Cryptocurrency basically refers to digital cash. There are various types of cryptocurrency. We are going to be looking at the most popular types of cryptocurrency.
Without further ado, let’s begin.
Bitcoin is one of the most widely known type of cryptocurrency. Considered to be the original cryptocurrency, more than 17.6 million Bitcoin tokens are in circulation against a present capped limit of 21 million.
Bitcoin make use of Blockchain technology to let the sender and the receiver carry out transactions without a third party. Bitcoin takes over 40% of the cryptocurrency market.
Ethereum is a type of cryptocurrency that doesn’t focus much on digital currency. It is an open source platform based on blockchain. It enables developers to build and deploy decentralized applications (DApps) and Smart Contracts.
The applications on Ethereum are run on its platform-specific cryptographic token, ether. Ether is currently the second-largest digital currency by market cap after bitcoin, although it lags behind the dominant cryptocurrency by a significant margin. As of January 2020, ether’s market cap is roughly 1/10 the size of Bitcoin’s.
3) Ripple (XRP)
Ripple works the way Bitcoin does but it is not based on the Blockchain technology. It is not so much meant for individual users as it is for bigger companies and corporations moving huge sums of money (its coinage is known as XRP) across the globe.
It is also called as banker’s coin because it is widely used by banks to make payments at a brisk pace. Ripple allows for any type of currency to be exchanged, from USD and Bitcoin to gold and EUR.
Litecoin was launched as an alternative to Bitcoin. Like in Bitcoin, Litecoin is an open source, global payment network that is completely decentralized.
Litecoin was designed to improve the Bitcoin technology with shorter transaction times, lower fees and more concentrated miners.
5) Bitcoin Cash
Bitcoin Cash was created to enhance certain features of Bitcoin. Bitcoin cash increased the size of blocks, from 1 MB to 8 MB. This allows for the users to experience faster processing speeds.
It also removed the Segregated Witness protocol, which impacts block space. As of Jan. 8, 2020, BCH had a market cap of $4.4 billion and a value per token of $240.80.
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