Cryptocurrencies have become an integral part of human history. The rise of this new method of trading is one story that will be told to future generations. There are so many types of cryptocurrency available today and new ones keep coming up regularly. In fact, there are currently over 10000 cryptocurrencies out there. If you are looking into entering the crypto world, you should be able to navigate between these options. Here are the 6 types of cryptocurrency you need to know about.
6 Types Of Cryptocurrency
1. Bitcoin (BTC)
Bitcoin is the most popular cryptocurrency in the world. Its success gave rise to the many other cryptocurrencies available today. Even if you do not know much about cryptocurrencies, chances are high that you have, at least, heard of Bitcoin.
It made its debut in 2009 and was created by Satoshi Nakamoto. 1 bitcoin today is valued at about 23.5 million Naira or about 30,781 USD. Despite making its debut so many years ago, Bitcoin still remains the standard that other decentralized virtual currencies try to meet.
2. Ethereum (ETH)
Ethereum is the second biggest cryptocurrency in the world. It is another name you are more likely to be familiar with other than bitcoin. Ether is the token or currency itself, while Ethereum is more or less the platform or network that trades in Ether. Ethereum went live in 2015 and today, 1 ether is valued at close to ₦1.3m or about 1689 USD.
3. Tether (USDT)
Tether is a stable coin and is priced at 1 USD per tether. Stablecoins are cryptocurrencies that have a fixed price tied to a specific asset. Tether is tied to the US dollar. So, traders in the cryptocurrency markets, can simply use Tether instead of converting to USD. Tether was created in 2014.
4. Binance Coin (BNB)
Binance coin is a payment method on the Binance exchange platform. It is what the platform uses to charge the fees generated from trading on the platform. It initially started as a token that was used to provide discounts for traders on the Binance exchange, which is one of the biggest crypto exchanges in the world.
Now, it serves as a full-fledged cryptocurrency with its own market value. 1 Binance coin is valued at about 170k Naira or about 280 USD. Binance coin was created in 2017.
5. USD Coin (USDC)
USD coins are another type of stablecoins on the crypto market. Similar to Tether, the USD coin also fixes its price to the US dollar. USD coin was created in 2018.
6. XRP (XRP)
XRP was formerly known as Ripple. It was created in 2012. 1 XRP is currently about ₦400.05 or about 0.52 USD. XRP is the token of the XRP platform and uses a different method to validate transactions. It does not require any proof of work to validate transactions on the platform.
With so many types of cryptocurrency available in the world today, it can be a nightmare trying to find the right one to trade with or start investing in. The 6 types of cryptocurrency mentioned in this article are definitely a good place to begin as you familiarize yourself with the crypto world. Happy investing!