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An Insight over Some Different Types of Cryptocurrencies
Cryptocurrency is the most popular word in use in today’s economic society. From coffee-table conversations to news headlines, there isn’t a day we do not use or hear the term cryptocurrency.
The oil industry is essentially digital payment methods that function as digital or virtual money. This money can be bought using the real or, let us say, real money that we generally use.
Since the creation of the first cryptocurrency, bitcoin, more than 18,000 other cryptocurrencies have been created. All cryptocurrencies have their importance. With the growing interest in cryptocurrencies, people these days are keen on learning more about them. This article will discuss some types of cryptocurrencies that are popular nowadays.
Bitcoin is the most demanded and popular cryptocurrency. Bitcoin was launched in 2009, and over the years, it has established itself as one of the most acceptable investment options but simultaneously as one of the riskiest, given its prices rise as high as a newly launched rocket only to come back rolling down sooner or later.
In October 2021, Bitcoin saw its value increase to over $61,000. But, we have also seen how the value of Bitcoins fluctuates frequently. Currently, it decreased to around $28,900. Though, Bitcoin holds the largest market capitalization in the crypto market.
Another popular cryptocurrency, ether, functions based on the Ethereum Blockchain. As far as the similarity between Ether and Bitcoin goes, they both are the same kind of digital cash and most demanded cryptocurrencies, but ether operates on its Blockchain- Ethereum blockchain.
On the other hand, ether is an uncapped cryptocurrency which means an unlimited number of Ether coins can be created. In case you are unaware, the word cap refers to the limit imposed upon something. Therefore, since ether is an uncapped cryptocurrency, unlike Bitcoin, an infinite number of Ether coins can be produced.
Tether is a stable coin. Stablecoins are coins or crypto coins, to be more precise, that have less market volatility. As we know, cryptocurrencies are highly susceptible to market changes and involve a great risk factor. Stablecoins reduce the risk volatility because fiat currencies or different commodities back them. In the case of Tether, each Tether coin is supported by the US dollar, which supports it and aids in reducing volatility. Even though Ether and Tether sound like siblings, only their names are similar. Ether is not a stablecoin like Tether.
USD Coin is also often abbreviated USDC. USDC is quite similar to Tether because, just like Tether, the USDC is a stable coin. The USDC is backed by the US Dollar as well may be clear from the name of the USDC itself. However, unlike Tether, the USDC’s funding is much more transparent.
Tether is known for its opaque nature of receiving funding and is therefore always in the news because people are conflicted about the debate as to how much is Tether backed by the Dollar. Also, the USDC cannot be mined. USDC facilitates the US Dollar to circulate on the internet. You can turn the US Dollar to USDC to make an online transfer and turn USDC into the US Dollar. So, if USDC could be mined, the number of USD Dollars would also increase. So, you can’t mine USDC.
It is often abbreviated as BNB. BNB or Binance Coin was initially working on Ethereum Blockchain. But, after the creation of its own Blockchain, BNB has now become the native currency of Binance Blockchain. Its founder Changpeng Zhao is the richest person in the crypto world, with his net worth being 6500 Crores US Dollars or $96 Billion.
Binance has reduced transaction fees for its users who pay using their currency, that is, BNB. This is a smart way of luring customers as well as making people invest more in their currency. Binance understands that high transaction fees are a buzzkill for people, and therefore a simple minor reduction in the transaction fees not only motivates the people to use their platform but also invest in BNB.
Specially designed to suit cater to the needs of the finance industry and banking sectors, XRP has been famously called the “cryptocurrency for banks”. The network that supports XRP is known as the Ripple network. XRP is designed as a medium to facilitate international payments.XRP is widely used for cheaper and quicker international or global transactions.
These are the cryptocurrencies in the crypto market that are popular. If you want to invest in these currencies, especially the most famous one, bitcoin you can use the Bitcoin Era for easy and safe crypto transactions.