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A Guide to The Different Types of Cryptocurrency

by on February 12, 2021 in Uncategorized

three Bitcoins on soil
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While Bitcoin has been a trendsetter and an industry leader, it isn’t the only one of its kind. Beyond it all, cryptocurrencies have changed and expanded significantly since Bitcoin was introduced well over a decade ago and the next great one could even be released tomorrow. We just don’t know what the future holds and how close we could be to the next big thing. 

Bitcoin continues to lead the pack in terms of popularity, market capitalization, and even user base. Digital currency is particularly designed to work as a medium of exchange and Bitcoin isn’t the only one around anymore. In fact, there is a whole new world of many cryptocurrencies out there right now and I’m sure more are coming. However, let’s explore the most well-known ones. 

Bitcoin

Obviously, we should start with the most well-known and original of them all, the almighty Bitcoin. For a long time, it has been the most substantial and commonly known currencies and is always moving and expanding. It is considered an original cryptocurrency. 

Bitcoin allows peer-to-peer transaction using seamless blockchain technology, and all users can view these transactions. They are secured through the algorithm using blockchain, however. A private key that is assigned to each owner so that the owner can decrypt the transaction. 

When it comes to Bitcoin, there is no central authority figure, like a bank would have. This means that the users of Bitcoin are the ones that control all of the transactions and this alone allows transactions to be completed all around the world.

Ether by Ethereum

Created after Bitcoin, in 2015, Ethereum is another form of cryptocurrency, however, it is an open-source platform that is specifically based on blockchain technology. Ethereum blockchain mainly focuses on many things, one of them being running the programming code of any decentralized application and tracking ownership of digital transactions. This basically allows it to be used by application developers for transaction fees.

Litecoin

Litecoin was launched in 2011 as a lite version and alternative for Bitcoin. Much like all of the other cryptocurrencies, Litecoin is an open-source global payment network that is entirely decentralized. That means that like Bitcoin, there is no central authority. 

However, though it seems like Bitcoin, there are a few differences such as:

  • They operate on entirely different algorithms
  • Faster transaction times
  • Litecoin can produce more coins

This article is only scratching the surface of the cryptocurrency world, and in its entirety, there is a lot to consider. If you are wanting to find out some more information, click here. Between cryptocurrency, wallets, blockchain technology, and mining, there is a lot to be known and researched. 

Though it certainly hasn’t triumphed every single marketplace and merchant it has become very well-established in our current and past economy and may even hold some room in the future economy. Cryptocurrency is the perfect sign of how well our economy is doing and how it has become very advanced and open-minded. Cryptocurrency is certainly not guaranteed but it is definitely worth exploring if you would like to spice up your portfolio. 

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