Have you ever heard about Bitcoin? Probably yes, because it is the most powerful cryptocurrency that human beings have been introduced to until today. However, many don’t have an idea about important types of cryptocurrencies.
What is Cryptocurrency?
Cryptocurrency is a digital currency protected by cryptography. It’s not managed by any centralized authority. Having virtual existence doesn’t involve any financial institutions, government entities, banks, and middlemen. You will need to rely on virtual currency exchanges to sell or purchase digital assets.
According to research statistics from Statista, the total number of blockchain wallet users crossed 50 million in September 2020. The study found over seven million active Bitcoin users.
You can buy Bitcoin & Cryptocurrency with your Self-Managed Super Fund. You just need to be aware of the SMSF and Cryptocurrency regulations.
Important Types of Cryptocurrency
Generally, there are two categories of crypto. These are called coins and tokens. Over 10,000 types of cryptocurrencies have been introduced until April 2021.
It’s not possible to discuss all cryptocurrencies that came into existence until today. However, you will explore the most important types of crypto in this article. Let’s discuss the key cryptocurrencies that you should know about.
Bitcoin is the most popular type of cryptocurrency in today’s digital era. Although it wasn’t too famous in the beginning, yet it has now become the predominant name. People can easily use Bitcoins for making online transactions. You can also send Bitcoin to friends and family living in other countries.
There are many reliable crypto platforms on the internet that facilitate Bitcoin trading. You can make money through crypto trading even if you don’t have in-depth knowledge. Just buy Bitcoin when the value is down and sell when you think the value is high.
Bitcoin has been a highly volatile cryptocurrency throughout its life so far. Still, people like investing in it without much consideration. The main concept behind the creation of Bitcoin is to use it as an authentic digital payment system. However, experts are reluctant to use it as a payment method due to high volatility.
After the immense popularity of Bitcoin, the king of cryptocurrency came as Bitcoin Cash in 2017. Today, it has become a predominant cryptocurrency. The only difference between Bitcoin and Bitcoin Cash is the block size. In other words, Bitcoin is superior to Bitcoin cash in terms of processing speeds.
Exploring details about Bitcoin Cash must be a time-consuming task. If you are a student, then you might have to spend hours on the internet to learn fluctuating trends of Bitcoin cash. Handing over essay assignments to Essay48 can wipe out worries of academic grades. You can learn about cryptocurrencies with peace of mind.
Also known as ETH, Ethereum is the second most powerful alternative to Bitcoin. It’s another important cryptocurrency that is gaining traction across the globe. It is defined as an open-source blockchain used by developers to build cryptocurrencies and applications.
Following the footsteps of Bitcoin, Ethereum has captured a large share in the crypto market. Launched in 2013, it continued to gain momentum with each passing year.
Another one of the most prestigious cryptocurrencies known today. It’s no different from Bitcoin. Created back in 2011, Litecoin got traction somewhat similar to Bitcoin. The person who gave existence to this particular digital currency was none other than former Google employee, Charlie Lee. The intention behind developing Litecoin was to enhance Bitcoin technology, lowering fees, and reduce transaction times.
Unlike many other cryptocurrencies, Ripple is not a block-chain based digital currency. The intention behind creating this particular cryptocurrency was not to serve the individual user. It was created for big business organizations and companies instead. Ripple is used to moving a whopping amount of money from one part of the world to another.
XRP is the symbol used for the recognition of Ripple. Its system allows moving money either in Bitcoin or US Dollars. The most impressive thing about Ripple is that it can handle up to a massive 1,500 transactions within a second.
Most known as ADA, Cardano is also being used across the globe to receive and send digital money. According to finance experts, it is a reliable and balanced system for cryptocurrencies. Charles Hoskinson, the co-founder of Ethereum, was the person behind the creation of Cardano.
This particular currency is based on Ouroboros technology. It is considered to be a more protected and accessible way to properly maintain decentralization.
Moving money from one part of the world to another has always been a thing of concern. Money experts have tried to devise strategies through which international transfers can be made quicker and reliable. The focus of Stellar is to make the transfers more efficient and faster.
Designed back in 2014, Stellar was the idea of Ripple’s co-founder named Jed McCaleb. The digital currency is currently being operated by Stellar.org which is a non-profit organization.
The main objective of Stellar is to encourage economies that need no access to the traditional banking system. Stellar doesn’t charge institutions or individuals for using its system. The operating costs are covered by tax-deductible public donations.
Closely related to the US Dollar, Tether is more like a fiat currency. If you are looking for a reliable cryptocurrency alternative to make withdrawals and cash deposits, then Tether is a good option to consider. Just like other prominent cryptocurrencies, it is highly volatile. That is the reason why it couldn’t gain that much traction. Traders like investing in currencies that are more stable and sustainable. It has a value of around one USD.
Just like tether, the USD Coin is also tied directly to the US Dollar. It can also be referred to as the digital dollar of the current era. Developed by a renowned financial company Circle, it involved work from other prominent organizations such as IDG Capital, Baidu, and Goldman Sachs.
Being directly tied to the American fiat currency, the USDC is considered to be more stable than other digital currencies.
Originally developed in China, NEO was previously known as Antshares. This particular digital currency is performing strongly well to make its name prominent in the crypto industry. The core focus of NEO is to form and operate digital contracts without the intervention of an intermediary.
The reason why NEO is considered to be more competitive as compared to the rest of cryptocurrencies is its distinct abilities. These include developer-friendly digital contracts, good architecture, and improved digital identity. It is going to be the next big thing after Ethereum.