Different types of cryptocurrencies

You can no longer count them on your hands. The number of cryptocurrencies in the world has been steadily increasing, thereby creating an extensive list of them. Not all of them are the same albeit some of them have similar backgrounds. All of them are created for a different purpose, which can explain why are there so many when Bitcoin, the most popular of them, was created to be a universal one. Down below are some of the best mentions. We are mentioning them based on their popularity and market capitalization. 

Bitcoin (BTC)

It deserves the first mention as it is the most popular. When we say popular, we base its popularity on its user base and market capitalization. Created in 2009, by someone under the pseudonym of Satoshi Nakamoto, Bitcoin was created with the sole purpose of becoming a universal and decentralized online currency. The idea behind it was to provide a secure and non-intermediary controlled (free from a state bank) and non-pegged currency to the masses. The concept behind it was the blockchain as it is with many other cryptocurrencies.

Blockchain technology, in which Bitcoin is deeply rooted, secures the data in chained blocks that accumulate over time with more incoming data. This way data is traceable and therefore secure. Due to popularity, new versions and whole new crypto-coins are following the norms set by Bitcoin, and for these precise reasons, they are called alt-coins.

Ethereum (ETH)

Ethereum is not a cryptocurrency but the token amount used in it for transactional fees is indeed a cryptocurrency. It is called Ether but most in the masses generally mistake the currency for the name of the platform (where it is used) itself.

Ethereum is a public, distributed, and blockchain-rooted platform for developing applications. Predominantly, enterprise-related applications are made on this platform. The application developers can either use or earn ‘Ether’ on the platform for various purposes. Due to ‘Ether’ having a real-world value, Ethereum is also traded on crypto exchanges and through various brokers all over the world. On it, people are awarded smart contracts, which make Ether instantly available as soon as transactions are finished.

Litecoin (LTC)

This one is an altcoin, which is getting as popular as Bitcoin. Did you know Bitcoin was open-source, therefore Litecoin’s founder was able to fork the source code for Litecoin’s use? Part of the source code of Litecoin shares the same DNA as Bitcoin.

Litecoin can do better at what Bitcoin could previously do. One such example is its use of the Lightning Network. It provides the kind of scalability, which was unforeseen in Bitcoin. This is the reason it is faster and cheaper than Bitcoin whose DNA it uses.

Ripple (XRP)

Ripple is another one of the most popular cryptocurrencies in the world, right now. If you came to know about its properties, you will instantly exclaim that it is a banker’s coin. That’s because it is essentially used to make bank transactions easier, better, and faster. It already is trusted by ‘big time’ or ‘big shot’ clients like governments and international banks.  Unlike others on this list, it is a decentralized one.