate in a decentralized mode without the involvement of banks, governments, or any other intermediary. However, cryptocurrency transactions are done online through various cryptocurrency trading platforms. What makes it safe is the way cryptocurrencies work with futuristic technologies.
Following the increase in the use of bitcoins, blockchain technology became the list of most preferred techniques. Blockchain is a digital public ledger where the information of each transaction is given a unique identity or hash and added to the end of the ledger. Due to its open source nature and end-to-end encryption, blockchain technology is considered a pioneer in the cryptocurrency market. As of 2021, there are more than 10,000 different types of cryptocurrencies on the digital currency market, compared to 1,000 just four years ago. The increase in the number of growing cryptocurrencies is related to the ease with which new cryptocurrencies can be created. In general, cryptocurrencies fall into two categories, namely tokens and cryptocurrencies. Also, cryptocurrencies are divided into altcoins, stablecoins, tokens, etc. In this article, we show you some of the famous types of cryptocurrencies.
Types of Crypto Currency
- Bitcoin (BTTC)
- Ethereum (ETH)
Created in 2009, Bitcoin became a household name in the cryptocurrency market in the following years. Bitcoin uses blockchain technology to allow the user to make transparent transactions between peers. Although all users can see the transactions, no one can decrypt and steal them. The cells of the blockchain are protected with an algorithm, making it difficult for anyone to break them. Only the owner of the bitcoin can decrypt it using the provided private key. Each user has their own private key to moderate their bitcoin asset.
Price of the Cryptocurrency, Bitcoin, Is Currently Close to $38,907.41
Ethereum is the first altcoin to emerge from bitcoin technology. Running on a decentralized software platform, cryptocurrency enables smart contracts and decentralized applications (dapps) to protect against downtime, third-party interference, control, and fraud threats. Ethereum aims to develop a decentralized method of financial products that anyone around the world can use without concerns about nationality, ethnicity or faith. This makes users choose the digital currency over other applications produced by state or private financial institutions.
Price of the Ethereum Is Currently Close to $2,437.69
Dogecoin is a digital currency that was originally started as a joke. Later, the online community turned it into a cryptocurrency. With a Shibu Inu dog, Dogecoin has become a major source of digital currency like bitcoin. Elon Musk, the CEO of Tesla, is one of the biggest supporters of Dogecoin. Whenever he talks about cryptocurrencies on his social media page like Twitter or in SNL conversations, the price of Dogecoin skyrockets. By using Dogecoin, consumers can make quick and easy payments and create many coin amounts over time.
Price of the Dogecoin Is Currently Close to $0.3109
By exiting individual earnings sessions, Ripple, one of the unique types of cryptocurrencies, generates huge profits for large companies and corporations. Unlike many other cryptocurrencies, Ripple is not based on the famous blockchain technology. The digital currency is better known for its digital payment protocol than for its cryptography, as it allows companies to transfer large amounts of money around the world. One of the advanced features that the Ripple platform has is its ability to transfer money in any form, be it dollars or even Bitcoin, or even others.
Price of the Ripple Is Currently Close to $0.845
Cardano is a digital currency born from extreme research and analysis by engineers, mathematicians, and crypto experts. Charles Hoskinson, one of the founding members of Ethereum, was redirected to create Cardano after having a disagreement with the group. Due to extensive experimentation and peer-reviewed research, Cardano stands out among its proof-of-stake peers, as well as other major cryptocurrencies. Following the concepts of Ethereum, Cardano is also aiming to be on the top list of the financial operating system by establishing decentralized financial products.
Price of the Cardano Is Currently Close to $1.53
The cryptocurrency market is well known for its volatility. Despite the fact that cryptocurrency investors are well aware of price fluctuations, most of them are willing to wager a lot of money in the digital currency sphere despite its swing. However, as a sign of relief, Tether emerged as a reliable stablecoin. Tether is a cryptocurrency pegged to a fiat cryptocurrency such as the US dollar. Although Tether’s price spike is not remarkably high, many crypto investors enjoy other features, such as skipping the intervention of financial intermediaries.
Price of the Tether Is Currently Close to $0.9997
A more successful cryptocurrency that takes advantage of the bitcoin codebase is Zcash. Built on a decentralized blockchain, Zcash was built by scientists at MIT, John Hopkins, and other respected academics and institutions. One of the main characteristics of Zcash is its hidden nature. Users can send, receive and exchange Zcash without revealing the sender, recipient or the amount of the transaction.
Price of the Zcash Is Currently Close to $139.68