Types of cryptocurrency

Nithvik
2 Min Read

There was a time when you could count the number and types of cryptocurrency on one hand. Today that is no longer possible. The crypto market has grown, grown, and grown some more!

Types of cryptocurrency
cryptocurrency

In this article, I will explain the three main types of cryptocurrency: Bitcoin, altcoins, and tokens.

Before learning about the top types of cryptocurrency, it’s important to understand what cryptocurrency is.

What is a Cryptocurrency?

The prefix crypto- stands for “cryptography,” which is a technology that keeps information safe and hidden from attackers.

In present day, computer technicians put cryptography to use in many different ways. One of those ways is cryptocurrency!

Cryptocurrency is an electronic money created with technology controlling its creation and protecting transactions, while hiding the identities of its users. For now, you can forget about how types of cryptocurrency are created, and instead, focus on what it does.

We don’t need banks to process our transactions anymore. Instead, transactions in cryptocurrency processed on the blockchain. The blockchain is a shared database.

It is shared because it is run by lots of different people and companies, instead of just one company, like banks. This way, nobody has power over the transactions or the cryptocurrencies involved, and you don’t need to trust one single company (like a bank) to handle your money.

The Three Main Types of Cryptocurrency

The blockchain brings together the three main cryptocurrency types and bitcoin was the first blockchain

After Bitcoin, many new blockchains created — They called altcoins. NEO, Litecoin and Cardano are solid examples of altcoins.  Finally, tokens/dApps — the third main type of cryptocurrencies. Examples of these include Civic (CVC), BitDegree (BDG), and WePower (WPR).

Bitcoin

Altcoins

Tokens (for dApps)

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