Types of Crypto Currencies Available in The Market! A cryptocurrency is a digital or virtual money which is secured by a technology called cryptography. Cryptography is a method used for the protection of information and communication with the help of codes. It is distributed across a large number of computer networks.
Cryptocurrencies are used for making transactions online with the help of methods called blockchains. Blockchains contain algorithms that ensure the security of transactional data. The transactions are made using “nodes”.
Whenever there is a transaction, each node must verify every new block generated at that point of time before being confirmed. Blockchains maintain a copy of ledger of all the transactions made which is secured. Therefore, it is highly impossible to counterfeit cryptocurrencies.
There are different types of cryptocurrencies available in the market.
Bitcoin is the first blockchain-based cryptocurrency. Even though Bitcoin was launched in the year 2009, it still remains as a most popular and most valuable cryptocurrency. Bitcoin allows users to make payments online.
These transactions can be viewed, but are secure with the help of the blockchain technology. Only the owner of that Bitcoin can decode the encryption of the currency wallet with a “private key”. It remai
ns with only those two users who are involved in the transaction.
As an alternative to Bitcoin, it was launched in the year 2011. Like other cryptocurrencies, it is under no central authority. It is believed to be faster in transaction timings.
Like any other cryptocurrencies, it is used for trading as a digital currency exchange. It also uses blockchain technology for secure payments. Apart from trading, it is also used for running applications and to monetize work.
Ripple is also a cryptocurrency with digital payment network. It is a low-cost method of transferring funds on a large scale. It allows exchanging of any type of currency to any other type of currency, like from USD to Bitcoin, or to EUR, or to Yen. Ripple is the third-largest cryptocurrency by market capitalization.
Stellar lumen (XLM):
It is founded in 2014. It is an intermediate currency that allows the exchange of currency. It acts as a medium of exchange between two users who has currencies different from each other.
It is created to improve certain features of Bitcoin. It is introduced to increase the size of blocks (in Bitcoin) which are responsible for the transactions. It allows faster processing time for transactions.
There are thousands of other cryptocurrencies available in the market with each one differing in functions and specifications with the other. Those cryptocurrencies include Binance coin (BNB), EOS, Monero (MXR), etc. As of November 2019, over 18 million bitcoins were used in trading which has an estimated market value of $146 billion.
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