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What Are The Different Types Of Cryptocurrencies?

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Cryptocurrency and bitcoin are not similar. Most of us initially get confused with it. Bitcoin is just a type of crypto. Apart from it, there are many others. So, one needs to have a good amount of knowledge about what crypto serves and its purposes.

Along with bitcoin, we can see the existence of altcoins. In simpler words, different cryptos serve different purposes (you can find out more at bit-iq.de). There are also cryptos which serve more than one purpose. 

Bitcoin. 

Bitcoin is the first among all the cryptocurrencies ever created. It came into theoretical existence in 2008 at the time of the great recession. On the other hand, it started from the value of null, and now the price is almost skyrocketing. Not many people were aware of bitcoin in its earlier stages. Also, not all of them cared for the bitcoins they had back then.

However, the scenario is very different. Satoshi Nakamoto, the creator of bitcoin, already predefined how many bitcoins can be into existence – it is twenty-one million. However, seventeen million is already mined, which makes only a small amount remaining. But that cannot be mined all in just a few years because of the halving process.

As per the record, sixty per centof people have already lost their private keys. In fact, Nakamoto himself holds 980,000 bitcoins, but there has been no trace of him since late 2010. There are no reports on Satoshi Nakamoto. Some believe that he may be intentionally keeping a low profile and will rise one day.  However, we can only hope.

Altcoin.

We know there are thousands of cryptos, and not all of them are bitcoin, right? What is left is called the “altcoin”. After bitcoin, almost six thousand alternative coins have arrived in the crypto market. Ethereum is the most prominent and famous example of altcoins which is also becoming a close competition to the first crypto, bitcoin. There are multiple types of altcoins. Initially, it worked with the help of the bitcoin blockchain but only to develop its own ecosystem (Ethereum’s blockchain) later.

You can find all the thousands of cryptocurrencies in for trading purposes. This platform gives you access to crypto ecosystem, and completely supports you during this process. Here you can explore cryptocurrencies and also acquaint yourself with the trading strategies to simplify your task. Apart from trading, you can do a little research and choose your preferred cryptos and invest in them. Investments are easy; however, to get a good return, one may need to wait for quite some time as the cryptos are volatile in nature.

Utility tokens.

Utility tokens are there to make some usage of some cryptos. In simpler words, some cryptos are connected with some services or products, and they can spend only for that purpose. One such example is Golem. It is used to rent some computer gadgets.

Stablecoins.

Whenever it comes to crypto investments, we become sceptical about them, and the biggest reason behind it is the volatility. Therefore, to fight the volatility, stablecoins are there. This type of token is connected to traditional currencies, other cryptocurrencies, and many assets as well. It was launched to induce some stability into the always-moving and striving crypto ecosystem.

Privacy coins.

Privacy coins are used to keep transactional details private. With these tokens, none other than the end-users can know the number of transactions. Only and only the owner of the wallet will know how much balance he or she has in the wallet. 

Payment currencies.

It is not hard to guess the function of payment coins. There are some coins that the merchants prefer over the others because of the hassle-free transaction and the value they have. Some of the prominent and widely used cryptocurrencies are bitcoin, bitcoin cash, Litecoin, and some others.

These are the cryptos that have gained more acceptance by the businesses over the others. These are also mostly used for paying bills, buying goods and services, etc.

Concluding thoughts.

The crypto-ecosystem is vast and knowing about the types is always helpful when you are trying to get your hands on cryptocurrencies. An intensive research backed by assertive decision making will make it easy for you to choose the best cryptocurrency. Besides, you can also join the crypto communities where you will get all the details and update on the crypto market. This will be more authentic and credible.