Types of Cryptocurrency

By  //  March 24, 2022

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There are many cryptocurrencies in circulation today. Cryptocurrencies are decentralized digital currencies that are protected with cryptography which makes it near impossible to counterfeit them. Cryptocurrencies are traded on exchanges where you can exchange fiat money for cryptocurrency or vice versa.

Cryptocurrency trading is different from the normal stock markets because there is no central location of the exchange, but rather an order book with buyers and sellers offering prices at which they wish to trade currencies. You can also visit https://immediateedge.biz/ for gaining further information about gaining profit through cryptocurrency trading.

Different Kinds of Cryptocurrency

The most commonly used cryptocurrencies in existence today include Bitcoin, Litecoin, Dash, Monero, and Ethereum. There are hundreds of other cryptocurrencies in existence however not all have the same caché as the big players mentioned above.

Cryptocurrencies use a peer-to-peer network to verify transactions which makes it decentralized which means there is no central authority governing the currency.

Cryptocurrencies gained popularity because of how easy they are to exchange for fiat money since they are not bound by borders or any central controlling body. Cryptocurrencies can be used for a variety of reasons, some popular ones include remittance payments, online shopping, and even trading on cryptocurrency exchanges.

Cryptocurrency Exchanges

Cryptocurrency exchanges are websites where you can trade one type of cryptocurrency for another type as well as fiat money such as US Dollars and Euros. Cryptocurrency exchanges charge transaction fees on each transaction made on their platforms. Cryptocurrency exchanges that charge high transaction fees usually offer very low trading fees making them more favorable for traders.

Cryptocurrency exchanges are accessed online through your web browsers or via mobile applications that are usually referred to as Cryptocurrency Exchanges Apps. Cryptocurrency exchanges provide real-time market data which is important for cryptocurrency trading because timing is everything when it comes to Cryptocurrencies.

Cryptocurrencies prices fluctuate rapidly based on the demand and supply of each cryptocurrency at any given time, with this in mind it is imperative that you pay attention to current events that may affect the prices of popular cryptocurrencies such as Bitcoin before choosing an exchange platform.

Cryptocurrency is becoming more and more popular as time goes by. More people are investing in Cryptocurrencies to gain profit in the future. Cryptocurrency is a decentralized currency, meaning there’s no involvement of any bank or government institution. Cryptocurrencies use cryptography for security purposes during all transactions.

Cryptography is basically the process of converting legible information into an almost uncrackable code, transferring it, and then deciphering it back to its normal form using a key created just for that particular transaction. Cryptos can be used to pay online and in some stores, they have physical coins with a Cryptocurrency value on them. Over 1500 Cryptocurrencies exist today.

Creation of Cryptocurrency

One of the most well-known Cryptocurrencies is bitcoin. Bitcoin was first introduced in 2009 and it has jumped to an all-time high value of $20,000 at one point. Cryptocurrencies can be broken up into two types: Cryptocurrencies that are self-contained such as bitcoin, where everything needed to sustain the Cryptocurrency is available within itself.

Cryptos that are ‘tethered’ Cryptocurrencies have Cryptography included, but they need another platform running on top of them for support. For example, Ethereum (ETH) needs a computer network running it for transactions.

Crypto Kitties

Crypto kitties were the game that helped cause the congestion of the Ethereum network by having too many users playing around with Crypto Kitties. Crypto Kitties are Cryptocurrency-based digital pets that you can buy, sell or trade using Crypto wallets. Crypto wallets are digital wallets where Cryptocurrencies are stored.

They come in two forms: online Crypto wallet and offline Crypto wallet. Online Crypto wallet is accessed through your web browser whereas the offline one has a hard copy of your Cryptocurrency keys to make transactions possible.

Conclusion

Types of Cryptocurrency include Bitcoin (BTC), Ethereum (ETH) Litecoin (LTC), Ripple (XRP), Monero (XMR), IOTA, Dash, Stratis, etc. Bitcoin was invented in 2009 by Satoshi Nakamoto who is still yet to be identified. Other Cryptocurrencies came after, with Litecoin being the second Cryptocurrency in existence which was later on overtaken by Ethereum in 2017.

Ethereum was created by Vitalik Buterin who is one of the Cryptocurrency founders who programmed Crypto Kitties. Stratis Cryptocurrency was developed in 2016 and it’s considered a Blockchain-as-a-service (BaaS) platform. Ripple Cryptocurrency is somewhat different from other Cryptos because even though it has its own Cryptocurrency, transactions are mostly made in USD instead of converting back into Cryptos.

With so many Cryptos in circulation today, picking out which ones will be around long term