You may have heard about cryptocurrency by now. But even if you have not, most people have at least once in their lifetime heard about Bitcoin. It is however mistaken to think that bitcoin is synonymous to cryptocurrency. For quite some time now bitcoin has been the top rated, most popular and common form of cryptocurrency. This is often due to ignorance partly but also because of limited sensitization about the others types of cryptocurrency available in the market.
This is as a result of a naturally set bias for bitcoin over the other types owing to the bitcoin’s ability to thrive well in trade and transactions involved in the blockchain.
Other forms of cryptocurrency
There are a number of cryptocurrency in the market today. Some are still being invented even as we speak. We will look at some of the top rated types of cryptocurrency other than bitcoin.
Shortened as ETH, it is the second form of crypto coins after bitcoin. It serves individuals who are interested in smart contracts and also runs on a decentralized platform. Ether is what is used by developers to run programs in Ethereum. This often seems to be confusing.
Changes have been done since its inception to include mechanisms that allow for its mining under great speeds but with less energy. This is a factor that has been previously seen as a concern for potential investors in the cryptocurrency arena.
Ethereum’s market cap was rated at a half of that of bitcoin by November 2021.
It is possible to engage in trade of the Ethereum using well established platforms that enable users to access other forms of cryptocurrency aside from the bitcoin. You can also access more info.
Litecoin has been said to bear features that are more similar to the bitcoin. Created in 2011, the litecoin has grown to a market capitalization of $14 billion and a $200 per token value and as at November 2021 rated at number 17 globally.
A group of people that included engineers, mathematicians and cryptographers who were working on a research basis discovered the Cardano, otherwise shortened as ADA. The Cardano has been dubbed as the one that could kill the Ethereum owing to its potential. By establishing DeFi products while providing solutions against fraud surrounding voting as well as legal operations for contact tracing, the Cardano has a lot of growth potential in the world of cryptocurrency.
The Polkadot was created to avail a chance that it operates within the other forms of cryptocurrency. In this regard it is said to operate under shared security.
This cryptocurrency was hatched directly under the bitcoin following disagreement between developers and miners. Market capitalization for the bitcoin cash in 2021 November was at $10.5 billion. Also shortened as BCH.
There are other types of cryptocurrency like Stellar, Dogecoin, Binance coin, Tether, Monero among many others.
- Does blockchain and cryptocurrency mean the same thing?
No. cryptocurrency is a form of financial token that depends on the blockchain, which is a form of technology to run its operations.
- Is there any form of records kept?
Yes. All transactions performed using cryptocurrency are recorded on the blockchain in a series form in a shared ledger.
- Aside from carrying out transactions, how else are cryptocurrency useful?
Store of asset to preserve value, transfer of asset ownership are some of the other uses of cryptocurrency aside from using it as a means of payment.
- How best can I understand what cryptocurrency is?
It is a digital asset that is used to transfer ownership of asset, goods or service as a medium of exchange. Business insider further explains that cryptocurrency have a limited supply, just like legal currency. This makes its value well maintained at a balance between demand and supply.