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2 Minutes Read

Types of Cryptocurrencies 

There are 10,000+ cryptocurrencies on the market. Bitcoin, Ethereum, Litecoin and Monero are examples of some of the most popular ones right now. They use a public ledger (e.g., blockchain) to record information & all transactions are anonymously recorded without any third-party interference.

This number is expected to reach 50,000 in 2022. Some of the major cords transactions in blocks and has a fixed supply of 21 million coins. Ethereum - Ethereum was created by Vitalik Buterin as an alternative to Bitcoin’s design, with its blockchain being completely different from Bitcoin’s. This blockchain allows for decentralized apps

Bitcoin

The first cryptocurrency Bitcoin is a world-wide form of digital currency. It’s so popular that the name 'Bitcoin' is synonymous with any type of currency. However, potential investors need to be aware that it has become very expensive and less profitable. In 2021, the cost of Bitcoin was $68,000 but good news is that you don't always have to buy an entire one. You can buy fractions of it. For example, you may pay $8 - $12 dollars per Bitcoin instead of buying 1 full Bitcoin, which would have cost a lot more money.

Altcoin

Altcoin is the term used for any alternative digital currency to bitcoin. The most popular in this ecosystem is Ethereum – one of the fastest-growing cryptocurrencies in the market. There is also a range of other altcoins in the market today such as Luckyblock, Shiba Inu and Terra.

Crypto tokens

The difference between tokens and coins might be a bit hard to spot. But both are fundamentally different! Before diving in the token versus coin debate, here is what you need to know about them:

Mining coins is different from mining tokens. Coins can be mined, but usually tokens cannot be mined.

Cryptocurrency and cryptocurrency tokens are not the same.

Utility varies as they offer different products and services such as accommodation, flights, and digital downloads. 

The first cryptocurrency is the Bitcoin, and this is the reason why other cryptocurrencies like Litecoin, Ripple, Zcash and Monero are referred to as altcoins. It's hard to say which cryptos are the best ones anymore as more and more tokens emerge all the time. Bitcoin and some of the other widely-used altcoins are still top options because they offer a lot of scalability, privacy, and a broad range of features. 

In general, the best altcoin projects are those that offer a lot of features and a high level of usability. 

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