The cryptocurrency market is growing at an exponential rate, and it’s easy to get overwhelmed by the variety of different currencies out there.
That’s why we put together this list of the 10 most popular types of cryptocurrency you should know about. Each one has its own advantages and disadvantages, so be sure to read up on them so you can make an informed decision about which one you want to invest in!
Types Of Cryptocurrency
1. Bitcoin (BTC)
How popular is it?
This was arguable, up until 2017, one of if not the most popular cryptocurrencies in existence.
The open-source, peer-to-peer digital currency is independent of any centralized bank or institution and enables online payments to be sent directly from one party to another without going through a financial institution.
It uses cryptography to secure and verify transactions as well as to control the creation of new units (bitcoins).
To be used as money, bitcoin has to meet certain monetary characteristics: it must be a stored value, and it must be scarce and easy to transport.
Over time bitcoins have become increasingly popular; today they are accepted by a range of established retailers including WordPress (which accepts them for premium upgrades), Virgin Galactic, and Dell Computers among others.
2. Ethereum (ETH)
Ethereum is a powerful, public, open-source platform with smart contract functionality.
Ethereum is primarily concerned with running the programming code of any decentralized application.
Their currency is called ether and acts as a tool for developers to build new distributed applications. Ether is also used to pay transaction fees and computational services on their network.
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3. Litecoin (LTC)
Launched in October 2011, Litecoin is similar to Bitcoin.
It’s a peer-to-peer cryptocurrency that’s generated by mining and can be transferred between people or used to buy things online.
But unlike Bitcoin, it has faster transaction times and a higher limit on its coin supply. In fact, Litecoin’s maximum is 84 million coins, compared with 21 million Bitcoins.
That said, Litecoin doesn’t have as much brand recognition as Bitcoin and it doesn’t see as much traffic on its network: On average it processes about 56 transactions per hour versus 1,667 for Bitcoin.
4. Dash (DASH)
Formerly known as Darkcoin, Dash is a crypto coin that focuses on privacy and anonymity. Designed to be used as digital cash, Dash allows you to make transactions quickly and anonymously online or in person. At present, Dash is worth about $80 per coin and has a market cap of over $230 million.
That said, if you’re not looking for a specific feature such as greater anonymity or faster confirmation times, it’s important to note that there are plenty of other cryptocurrencies out there that may be more attractive.
In any case, Dash continues to grow despite these issues because it offers an easy way for anyone—even those without access to traditional financial institutions—to make payments online. As adoption grows and transaction fees remain low, we expect more businesses will begin accepting Dash payments.
5. Ripple (XRP)
Ripple can be traded for almost any cryptocurrency, including Bitcoin and Ether. In fact, Ripple was created to allow banks to speed up international transactions.
Ripple trades for about $0.12 per coin and has a market cap of more than $110 billion, making it one of the most valuable cryptocurrencies on Earth. Currently, 55 bln XRP coins are in circulation out of a total maximum supply of 100 bln.
6. Monero (XMR)
Monero is an altcoin (derived from bitcoin) and was created in April 2014. It focuses on private transactions and can be mined with ease on Windows, Mac OS, Linux, and Android operating systems.
XMR’s proof-of-work algorithm, CryptoNight can only be run on CPUs and is resistant to ASIC mining. As such it has been able to continue growing organically to date.
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7. Zcash (ZEC)
Zcash is a cryptocurrency that uses cryptography to provide its users with greater privacy than other cryptocurrencies such as Bitcoin. Zcash payments are published on a public blockchain, but users are able to use an optional privacy feature to conceal the sender, recipient, and amount being transacted.
Zcash was founded in 2016 by developer Zooko Wilcox. In October 2017, Gemini Trust Company, LLC, announced that it would allow Zcash trading along with Bitcoin and Ethereum following approval from the New York State Department of Financial Services (NYDFS).
8. NEO (NEO)
A Chinese company called OnChain developed NEO, which was specifically designed to serve as a digital smart asset platform.
In other words, NEO uses blockchain technology to keep track of digital assets and help manage them.
For example, it can be used to digitize physical assets such as cars or home appliances (i.e., items that you own but might not necessarily want to sell), or it can also be used for crowdfunding purposes by businesses seeking investment capital from outside sources.
9. NEM (XEM)
Next-generation cryptocurrency, NEM is a peer-to-peer cryptocurrency and blockchain platform.
NEM introduced new features such as a proof-of-importance (POI) algorithm, multi-signature accounts, an encrypted messaging system, and an Eigentrust ++ reputation system.
POI ensures that account holders who do not participate in network activity are not at a disadvantage and their importance score will increase over time as they contribute to network health.
Multisignature accounts allow for two or more signatories on an account to control funds without worrying about a 51% attack compromising funds.
The encrypted messaging system ensures messages are secure when sent from one user to another by encrypting them using public-key cryptography before sending it through a decentralized server called Mijin.
10. Dogecoin (DOGE)
Similar to Litecoin, Dogecoin is a peer-to-peer cryptocurrency with a focus on smaller transaction amounts.
Compared to Bitcoin’s 1 MB block size limit, Dogecoin developers thought it was important for transactions to go through in as little time as possible.
Thus, they made sure that Dogecoin’s block generation time was 60 seconds and that blocks had a reward limit of 250,000 DOGE. To be clear, Dogecoin isn’t worth very much today.
At its peak in December 2013, one DOGE was worth $0.00021 (USD). It has since fallen by more than 90 percent.
Conclusion
What’s Next?
The cryptocurrency world is growing fast and shows no signs of slowing down. It’s only a matter of time before cryptocurrency becomes an important part of our lives.
What type(s) will you invest in?
Will you take advantage of other use cases for it?
How do you feel about blockchain technology as a whole?
Leave your opinion and consider sharing this article.
