Numerous cryptocurrencies are divided into two categories, coins, and tokens. The coins include Bitcoins and altcoins currencies while the tokens include the assets that remain in the blockchain platform. The coins and tokens differ from each other when getting a basic understanding of cryptocurrency. They are the form of cryptocurrency which plays various functions.
The coins like Bitcoin or other non Bitcoins currencies are built on their own blockchain while the other crypto exchanges are built on the specific blockchain platforms. There are various cryptocurrencies out of which 10 most common types are discussed here. These are the virtual currencies whose price continuously fluctuates. Following are the cryptocurrencies preferred today by the investors and companies in the world:
Bitcoin:
This was the first cryptocurrency that was ever created in 2009. It was launched by Satoshi Nakamoto. As of today, there are 18.8 million Bitcoin tokens that are in circulation. This cryptocurrency depends on blockchain technology which is a decentralized public ledger that helps in recording Bitcoin transactions. It is independent of any central bank or government. The basic concept of cryptography and consensus was established by Bitcoin and you can check the Yuan Pay Group review.
It is the most preferred type of cryptocurrency today. Bitcoin miners are present in different parts of the world that works on powerful computers and verify the transactions for generating more Bitcoins. It requires a process that is known as proof of work. Through this process, the transactions are permanently kept in the blockchain network that provides high security to the cryptocurrency.
Ethereum:
Ethereum is also a much preferable blockchain network. This currency was not created to support other currencies rather it was designed as a programmable blockchain. It helps the users to publish, monetize and create applications. Ether is the payment form that was developed on the ethereum platform. As of today, it is in the second position among the cryptocurrencies in the world.
It also follows the proof of work system. One advantage of this cryptocurrency is that there is no limitation on the creation of ethereum. Many people use Ethereum blockchain and it has provided huge profit to the initial coin offerings by many investors or companies in the world.
Cardano:
Cardano is a third-generation blockchain platform and is also a preferred cryptocurrency. It works on a proof-of-stake system. The Cardano cryptocurrency does not require high electricity power costs for mining the coins. Cardano has been working to make its network more sustainable and efficient. The cryptocurrency of Cardano is known as ADA. It mainly helps in traceability and identity management. Q
Binance Coin:
Binance is the top Cryptocurrency exchange platform in the world. Binance coin is a cryptocurrency token that enables people to exchange on a Binance platform. This token was first built on the ethereum blockchain but now it is completely live on the finance blockchain platform. It was created as a token in 2017 which helps the traders how to get amazing discounts on the Binance trading fees. Now it has been advanced and can be used for payments, bookings, entertainment, financial services, or any other online services.
Sol:
Sol is a cryptocurrency that is generated by the Solana blockchain platform. As of the previous month the Sol was trading at $191. Solana has made its way in decentralized financing. It possesses art contract technology. It has gained much popularity and its value increased from the last year. As it was $3.4 to work in the previous year but now it has gone up to $191. This cryptocurrency has made its way had had had a growing presence in the Crypto world by high qualities in the financing field.
USD Coin:
USD Coin is a cryptocurrency that runs on an ethereum blockchain platform and other platforms also. USDC is a stable coin and it helps in making the transactions cheaper and faster. Many people think that USDC is a very transparent currency. There were 24.1 billion USDC in circulation as of June 2021. It has gained much popularity and is fully backed by US dollar reserves. Many investors prefer this coin which is pegged to US dollars.
XRP:
XRP is a cryptocurrency that was developed by Ripple Labs. It is a cryptocurrency that was previously designed for working on the ripple network that aims for global money transfer. It can be bought as an investment or as a coin for exchanging other cryptocurrencies. This cryptocurrency cannot be mined and has a limited number of coins that are 100 billion XRP. It also doesn’t rely on any blockchain platform. XRP only works on the ripple network that helps in validating and verifying the transactions. It also helps in making the transactions cheaper and faster as compared to Bitcoins and other cryptocurrencies.
