What Are Some Important Types of Cryptocurrency in 2021?

A Complete Beginner’s Guide

Are you interested in knowing more about businesses? Or types of investments? Are you curious to know what cryptocurrency types hold importance in the crypto market?

We are here with an article that will answer your question and satisfy your curiosity.

But, before we dive into the central part of the article, let’s tell you something about cryptocurrency first.

Cryptocurrency is digital money that is sold and purchased as a coin or token. Many cryptocurrencies are blockchain-based. The information and data are secured in cryptocurrency through cryptography. The strong cryptography in cryptocurrencies provides security when online transactions are done.

There are many types of cryptocurrency in the crypto market. Each cryptocurrency works on a different algorithm. Their transaction speeds are different. Their market cap values and their stability in the market are essential factors to consider when investing in them.

Many cryptocurrencies are decentralized, which means that there is no central authority responsible for managing the transactions. There is a peer-to-peer exchange of cryptocurrencies, and no bank or government is involved.

List of 10 Important Cryptocurrency Types

Bitcoin: The top cryptocurrency in the list of cryptocurrency types is bitcoin. Bitcoin is a digital currency that came into existence in 2009. A decentralized authority is responsible for managing and operating bitcoin; thus, no bank or government is involved. Bitcoin is the most popular cryptocurrency among investors. It has a significant market cap value. 18.7 million coins of bitcoin are in circulation in the crypto market. One bitcoin costs 31,824.9 dollars.

Ethereum: Ethereum is a platform that is open-source and decentralized. Ether is a token that is used by people who are using Ethereum. It provides an opportunity to people who want to make apps without the involvement of third parties. These app developers use ether for building and running their apps. It is one of the most crucial cryptocurrency types after Bitcoin. There are about 116.3 million others in the market. One ether costs 1,912.5 dollars.

Binance Coin: Binance exchange issues Binance coins. This cryptocurrency used to be a part of the Ethereum blockchain, but now, it runs on the Binance chain. There are 153.4 million Binance coins in the market. The market cap value of Binance coin is only less than Bitcoin, Ethereum, and Tether. One Binance coin is sold for 302.8 dollars.

Tether: Tether stands as the third most important cryptocurrency in the list of cryptocurrency types. It is a cryptocurrency that is known in the crypto market as a stable coin. Tether has good stability as it is connected to assets of the real world. This asset can be US dollars or valuable metals such as gold.

Litecoin: Litecoin is one of the decentralized cryptocurrencies. Litecoin came into existence after bitcoin was created 2 years ago. It used to be on the same blockchain like bitcoin. Litecoin has a transaction speed that is less than the transaction speed of bitcoin. Moreover, Litecoin is not as expensive as bitcoin. There is a circulation of 84 million Litecoins. 1 Litecoin sells for $120.

Bitcoin Cash: In this list of important cryptocurrency types, bitcoin cash is included. Bitcoin cash is a cryptocurrency that is a Bitcoin fork. With the introduction of bitcoin cash, there was an increase in the size of blocks. It made more transactions possible. Moreover, due to the increased size of blocks, there is an improvement in scalability, too. Twenty-one million coins of Bitcoin cash are circulating in the market. 440.6$ is the price of one coin.

Cardano: Cardano is a blockchain platform just like Ethereum. This platform was created after extensive research. It uses Ada as a token. Cardano is decentralized. There are about 31.9 billion Cardano coins in circulation. $1.18 is the cost of one Ada.

Polkadot: One of the cryptocurrency types which uses proof-of-stake is Polkadot. Its main aim is to make interoperability between different blockchains possible. From exchanging information to doing transactions, Polkadot makes it easy for blockchains to connect. There are about 976 million DOT coins circulating in the market. The value of one coin is $12.54.

Stellar: Stellar is a network of open blockchain that allows financial institutions to carry out large transactions. Its cryptocurrency is Lumens. 20.7 billion lumens are in circulation. One lumen costs $0.23.

XRP: In this list of important cryptocurrency types, XRP by Ripple is also included. It is a decentralized cryptocurrency that can be exchanged without taking permission from any third party. 46.2 billion XRP coins in the market. One coin is sold for $0.58.

Final Words

Summing it up, every cryptocurrency has a different function and platform through which they are exchanged. Their cost and the number of their coins in the market help calculate their market cap, which can help investors decide which type of cryptocurrency they want to go with. Their stability in the market also tells the investors about the amount of risk they will be taking by investing in them.

Besides this, if you are more interested in a business then you can also read some business ideas with zero investment Internet.