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When Bitcoin launched in 2009, it didn’t have much — or any — competition in the newly minted realm of digital currency. By 2011, though, new types of cryptocurrency began to emerge as competitors adopted the blockchain technology bitcoin was built on to launch their own platforms and currencies. Suddenly the race to create more crypto was on.
Today there are thousands of different types of cryptocurrency, and while each is designed to provide some new feature or function, most are founded on similar principles to those that established bitcoin:
• Cryptocurrencies are not issued, regulated, or backed by a central authority like a bank.
• They are created using a distributed ledger (blockchain) and peer-to-peer review.
• Bitcoin and other coins are encrypted (secured) with specialized computer code called cryptography.
• As assets, cryptocurrencies are generally stored in digital wallets, commonly a blockchain wallet, which allows users to manage and trade their coins.
Today there are thousands of different types of cryptocurrency, and while each is designed to provide some new feature or function, most are founded on similar principles to those that established bitcoin:
• Cryptocurrencies are not issued, regulated, or backed by a central authority like a bank.
• They are created using a distributed ledger (blockchain) and peer-to-peer review.
• Bitcoin and other coins are encrypted (secured) with specialized computer code called cryptography.
• As assets, cryptocurrencies are generally stored in digital wallets, commonly a blockchain wallet, which allows users to manage and trade their coins.
Why are there so many types of cryptocurrency ?
Blockchain technology is open source, meaning any software developer can use the original source code and create something new with it. Developers have done just that. There are estimated to be more than 4,500 different cryptocurrencies in circulation as of this writing, and the figure keeps increasing. For reference, it was only about four years ago that the number of cryptos surpassed 1,000.
Part of the reason for the surge is the relative ease with which new cryptocurrencies can be created. The source code of one can be used to build another.
Part of the reason for the surge is the relative ease with which new cryptocurrencies can be created. The source code of one can be used to build another.
For example, the Ethereum (CRYPTO:ETC) network can be used to create your own personal digital coins. And sometimes there are "forks" in the software code that change the rules about how a crypto is governed, which can lead to the creation of a new crypto.
Bitcoin Cash (CRYPTO:BCH) was created in 2017 as a result of a Bitcoin fork allowing for more transactions to be recorded on a single block of the blockchain.
Surging crypto prices have led many developers to pile in to try and get a cut of the action. And blockchain technology has usefulness beyond just digital currencies (more on that in a minute).
Surging crypto prices have led many developers to pile in to try and get a cut of the action. And blockchain technology has usefulness beyond just digital currencies (more on that in a minute).
Thus, while some cryptos might be a bubble that will eventually pop, the decentralized nature of the technology and the broad scope of how it can be applied in the software world is in itself a reason why there are so many cryptos.
Litecoin is believed to feature faster transaction times.
The coin limit for Litecoin is 84 million.
They operate on different algorithms, Litecoin’s being “scrypt” .
Types Of Cryptocurrency
1. Bitcoin (BTC)
As the harbinger of the cryptocurrency era, Bitcoin is still the coin people generally reference when they talk about digital currency. Its mysterious creator — allegedly Satoshi Nakamoto — debuted the currency in 2009 and it’s been on a roller-coaster ride since then. However, it wasn’t until 2017 that the cryptocurrency broke into popular consciousness.2. Ethereum (Ether)
Ether is the cryptocurrency that runs on the Ethereum blockchain. Like Bitcoin, Ether operates on its own blockchain—but unlike Bitcoin, Ether is uncapped, meaning that an infinite number of coins can theoretically be created. Ethereum also supports smart contracts, which are programs that run on the Ethereum blockchain and are executed automatically when certain conditions are met.
3. Litecoin (LTC)
Litecoin was launched in 2011 as an alternative to Bitcoin. Like other cryptocurrencies, Litecoin is an open-source, global payment network that is completely decentralized, meaning there are no central authorities.Litecoin is believed to feature faster transaction times.
The coin limit for Litecoin is 84 million.
They operate on different algorithms, Litecoin’s being “scrypt” .
4. Tether (USDT)
Tether’s price is anchored at $1 per coin. That’s because it is what’s called a stablecoin. Stablecoins are tied to the value of a specific asset, in Tether’s case, the U.S. Dollar. Tether often acts as a medium when traders move from one cryptocurrency to another. Rather than move back to dollars, they use Tether. However, some people are concerned that Tether isn’t safely backed by dollars held in reserve but instead uses a short-term form of unsecured debt.
5. Binance Coin (BNB)
Binance Coin is native to Binance, the world’s largest cryptocurrency exchange as of 2021. Transaction fees for this exchange are reduced for users who choose to pay in BNB. This has encouraged the adoption of Binance Coin, making it one of the largest cryptocoins in the market. To ensure its value remains stable, Binance destroys or “burns” a fixed percentage of the coins in circulation.6. Zcash (ZEC)
Zcash is a digital currency that was built on the original Bitcoin code base. Conceived by scientists at MIT, Johns Hopkins and other respected academic and scientific institutions, it was built on a decentralized blockchain. A core feature and differentiation of Zcash is an emphasis on privacy.While not a function available to investors on Equity Trust’s platform, users can send and receive Zcash without disclosing the sender, receiver, or the amount transacted.
7. Terra (LUNA)
Using its currency Luna, Terra is a platform that helps backstop a range of stablecoins based on real currencies such as the dollar or euro. Terra helps stabilize the price of stablecoins through various technical means, and it also supports smart contracts.8.Tether (USDT)
Tether is a type of stablecoin, designed to have a less-volatile price by being linked to an external asset. In this case, each coin is backed by an equivalent number of US dollars, which keeps it from experiencing the same kind of pricing volatility that other cryptocurrencies face. There is however, some debate about whether it truly is fully backed by the dollar.
9. Stellar Lumen (XLM)
Stellar lumen is an intermediary currency that facilitates currency exchange. Stellar allows a user to send any currency they own to someone else in a different currency. Jed McCaleb founded the open-source network Stellar and created the network’s native currency in 2014.10. XRP (XRP)
Formerly known as Ripple and created in 2012, XRP offers a way to pay in many different real-world currencies. Ripple can be useful in cross-border transactions and uses a trust-less mechanism to facilitate payments.11. Solana (SOL)
SOL is the native coin of the Solana platform, which functions on a blockchain system, just like Ethereum and Bitcoin. Solana’s network can perform a whopping 50,000 transactions per second, making this platform especially attractive to investors looking to trade quickly.12. Chainlink (LINK)
Launched in June 2017, the Chainlink was designed to incentivize a global network of computers to provide needed external data to smart contracts (agreements programmed to execute when certain conditions are met) running on top of blockchains.13. Cardano (ADA)
Cardano is the cryptocurrency platform behind ada, the name of the currency. Created by the co-founder of Ethereum, Cardano also uses smart contracts, enabling identity management.14. Avalanche (AVAX)
AVAX is the native coin of the Avalanche platform, which bills itself as the “fastest smart contracts platform.” AVAX is, among other things, used to pay transaction fees on the Avalanche platform. The Avalanche platform allows developers to create new custom blockchains on Avalanche as “subnets.” Avalanche’s blockchain is compatible with Solidity, the Ethereum blockchain’s programming language, which makes it easier for Ethereum developers to build subnets on Avalanche.
15. Polkadot (DOT)
Launched in May 2020, Polkadot is a digital currency that connects the technology of blockchain from many different cryptocurrencies. A co-founder of Ethereum is one of Polkadot’s inventors, and some industry watchers believe Polkadot is looking to dethrone Ethereum.16. USD Coin (USDC)
Much like Tether, USD Coin is a stablecoin connected to the US dollar that cannot be mined. However, unlike Tether, USD Coin has more transparent funding and better auditing processes.The aim is to remove some of the risk associated with crypto, as users should always be able to withdraw their coins and receive the corresponding amount of cash in exchange.
The protocol does this by decentralizing the lottery process via blockchain technology. The main concept here is that anyone can play lottery games from the comfort of home without needing to go through a centralized ope ..
Launched in August 2020, the rise of Shiba Inu in such a short period of time is nothing short of uncanny. According to Coinmarketcap, this digital currency was priced at $0.000000000078 at the turn of 2021.
Fast forward to November 2021 and the same digital currency hit highs of $0.0000312. This means that in less than 12 months of trading, Shiba Inu generated gains of nearly 40 million% ..
The cryptocurrency market is a Wild West (although it appears as if the U.S. government is set to take a more active role in overseeing the crypto space), so those speculating in these digital assets should not put in more money than they can afford to lose. Volatility can be intense, with crypto assets fluctuating significantly even in a single day. And individual investors can be trading against highly sophisticated players, making it a fraught experience for novices.
17. Bitcoin Cash (BCH)
Bitcoin Cash is a type of digital currency that was created to improve certain features of Bitcoin. Bitcoin Cash increased the size of blocks, allowing more transactions to be processed faster.18. Luckyblock
We found that Luckyblock represents the overall best cryptocurrency to buy in 2023. In a nutshell, this digital asset project is looking to revolutionize the global lottery industry.The protocol does this by decentralizing the lottery process via blockchain technology. The main concept here is that anyone can play lottery games from the comfort of home without needing to go through a centralized ope ..
19. Bitcoin Satoshi’s Vision (BSV)
Bitcoin Satoshi’s Vision (BSV) is the result of the 2018 split, or hard fork, of Bitcoin Cash. It is intended to more closely resemble the original purpose of Bitcoin, particularly decentralization and using cryptocurrency as payments.Launched in August 2020, the rise of Shiba Inu in such a short period of time is nothing short of uncanny. According to Coinmarketcap, this digital currency was priced at $0.000000000078 at the turn of 2021.
Fast forward to November 2021 and the same digital currency hit highs of $0.0000312. This means that in less than 12 months of trading, Shiba Inu generated gains of nearly 40 million% ..
What to consider before buying cryptocurrency
There are many different Types Of Cryptocurrency out there, so it’s certainly worth putting some thought into understanding which coins or tokens might be right for you. No matter if you’re a seasoned crypto investor or looking to take your first steps in this exciting world, learning is a great way to reduce risk and make an informed decision about your money.The cryptocurrency market is a Wild West (although it appears as if the U.S. government is set to take a more active role in overseeing the crypto space), so those speculating in these digital assets should not put in more money than they can afford to lose. Volatility can be intense, with crypto assets fluctuating significantly even in a single day. And individual investors can be trading against highly sophisticated players, making it a fraught experience for novices.
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