The most common types of cryptocurrency

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Cryptocurrency, or virtual currency, has been on the market for over a decade now, and more and more people are using this virtual currency every day. This digital currency that was created is used by many individuals, groups and businesses around the world, and has proven to have many benefits for these people. If you’re new to the world of virtual currency or just looking to invest in it, read on to find out what the most common types of cryptocurrency are.

Before looking at the most common types of cryptocurrency, it is essential that you understand the importance of controlling your cryptocurrency. This virtual currency can be exchanged, borrowed, and given to others, so you need to make sure you are in proper control of your cryptocurrency. With the help of a decentralized financial return platform or DeFi return platform, you will be able to borrow cryptocurrency from others, lend cryptocurrency, and even trade the currency. Being able to count on a reliable platform is essential to minimize risk. You can learn more about digital asset returns here.

Bitcoin

Bitcoin is one of the most common types of cryptocurrency, with millions of people using this virtual currency around the world. The popularity of this cryptocurrency makes it the most recognized type of cryptocurrency available in the market for users. Bitcoin was first created in January 2009 and offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is managed by a decentralized authority. Bitcoin is created, distributed, traded, and stored using a decentralized ledger system. This decentralized ledger system is known as blockchain. There are no physical Bitcoins available, only balances are kept in a public ledger which all cryptocurrency users have easy access to. There are currently over 18 million people who use this cryptocurrency, a figure that proves how popular this cryptocurrency is.

Bitcoin Cash

After the cryptocurrency that is Bitcoin, there is Bitcoin Cash. Bitcoin Cash is another common type of cryptocurrency that is used by many people around the world. It was first introduced to the market in 2017 and virtual currency has steadily gained popularity among cryptocurrency users since then. Although this cryptocurrency is similar to that of Bitcoin, there are a number of differences between the two cryptocurrencies. Bitcoin Cash was designed to be a transactional cryptocurrency that functions as an electronic cash payment system. This means that the cryptocurrency was designed to be spent, rather than held as a store of value like Bitcoin. Another difference between cryptocurrencies is that Bitcoin cash has a block size of 8MB, while Bitcoin only has a block size of 1MB.

Ripple

Ripple is another common type of cryptocurrency that is widely used by people around the world. Although it is a common type of cryptocurrency, Ripple is not based on a blockchain, which means that this cryptocurrency does not use a digital ledger. This cryptocurrency is not intended for use by individual users and was designed to be used more by large businesses and corporations. Ripple allows larger amounts of money to be moved, negotiated, or borrowed than other available cryptocurrencies. Hence, it makes this cryptocurrency more suitable for companies that work with larger sums of money than an individual. This cryptocurrency is also well known for its digital payment protocol more than its XRP crypto. Indeed, the system allows to transfer money in different forms, for example in dollars or even in Bitcoin. This virtual currency also claims to be able to handle up to 1,500 transactions per second, while Bitcoin claims it can only handle between 3 and 6 transactions per second. This is extremely beneficial for Ripple users and means that it is much more efficient than other cryptocurrencies available.

Ethereum

Ethereum is another form of cryptocurrency that is common among users. It was first released to the market in 2015 and focuses more on decentralized apps or phone apps than digital currency. Essentially, Ethereum is a blockchain platform with its own cryptocurrency, known to users as Ether. As a blockchain network, Ethereum is a decentralized public ledger for verifying and recording transactions. The only person who can make changes to the app is the original creator, which means it’s extremely safe and secure to use.

Litecoin

Litecoin is another common cryptocurrency that is increasingly used in the same way as Bitcoin, and it also functions in much the same way. Litecoin was created in 2011 by Charlie Lee, who was a former Google employee, and the cryptocurrency has grown in popularity significantly since then. Charlie Lee designed Litecoin to improve on the technology put in place by Bitcoin, and promised to offer users shorter transaction times, lower transaction fees, and even more concentrated miners.

Cardano

Cardano is a decentralized third-generation proof-of-stake blockchain platform used by many individuals, groups, and businesses to send and receive virtual currency. Cardano claims to be a more balanced and sustainable ecosystem for cryptocurrencies and the only coin that offers users a scientific philosophy and a research-driven approach. This means that the cryptocurrency goes through a number of rigorous reviews by many scientists and programmers. Cardano was started in 2105 by a man called Charles Hoskinson who is also the co-founder of the previously mentioned Ethereum cryptocurrency.

Stellar

Another common type of cryptocurrency available to many users is Stellar. Unlike the other cryptocurrencies mentioned earlier, Stellar focuses on money transfers. Its network has been designed to make money transfers faster and more efficient for all users, even when transferring money across national borders. Stellar was designed by one of Ripple’s co-founders, Jed McCaleb, in 2014 and is operated by a nonprofit called Stellar.org. Stellar’s goals are to aid and assist developing economies that may not have access to traditional banks and investment opportunities. This virtual currency does not charge users or institutions for the use of its Stellar network and even covers operating costs by accepting tax-deductible public donations.

NEO

The latest common cryptocurrency is NEO, which focuses on digital contracts that allow users to create and execute deals without going through a middleman. NEO was initially launched in China in 2014, before being renamed in 2017. It is a blockchain-based platform that supports its own cryptocurrency and enables the development of digital assets and of smart contracts. NEO’s biggest competitor in the market is Ethereum, so it tries to offer users a number of distinct advantages. First, NEO has a better architecture than Ethereum. It also provides users with more developer-friendly digital contracts, digital identity and digital assets for easier integration into the real world.

As you can see, there are many different types of cryptocurrency that you can invest in as an individual, group, or even as a business. So if you are looking to start your cryptocurrency journey, be sure to check out one of these cryptocurrencies.

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