There are over 10,000 different types of cryptocurrency as of the year 2021, compared to the 1000 types a few years back in the digital currency market. The increase in the number of cryptocurrencies is related to the simplicity with which new cryptos can be created. Cryptocurrencies are generally classified as crypto tokens and coins. Crypto coins are further divided into altcoins, stable coins, etc.
Bitcoin, which was created in 2009, quickly became a household name in the cryptocurrency sector. Blockchain technology is used in Bitcoin to allow users to conduct transparent peer-to-peer transactions. All users may see the transactions but no one can crack them or steal them. The blockchain cells are protected by an algorithm, making it difficult to hack. The private key issued to the bitcoin owner is the only way to decrypt it.
The first altcoin to arise from bitcoin technology is Ethereum. The cryptocurrency, which runs on a decentralized software platform, protects smart contracts and decentralized applications (dapps) against downtime, third-party meddling, control, and fraud risks. Ethereum aspires to provide a decentralized system of financial products that anyone from anywhere in the world can use regardless of nationality, ethnicity, or religious beliefs.
This digital currency has originally started as a joke and then the online community turned the same into a cryptocurrency. Dogecoin has become a major source of digital currency similar to bitcoin. Elon Musk, the CEO of Tesla, is one of Dogecoin’s most ardent supporters. Consumers can create many coins over time as well as can make quick payments using Dogecoin.
Ripple is one of the unique types of cryptocurrency which gives large benefits for big corporations and companies. It is not based on blockchain technology like many other cryptocurrencies. Ripple is famous for its digital payment protocol which allows companies to transfer a large amount of money across the world. One of the advanced functions of the Ripple network is its ability to transfer funds in any currency, including dollars, Bitcoin, and other cryptocurrencies.
Cardano is a digital currency created out of extreme analysis and research by mathematicians, engineers, and crypto experts. Due to considerable experimentation and peer-reviewed research, Cardano stands out among its proof-of-stake contemporaries and other big cryptocurrencies. Following Ethereum’s lead, Cardano aspires to be at the top of the financial operating system by building decentralized financial products.
Tether emerged as a reliable stable coin in the volatile cryptocurrency market. Tether is a cryptocurrency that is linked to a fiat currency, such as the US dollar. Although Tether’s price has not risen dramatically, many crypto investors value its other benefits, such as avoiding the use of financial intermediaries.
Zcash is another successful cryptocurrency based on the bitcoin code on a decentralized blockchain. One of Zcash’s most notable characteristics is its ability to remain anonymous. Users can send, receive, and exchange Zcash anonymously, without revealing the sender, receiver, or transaction amount.