Are you new to the world of cryptocurrencies?
Finding the right one to invest in is the most important, but it can also be confusing. Are you wondering what are the different types of cryptocurrencies, and their purpose?
You need to know the history of cryptocurrency, its advantages, and shortcomings. With these, we can make all the difference when it comes to which one to choose. Keep reading for the main types of cryptocurrencies.
Let’s begin!
Bitcoin
Bitcoin was the first cryptocurrency. It is still the coin that most people think of when they talk about digital currency. Its release was in 2009, and since then it has been on a wild ride.
But it wasn’t until 2017 that people started to hear about the types of cryptocurrencies. Its current price is $20,247 and its market cap of $386 billion.
Ethereum
The second name you’re most likely to know in the crypto space is Ethereum. This is the name of the platform for cryptocurrencies. The system lets you use the currency ether to do many things. It’s the smart contracts that make Ethereum a popular currency.
Ethereum’s current price is $1,375 and its market cap of $168 billion.
Ethereum has constructed links in play-to-earn crypto games. It is a good evolution for the crypto industry. You can also find a game coin crypto by searching play-to-earn games over the internet.
Litecoin
Litecoin is a fork of Bitcoin and is very similar, but with a few key differences. Bitcoin is a decentralized currency, while Litecoin is a centralized one.
Bitcoin is also a peer-to-peer electronic cash system. Litecoin is a payment network. Litecoin also has faster transaction times and a higher market cap than Bitcoin. Its current price is $54.01 and its market cap of $3.9 billion.
Monero
Monero is a private, secure, and untraceable cryptocurrency that allows users to send and receive funds anonymously. Monero is an open-source project with active development communities.
Zcash
Zcash is a digital asset with utility similar to other cryptocurrencies. It can be sent and received, used to purchase goods and services, or held as a long-term investment.
This also offers users the option to shield their transaction data from the public, providing an additional layer of privacy.
Tether
The price of Tether is fixed at $1 per coin. It’s called a stablecoin. Stablecoins are tied to the value of a certain asset, like the U.S. Dollar in the case of Tether.
When traders move from one cryptocurrency to another, Tether is often used as a bridge. They use Tether instead of going back to dollars. Its current Price is $1 and its market cap of $68 billion.
Binance USD
Binance USD is a stablecoin backed by the dollar. It was made by the top cryptocurrency exchange Binance and Paxos. The New York Department of Financial Services is in charge of Binance USD, which came out in 2019.
BUSD runs on the Ethereum blockchain. Its current price is $1 and its market cap of $21 billion.
Learn the Popular Types of Cryptocurrencies Today
There are many types of cryptocurrencies, but the most common are Bitcoin, Ethereum, Litecoin, Monero, Zcash, Tether, and Binance USD.
Each has its own unique features and benefits. Bitcoin is the original cryptocurrency and is still the most widely used. So, what are you waiting for? Start investing in cryptocurrency today!
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