The only difference between cryptocurrency and real money is that the latter is the digital form of money whereas real money is the one that can be carried easily in hand or wallets. Cryptocurrency like Bitcoin or Altcoin does not need any sort of central authority for it to be controlled or managed properly. People who own digital currency use it mainly to buy, sell or exchange their digital assets. However, over the years more and more businesses are gradually integrating it into their system due to which the digital form of currency can be used by many to purchase goods and services.
If figures are to be believed then by the start of this year there were a total of 10,000 different types of cryptocurrencies.
Different Categories of Cryptocurrency
Cryptocurrency can be classified into two different types of categories. They are as follows:
Crypto Coins – Crypto coin is most famously known as Altcoin. The altcoin is derived from the word alternative coin as the main purpose of this coin is to give people an option that can be used as an alternative to Bitcoin. Many people are well aware of the fact that bitcoin is the most famous cryptocurrency and it does not fall under the control or jurisdiction of any bank or government. The common types of altcoins that exist include litecoin, namecoin, peercoin, etc.
Crypto Token – Crypto tokens are produced with the help of ICO i.e. Initial Coin Offering. Tokens are mostly represented in the form of bitcoins i.e. value tokens, security tokens that can be used to protect the account of every individual and utility token that is designed specifically for some sort of a purpose. Investing in cryptocurrency is going to be a decision that no one is going to regret. For more information on crypto trading and rates of different cryptocurrencies feel free to visit us on https://yuan-pay-group.org/.
Top 4 Popular Types of Cryptocurrencies
There are more than 10,000 different types of cryptocurrencies that exist in the world today. Some of the popular types are mentioned below:
Bitcoin is the most popular cryptocurrency amongst many others and it is here to stay as it continues to take over the market cap every single time. It is the first cryptocurrency that emerged in the market and one can consider it to be the original form of digital currency. The interesting fact about bitcoin is that once 21 million bitcoins have been mined, no more bitcoins would be produced or created. Till now 17 million Bitcoins have been mined and the remaining that are left will be mined shortly. It is the strongest form of digital currency as Bitcoin alone dominates up to 40% of the market share which is more than expected.
When Ethereum was launched in the market, many people speculated that it is going to take over the famous Bitcoin. However, the speculation didn’t succeed but still, it managed to acquire a market cap at the second position after Bitcoin. Many new projects are being initiated on Ether (ETH) but one cannot say with certainty whether the projects will be a success or not. Even if one project is a huge success then it might replace Bitcoin in a few years.
Litecoin is quite similar to Bitcoin and it has a market cap of $81 million coins. Once all the coins or even half of them are mined then there are chances that the prices will increase depending on the overall demand. It is one of the very few cryptocurrencies that have the feature of a lighting network, which enables numerous transactions to be carried out easily in a matter of a few seconds.
Ripple is designed specifically to ensure that cross-border transactions are carried out safely and securely. It works directly with different financial institutions under which it can lower as well as offer real-time exchange rates. It is also termed and considered by many to be the banker’s coin as this type of cryptocurrency is connected with different banks at a global level. It is more likely to succeed mainly because it works with the government of every company which means that more and more countries would feel comfortable introducing it in their country.