If we talk about the word ‘cryptocurrency’ then it was only synonymous with a token; bitcoin. Bitcoin is one such crypto-coin, which is the most valuable from the last decade to the present day. There are many other coins in the crypto world, which keep trying to replace BTC. Therefore, talking about the word altcoin, its popularity has also seen a great increase. However, there are many cryptocurrencies available that see themselves as the best ‘alternative’ coins or tokens for bitcoin. For more information, you can visit the official site.
Before knowing about cryptocurrency, we will discuss coins or tokens. If you are familiar with these two words, then you probably also know that these two are different from each other. Speaking of a coin, it is generally used for payments and transactions on a decentralized platform. In addition, it is available as a digital currency. On the other hand, if we talk about a token, it is only capable of serving multiple purposes and has emerged as a digital currency here as well. Although simply put, there are many activities for which tokens can be utilized.
Best Types of Cryptocurrencies
Here we have discussed the top four different types of cryptocurrencies, so let’s take a look at them in terms of coins and tokens.
Here if we talk about Dogecoin, it was one of the meme coins coming into the crypto market, which was launched during the year 2013. Although it started as a supposed joke against bitcoin, it has emerged as one of the largest altcoins in the market. In fact, during the year 2019 Musk tweeted that he was supporting DOGE. This led to an unprecedented surge in the currency, which further rising the legitimacy of crypto. Dogecoin can also be run on a proof-of-work system, just like Bitcoin and Ethereum. In addition, unlike most cryptocurrencies, which place a fixed value on the number of coins that are minted, Dogecoin has an unlimited number of coins with a total number of around $20 billion which is the largest in the market.
2. XRP (Ripple)
Talking about XRP has emerged as a crypto coin, whose main purpose the design was to work on the Ripple network. On the other hand, Ripple has emerged as a global transfer network, it plays an important role in providing many services to international financial companies. In addition, XRP, as a digital currency, is also able to facilitate transactions on the Ripple platform.
But, unfortunately for the miners, the XRP coin cannot be mined. It relies on a node verification system to verify transactions, with a fixed supply of over 100 billion coins. This is the reason why it is considered one of the cheapest and fastest transaction times in the crypto market.
BNB was launched during the year 2017 as a crypto token to allow merchants to pay for travel, get free discounts, make payments as well as book services online with ease. In the present time, Binance Coin has turned into the biggest cryptocurrency exchange in the world. For most platforms, just BNB or Binance coins can be utilized on the Binance platform. Although the Binance platform was started on the Ethereum blockchain, it has now been migrated to the Binance platform.
Discussing bitcoin is one of the most chronic and most famous currencies in the crypto world. This currency was introduced during the year 2009 by an anonymous user name ‘Satoshi Nakamoto’. This currency has a limited number of around 21 million tokens, which could arguably be the smallest fixed cap value of the cryptocurrency bitcoin. Furthermore, Bitcoin relies entirely on blockchain technology, which can use proof of work systems to fully verify each of its transactions. All of its transactions are permanently recorded on the blockchain’s network – keeping each bitcoin valid and secure. Sadly, the PoW system expects you to have a progression of strong computers as well as enormous power utilization for each bitcoin transaction you want to confirm. The P2P consensus of bitcoin has turned into the foundation of numerous cryptocurrencies today.