What are the Different Types of Cryptocurrencies Out There
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What Are The Different Types Of Cryptocurrencies Out There

Cryptocurrencies are digital currencies that are not issued or controlled by banking entities or States. These currencies are used to carry out electronic transactions, as well as financial investment assets, and can be used worldwide simply by having an internet connection.

The emergence of this new innovation has made us enter a new era known as the “Internet of Value” or “Internet of Value”, since it allows the sending of valuable assets through the Internet, in a safe and reliable way without depending on banks or financial entities.

There are thousands of types of cryptocurrencies. Some are fully decentralized and have no owner (e.g. Bitcoin), others belong to non-profit projects (e.g. Ethereum), and others belong to companies (e.g. Binance).

Each of them is based on a similar but different type of technology.

Types of cryptocurrencies

Although Bitcoin is a fairly common word today and the first one that comes to mind when mentioning cryptocurrencies, today there are more than 1,000 cryptocurrencies available.

Below we list the most important cryptocurrencies:

1. Bitcoin

It is the original cryptocurrency (the first to appear, in 2009) and the best known. It is the leading cryptocurrency in the crypto ecosystem and its main function is the store of value, competing with gold. If you want to learn how to use Bitcoin safely, we recommend this course.

2. Ethereum

It is not a cryptocurrency itself, but a decentralized platform that allows smart contracts and applications to be run on a distributed network. These operations occur thanks to the cryptocurrency used by the system, ether. Currently, Ethereum is postulated as one of the projects with the most future in the entire crypto ecosystem since most of the projects in this environment are based on Ethereum to function.

3. Binance Coin

It is the official cryptocurrency of the Binance crypto exchange and was created to carry out transactions within this platform.

4. Cardano

It is one of the fastest-growing cryptocurrencies on the market. It arises in what is called the third generation of the blockchain to solve the scalability problems of other cryptocurrencies such as ether. It is distinguished by using unique mathematical principles and a multi-layer architecture.

6. Tether

It is a stable cryptocurrency, that is, associated and backed by traditional fiat currencies in the real world. Specifically, they are linked to the dollar in a 1 to 1 relationship. It creates a bridge between virtual and physical currencies. Although it cannot be used to make an exchange between these two types of currencies, it is usually used to invest or disinvest in others. cryptoassets.

7. Polkadot

It is a blockchain protocol that tries to connect the different blockchains of the different existing cryptocurrencies to a universal blockchain, in which transactions can be made with different currencies. Likewise, it has its own cryptocurrency (DOT). This cryptocurrency has value because, depending on the amount owned, you have more or less of a vote within the protocol to decide on certain aspects and updates. Polkadot aspires to be the “Internet of Blockchain.

8. Ripple

It is a project that aims to help financial institutions and companies around the world to make transfers much faster and cheaper, thus replacing the current BIC/SWIFT system.

9. Uniswap

It is Ethereum blockchain software that allows decentralized exchanges to be carried out, without having to leave the funds with someone.

10. Litecoin

It is an alternative to Bitcoin, but it has an upper limit. By allowing larger blocks than Bitcoin, it is a more scalable currency and therefore more easily usable when paying for goods and services.

11. Chainlink

It is a decentralized service that connects blockchains with the real world. The cryptocurrency it uses is LINK, and it aims to be a bridge between the crypto space and the data that is generated by people, companies, and institutions in the real world.

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