Types of Cryptocurrencies

In the world of cryptocurrency, Bitcoin was just the beginning. Virtual currencies served a very important role in the investment realm. People start turning towards cryptocurrencies as compared to fiat currencies because of its transactional and monetary properties. Cryptocurrencies propelled the growth of dynamic market for investors and users.

What is the best and fastest way to learn trading? Well! Aside from Bitcoins, there are other cryptocurrencies available that will allow you to trade faster. However, we will only feature the top five virtual currencies in the market, including Bitcoins.

Bitcoin is the first ever cryptocurrency created and is still the most sought after cryptocurrency to this day. In the cryptocurrency network, Bitcoin is the digital gold standard. Pioneer of Blockchain Technology, Bitcoin made digital money possible.

It is the first decentralized peer-to-peer network powered by its users without any central authority or intermediary. No unnecessary costs are included in the digital money transaction. Over the years, Bitcoin’s value has immensely changed from zero to over $2000 per bitcoin to date. Bitcoin transaction volume has also reached 200,000 daily.

Bitcoin is impossible to counterfeit or inflate. This is one major advantage Bitcoin has in comparison with other cryptocurrencies. This is because only 21 million bitcoins were created for mining, no more no less. Hence, as a prediction by 2140, all bitcoins will already be mined. Through its blockchain technology, users have ultimate control over their money and transactions without having to go through an intermediary like the bank or Paypal.

Bitcoin transactions are impossible to be reversed. You should only deal with trusted parties as Bitcoin is also used as a means for cyber-crime like dark net markets or ransomware.

Media companies and investment firms in South Korea, India, Australia, and Japan already started discussing on the possibility of Bitcoin to be an alternative monetary system in the future. Discussion also includes how it may surpass the value of certain fiat currencies. Recently, ABC News have also reported the possibility for Bitcoin to replace even the USD in the next 10 years if it sustains its current exponential growth.

Ethereum was created by Vitalik Buterin. It has earned second place in the hierarchy of cryptocurrencies. Launched in 2015, this digital currency is predicted to outshine Bitcoin and may be the cryptocurrency of the future. Since its launch, Ethereum is currently worth $279.

Ethereum is a part of a blockchain network, just like Bitcoin. While Bitcoin blockchain focuses on tracking ownership of the digital currency, Ethereum blockchain focuses on running the programming code or network.

Ethereum enables the development of thousands of different applications in a single platform instead of having to build an entirely original blockchain for each new application. In the Ethereum blockchain, miners work to earn Ether, a crypto token that helps run the network. Its blockchain has the ability to decentralize any services that are centralized. As an example, Ethereum is able to decentralize services such as loans provided by banks, online transactions using Paypal, voting systems, and much more.

This digital currency can also be used to build a Decentralized Autonomous Organization (DAO). A DAO is a fully autonomous organization without a leader, run by programming codes on a collection of smart contracts written in the Ethereum blockchain. Like Bitcoin, it is designed to replace the structure of a traditional organization, which eliminates the need for people and a centralized control.

A third party cannot make any changes to the data of Ethereum blockchain. Tamper and corruption proof, Ethereum is built based on a network formed around a consensus, making censorship impossible.

Applications are well protected against any form of hacking because, just like Bitcoin, Ethereum is backed up by secure cryptography.

Launched in 2011, Litecoin is aspired as the “silver to Bitcoin’s gold.” With specialized computer hardware, Litecoin is mined in a way that eliminates some of the advantages for miners. Among any other mined cryptocurrency, Litecoin also recorded the highest market cap after Bitcoin.

The reason behind the creation of Litecoin is to make up what Bitcoin lacked. Confirmations of Litecoin transactions are processed more quickly than Bitcoin. Litecoin generates a block in 2.5 minutes, while Bitcoin does it in 10 minutes.

For miners and technical experts, the Litecoin possesses this very important difference to Bitcoin. Litecoin has a more improved work algorithm that speeds up the hashing power and system altogether. Thus, Litecoin can handle a higher volume of transactions. The faster block time prevents double spending attacks and there is nothing more crucial in the cryptocurrency world but confirmation.

With the current value of Litecoin is $46, Litecoin failed to secure and maintain its second place after Bitcoin. However, it is still actively mined, traded, and bought by investors as a backup in case Bitcoin fails. People can make use of various cryptocurrencies to do better and faster trading. This article has every single info that can help you with everything you need to know. 

Monero was launched in 2014 with a goal to create an algorithm to add what’s missing in the privacy features of Bitcoin. To conceal the identity of its senders and recipients, Monero invented a system known as the “ring signatures”.

The system combines a user’s private account keys with public keys obtained from Monero’s blockchain. This way, a ring of possible signers is created, which would not allow outsiders to link a signature to a specific user.

Monero provides its users the ability to keep their transactions private and share their information selectively. Each Monero account has a “view key” that allows anyone holding it to view the account’s transactions.

At first, Monero’s system concealed the senders and recipients involved in its transactions without hiding the amount being transferred. Later, the ring signature system was updated. The improved version of the system is known as “Ring CT”, which enabled the value of individual transactions and its recipients to be hidden.

Aside from its system, Monero also improved its privacy settings by using “Stealth Addresses”. These are randomly generated, one time addresses, created for each transaction on behalf of the recipients. This feature allows recipients to use a single address and transactions they receive go to separate, unique addresses. This way, each transactions cannot be linked to the published address of the recipients.

With this high level of privacy, each unit of Monero individual currency can be exchanged between one another. This means that each of Monero coin has the same value. Like other cryptocurrencies, Monero allows others to mine blocks. You can choose to join a mining pool, or you can mine Monero by yourself.

Anyone with a computer can mine Monero. Monero do not require any specific hardware or specific integrated circuits like Bitcoin. Monero uses a Proof-of-Work (PoW) Algorithm instead, which is designed to accept a wide range of processors, a feature which was included to ensure that mining was open to all parties.

Monero price frequently fluctuated from its launch until May 2017. Its current value is now $43.80. Monero has been accepted by multiple dark web marketplaces and has generated its own fan base because of its privacy settings. It is less speculative in comparison with other virtual currencies. Traders purchase Monero as a border for other cryptocurrencies.

This currency has already attracted millions in venture capital, including from Google Ventures. Unlike Bitcoin, Ripples are not mined. It is set up as a payment network, not only for Ripple, but for other currencies. Ripple also serves as an automated system for currency trades.

Ripple is actually a technology that has a dual function namely, as a digital currency and a digital payment network for financial transactions. Launched in 2012 and co-founded by Chris Larsen and Jed McCaleb, the cryptocurrency coin under Ripple is labeled as XRP.

Ripple is different from other cryptocurrencies. It operates on an open-source and a peer-to-peer decentralized platform that allows a transfer of money in any form, both fiat and cryptocurrency. It uses an intermediary in the currency transactions. The medium known as “Getaway” acts as a link in the network between two parties wanting to make a transaction.

The Gateway functions as a credit intermediary that receives and sends currencies to public addresses over the Ripple network. This is the reason why Ripple is less popular as compared to other digital currencies. It only has a $0.26 value to date.

Ripple’s systems exposes its users to certain risks. Although you are able to exchange any currencies, the network does not run a proof-of-work system like Bitcoin. Transactions are deeply dependent on a consensus protocol to validate account balances and transactions on the system.

However, Ripple improved some features such as transactions being completed within seconds on a Ripple network though the system handles millions of transactions frequently. Unlike traditional banks, transfers may take up days or weeks to complete. Ripple transaction fees are minimal, as compared to large fees charged by banks to complete cross-border payments.

Corine

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Corine Jones is a writer, editor and web designer. She graduated from the University of Pennsylvania with a degree of Journalism. She is currently the editorial manager of Coyote Rescue.

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