What Are the Main Types of Cryptocurrencies

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized and not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. As of January 2018, there were over 1,000 different cryptocurrencies in circulation. While some cryptos are designed for specific purposes, such as privacy or fast transaction speeds, the majority can be used for various purposes. In this article, we will explore the main types of cryptocurrencies.

Bitcoin

Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an anonymous person or group under Satoshi Nakamoto. Bitcoin is a decentralized currency that is not subject to government or financial institution control. Transactions are verified by a network of computers and recorded in a public ledger called a blockchain.

Ethereum

Ethereum is a cryptocurrency that was created in 2015 by Vitalik Buterin. Ethereum is similar to Bitcoin in that it is a decentralized currency that can be used to make online payments. However, Ethereum has additional features that make it unique, such as smart contracts. Smart contracts are digital contracts that can be used to automate transactions.

Litecoin

Litecoin is a cryptocurrency that was created in 2011 by Charlie Lee. Litecoin is similar to Bitcoin but with faster transaction times and lower fees. Litecoin also uses a different algorithm than Bitcoin, which makes it more resistant to ASIC mining (a type of mining that is only profitable with expensive equipment).

Monero

Monero is a cryptocurrency created in 2014 to provide privacy and security for its users. Monero uses unique features such as ring signatures and stealth addresses to make transactions private and untraceable.

Dash

Dash is a cryptocurrency that was created in 2014 as an alternative to Bitcoin. Dash offers faster transaction times, lower fees than Bitcoin, and additional features such as instant and private send (which makes transactions personal).

Zcash

Zcash is a cryptocurrency created in 2016 to provide privacy for its users. Zcash uses cutting-edge cryptography to ensure that all information related to a transaction, including the sender, receiver, and amount, is encrypted. Transactions can also be optionally shielded so that they are entirely private.

Ripple

Ripple is a cryptocurrency created in 2012 to revolutionize the global payments system. Ripple allows for fast, cheap, and reliable international payments without a central authority such as a bank or government. Ripple also has its native currency, XRP, which can be used to make payments on the Ripple network.

Stellar 

Stellar is a cryptocurrency created in 2014 to provide access to financial services for everyone, regardless of location or income level. Stellar allows for fast and cheap international money transfers using its native currency, Lumens (XLM). Stellar also offers microloans and other financial services through its partner network of banks and financial institutions.

NEO

NEO is a cryptocurrency created in 2014 to become the "smart economy" platform. NEO allows for developing smart contracts and decentralized applications (dApps). NEO also has its native currency, GAS, which can be used to pay for transactions on the NEO network.

Cardano

Cardano is a cryptocurrency created in 2015 to provide a more advanced and scalable platform for smart contracts and dApps. Cardano uses a unique proof-of-stake algorithm called Ouroboros and offers scalability, security, and interoperability features. Cardano also has its native currency, ADA, which can be used to make payments on the Cardano network.