An ultimate guide to different types of cryptocurrency in 2021

cioreviewindia Team | Thursday, 21 October 2021, 04:35 IST

An ultimate guide to different types of cryptocurrency in 2021The world around us is the result of the progress made in the technology field in the last recent years. All the applications and devices we are using are the advancement of existing commodities to provide human beings convenience. In initial times, only one type of currency was available; Fiat or physical currency. As the world progressed and shifted all the systems digital, there was the absolute need for a digital currency to make online transactions without even moving from your place.

In most Finance discussions, cryptocurrency has become a permanent part and is gaining exposure day by day. Different countries are now accepting it as an alternative to the initial payment mode. Cryptocurrency is a digital means of currency that is based on blockchain technology. The blockchain is an advanced and modified computer network that is developed by using the principles of Mathematics and Cryptography. You can check the official ekrona website This digital currency is entirely decentralized and is not issued or regulated by any Bank or government.

Types of cryptocurrency available in the Global Market

Digital currency is divided into two categories i.e Coins and Tokens. The coins are operated on their blockchains and hold their value to use as money for transactions whereas tokens are operated on the existing blockchains. There are tons of coins as well as tokens available in the market globally. Bitcoin was the first-ever Cryptocurrency that was introduced. Besides it, there are thousands of other types of cryptocurrency now. Out of them, 20 are the most popular ones.

Here are some Cryptocurrencies in which you can invest in 2021 and can use them as an alternative to fiat currency.

  1. Bitcoin

Bitcoin is the most well-known and oldest Digital currency available. It was the first-ever Cryptocurrency to use its blockchain technology to make transactions. It was developed in 2009 and is abbreviated as BTC. It is a transparent source of making transactions and is also easy to buy. BTC is available easily on almost every exchange.

  1. Ether

Ether is abbreviated as ETH and it is used to facilitate smart contracts by using blockchain technology. ETH is a token and is run on the Ethereum blockchain. This token was developed in 2015 and is the second-largest cryptocurrency available in the ecosystem.  It reduces the need for a third party while making any contract. It will protect you from the fears of fraud and scams by third parties. It is a decentralized software and enables you to decentralize applications such as decentralized Finance services (Defi). It is an expensive buy but it will be worth investing in.

  1. Litecoin

This coin was introduced in the cryptocurrency world in 2011 by a graduate of MIT University. His name was Charlie Lee who is an engineer at Google. It is abbreviated as LTC. Litecoin is modeled like Bitcoin. It is among the fewest coins that are based on the same blockchain technology as Bitcoin but it generates blocks at a higher speed and offers you a faster transaction time.

  1. Cardano

Cardano is one of the most popular cryptocurrencies. It is abbreviated as ADA and was created through a research-based approach by a team of engineers, mathematicians, and cryptographers. ADA claims to be a more balanced, scalable, and sustainable coin as compared to other cryptocurrencies in the ecosystem.  It offers faster transactions and a flexible network. You can also build smart contracts on ADA networks now. It is gradually adding features to bring more value to the coin holders.

  1. Polkadot

This coin was created by a member of the Ethereum co-founder team named Wood. He had a different approach to digital currency in the future and thus, formulated it. Polkadot is abbreviated as DOT and it is a proof-of-stake Cryptocurrency in the ecosystem. It aims to deliver interoperability among other blockchains. Its protocol connects permission and non-permission blockchains to enable systems to work under one roof. By using DOT, users can develop their blockchains. It has the shared security concept such that the larger the blockchain is and the more users are involved, the more secure it is.

The bottom line:

The top and famous cryptocurrencies are attracting investors who're striving to diversify their portfolios. The growing companies are using cryptocurrency as an alternative to fiat currency. They're also making it a legitimate way of making payments and transactions. EA Salvador has also instructed their business to use Cryptocurrency as an official method of payment. It is the best time for you to invest in it based on your Budget!.

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