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UNDERSTANDING THE VARIETY TYPES OF CRYPTO CURRENCIES

There are several types of crypto currencies on the market. Cryptocurrencies are protected with specialized computer code known as cryptography, which offers security. They are difficult to break, much like a complex puzzle (and hack). 

The number of blockchain wallet users would have rise to more than 50 million by September 2020, with Bitcoin boasting more than 7 million active users. Insiders refer to it as “crypto,” therefore that’s what we’ll refer to as going forward. 

The number of cryptocurrencies or types of crypto currencies available on the internet has increased since the inception of bitcoin.

How many different types of Crypto currencies exist?

There are approximately 10,000 different types of cryptocurrencies by July 2021.

The many forms of crypto fit into one of two categories:

• Coins, which might include Bitcoin and other kind of cryptocurrency (non-Bitcoin cryptocurrencies)

• Coins and tokens

types of crypto currencies

Coins vs. Crypto Tokens

Crypto includes encrypted currencies and tokens. In general, they may be classified as either alternative types of crypto currencies (Altcoins) or tokens.

Cryptocurrency coins that aren’t Bitcoin (Altcoins)

Altcoins used to refer to any coins that are not Bitcoins. Solving complex math problems computationally is a prominent specifications of Bitcoin. It operates independently of a central bank or a government agency (i.e., government-backed Treasury). 

Furthermore, among the alternative coins are: Peercoin, Litecoin, Dogecoin, Auroracoin, and Namecoin are all examples of cryptocurrencies.

In reality, the term “altcoin” is an abbreviation for “alternative to Bitcoin”. The first altcoin is Namecoin.

Most of the cryptocurrencies featured here, like Bitcoin, have a limited quantity of coins to keep the balance in check and to reinforce their perceived worth. 

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