Cryptocurrency is on the rise. Although the crypto market is still only used by a small percentage of the world’s population, it is increasing at a very fast rate. The recent economic problems seen the world over have contributed to this as people look for alternative options. Although only used by a small percentage of the world’s population, surprisingly, there are thousands of different cryptocurrencies that are out there. So, why are there all types of crypto coin? As people have seen the increasing demand for this type of currency more and more cryptocurrencies have popped up. This can make it overwhelming to know where to begin or which currencies to choose when you are starting out.
If you haven’t heard of cryptocurrency, you have likely heard of bitcoin. This was the first, and is also the most popular, cryptocurrency. This is often where new investors start, which is understandable. People can, rightly so, be very wary of being scammed, so using a well-known, established cryptocurrency can offer security. It can also offer greater flexibility and is a simpler place to start your cryptocurrency portfolio. A downside to bitcoin is that because of its popularity, it can afford to charge higher rates for transactions, something you could find cheaper through a bit of research and investigation.
Although six years younger than bitcoin, the second most popular cryptocurrency is Ethereum. One thing that makes it so popular is what it offers you in terms of direct access to developing on the Ethereum blockchain. Another great advantage to Ethereum is that it is much quicker to complete a transaction than with bitcoin (we’re talking seconds instead of minutes). Disadvantages however, include, a lot of electricity usage and busy network issues.
Another popular choice for people is called Litecoin. This is more similar to bitcoin, but it is actually quicker and cheaper per transaction to use, making it a favourite with many and has ensured its longevity in the cryptocurrency world. However, although quicker than bitcoin, it does still take a while (we’re back into the minute people) and it is a bit basic compared to what other cryptocurrencies offer now (many offer better privacy, worldwide payment options, etc). It also isn’t cheap if you’re mining with Litecoin, and the process needs a lot of hardware.
These are just a few of the many types of cryptocurrencies. As I’ve said there are thousands of options so a lot of research will be required before you make a decision on what best suits you.