With trends and launching a wave of cryptocurrencies based on a decentralized peer network, Bitcoin has also established itself as the de facto industry standard and attracted a sizable following and offshoots.
Apart from Bitcoin, there are different types of cryptocurrencies (Photo: Finbold)
Different Types of Cryptocurrencies
As cryptocurrencies gain popularity, the industry has faced scrutiny regarding its core aspect. Nonetheless, it’s important to note that these currencies are usually designed to function without government interference or control.
Cryptocurrencies are designed to be used for payments, sending value (similar to virtual currency) via a decentralized user network. This category includes a lot of altcoins, or digital currencies that aren’t Ethereum or Bitcoin.
While many crypto users are aware of and appreciative of these differences, traders and non-technical investors might not be able to tell the difference because all token categories frequently trade similarly on crypto exchanges.
List of the different types of cryptocurrencies
“Crypto” refers to cryptographic techniques used in creating and processing digital currency.
1. Bitcoin (BTC)
Ethereum is a decentralized platform for building and executing smart contracts and dApps.
2. The USDT Tether
Tether (USDT) is a stablecoin that aims to reduce volatility by tying its value to an outside reference point.
3. XRP
XRP Ledger uses XRP as its coin and the Consensus Protocol. It is not dependent on proof of work or proof of stake for consensus.
4. BNB, the Binance Coin
Binance Coin (BNB) is a utility cryptocurrency used for trading commissions on Binance Exchange, ranking third in market capitalization among all cryptocurrencies.
. US Dollar Coin
USD Coin is a stablecoin that is backed by fiat-collateralized reserves, ensuring that its value remains tied to the US dollar.
6. ADA Cardano
ADA is a crypto that uses “Ouroboros proof-of-stake” and was developed by a team of experts using a research-based approach.
7. Onelan (SOL)
Solana is a blockchain platform created to allow decentralized apps (dApps), and it was established in 2017.
8. DOGE, or Dogecoin
Dogecoin (DOGE) is considered to be the first “memecoin,” and in 2021 its price explosion caused a stir.
9. TRX (TRON)
To give creators of digital material complete ownership rights through tokenization and dApps, the TRON Foundation was established in 2017.
10. Plastic (MATIC)
Polygon (MATIC) was created to solve Ethereum’s traffic and congestion issues as a layer-2 solution.
Bitcoin remains the most widely used cryptocurrency, but since its launch in 2009, a slew of imitators, alternatives, and new technologies have been developed that are based on its blockchain and many of the theories that underpin it.
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