Types of Cryptocurrencies

Cryptocurrency usage has exploded since Bitcoin’s release. Though exact active currency numbers fluctuate and individual currency’ values are highly volatile, the overall market value of all active Cryptocurrencies is generally trending upward. At any given time, hundreds of Cryptocurrencies trade actively.

      1. Bitcoin 

Bitcoin is the world most broadly used Cryptocurrency, and is generally credited with bringing the movement into the mainstream. Its market cap and individual unit value consistently dwarf that of the most powerful Cryptocurrency. Bitcoin has a programmed supply limit of 21 million Bitcoin.
Bitcoin is increasingly viewed as a legitimate means of exchange. Many well-known companies accept Bitcoin payments, though most partners with an exchange to convert Bitcoin into U.S. dollars before receiving their funds.

                                                                                                   

    2. Litecoin 

Released in 2011, Litecoin uses the same basic structure as Bitcoin. Key differences include a higher programme supply limit (84 million units) and a shorter target block chain creation time (two and a half minutes). The encryption algorithm is slightly different as well. Litecoin is usually the second or third most popular Cryptocurrency by market capitalization.



 

   3. Ethereum

Launched in 2015, Ethereum makes some noteworthy improvements on Bitcoin’s basic architecture. In particular, it utilizes “smart contracts” that enforce the performance of a given transaction, compel parties not to renege on their agreements, and contain mechanisms for refunds should one party violate the agreement. Though “smart contracts” represent an important move toward addressing the lack of chargebacks and refunds in Cryptocurrencies, it remains to be seen whether they’re enough to solve the problem completely.

     4. Dogecoin 

Dogecoin, denoted by its immediately recognizable Shiba Inu mascot, is a variation on Litecoin. It has a shorter block chain creation time (one minute) and a vastly greater number of coins in circulation – the creators’ target of 100 billion units mined by July by 2015 was met, and there’s a supply limit of 5.2 million units mined every year thereafter, with no known supply unit. Dogecoin is thus notable as an experiment in “inflationary Cryptocurrency,” and experts are watching it closely to see how its long-term value trajectory differs that of other Cryptocurrency.

     5. Ripple 

Released in 2012, Ripple is noted for a “consensus ledger” system that dramatically speeds up transaction confirmation and block chain creation times – there’s no formal target time, but the average is few seconds. Ripple is also more easily converted than other Cryptocurrencies, with an in house currency exchange that can convert Ripple units into U.S. dollars, yen, Euros, and other common currencies.
However, critics have noted that Ripple’s network and code are more susceptible to manipulation by sophisticated hacker and may not offer the same anonymity protections as Bitcoin-derived Cryptocurrencies.