What Are the Common Types of Cryptocurrency?

There are several types of cryptocurrency that people choose to invest in. Learn more about these options by clicking here.

Did you know that over 22,000 different forms of cryptocurrency are traded publicly? Cryptocurrency allows you to buy goods and services and trade them for profit. There are so many different types to get into, but it can help to try out one that is established and traded often. 

If you are considering investing in cryptocurrency, this is the article for you. Keep reading for everything you need to know about the different types of cryptocurrency. 

What Is Cryptocurrency? 

A cryptocurrency is a form of digital asset that circulates money and is not controlled by a national government or central bank. Though many people do not trust this type of money, it is entirely secure. These digital currencies support a blockchain that allows for tamper-resistant tracking of transactions and ownership. 

Bitcoin

Investing in bitcoin can be smart because it is the very first and arguably the most valuable type of cryptocurrency. This makes it more user-friendly to get help or services. For ATM services, search here. 

Each individual coin represents the value of the company’s current price. Users can verify transactions through mining to ensure they are consistent in order to prevent spending funds already spent. 

Ethereum

This platform is commonly used to facilitate financial transactions that are more complex. Ethereum reaches a large group of people in areas that may not have state infrastructure and identifications to get accounts, loans, or other financial products. This is a platform that involves a lot of developers looking to run other applications or make investments. 

Binance Coin

A platform that operates as a payment method for fees, Binance Coin, is the third largest cryptocurrency. Users who take the token as a payment for the exchange can trade at a discount. It is widely used for trading volumes. 

Solana

Solana is a rising platform that can run a high amount of transactions, more than top cryptocurrency names. It supports decentralized applications and can utilize smart contacts, which are crucial to a successful cryptocurrency. 

Tether

Tether is the third largest cryptocurrency, and there is a reason why. It gives people the ability to utilize blockchain network technologies while minimizing the volatility of digital currencies. This allows the user to feel less cautious because price fluctuations happen less. 

I’s price can be directly tied to the US dollar. This means that users can also easily make transfers from crypto to dollars quicker than normal currency. 

Types Of Cryptocurrency To Invest In

If you are still just getting familiar with all of the different types of cryptocurrency, you should make an investing strategy. There are many more types and options to choose from; either way, you should make sure to do your research because each option will be different from the next. 

If you are interested in reading more about money or finance, look at our website. There are a lot of great articles.