Cryptocurrencies are a type of digital tokens or coins that work on peer-to-peer interaction. This first cryptocurrency i.e., Bitcoin was launched over a decade ago in 2009. Being the first cryptocurrency, Bitcoin enjoys its share of popularity, but many new cryptocurrencies have been introduced ever since. As of September 2021, there are 6000 cryptocurrencies in the market, compared to very few in 2013. While there are many cryptos, around just 20 of them cover up 90% of the market. If you wish to trade bitcoins, you can rely upon the longstanding promise of cryptocurrency. In this article, let’s read about some more cryptocurrencies apart from Bitcoin. The objective is to have a currency that is free from the control of the government or banking institutions.
Different Types of Cryptocurrencies
- Ethereum(ETH): After Bitcoin, if there is a cryptocurrency that the world is talking about, it is Ethereum. It is not only a cryptocurrency but also a platform for running smart contracts. Ethereum is a prime example of a decentralized software that runs smart contracts and decentralized applications. The goal of launching Ethereum was to create a decentralized suite of fiscal products that can be easily accessed by everyone. The aspect of free access plays a vital role for countries with no proper state infrastructure or identifications of loans, bank accounts, and other financial commodities.
Ether is Ethereum’s specific digital token, and it has established itself as the second-largest digital currency of the market, just behind Bitcoins in terms of market capitalization.
A lot of development is happening on Ethereum. The company intends to have a platform that is scalable and is energy-efficient. It is quite likely that soon Etheruem will be working on the Proof of Stake mechanism, which is a far more energy-efficient and cost-effective solution as compared to Proof of Work which forms the underlying mechanism of Bitcoin.
- Cardano: Reputed and dedicated mathematicians, cryptography experts and engineers are behind the development of Cardano. The team of Cardanohas been capable of establishing its blockchain. This blockchain was the result of extensive research and experimentation.
The blockchain of Cardano is said to be more effective than Etherum due to the rigid process of its development. Although Cardano overtook Ethereum in terms of the proof of stake consensus model, there are still many areas of improvement, primarily decentralized financial applications.
According to the founders and developers of Cardano, their main focus is delivering a financial system that can be used by people in different parts of the world. To do so, they have developed decentralized financial products along with solutions regarding chain interoperability, legal contract tracing, voter fraud and others. In November 2021, Cardano was the sixth among the top cryptocurrencies with
the total market capitalization of around $57 billion.
- Litecoin: Litecoin or LTC is often termed as silver to Bitcoin gold. It was launched in the year 2011. It is an open-source payment network that works globally. Also, there is not external control. They mainly use scrypt as a proof of work to ensure network security. Although there are various similarities between the functioning and operating of Litecoins and Bitcoins, it has enabled faster block generation.
This unique feature automatically provides users with the chance to get a faster transaction confirmation time. The growing popularity of Litecoin has helped significantly increase the number of merchants around the world who are ready to deal with Litecoins as a form of transaction.
Various studies and research have shown that the total market capitalization of Litecoin is around $14 billion, with each token having a value of $200. These values have shown clearly that Litecoin has successfully established itself among the top seven cryptocurrencies worldwide.
- Dogecoin (DOGE): Billy Markus and Jackson Palmer are the names behind the launch of Dogecoin. This coin was known for the image of the Shiba Inu as its avatar and was even known as the meme coin. Various multi-billionaire companies started accepting this unique cryptocurrency as a form of payment. In November 2021, its market capitalization stood at $29.2 billion, and one DOGE is worth $0.21.
Now you must be aware of some of the popular cryptocurrencies making waves in the crypto world. If you are planning to trade in cryptocurrency, you must review their performance in the crypto market and then decide.
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