Unless you’ve been living under a rock, you’ve heard the word cryptocurrency. Thirteen years ago, Bitcoin was the only cryptocurrency on the market. Fast-forward to 2022, there are almost 10,000 different types of cryptocurrency in existence.
In 2020, the global cryptocurrency was valued at $1.49 billion. Its growth projection is set to reach $4.94 billion by 2030.
With so many types of crypto on the market, how do you differentiate between them? This guide will walk you through the top three different cryptocurrencies you should know about.
Why Are There Different Types of Crypto?
A cryptocurrency is a form of digital currency, also described as a coin, token, or NFT, that is distributed on a decentralized ledger called a blockchain.
Most cryptos focus on securely exchanging goods and services without the need for government, middlemen, or interference. Although cards and other physical projects exist, most of the different types of crypto are entirely intangible.
Since its release, more than 660 million Bitcoin transactions have been completed. Its popularity is obvious, recognized among digital currency as the king of crypto.
Bitcoin is unlike other cryptos because the 21 million bitcoins in circulation today are the only ones that will ever exist. This doesn’t mean the coin will “sell-out”. Bitcoin will always be available for purchase because of its ability to be split up into smaller sub-units. One Bitcoin is equal to 1,000,000 bits.
Because of Bitcoin’s success, the crypto sector’s current total market gap keeps growing, increasing by 187.5 percent last year.
Ethereum was designed with the idea of developing a decentralized suite of financial products that are available to anyone in the world.
The coin’s “product freedom” makes it different from Bitcoin, running on Ether (ETH), a platform-specific cryptographic token. This platform is important for developers and parties interested in running applications inside Ethereum.
Currently, Ethereum is the second most popular of all types of crypto. Big tech companies like Microsoft, HSBC, and Barclays have placed their stakes in the crypto and its platform.
Dogecoin recently gained a lot of traction in April 2019 after billionaire Elon Musk tweeted his backing for the coin and its future. We may not see Dogecoin as the currency of Mars any time soon, but the coin does hold some value considering its availability.
Dogecoin is unique among types of cryptos because of its unlimited mining ability. The coin is one of the biggest among market cap and trades at one of the lowest prices, currently at 0.092 USD per unit.
Although it’s hard to predict the future of Dogecoin or any other type of crypto, there is no shortage of memes created for this cryptocurrency. You might even notice some references to doge in NFT marketplaces.
Crypto is Still Growing
It’s important to learn the various types of crypto now while the market is still growing. Although basic knowledge and research on the top cryptos can open the door, a more thorough and detailed understanding will lead to a lucrative investment.
Even if you’re not interested in buying, selling, or trading crypto, our website has something for you. We’re always publishing new, fresh information across a variety of products, experiences, and commodities.
Keep reading and you might just lead yourself down a rewarding path paved by knowledge.