Did you know that Bitcoin was created in 2009? Unless you have been living under a rock, you are probably aware that in recent years, Bitcoin has seen a spike in price. It has seen growth in both mid and small caps alike, and investors should expect more growth in the coming years as well.
For now, you’re probably wondering how to invest. The first step is understanding the different types of cryptocurrency and how they work. If you’re trying to learn more about crypto investments, read on.
This guide will teach you all you need to know about cryptocurrency.
1. Bitcoin
This was the first cryptocurrency created, which is why it is usually considered the grandfather of cryptocurrencies. There were only 21 million bitcoins created. This is why the fewer tokens left in circulation to buy, the more the value goes up.
The reason that bitcoin was created was to be independent of central banks and of the government. Click here to get more info about buying a piece of bitcoin or a whole coin.
2. Ethereum
Ethereum’s design is a programmable blockchain. One main difference between bitcoin and ethereum coins, is that there is no limit to the number of ethereum coins that can be created.
3. Litecoin
This coin was created in 2011 by a former Google engineer. Litecoin is very similar to Bitcoin, but it has a much faster block generation rate. This means that it has the ability of confirming transactions a lot faster.
Nowadays, there are plenty of merchants that are accepting Litecoin as a form of payment.
4. ADA
The network for ADA (AKA Cardano) is a lot more sustainable and efficient than Bitcoin’s network. Using high amounts of electricity in order to mine coins is not necessary, like other coins.
This coin is still in the process of being built because it is being built in 5 phases. One of the co-founders of ADA is one of the five initial founding members of the ethereum coin.
5. Bitcoin Cash
This coin is interesting because it was a hard fork done from the original bitcoin token. It was also the first successful coin to survive a fork. Bitcoin cash began in August 2017 because there was a debate about the limit that the bitcoin network had.
The goal of bitcoin cash was to increase the block size from 1 MB to 8 MB because the larger the block is, the more transactions it is able to hold.
Now You Know the Most Common Different Types of Cryptocurrency
Please remember that there are many more different types of cryptocurrency and this list is not all-inclusive. Investing in cryptocurrency and buying crypto is not as hard as it once was, but please always remember to invest only what you can afford to lose to be safe rather than sorry.
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