If you want to know about the types of cryptocurrency, you are at the right place. If you follow the bitcoin mag, you already know that we like talking about cryptocurrencies and Bitcoins. Our economy is slowly embracing the digital age.
Since you are reading this article, I presume you are an investor who is thinking of investing in cryptocurrencies. But before that, you must know the intricate details of cryptocurrencies and the different types of Cryptocurrency. Cryptocurrencies have come out as a lucrative investment option in 2021.
Wherever you go, you will find people talking about cryptocurrencies. Cryptocurrencies have been making quite a lot of headlines in the mainstream media as well, especially after the tech tycoon Elon Musk invested a whopping $1.5 Billion in Bitcoins and made it official that Tesla is going to accept Bitcoins, a cryptocurrency as a payment option for their electric cars.
But before all that, let us first take a look at what cryptocurrencies are.
Cryptocurrencies are cryptographic digital currencies that work on Blockchain technology. Just like fiat currencies, cryptocurrencies can also be used for making payments. But it can also be used for trading and investing purposes. The first-ever Cryptocurrency in the world was Bitcoin.
It was founded in 2008. The founder of the first-ever Cryptocurrency was called Satoshi Nakamoto. Some people say he is a Japanese programmer, whereas some say that Satoshi Nakamoto is just an alias and that there are many American people behind Bitcoins.
What Are The Different Types Of Cryptocurrencies?
You would be seriously mistaken if you think Bitcoins is the Only Cryptocurrency in the world. Yes, sure, Bitcoin is the Cryptocurrency with the highest market capital value. But it certainly is not the only one. Below is the list of some of the most popular types of Cryptocurrency and their respective market capital values
Cryptocurrencies Market Capital Value
|Binance Coin (BNB)||$13,066,020,483|
|Lite Coin (LTC)||$13,066,020,483|
1. Bitcoins (BTC)
Like I have already mentioned before, Bitcoin is the most popular Cryptocurrency in the world. Founded by an alias called Satoshi Nakamoto in the year 2009. When Bitcoin was first introduced, the price of one Bitcoin was only $0.0008, and now as I am writing this article, the price of Bitcoin has reached an all-time high of a whopping 47,000.
Investing and trading are legal in most western nations, and some of the highly developed Asian nations such as Japan and South Korea use Bitcoins as a substitute for fiat currencies.
2. Ethereum (ETH)
Ethereum is the second most popular Cryptocurrency in the world. It was launched in 2015 by Vitalik Buterin. Ethereum is not just a cryptocurrency but a platform on which decentralized apps are developed.
It helps developers and publishes their decentralized applications. In fact, The platform as a whole is called Ethereum, and the Cryptocurrency is called Ether.
3. Tether (USDT)
Tether is a cryptocurrency but a little different from other cryptocurrencies. It is actually backed by US dollars. It belongs to a subgenre of Cryptocurrencies called stable coins. Although Stable coins are not completely decentralized; fiat currencies back them like Euros, Dollars, and Japanese Yen.
XRP stands for Ripple; Ripple is a very interesting Cryptocurrency. It is more of a technology than an actual cryptocurrency. It was released way back in 2012 and was co-founded by Jed McCaleb and Chris Larsen.
It is the fourth most popular Cryptocurrency, standing right after the likes of Bitcoins, Ethereum, and Tether. Currently, it has a market cap of $21,666,003,229.
5. Binance Coin (BNB)
Binance is one of the most popular crypto exchanges in the world. Binance coin is itself made Cryptocurrency. The mining cap of Binance Coins has been set up to 200 million.
Binance Coins’ price goes up when the markets of the other cryptocurrencies like Bitcoin and Ether crash.
Top Two Advantages Of Using Cryptocurrencies
Now you know the different types of Cryptocurrency. Cryptocurrencies offer several advantages when compared to fiat currencies. Not only is it a safer mode of payment, but it is also a lucrative source of investment.
Instant Payment Settlements
Cross border payments in banks take up to a week to get settled. Since Cryptocurrencies use blockchain technology, payment is settled instantly. Since cryptocurrencies are decentralized, you do not need to depend on banks.
Blockchain technology stores data in the distributed public journal. All the transactions are recorded and stored on the network.
Fewer Chances Of Fraudery
Chances of fraudulent activities are really less when you transact in Cryptocurrency. Again all the credit goes to Blockchain technology. All the events, transactions, and information are stored on the publicly distributed ledger.
It is there for everyone on the blockchain network to see. And furthermore, it works on an ‘add only’ basis, which means data can be only added to the Blockchain network.
A transaction, once performed, cannot be refunded or taken back. This is also the advantage of knowing different types of Cryptocurrency.
Why Should You Invest In Cryptocurrencies In 2021?
2021 is undoubtedly the best time to invest in cryptocurrencies. There are a ton of reasons that can be attributed to why you should invest in cryptocurrencies in 2021.
Apart from its bull run in 2021, Elon Musk is a major reason. On February 8th, the tech tycoon, the CEO and founder of Tesla and SpaceX Elon Musk invested a whopping 1.5 billion dollars on Bitcoins.
This action of his made the prices of Bitcoins break the roof and hit an all-time high of a staggering 47,000. It made the price of Bitcoins rise by 15%. As volatile as Bitcoin is, this made the price swing higher.
Thank you for reading until the end; I hope you know all the nitty-gritty of Cryptocurrencies and the different types of Cryptocurrency. Stay tuned for further updates on Bitcoins. Tech experts have said that soon cryptocurrencies will work as a substitute for fiat currencies in most parts of the world.