Cryptocurrency is a kind of virtual currency, and there is no entity, so many people also call it virtual currency. A decisive feature of cryptocurrency can be said to be its greatest charm and its organic nature. It is not issued by any central institution, so theoretically it is not subject to government intervention or manipulation. Cryptocurrencies are usually traded on decentralized exchanges and can also be used to purchase goods and services. In addition, there are many types of cryptocurrency, each with its own characteristics. This guide will tell you the best 7 cryptocurrencies, and let you gain a very authoritative virtual currency trading platform, CoinW cryptocurrency exchange. At present, virtual currency players in many countries around the world complete currency tradings through CoinW.
How many types of cryptocurrency are there
Bitcoin is the earliest cryptocurrency. In addition, there are more than 1000 cryptocurrencies in circulation in the market. We generally call them counterfeit currencies and competitive currencies. Most of them are virtual currencies similar to Bitcoin, which are generated by reference to Bitcoin ideas, principles and source codes. One or even dozens of digital currencies may be born every day, and several or even dozens of digital currencies may disappear every day. The existing well-known digital currencies include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB (BNB), USD Coin (USDC), XRP (XRP), Binance USD (BUSD), Cardano (ADA), Solana (SOL), Dogecoin (DOGE), Polygon (MATIC), Polkadot (DOT), etc.
Which types of cryptocurrency are better?
There are many different types of cryptocurrency, each with its own advantages and disadvantages. Here are some of the most common.
1. Bitcoin
Bitcoin is the most primitive cryptocurrency and is still the most famous. It is also the most valuable, with a market value of more than 100 billion dollars. Bitcoin is decentralized, which means that no single entity can control it. Instead, it is managed by computer networks around the world. tradings are validated by these computers and then recorded in a public ledger called blockchain. A large number of bitcoin owners trade every day. On the CoinW virtual currency trading platform, we can see the price trend of bitcoin and trade.
2. Ethereum
Like Bitcoin, Ethereum is a decentralized cryptocurrency. However, it also has its own programming language, allowing developers to create decentralized applications (dApps) on the Ethereum network. Ethereum also has its own cryptocurrency, called Ethereum.
3. Monero
Monero coins are cryptocurrencies that pay attention to privacy. The tradings on the Monroe coin blockchain are untraceable, which means that no one can see how much money is involved in a specific trading. This makes it a popular choice for those who want to keep their financial activities confidential.
4. Litecoin
Litecoin is similar to Bitcoin, but the trading time is faster and the supply of tokens is larger. It is created as a branch of Bitcoin code base, so it has many similarities with Bitcoin. However, there are some key differences, such as using different workload proof algorithms.
5. Dogecoin
Dogecoin was originally created as a joke after Bitcoin became popular. Its name comes from an Internet meme featuring Shiba Inu dogs. Unlike many digital currencies that limit the number of coins available, the circulation of Dogecoin is unlimited. It can be used for payment or remittance.
6. USDC
Much like Tether, USD Coin is a stable currency linked to the US dollar and cannot be mined. However, unlike Tether, USD Coin has more transparent capital and better audit process. The goal is to eliminate some of the risks associated with encryption, because users should always be able to withdraw their coins and get the corresponding amount of cash in exchange.
7. XRP
Ripple (XRP) is a blockchain based payment platform with its own cryptocurrency of the same name. XRP is considered as a way to promote international payment. XRP acts as a bridge between two different currencies to provide cheaper and faster global transfers. Its trading uses less energy than other tokens, and it is considered one of the most valuable currencies based on market value.
Final Thoughts
There are many types of cryptocurrency. New currencies often appear and old currencies disappear. But you can avoid risks through this guide. We can analyze the trend of various cryptocurrencies and conduct tradings through the CoinW platform. The whole process is very safe.