Overview of Popular Cryptocurrencies

December 7, 2021

0 2 minutes read

It wouldn’t be wrong to say that whenever the term “cryptocurrency” pops up, the first thing that comes to the minds of many is Bitcoin.

It’s like Bitcoin can be interchanged for the term cryptocurrency. But this isn’t the case. Bitcoin is just one of the many crypto currencies. It is most popular and heard because it is the first such virtual currency. With the flourish of Bitcoin as a cryptocurrency, some more spin-offs and intangible coins entered the market.

What is a cryptocurrency?

A cryptocurrency is a digital currency that replicates the forms of coins or tokens. They have a virtual and intangible presence. The term crypto in the word, cryptocurrency, means convoluted cryptography that enables the formation and maintenance of the flow of digital currencies and their transactions on a decentralization mechanism. A team of coders uses the decentralization mechanism of cryptocurrency for issuing coins. It works on Blockchain Technology.

Cryptocurrencies were primarily developed to avoid any government intervention or control over the currencies, to be free from their regulations. However, with time as some cryptocurrencies became popular, the aspect seems to be a sunken ship. The cryptocurrencies that came into being based upon Bitcoin are usually known as altcoins or shitcoins. Albeit some of the cryptocurrencies seemed to offer some impressive features, establishing the level of security attached with Bitcoin is hard to achieve in any other form of currency.

Types of Cryptocurrencies

Cryptocurrencies’ primitive purpose is to make payments digitally, transacting a value on a decentralized user’s network. Much of the altcoins (the modified version of bitcoin) are categorized on this basis and are known as value tokens. Let’s learn about the different types of cryptocurrencies available in the market:

Bitcoin

It was the first cryptocurrency that was ever developed in modern times back in 2009 by Satoshi Nakamoto. Initially, bitcoins were developed to avoid the controls and regulations of the government. Bitcoin is designed on a decentralized mechanism of Blockchain technology to store the records of every transaction. It was bitcoin that initiated the process of peer-to-peer verification and cryptography which is the ground for the development of several cryptocurrencies these days. With the growing confidence of investors, bitcoin trading has become very popular. You can register at www.TheNewsSpy.technology and start trading.

Ethereum (ETH)

Ethereum is a kind of software that has its own cryptocurrency known as ETH. It is designed with a programming language called Solidify and Ethereum is a decentralized platform where transactions on cryptocurrency are verified and recorded. It also enables the building and running of decentralized apps without any fear of fraud, control, manipulation, or downtime.

Litecoin (LTC)

This cryptocurrency was introduced back in 2011 and designed on the same ground as Bitcoin. That’s why bitcoin is also called the silver to Bitcoin’s gold. An MIT graduate, Charlie Lee created this cryptocurrency. It is an open-source payment system that is free from any central government’s control. Litecoin makes use of scripts as evidence of the work, which hence can be easily decoded by consumer-grade CPU.

Polkadot (DOT)

The polka dot cryptocurrency is a unique proof of stake currency that aims at serving cooperation and coordination among Blockchains. The protocol of Polkadot is designed in such a way that it connects both permissions as well as permission-free Blockchains, to ensure that all systems work in coordination together under one umbrella.

Tether

It is the first of its kind cryptocurrency that was called stablecoin- a form of cryptocurrency that is based on fiat collateralized stable coins. Tether is created and designed to provide transparency, stability, and minimal transactional costs to the users. This cryptocurrency is not speculative crypto, unlike other cryptocurrencies. Instead, the tether is meant for those investors who desire to have a safer option in the crypto market.

The Bottom Line

Here are the various types of cryptos available in the market. If you wish to invest, you should research and invest in the best crypto that will give you the best returns.