What is Cryptocurrency? What are the Types of Cryptocurrency?

Crypto currency has seen a rapid rise in its popularity on the financial markets. Crypto currency can also be known as digital money. Other currencies are used by Governments, such as Rupee, US Dollar, Euro, and Euro in Europe. These currencies are used in the same manner as global money worldwide. The thing to remember is that these secret funds are not owned by the government. They are money given to the people. Therefore, no government agency or board can control their value. 

It makes me wonder why you don’t know all there is about Cryptocurrency. This article has been thoroughly discussed. Now it is your turn to learn more and share it with others. Let’s now discuss what Cryptocurrency actually is and the different types available.

What is Cryptocurrency?

Also known as digital currency, cryptocurrency can also be called digital currency. It is a type of Digital Asset that can be used to purchase goods or services. These currencies use cryptography.

This is a Peer to Peer Electronic System that we can use online to buy Goods and Services instead of regular currency. This system allows the government to work without notifying the banks. Some people believe that Cryptocurrency could also be used in a bad way.

If cryptocurrency is first, bitcoin will be the first to use these functions. We can see that there are over 1000 Cryptocurrencies in the world today, but only a handful are more important, which we will discover later.

Bitcoin is the most well-known cryptocurrency among all the ones. It was also the first to be created and is still used most. Although there have been many disputes about Bitcoin, today Bitcoin is the most popular Cryptocurrency. I will tell you about other Cryptocurrencies that you might already be familiar with.

How do you Invest in Cryptocurrencies?

You must choose the right platform to Invest in Cryptocurrencies. If you don’t choose the right platform, then trading may be more expensive. Wazirx is the most used Cryptocurrency platform currently in India.

It’s easy to trade and invest in it, and the founder is an Indian. It is something I have invested in and done for many years. It is possible to invest your money in it.

Different Types of Cryptocurrencies

Although there are many Cryptocurrencies, only a handful are actually performing well and can be used in conjunction with Bitcoin.

1. Bitcoin (BTC)

It is impossible to talk about Cryptocurrency without talking about Bitcoin. Bitcoin is the first cryptocurrency to be created in the world. It was created in 2009 by Satoshi Nakamoto.

It is a digital currency, which can be used to purchase goods and services online. It is not a central currency, which means there is no government or institution controlling it. Today’s coin’s value is around 13 Lacks. This is how important its present is.

2.Ethereum (ETH)

Ethereum, like Bitcoin, is an open-source and decentralized blockchain-based computing platform. Vitalik Buterin is the founder of Ethereum. Its Cryptocurrency token, also known as ‘Ether,’ is also its name.

The platform allows users to create digital tokens, which can then be used as currency. A hard fork recently split Ethereum into Etherem Classic (ETH) as well as Etherem. It is second in popularity after Bitcoin.

3. Litecoin (LTC)

Litecoin, a peer-to-peer decentralized cryptocurrency, was also released under the MIT/X11 licence in October 2011. It was created by Charles Lee, who was previously a Google employee.

Bitcoin is a product of a large hand. Many of its features can be traced back to Bitcoin. Block generation time for Litecoin is four times faster than that of Bitcoin. Transactions in this currency are therefore completed quickly. This is where the Scrypt algorithm can be used for mining.

4. Dogecoin (Doge)

It is fascinating to read the story behind Dogecoin’s creation. To mock Bitcoin, it was likened to a dog. Later, the cryptocurrency took the form of a dog. Its founder was Billy Markus. Scrypt Algorithm, which is similar to Litecoin’s, is also used.

Dogecoin’s market value is currently more than $197million. It is accepted by more than 200 merchants around the globe. This cryptocurrency is also very fast to mine.

5. Tether (USD).

According to coinmarketcap, Tether is the largest stable coin, with a market capital of $78 billion as at January 17th

It utilizes the blockchain technology of Bitcoin. Stable coins are a way to reduce volatility, which is why they are the best option for people who want to invest in cryptocurrency but are hesitant to face volatility.

6. Binance Coin

This cryptocurrency is the parent cryptocurrency for the Binance cryptocurrency exchange, which is the largest volume exchange in the world.

Binance was launched in 2017, but it has grown rapidly since then, allowing traders to trade on the platform. It has made a lot of progress since its initial price of $0.10 in 2017, which was only $0.10. The price rose from 5200% to 5200 on the 3rd January 2022, when it was only $0.10.