Types Of Cryptocurrency
A virtual alternative to cash, cryptocurrency or digital currency employs encryption to protect transactions and payments. Like fiat currencies, cryptocurrencies have no central authority or regulatory body; instead, they employ a decentralised peer-to-peer (P2P) network to track transactions and create new coins for the market.
Blockchain is a distributed public ledger that serves as the foundation for cryptocurrencies. All of the transactions that have been kept by the currency holders are recorded on a blockchain. Additionally, these currencies are kept in private digital wallets.
Because it uses encryption algorithms to validate transactions, cryptocurrency earned its name. Bitcoin, which was established in 2009 and is still the most well-known cryptocurrency today, is the first and largest cryptocurrency.
The cutting-edge nature of cryptocurrency’s blockchain technology is one of the reasons it has captured the hearts, minds, and wallets of so many people. t’s impressive how widely applicable blockchain and the idea of decentralisation are in our society, not just for the financial sector.
Different Types of Crypto?
Though they all use a blockchain-based infrastructure, cryptocurrencies differ noticeably from one another. Coins and tokens are the two main types of cryptocurrencies that can be distinguished in general.
Typically, cryptocurrencies fall into one of two groups:
• Coins , Altcoins & Tokens
3.What Is Coins & Altcoins :
Coins: Any cryptocurrency with its own independent blockchain is referred to as a coin. For instance, because it relies on its own infrastructure, Bitcoin is referred to as a “coin”. Ether also uses the Ethereum blockchain to operate.
Altcoins : Any coin outside Bitcoin is referred to as a “altcoin” in this context. Many alternative currencies function similarly to bitcoin. Others, like Dogecoin, are somewhat different,
though. In contrast to Bitcoin’s cap of 21 million coins, Doge, for instance, offers an unlimited supply of coins.
4.What Is Tokens :
What is Tokens: Tokens are digital assets that may be purchased and sold, just like coins. Tokens, on the other hand, are a non-native asset because they rely on the framework of another blockchain. These include Chainlink, Uniswap, and Polygon, as well as Tether, which runs on the Ethereum blockchain.
Top 10 Popular types of cryptocurrency :
1.Bitcoin :
Ticker : BTC
Bitcoin, the first and biggest cryptocurrency, continues to hold the top spot in terms of usage and value. In terms of market value, user base, and appeal,
Bitcoin continues to dominate the cryptocurrency market. Satoshi Nakamoto launched Bitcoin in 2009, and it reached its greatest point of $68,000 in 2021.
Because of significant developments like the taproot update and lightning network, bitcoin enables both smart contracts and DApps.
Since its inception, Bitcoin has been free of all centralised authority. As an alternative, it makes use of blockchain technology, a decentralised public ledger that stores a digital record of each Bitcoin transaction. Peer-to-peer (P2P) verification.
2.Ethereum :
Ticker : ETH
Ethereum is a decentralised open-source blockchain that supports smart contracts. After Bitcoin, Ethereum is the second-largest cryptocurrency and enjoys a very strong and dominant position in the market.
Ethereum runs on its own blockchain and supports smart contracts, which are automatically carried out when certain circumstances are satisfied and run on the same blockchain as Ethereum. The coin that utilises the Ethereum blockchain is called ether.
3.Tether (USDT):
Ticker: USDT
Tether is an example of a stablecoin that is intended to have a less erratic price by being connected to an outside asset.
This cryptocurrency does not experience the same level of price volatility as other cryptocurrencies because each coin is backed by a comparable amount of US dollars.
But whether it really is backed entirely by the dollar is up for debate.
It does not have its own blockchain; rather it runs as a second-layer token on top of other multiple blockchains such as Bitcoin, Ethereum, Tron, Algorand, Bitcoin Cash and OMG, and thus it is secured by their respective hashing algorithms.
Tether is not minable because of its asset-backed nature thus new Tether is issued to verified users who make fiat currency deposits.
4.Binance Coin (BNB)
Ticker: BNB
Native to Binance, the largest cryptocurrency exchange in the world as of 2021, is Binance Coin. Users who select BNB as their method of payment will pay lower transaction fees for this exchange. Binance Coin has become one of the most widely used crypto coins on the market as a result of this encouraging acceptance.
Binance eliminates or “burns” a predetermined portion of the currencies in circulation in order to maintain its value.
BNB has created a wide variety of use cases and practical applications and will be among the top five cryptocurrencies by market valuation in 2023.
But just like other digital assets, this crypto platform has encountered obstacles from both domestic and foreign regulators.
5.USD Coin (USDC)
Ticker: USDC
A digital stablecoin linked to the US dollar is called USD Coin (USDC). It uses the blockchains of Ethereum, Stellar, Algorand, and Solana to function.
The Centre consortium, which includes its two primary founding members, Circle and Coinbase, first developed USDC.
Each USDC coin is backed by a $1 reserve that is kept on hand and is periodically audited by Grant Thornton, a significant accounting firm. In March 2021,
it was revealed that Visa would make it easier to use USDC for settlement on its payment network. USDC was released in September 2018.
6.XRP (XRP)
Ticker: XRP
XRP, which utilises the Ripple network, has been referred to as a “cryptocurrency for banks” because it is specifically designed to meet the demands of the financial services sector.
XRP was designed to operate as a bridge between two separate currencies to provide faster, less expensive international transfers.
A system that can outperform numerous well-known cryptocurrencies and fiat transfer technologies is made possible by XRP. This has produced a top-notch payments system that reduces intermediary steps and raises the overall advantage for users.
7.Cardano (ADA)
Ticker: ADA
Cardano is a blockchain platform that supports smart contracts and uses proof-of-stake. Cardano is renowned for its emphasis on academic research, high throughput of transactions per second (TPS), and Ouroboros, an energy-efficient consensus process. Transactions and smart contract execution are facilitated via the Cardano network’s native token, ADA.
To evolve the network into a decentralised application (dApp) platform with a multi-asset ledger and verified smart contracts, Cardano is being constructed in five phases.
8.Dogecoin (DOGE)
Ticker: DOGE
Dogecoin, which was first developed as a meme of Bitcoin, is currently among the most valued cryptocurrencies in use. Dogecoin, which was created in 2013 and was based on a dog meme, initially gained notoriety in 2021.
Dogecoin is an alternative cryptocurrency that functions on a blockchain network with a PoW method, much like Bitcoin and Ethereum. However, unlike Bitcoin, which has a cap of 21 million coins, there is no limit to the number of coins that can be mined.
9.Polygon (MATIC)
Ticker: MATIC
Polygon (MATIC) is a cryptocurrency and a technology platform that was launched to connect and grow Ethereum-compatible projects and blockchains
Early in 2021, the Matic Ethereum infrastructure project changed its name to Polygon. Specifically created for Ethereum project developers, Polygon works on the Ethereum network’s or blockchain’s infrastructure and creates goods that speed up and safeguard blockchain transactions.
10.Solana :
Ticker: SOL
The Solana platform runs on a blockchain, just as Ethereum and Bitcoin, and SOL is its native coin. Given that Solana’s network can process a staggering 50,000 transactions per second, investors looking to transact quickly find this platform particularly appealing.
Among all the major blockchains, Solana is one of the most competitive Ethereum killers and has the highest TPS.
The Solana blockchain combines a hybrid proof-of-history and proof-of-stake consensus method to operate at a transaction rate of 3,000 TPS.
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