5 Different Types Of Cryptocurrencies And Their Importance

Cryptocurrency has become a common point of discussion in most finance-related conversations. The digital currency has slowly begun to gain acceptance in global markets as an alternate mode of payment to fiat currency. For the unversed, cryptocurrency is a type of electronic money that is managed using blockchain technology. Blockchains are advanced computer networks that are created using mathematics and coding. Unlike fiat currencies that are issued by governments and regulated by banking authorities, cryptocurrency is completely decentralised and is not issued or regulated by any government or authority..Cryptocurrencies are divided into coins and tokens. Coins operate on their own blockchain and hold value as they are used as money for transactions. Tokens, on the other hand, are built on an existing blockchain..Here is a list of the 5 popular cryptocurrencies. For live prices of cryptocurrencies, click here..1) Bitcoin.Bitcoin is the oldest and most popular cryptocurrency in the world. It was created in 2009. It is the first decentralised cryptocurrency that facilitated transactions using its own blockchain technology. At the time of writing, Bitcoin was priced at roughly Rs. 37.34 lakhs..2) Ethereum.Ethereum is a cryptocurrency network that uses blockchain technology to facilitate smart contracts. It is a decentralised software that allows smart contracts to be built on its network and run on it without any control or fear of fraud by a third party. Ether is the token used to enable transactions on the Ethereum network. Ethereum is currently priced at roughly Rs. 2.46 lakhs..3) Dogecoin.This cryptocurrency was created using a popular meme that features a Shiba Inu dog as its icon. The meme was immensely popular as is the cryptocurrency whose price skyrocketed after receiving backing from Tesla CEO Elon Musk. Musk managed to shake up the already volatile crypto market by backing the meme coin. Dogecoin, unlike Bitcoin, has no limit on the number of coins that can be mined. It's is currently priced at Rs. 22.49..4) Cardano.Cardano was created through a research-based approach by a team of mathematicians, engineers, and cryptographers. In the ecosystem of cryptocurrencies, Cardano claims to be a more sustainable and balanced coin when compared to the other cryptocurrencies. It is currently priced at Rs. 210.78..5) Litecoin (LTC).It was created in 2011 by Charlie Lee, a graduate from MIT and an engineer at Google. It was one of the first few cryptocurrencies that followed the same technology as Bitcoin. Despite being modeled on Bitcoin, Litecoin generates blocks at a faster rate, and, hence, offers a faster transaction time. It is currently priced at Rs. 13,631.

5 Different Types Of Cryptocurrencies And Their Importance

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