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Types of Cryptocurrencies other than Bitcoin

Cryptocurrency is an alternative of traditional currency that can be used for digital transactions. It is also called virtual money and is often referred to as tokens. However, Bitcoin grabs the limelight whenever there is a mention of cryptocurrency. Established back in 2001 by using blockchain technology, Bitcoin saw massive popularity. The surge in Bitcoin usage spurred many other cryptocurrencies to emerge. As a result, there are various types of cryptocurrencies launched by 2021.

Bitcoins/Altcoins are the most popular cryptocurrency, and all of them are based on blockchain technology. The coins transact on their blockchain and hold value, whereas tokens operate on existing blockchains.

List of different types of cryptocurrencies

Several Altcoins that don’t include Bitcoin are called value tokens and divided into categories based on their ability to transmit value digitally. Because of Bitcoin’s popularity, a massive influx of investors entered the crypto market.

Apart from altcoins and bitcoins, there are blockchain-based tokens that are designed to meet different purposes compared to money. For instance, the tokens could be issued as a unit of initial coin offering (ICO). Here, a unit of token represents a stake in the blockchain project.

Traders and investors these days are aware of these terms. However, an equivalently great number of potential traders and new participants don’t know the different cryptocurrencies available in the market. So, let’s understand them one by one:

  1. Ethereum

Ethereum is a network of cryptocurrencies that works on blockchain technology. It is used to conduct smart contracts. It is software that is built on the concept of decentralization. This cryptocurrency network allows building and running the smart contract on its platform without the fear of any fraudulent activity. The token that is used to transmit transactions on Ethereum is ether.

2. Dogecoin

This cryptocurrency emerged from the popular meme icon that featured Shina Inu dog. Although the undeniable popularity of memes proved to be a major factor in the success of Dogecoin, the cryptocurrency altogether saw a skyrocket in fame and prices overnight when the CEO of Tesla, Elon Musk, backed it. One aspect of Dogecoin that is better than Bitcoin is that the former doesn’t limit the number of coins that can be mined in transactions.

3. Litecoin (LTC)

It is a cryptocurrency that was created back in 2011 by an MIT graduate, Charlie Lee, who was also an engineer at Google. Litecoin cryptocurrency followed the same blockchain technology as Bitcoin. Since both these coins use similar technology but there are some differences.

Unlike Bitcoin, Litecoin generates blocks at a rapid speed, thereby offering quick transaction rates.

4. Cardano

Cardano is a cryptocurrency that was created after conducting wider experimentation and peer review research on blockchain technology. This crypto was founded by Charles Hoskinson, one of the founders of Ethereum.

The cryptocurrency seems to outshine its peers, especially Ethereum, as Cardano’s blockchain has much more capability than Ethereum. However, the financial aim of this cryptocurrency is much bigger by creating cryptos such as Ethereum with solutions for voter fraud, chain inoperativeness, etc.

5. Polkadot (DOT)

Polkadot is one of its kind proof-of-stake virtual currencies that intend to establish inter-operativeness between the blockchains. The protocol of this cryptocurrency connects the permitted and permits-less blockchains allowing the overall systems to work under one umbrella. The difference between the Polkadot and Ethereum is that developers can create their blockchains and make use of the security featured on Polkadot, unlike in Ethereum, whereby the developers have to create their security mechanism.

6. Binance Coin

Binance coin or BNB is issued by Binance, and it is one of the largest crypto exchanges in the world. It was launched as a token which can be used for discounted trades, but now BNB coins can be used for online and offline payment. People can use it for purchasing goods and services.

Concluding words:

Apart from the popularly known Bitcoins, several other cryptocurrencies are a good improvement over the conventional coin in the crypto market. Ranging from Ethereum to Polkadot, there is a greater variety in cryptocurrency from where you can mint a greater sum of money. However, applications like are best for trading the above-listed cryptocurrencies, especially Bitcoin.

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