How Many Type of cryptocurrency (Full Details Here)

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Cryptocurrency is a digital form of currency that uses cryptography to secure the processes involved in creating units, transacting and verifying the exchange of currency ownership.

Most modern currency is often referred to as “fiat” currency, which is regulated and created by a government agency. For example, the US dollar is a fiat currency. In contrast, cryptocurrency is not issued by any government authority. It is usually not directly regulated by a single authority but operates in a distributed consensus fashion.

Cryptocurrency derives its name from the combination of “cryptography” and “currency”. At the heart of all cryptocurrencies is a cryptographic algorithm with complex encryption. Cryptocurrency is created by solving pieces of a cryptographic hashing algorithm in a long chain. It is not a physical unit, such as a coin or a dollar bill, but a mathematical calculation. Cryptocurrency assets are often stored in a digital wallet that keeps track of the cryptocurrency.

A decentralized, distributed ledger monitors all cryptocurrency transactions worldwide. In the case of the popular cryptocurrency Bitcoin, the distributed ledger is what is known as a blockchain, a digital system that keeps track of cryptographic hash blocks.

Types of cryptocurrency

There are many different types of cryptocurrency, just as there are many different fiat currencies issued by world governments. While Bitcoin is arguably the best known, many other cryptocurrencies have emerged over the years. These include Dogecoin and Ethereum popular on the Internet. The following is a breakdown of popular cryptocurrencies:

Bitcoin

Bitcoin is a general purpose cryptocurrency and a pioneer in the industry. It works using blockchain, which allows bitcoin to be digitally exchanged in a peer-to-peer network of anonymous, heavily encrypted hash codes. It was created by Satoshi Nakamoto, whose real name has never been revealed.

Code: BTC, XBT

First released: 2009

Created by: Satoshi Nakamoto

Estimated market capitalization: $883 billion USD

Average price: $47,000 USD per bitcoin

Dogecoin

Dogecoin, often referred to simply as Doge, was created as a parody based on the Doge internet meme. It was an almost worthless currency until Tesla CEO Elon Musk and investor Mark Cuban started popularizing it in 2021.

Code: DOGE

First released: 2013

Created by: Jackson Palmer and Billy Markus

Estimated market capitalization: $32 billion USD

Average price: $0.25 USD per coin

Ethereum

Ethereum has emerged as a primary cryptocurrency competitor to Bitcoin in recent years. It introduced many capabilities that were not present in Bitcoin, using open source, distributed blockchain and smart contracts through Ethereum’s Solidity programming language. The cryptocurrency created by Ethereum is called Ether. In September 2022, Ethereum changed the way it executes and validates transactions, moving from a proof-of-work (PoW) model to a proof-of-stake (PoS) approach to consensus algorithms. The transition from PoW to PoS took place in an event known as “The Merge”. Activities on the Legacy Ethereum Mainnet blockchain, which used PoW, were merged with the new Beacon chain, which used PoS. The move to PoS aims to provide better transaction speeds, while reducing the resources required to execute and verify transactions.

Code: ETH

First released: 2015

Created by: Vitalik Buterin and Gavin Wood

Estimated market capitalization: $396 billion USD

Average price: $3,400 USD per Ether

Litecoin

As an early altcoin or Bitcoin alternative, Litecoin initially rose to popularity thanks to its use of a script hashing algorithm, which proponents considered easier to manage than the SHA-256 encryption used by Bitcoin.

Code: LTC

First released: 2011

Created by: Charlie Lee

Estimated market capitalization: $12 billion USD

Average price: $153 USD per coin

Monero

Using a public distributed ledger, Monero gained the unwanted notoriety of being the cryptocurrency of choice for cryptomining attacks in 2018 and 2019. Attackers tried to deploy hidden Monero miners on the systems of unsuspecting users, as it is easier to create the cryptocurrency through the mining process than Bitcoin.

Code: XMR

First released: 2014

Created by: Nicolas van Saberhagen

Estimated market capitalization: $4.6 billion USD

Average price: $271 USD per coin

Stellar

Stellar has its own unique protocol known as the Stellar Consensus Protocol to settle transactions in a distributed ledger. Low-cost currency transfers allow easy transactions between any two currencies, which some organizations find attractive as a flexible method of doing business.

Symbol: XLM

First released: 2014

Created by: Jed McCaleb

Estimated market capitalization: $7.5 billion USD

Average price: $0.32 USD per lumen