The Different Types of Cryptocurrency Explained

A cryptocurrency type of decentralized digital currency. The first cryptocurrency, known as Bitcoin, was created in 2009. At the time, it had a price of zero which slowly began to increase; today the value of Bitcoin stands at around $36,000.

While Bitcoin was the first cryptocurrency, it is far from the only type. Today, there are literally thousands of different types of cryptocurrency. Not all of them may be worth knowing about, but there are many which are attracting significant interest.

If you are considering investing in cryptocurrency, then this blog post is for you. Here, we will highlight some of the best crypto investments you can make today.

Bitcoin

As noted, Bitcoin is the cryptocurrency that started it all. What is interesting about Bitcoin is that there is a cap on the amount that can be mined (21 million Bitcoin). Almost 19 million of this has already been mined, though it will take 120 years to produce the rest of the coins.

Bitcoin has gradually become more mainstream in recent years and was even confirmed as a legal tender in El Salvador in 2021.

Dogecoin

Another cryptocurrency that has received quite a lot of media attention in recent years is Dogecoin. It is considered to be the world’s first ‘meme coin’ as it was initially created as a joke poking fun at the cryptocurrency speculation in 2013.

Despite this unusual beginning, Dogecoin has attracted attention around the world. Even Elon Musk has been getting in on the act with several tweets and references to the currency.

Ethereum

If you’re looking for a Bitcoin alternative, you may be interested in Ethereum. It has a current price of around $2,300 and, unlike Bitcoin, there is no limit on the amount of native currency, known as Ether, that can be produced.

Monero

Another strong option is Moreno, which was launched in 2014. This secure, fungible, and untraceable currency has a market capitalization of more than $5 billion. Its price has been steadily rising in recent years, including a jump of 231% in the 12 months between August 2020 and 2021.

Litecoin

One of the earliest cryptocurrencies (founded in 2011) Litecoin is based on an open-source global payment network. It is not controlled by a central authority and features faster transaction confirmation times compared to other currencies such as Bitcoin.

If you are planning to invest in cryptocurrencies, it’s important to understand how they are taxed. Check out this post to learn more.

Understand the Different Types of Cryptocurrency

The above-mentioned kinds of cryptocurrency are just the start. Other popular options include Chainlink, Dash, Solana, Tezos, and Polygon. That said, the most important cryptocurrency remains Bitcoin.

There are many advantages to buying cryptocurrency and there is potentially significant profit to be made from investing in the right one.

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