Cryptocurrency: types and their features

Bitcoin was launched in 2008; it was a time when mention was first made of cryptocurrency.

As everyone knows, bitcoin is the first digital currency which the whole history of cryptocurrency development began with. Despite the fact that digital currency has existed for a long time, it began to acquire its popularity only in 2017–2018, when bitcoin grew rapidly .

What is Cryptocurrency?

Cryptocurrency is a digital currency that doesn’t exist in the material world. Its main advantage is since they cannot be tracked all payments and transactions in cryptocurrency are the most secure, and transfers are reliably protected and cannot be verified. Today there are a huge number of cryptocurrencies, among which are considered the most popular: Bitcoin, Litecoin, Ether, Bitcoin Cash, Ripple, etc.

Features of cryptocurrency

• Cryptocurrencies are not affected by inflation.
• Anonymity.
• Decentralized cryptocurrency — are not powered by the governments.
• Impossible to cancel the transfer.
• Safety.

Types of cryptocurrencies

1). Bitcoin (BTC). As we’ve mentioned earlier, this cryptocurrency first appeared on the market. Satoshi Nakamoto is considered its founder. However, it is still unknown whether this person is real or uses a pseudonym. There is also a version that a group of people created bitcoin under this pseudonym.

2). Altcoins. Altcoins appeared after bitcoin was successfully launched. These are coins that were created as an alternative to bitcoin; hence they are also called “alternative coins.”

Some types of alternative coins:

⦁ Litecoin (LTC)

⦁ Ethereum (ETH)

⦁ Ripple (XRP)

3). Tokens. Tokens are analogous to shares on the stock exchange. This currency does not have its own blockchain, so it cannot exist on its own like altcoin and bitcoin. Tokens are installed on the blockchain of other cryptocurrencies, such as Ethereum, Omni, Neo, Tron. Currently, most of the tokens are installed on the Ethereum blockchain.

The security of cryptocurrency is due to the fact that all transactions are carried out due to the blockchain. As we have already said, cryptocurrency is attractive in terms of safety, speed, reliability, and comfort. Moreover, one more profit from using cryptocurrency is that government authorities cannot control it. Nevertheless, the situation has become more challenging, as governments of different countries try to regulate it and restrict the use of cryptocurrency. Such attention from the authorities is due to the growing demand for this currency and the fact that it is becoming an increasingly stable source of investment. In this regard, developers are working on digital assets, which will be more anonymous and safe to use.

Main advantages of using tokens and crypto coins

• Safe and fast transactions;
• Uninterrupted operation of the cryptocurrency ecosystem;
• Anonymity;
• Confidentiality;
• Interchangeability of coins, etc.

Conclusion

Thus, the cryptocurrency gradually brings to life all the main tasks that it sets for itself. The priority for developers is to create a fundamental digital asset that can replace fiat money when making transactions for various purposes: accumulation of funds, business structures, or purchases.