Do you know what types of cryptocurrencies are?
You are probably aware that the cryptocurrency market has experienced great growth in the last five years and it is almost inevitable to hear news about cryptocurrencies during the day. In the world of investors, there are still two poles: those who advocate cryptocurrencies and say it is the future and those who are skeptical about this form of investment. We can divide them into crypto-bulls and crypto-bears.
Regardless of which group you belong to, it is good to know what types of cryptocurrencies exist, because the more knowledge you have about that matter, the more informed you will be able to make a decision on whether to invest in cryptocurrencies or not. These are the types of cryptocurrencies to which everyone else could be reduced: Bitcoin – as the first cryptocurrency to be created, then Altcoin – a name derived from the word alternative coin, which would mean all other currencies other than Bitcoin (like Etherium, Ripple, Dogecoin, etc.) and of which there are over four thousand. Read the next chapter on how to decide which type of cryptocurrency to invest in.
What types of cryptocurrencies are best to invest?
As we have already said, the basic types of cryptocurrencies are Bitcoin as the first cryptocurrency and altcoin as all other cryptocurrencies modeled on Bitcoin. However, this should not be the only criterion by which we can share cryptocurrencies. Apart from the time of origin, cryptocurrencies can be divided into these types of cryptocurrencies: cryptocurrencies such as bitcoin, which are essentially a new digital medium of exchange such as money, and etherium and similar cryptocurrencies, which are much more widely used, and software for creating smart contracts and many others. application.
To this division we can add the increasingly popular NFTs, whose translation reads non fungible token, and includes various drawings and other works of art whose value can vary greatly. Which of the following types of cryptocurrencies is best for investing is up to you to find out. Be sure to keep in mind that this is the most risky form of investment, which refers to a market that is highly volatile and unpredictable, and where many cryptocurrencies do not have the intrinsic value that would set them apart from competitors.
These are the types of cryptocurrencies you need to know
Globally, the most used and best known cryptocurrency is certainly Bitcoin. This is exactly the first cryptocurrency according to which other cryptocurrencies are called alternative coins or Altcoins. These are also two types of cryptocurrencies. There are thousands of such alternative cryptocurrencies, and every now and then we can hear how an investor or a private company supports a certain cryptocurrency because it thinks that it is better than the others. Types of cryptocurrencies can be determined in another way, ie – according to market share – ie. the amount of money in dollars in a particular cryptocurrency.
Bitcoin currently dominates the area as its market share is currently 66%. Right behind it is Ethereum, which is a version of the programmable blockchain. This allows for a much more diverse use of this cryptocurrency, e.g. for smart contracts and various financial transactions that otherwise require an intermediary. In this way, the need for an intermediary is lost and the transaction is much faster. The third cryptocurrency according to market share is Ripple, and it is actually a protocol used for international payments between banks.
Top 10 Types of Cryptocurrency
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Ethereum Classic (ETC)
- Zcash (ZEC)
- Dogecoin (DOGE)
- Stellar Lumen (XLM)
- Polkadot (DOT)
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source: sofi