Today the cryptocurrency market has grown, and with the exponential growth, they face every year, there is bound to be a lot of things that you are not aware of. In this article, we will be discussing the three main types of cryptocurrency. Crypto is the prefix from cryptography which is one technology which is meant to keep the information away from attackers. This information is used to send and receive information. There are many ways to describe cryptocurrency; one describes it as electronic money which is created with technology controlling for its creation and protecting transactions.
The three main types of cryptocurrency
Bitcoin was the first blockchain which allows one to make sure that it can skip one piece of information. Later came the Altcoins and later the tokens.
The idea of Bitcoin was revealed to Satoshi Nakamoto, which was also not the reality of the person as it is still unknown who is the creator of Bitcoin. Bitcoin was a huge technological movement which helped commence the beginning of a new era. Today, the price per bitcoin is $20,000, which allows you to become a millionaire with just 50 bitcoins.
Bitcoin is nothing but digital currency which can be used as a transaction for products or services. It is quite similar to how money works in our banks; the only difference is that it is digital and not physical. Bitcoin introduced the blockchain technology, which allows the users to send an receive bitcoin without the use of the third party.
Altcoins are nothing but an alternative version of bitcoin but with some minor changes. It is important to note that they have different algorithms from bitcoin. Stakers are people who verify their transaction just like miners. To verify an altcoin, it is important that you take turn by turn, which uses much less electricity as there is only one staker per block.
One can also but their very own applications with the help of Ethereum and NEO, which is one of the most common ways to get the new currencies that is created. This allows you to have an app which allows you to be made of blockchains — this a technology which is called the smart contract which can automatically execute these transactions.
This other main type of cryptocurrency which allows you to be used on the dApps which is decentralised and can be built on blockchain like Ethereum and NEO. The dApps allow you to build smart contracts which can be used as a token. This does not have to physical, which can be created to purchase things on the dApps. This is one of the great advantages which you can easily receive discounted fees and voting fees.