5 Main Types of Cryptocurrency

Types of Cryptocurrency

What is Cryptocurrency?

Cryptocurrency is a digital currency. It is created to work as a medium of exchange that uses cryptography to secure transactions, verify the transfer of assets and control the making of additional units. Use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control each cryptocurrency works through a blockchain, distributed ledger technology that serves as a public financial transaction database. Below are the five main types of cryptocurrency.

5 Main Types of Cryptocurrency

1. Bitcoin

It is the most popular and oldest cryptocurrency. The developer of this bitcoin currency remains unknown and uses a pseudo name, Satoshi Nakamoto. The first characteristic of Bitcoin is its ability to bear ecash value. It means that it operates exactly like cash that is circulating in the market and used to exchange value. Once you make a payment, it is impossible to reverse it. The platform is created in such a way that by the time you confirm the transaction, you don’t need to reverse it. The processing fees are also extremely low. This enables holders to retain the value of their currency still.

Click on below video: How to buy or sell bitcoin in UK easy

2. Litecoin

Litecoin was created by Charlie Lee and launched in the year 2011, an MIT graduate and former Google engineer. Litecoin uses a different method of encryption, which makes it faster to mine or complete transactions. This is endearing to people only because of the speed of the transaction. It requires less investment in mining gadgets. The fact that it does not need the high-tech equipment to mine means that more people can participate without incurring a lot of costs.

Click on below video: Litecoin Explained

There are four times more Litecoins that Bitcoins in the market. It has given more people an opportunity to trade on the Litecoin platform. It has set the pace by eliminating third parties in the method of swapping. It means that the transaction is between two people. This use of the smart contract is regarded as an atomic swap. Some are for the idea while others think that it is dangerous. However, the world is warming up to Litecoins due to its user-friendly nature.

3. Ethereum

This coin is referred to as Ether. This is the second most popular and traded cryptocurrency after Bitcoin. Ethereum is unique because it uses smart contracts as well as distributed applications. These applications are developed and operated on the platform.

Click on below video: How to Buy Ethereum in the UK

Ether was launch in 2014 in public during a pre-sale that was overwhelmingly subscribed. The operations on Ethereum are based on a token that is developed for purposes and operated on the platform. Developers have to buy ether and use it for developing the smart contracts. It is unique because it can be used to create other blockchains that are used within the same platform.

4. Dash

The real name for Dash is Darkcoin which can be referred to as a secretive version of Bitcoin. It hit the market in March 2014 and received overwhelming acceptance. The level of anonymity is advanced making transactions almost untraceable.

It features a double-tier architecture that is used to operate the network. Its organization is highly decentralized. The target is to make the coin pioneer in offering the anonymous blockchain encryption and activities. This is offered through a feature referred to as PrivateSend.

5. Ripple

Ripple is a real-time worldwide settlement network that provides instant, precise and low-cost international payments. Ripple “empowers banks to repay cross-border payments in real time, together with closing transparency, and at lower prices.” Ripple’s consensus ledger is a method of confirmation. Ripple does not need mining, a quality that deviates from altcoins and bitcoin. Since Ripple’s structure doesn’t need mining, it reduces the use of computing power and minimizes the network latency.

Click on below video: Ripple (XRP) Is Going To Dominate Finance

Ripple considers that ‘distributing value is a powerful means to incentivize certain behaviors and consequently currently intends to distribute XRP mostly “through the business development agreements, incentives to liquidity providers who offer fixed spreads for payments, and selling XRP to institutional buyers interested in investing in XRP.”

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