Cryptocurrency is a term that refers to digital or virtual money which takes the form of a coin or token. One of the most well-known types of cryptocurrency is Bitcoin, although there are several other cryptocurrencies on the internet, bitcoin remains at the top of its position. Therefore, immediately consider investing in bitcoin. Because the future of bitcoin in 2021 is likely to have a great profit opportunity.
Different cryptocurrency has a different feature. Some cryptocurrencies can be changed into actual money using credit cards and other payment methods. But some cryptocurrencies remain intangible. Bitcoin is the pioneer of cryptocurrency, however, there are lots of types of cryptocurrency all over the internet.
The first in the list of Bitcoin alternatives is Ethereum. It is a kind of decentralized website or platform that is built and operated without fraud, downtime, interference, or control from a third party. The main goal of Ethereum is to create financial products or decentralized platforms for anyone in the world with free access without considering ethnicity, nationality, and even faith.
This means that you do not need identification or state infrastructure to access bank account, insurance, loans, and other products of financial. Ethereum is the second-largest cryptocurrency after Bitcoin and it has a similar mining method as Bitcoin.
Launched in 2011, Litecoin was directly following the path of Bitcoin. Sometimes, it is also called ‘silver to Bitcoin’s gold’. Litecoin uses an open-source payment network that is not under the control of any central authority. As proof-of-work, Litecoin uses ‘scrypt’ which can be decoded using a consumer-grade CPU. Even though in general Litecoin can be similar to Bitcoin, but the block generation rate is faster. As the sixth-largest cryptocurrency, Litecoin offers a faster confirmation time for each transaction.
Different from the previous cryptocurrencies, Stellar mainly uses it for money transfer. The Stellar network is specifically designed to make money transfer faster and easier regardless the nationality borders. In the world of cryptocurrency, Stella is an open blockchain network for anyone to use. Using Stellar, huge transaction which may take several days in traditional banks can be done in nearly instant without intermediaries and little to free-of-charge.
Another cryptocurrency on the list is Ripple but this one is not blockchain-based. For personal use, Ripple may not mean so much, but for large corporations and companies, Ripple is a great platform to move a huge sum of money without a hassle. The coinage for Ripple is known as XRP. Rather than for the XRP crypto, Ripple is more famous for the digital payment network. Ripple allows users to transfer money of any form, ranging from dollars to Bitcoin and other cryptocurrencies.
Cardano is the type of cryptocurrency created by mathematicians, engineers, and also cryptography experts. Due to the extensive creation process, no wonder if Cardano appears more standout than other cryptocurrencies. The Cardano blockchain is believed to have more capabilities than Ethereum considering it has a similar pattern. Cardano is the only cryptocurrency that is created with in-depth research and experiments.
In addition to these five cryptocurrencies, there are still many types of cryptocurrency on the internet that we cannot explain all of. Many of these cryptocurrencies have little or no trading volume, but besides Bitcoin, there are several cryptocurrencies with dedicated communities and investors.