Types of Cryptocurrencies- Here Is Everything To Know About

Compared to 2009, when Cryptocurrency Rule was first introduced in the form of Bitcoin, it has become a fairly popular term in recent times. Every time you hit a social media platform, or news channel, you would find snippets about cryptocurrencies and how their value is rising. This has garnered the attention of everyone willing to invest and wants to have a greater return on investment. 

Over the years, the concept of cryptocurrency investment is the rise and has gained attention of hundreds and thousands of enthusiastic financial investors. With the rise of cryptocurrencies show up the development of several cryptocurrency trading platforms in the picture. 

With the advancement of technological aspects, the cryptocurrency trading platformshave been quite simplifiedin order to make the trading journey for beginner crypto traders easy and convenient. This informative article willwalk you through the journey of cryptocurrency, how it started in 2009 and some of the key factors associated with it. Read on to know further in detail.

Overview ofCryptocurrencies- All You Need To Know About 

In simple words, cryptocurrency is an exchange medium or a digital form of currency that is traded or exchanged on a trading platform that is governance free. 

When it comes the processing of Bitcoin transactions, the transaction fee order processing scheme is very less compared to what it is in terms of stock market charges. Taking this scenario under the Bitcoin realm, a will directly interact with being and send cryptocurrencies of the desired amount to B. Since they are not using any 3rd party platform, they will not be charged any transaction fee or processing fee. This makes the transaction faster and easier.

Types of CryptocurrenciesTo Know About

  • Blockchain economies- these are also known as blockchain platforms, and it takes the functionality of blockchain technology to initiate the payment. The user can create their digital assets and decentralized applications on this platform. The classic example of this is Ethereum, NEO, and Tron/
  • Privacy coins- so currency that we have is a privacy coin; the prime focus of such points is privacy and confidentiality. In this case, only the sender and the receiver know about the number of points being transacted. In this case, the balance of a private coin wallet is only visible to the owner, whereas in the case of Bitcoin, the transaction amount for each transaction is visible. A common example of this includes PIVX and Monero. 
  • Utility coins or tokens– are blockchain-based products. They operate on blockchain platforms. A common example includes that of TRC10 and TRC20.

Stable coins are very popular among traders because their value remains constantly pegged at a certain figure. There is not much variation in its value like that in the case of Bitcoin or other cryptocurrencies, which are highly fluctuating. These are preferred by those investors who are looking for a safer mode of investment and want to prevent themselves from financial losses. Some examples of this include Paxos (PAX), Tether (USDT), Dai (DAI), and others.

This was the basic information about the type of cryptocurrencies available in the market. If you are also keen to be a part of the crypto trading ecosystem, this is the right time to register yourself on a trading platform like the Bitcoin Era

Several other cryptocurrency trading platforms will provide you with ease of usage and give you an option to explore thousands of cryptocurrencies. However, when narrowing down your options to the best one, certain key parameters must be on your radar. These are listed below:

1. Verification and validation process

2. Ease of usage

3. Complete privacy

4. Good customer support

5. Easy payment gateway

These are the common parameters for much-assured research you should run through the website checkout its privacy policies and terms and conditions. At the same time, you must also check platform fees charged by certain cryptocurrency trading forums.

Final Words

So, these were some important points you needed to know about cryptocurrencies. As a wise cryptoinvestor, you should always begin with a smaller amount when it comes to investing in cryptocurrencies. Once you understand the market, you can expand your horizons and start investing in different cryptocurrencies. Happy and secure crypto investing!