The digital world has something new to offer us every single day. Cryptocurrency investment has taken the world by making possible all that once seemed unimaginable.
This digital currency has transferred billions of money potential without waiting more than minutes, which used to be done in 3-5 business days.
Blockchain technology has benefited people and their wallets due to the brilliant concept of decentralization. Branchless banking is done within minutes with minimum strings attached.
This financial service brought by blockchain cannot be limited to finance. Other industries can also benefit from it since this is just the beginning.
Why Are There Different Types of Cryptocurrencies?
In this fast world, there is no denying the instant availability of competitors or simply a better version of something. Several different types of cryptocurrencies available in the financial world amount to more than 850 billion dollars within a decade.
After Bitcoin’s success, new types of cryptocurrencies have emerged with bigger and better features under the uniformity of blockchain.
Because blockchain is open and not a limited source, the platform is available for software developers to code something new all the time. Moreover, today’s people always seek something fresh that keeps the thrill alive.
Since the original code remains the same, new regulations can be easily generated with an additional kick. Bitcoin has produced new crypto with slightly different rules to attack the financial world.
Different Types of Cryptocurrencies
Although all the types of cryptocurrencies use the same blockchain infrastructure, a handful of them have kept crypto investors and bankers interested. Here are the top five types of cryptocurrency you should be aware of.
- Bitcoin
Launched in 2008, Bitcoin is the oldest and the most popular cryptocurrency ever introduced. It formed the basis of digital financing with verified transactions. It grew in only a few years, with the most significant market value of US$896 billion.
- Tether (USDT)
Tether is a safe type of cryptocurrency. If you are new to this market and are still wrapping your head around the basics of cryptocurrency, Tether can help you get started.
The US dollar backs Tether. This means its essential value will always be similar to the current US dollar. Unlike other types of cryptocurrency, it is less likely to show much surprise.
- Ether (ETH)
This type of cryptocurrency operates on the Ethereum blockchain. The difference between Ether and Bitcoin is that Ether is not capped. It can allow unlimited coins to be created and managed through adequate smart contracts worldwide.
Since Ether works on the Ethereum platform, Solana (SOL) works on the native Solana Platform. This is a fast and volatile blockchain network in which around 50,000 transactions can be done within seconds.
One does not have to wait 3-5 working days for the money to be wired as the operations can be operated within seconds with the help of cryptocurrency trading platform.
- XRP (XRP)
XRP is one of the very few types of cryptocurrencies that have been designed for banks. Industries that require financial services make use of XRP. It has been designed according to industries’ international transfer requirements. It is often regarded as a convenient source of global transfer among sectors.
- Binance Coin (BNB)
Binance Coin is the largest cryptocurrency, as per statistics in 2021. All the users who paid through BNB are not charged any transaction fees. Binance coin remains at the top of its gain with a stable market value.
Cryptocurrency is not an invention that will leave us early. It has many benefits, and one must aim to understand them. The infrastructure is transparent; everything is visible and concrete to the human man.
Moreover, it gives us hefty returns and allows transactions within minutes. With all the benefits engulfed by cryptocurrencies, one must know how to work around them.
In A Nutshell
Cryptocurrency has kept the world of finance super occupied with its benefits. Not only has it gained popularity in months, but it has also given significant returns.
People who once saw this whole concept of digital currency as confusing or underwhelming are now making healthy crypto investments.
However, before one steps into this game, one must be aware of the risks involved. If you are looking forward to significant hikes, the chances of the value dropping are also there.
There are many different types of cryptocurrencies such as Bitcoin and XRP. Every type of cryptocurrency is unique and comes with its own way of providing services.
