Are you looking to invest in cryptocurrency, but you’re not sure where to start? Do you feel like every article out there talks in code and uses jargon you don’t understand?
If so, then you need to get acquainted with the different types of crypto you can invest in. Crypto is not just bitcoin – there are many different types of cryptocurrency out there ready for you to buy and own.
If you’re just getting started in crypto, try investing in one of the five cryptocurrencies below. These are a great place to start your entry.
Top 5 Cryptocurrencies You Should Know About
Do you want to know more about the types of crypto? Here are five popular cryptocurrencies…
Bitcoin is a cryptocurrency and a payment system. It was first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008.
Bitcoin is decentralized. This means that it is not subject to government or financial institution control. Transactions get verified by a network of nodes.
They are then publicly recorded in a distributed ledger, which is called a blockchain.
Ethereum is another decentralized platform. Unlike Bitcoin, it runs smart contracts.
These smart contracts are applications that run exactly as programmed. Because of this, there is no possibility of fraud or third-party interference.
Ether is the native cryptocurrency of the Ethereum platform. People can use them to pay transaction fees and services on the Ethereum network.
Ethereum was initially proposed in 2013 by Vitalik Buterin. Ethereum got launched in 2015. It is currently the second-largest blockchain platform when it comes to market capitalization.
Litecoin is a cryptocurrency that uses a blockchain to store transactions. It is similar to Bitcoin in many ways, but it has a few key differences.
For one, it uses a different algorithm to mine new coins. This helps to keep Litecoin more decentralized than Bitcoin. If you are interested in mining, you can get a quote now to get started.
Additionally, Litecoin has shorter block times. This means that transactions get confirmed faster. Litecoin is often seen as silver to Bitcoin’s gold.
Ripple is a crypto created in 2012. It is a decentralized payment network that allows for fast and secure transactions.
Ripple is different from other crypto types in that it does not use a blockchain. Instead, it uses a distributed ledger system that is managed by a network of nodes.
This allows for transactions to be confirmed quickly and efficiently. Ripple is a popular choice for businesses and individuals who are looking for a fast and efficient way to send money.
Monero is a cryptocurrency that focuses on privacy and anonymity. Transactions on the Monero blockchain cannot get traced. This makes it a popular choice for those looking for financial privacy.
Monero is also fungible, meaning that all units of the currency are interchangeable. This makes it different from Bitcoin. The latter is not fungible due to the public ledger of all Bitcoin transactions.
Understanding the Types of Crypto
If you’re looking to get started in cryptocurrency, you should understand the different types of crypto. Each has its strengths and weaknesses.
Bitcoin, Litecoin, Monero, and Ethereum are just a few of the most popular cryptocurrencies on the market. So take your time, do your research, and make sure you understand the risks before you invest.
For more cryptocurrency information and news, don’t forget to check out our other articles. Here, you will find all the information you need to get the most out of the new cryptocurrency world.