What is Cryptocurrency and its Types
Rancakmedia.com – Do you already know what cryptocurrency is? This cryptocurrency is a digital currency that is currently in demand around the world, even in Indonesia.
Although the general public first showed little interest in owning cryptocurrency, today there is a high demand for interest in investing in crypto assets.
Even so, there are advantages and disadvantages of using cryptocurrencies. In Indonesia, the Commodity Futures Trading Supervisory Agency (Bappebti) has made restrictions on dealing with crypto asset trading.
So, what is cryptocurrency and what are its types? Here's a detailed explanation.
What are cryptocurrencies?
In basic words, cryptocurrency is digital money that uses cryptography as collateral. By adopting cryptography, cryptocurrency cannot be counterfeited or manipulated.
To list cryptocurrencies, a mechanism known as blockchain technology is often used. Blockchain is a digital ledger that records and verifies all transactions in real time.
The blockchain system validates new blocks by following a set of rules, and collectively maintains them on a peer-to-peer basis.
Cryptocurrencies exist in every country, therefore transactions can be made across countries without being affected by currency exchange rates.
Types of Cryptocurrencies
Below are several types of cryptocurrencies, including:
1. Bitcoins (BTC)
Bitcoin is one of the most popular and most traded cryptocurrencies. The increase in the value of this crypto asset continues to increase.
Since its inception, Bitcoin was intended to achieve global trading scale, including peer-to-peer transactions used as a digital currency, so the demand is high.
2. Ethereum (ETH)
The second most popular cryptocurrency in the liquidity category is Ethereum. The transaction volume of Ethereum crypto assets is huge, and the cash out process is very easy.
Ethereum is a digital currency based on the concept of smart contracts, which allows creation application cellular.
3. Cardano (ADA)
The third best performing cryptocurrency on the market is Cardano. The more efficient blockchain, Cardano, is the first of its kind in the world.
Cardano, the most secure cryptocurrency to date, was the seventh most valuable cryptocurrency as of May this year, and its price is still high.
4. Litecoin (LTC)
The Litecoin crypto asset also has high liquidity. There are around 84 million Litecoins on the open market.
The advantage of Litecoin is that the procedure for adding it is fast, which only takes 2 minutes compared to other crypto assets. To this day, Litecoin remains the go-to investment choice for many.
5. Dogecoin (DOGE)
Recently, the value of Dogecoin cryptocurrency on the market has increased, and this year the growth rate has reached 12,000 percent.
You can buy products and services with Dogecoin or exchange them for other currencies. Dogecoin is digital money.
6. Binance Coin (BNB)
Binance Coin has a market valuation of 4 percent, and has risen in price to that of Bitcoin and Ethereum.
The BNB coin value in units exceeds US$641.43 or around 9.1 million rupiah. Even the nominal, mentioned, is expected to increase in the future.
7. Ripple (XRP)
XRP currency or Ripple is a crypto asset that investors are looking for because it has the largest market valuation. The market capitalization is now 2.8% and is expected to increase by 500% in 2021.
The best Ripple cryptocurrency comes from an American company. Payment and transfer methods are clear because XRP is not a decentralized concept.
Conclusion
After reading the article above, you already know what cryptocurrency is and what types of cryptocurrency it is.
Thus the article about What is Cryptocurrency and its Types, I hope the article above can be helpful and useful for all of you.