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Did you know that there were more types of cryptocurrencies than just bitcoin? Find out about some of the different options here!
Those who decide that they want to delve into the world of cryptocurrencies will find several options that they could invest in. You might even have heard of some of them already, but have little idea about the possibilities that they could offer you. Let’s take a look at some of the most common types of cryptocurrencies.
Bitcoin
One of the most famous of cryptocurrencies by far is Bitcoin. This is used all over the internet, from a payment method for online betting at some casinos to trading and other forms of investment. Bitcoin first appeared in 2009 and has gone from strength to strength since then. This cryptocurrency was the first to be decentralised. The creators decided to cap the number of Bitcoins at 21 million, and there are fewer and fewer numbers left to be mined. Once they are all in circulation, that will be it!
Ethereum
A very popular alternative to Bitcoin is Ethereum. This does not use the same open-source protocols as Bitcoin, so it operates on its own system and set of protocols. It is the second-largest cryptocurrency after Bitcoin and was first released in 2015. This cryptocurrency also has one of the most active forms of blockchain. Most notably, non-fungible tokens – or NFTs – are traded using the Ethereum blockchain. Anyone who wants to start trading or acquiring NFTs will need to master Ethereum.
Dogecoin
Named after an internet meme, this cryptocurrency was actually created as a joke at first. It was created by two software engineers who wanted to create a currency that would have a broader appeal than Bitcoin while still improving upon the peer-to-peer functions that had been set up thus far. The currency first went live in 2013. It is particularly notable in that it uses scrypt technology, which means that it needs specific FPGA and ASIC devices to be mined instead of the SHA-256 equipment typically used for Bitcoin. Following encouragement from an unlikely group of supporters like Elon Musk and Snoop Dogg, the price of Dogecoin began to spike in 2021.
Litecoin
Litecoin is one of the earliest spin-off currencies of Bitcoin – sometimes referred to as altcoins – and first emerged onto the markets in 2011. It is very similar to Bitcoin, with some even going as far as to say that it is practically identical to the other. There are a few key differences, however. Like Dogecoin, it makes use of scrypt as part of its proof-of-work algorithms. It also aims to process a block in 2.5 minutes. Bitcoin typically takes 10 minutes to do so, so Litecoin is the much faster platform.
Dash
Dash was initially launched in 2014 as Xcoin, and was then renamed to Darkcoin. This was not considered a particularly good move, especially when it was revealed that the currency was being used on the dark web. The currency was rebranded again to be Dash – a combination of “digital cash” – and steps were taken to ensure that it would not be used in major dark web networks. Like Litecoin, it is an altcoin and coins are mined using a hash function that takes approximately 2.5 minutes to mine a single coin. This function is called X11.
These are just some of the many cryptocurrencies available on the web. They are some of the most popular, however, so if you want to take a look at the opportunities that cryptocurrencies are offering, you should start with these. The market is changing rapidly, so now is the perfect time to decide to get the measure of things in this sector.
